6A — April 14 - 27, 2017 — Healthcare/Medical Properties — M id A tlantic

Real Estate Journal


D elaware By Tripp Way, DSM Commercial Delaware Market Rebounding Impressively

A s with many North Eastern markets, Delaware has en-

service lease rates remained relatively stagnant. Given that rental rates are not ex- periencing major changes, it is implied that there has not been, nor is there expected to be, an increase in demand for the construction of new office space. However, based on recent trends, it can be surmised that the office mar- ket will experience positive absorption in 2017. Delaware Retail: Great Real Estate = Great Tenants If you have it, they will come. If you don’t have it, but build it, they will come.

The Delaware retail mar- ket has rebounded impres- sively in the wake of the protracted recession from a few years ago. Significant vacancy levels created by the downturn rapidly evapo- rated, even with the construc- tion of a significant amount of new retail space during that time. The rapid recovery can be primarily attributed to landlord willingness to mod- ify earlier leases to provide struggling tenants the time and latitude to reestablish profitability, and secondly,

the readiness and willing- ness of municipal planners to move new projects through approval processes on an ex- pedited basis. National retailers and res- taurants have flocked to the state to join existing centers, as well as several new major projects, including an expan- sion and renovation of the Christiana Mall, and the development of large projects in Middletown and Dover. Both Middletown and Dover, once considered tertiary or middle-markets by retailers, have evolved into substantive

consumer markets and there- fore, preliminary plans point to developable retail space in these areas. Additionally, the migra- tion of retirees to Delaware, particularly Sussex County, continues to feed an already growing population that de- mands commercial goods and services. This expansive re- tail development and growth cycle throughout the state is expected to continue into the foreseeable future. By Tripp Way is manag- ing partner at DSM Com- mercial. n Public-private partnership could take over economic development A working group of business leaders and state officials sub- mitted its recommendations to Gov. Carney for a public-private partnership that would take over many of the economic de- velopment activities currently handled by the public sector. “I think this report is a very good roadmap,” said Carney, who created the working group by executive order. The report outlines a plan to shift economic development programs from public agencies, such as the Delaware Eco- nomic Development Office (DEDO) , the Delaware Eco- nomic Development Author- ity , and the Council on Devel- opment Finance , to a public- private model. The working title for this group is the Delaware Prosperity Partnership . The partnership would take over many of the tasks that now fall under DEDO. These include attracting investment, market- ing the state as a business cen- ter, recruiting fresh talent, and researching economic trends. It would also work with the county governments and other business groups, such as the Delaware Business Roundtable and the Delaware Chamber of Com- merce . Some public programs, such as small business support, work- force development, and neigh- borhood grants, would remain in DEDO’s wheelhouse. The agency would also continue to admin- ister the Delaware Strategic Funds, which offers low-interest loans and grants to businesses for redevelopment, relocation and job creation. “This should not be seen sim- continued on next page

d u r e d i t s s h a r e o f h a r d s h i p o v e r t h e last couple o f y e a r s , c u lmi n a t - ing in the expectation for an im- provement

Tripp Way

in conditions during 2017. In the last six months of 2016, while the average class A vacancy rate dropped, full

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