AGP Executive Report

Commercial Real Estate: Wilmington’s office vacancy rate has fallen to a 20-year low, while First Industrial leased a 226,074-square-foot building in New Castle. Jobs and Business Costs: Delaware’s unemployment rate edged down for a sixth straight month, and workers’ compensation rates are set to drop 3.9%—the 10th annual decrease. Utility Bills: Delmarva Power is seeking a $75.8 million rate increase for grid upgrades, drawing criticism from Wilmington residents. Business Funding: A Delaware settlement with the DuPont Trust is set to provide $950 million for grants. Housing: Delaware’s Justice Department warned mobile-home park owners over steep lot-rent increases.

Banking: WSFS reported third-quarter core earnings per share of $1.75, up 25% year over year. Loans grew 5% at an annualized rate, and wealth and trust fees climbed 30%, while deposits fell 3% from the prior quarter. Commercial Property: Wilmington’s office vacancy rate has fallen to a 20-year low, pointing to a downtown market rebound. Energy Costs: Delmarva Power’s proposed rate increase has risen from $68 million to $75 million; a Lewes hearing drew no public speakers, and written comments are due Nov. 4. Local Investment: A 7-Eleven and fuel station is taking shape at Kent County’s Asbury Square, with an opening planned for spring 2027. Economic Outlook: Delaware’s unemployment rate fell for a sixth straight month. Corporate Law: Delaware’s Court of Chancery ruled Verisk must pursue its $2.35 billion AccuLynx deal. State Grants: A settlement involving Delaware and the duPont Trust is set to fund $950 million in grants.

Kent County Growth: A 7-Eleven with a fuel station is under construction at Asbury Square near DE Turf, adding to the development’s hotel and wine store. It is expected to open in spring 2027. Utility Rates: No members of the public spoke at a Lewes hearing on Delmarva Power’s proposed rate increase, now $75 million. Written comments are due Nov. 4. Jobs and Offices: Delaware’s unemployment rate fell for a sixth straight month, while Wilmington’s office vacancy rate reached a 20-year low, signaling a stronger local employment and commercial property market. State Funding: A $950 million settlement involving Delaware and the duPont Trust will fund grants. Business Costs: Delaware workers’ compensation insurance rates are set to fall for the 10th consecutive year.

Manufactured Housing: Delaware’s Department of Justice warned mobile-home park owners not to combine rent-increase methods or raise lot rents more than once in a 12-month period. Dealmaking: The Delaware Supreme Court upheld a ruling requiring Verisk Analytics to keep pursuing its $2.35 billion AccuLynx acquisition and close if regulators approve it. Wilmington Offices: The local office market is rebounding, with vacancy at a 20-year low. Utility Costs: Delmarva Power is seeking a $75.8 million rate increase for grid upgrades, adding pressure on households and businesses. Business Support: Delaware workers’ compensation rates will fall 3.9%—the 10th consecutive annual decrease—and the state added Verizon’s broadband expansion project to its JobsFirst Accelerator. Investment: A settlement involving Delaware and the duPont Trust will fund $950 million in grants.

Corporate Deal: Delaware’s Supreme Court upheld an order requiring Verisk to keep pursuing its $2.35 billion AccuLynx acquisition and close if regulators approve it. Office Market: Wilmington’s office vacancy rate fell to 15.9% in the third quarter, its lowest level in two decades, as businesses took up more space and leasing strengthened. Utility Costs: Delmarva Power is seeking a $75.8 million rate increase for grid upgrades, renewing concerns about higher electricity costs for households and businesses. Small Business: Delaware launched a pilot to coordinate inspections for new businesses, aiming to simplify the startup process; the state also added a Verizon broadband project to its JobsFirst accelerator. Workplace Costs: Workers’ compensation rates will drop 3.9%, marking a tenth straight annual decrease. Property Taxes: A New Castle County review linked reassessment problems to a 40-year gap in commercial property assessments, as the county continues handling thousands of appeals.

Utility Costs: Delmarva Power is seeking a $75.8 million rate increase for grid upgrades as Delaware officials push for a review of the utility’s profits, putting household and business power bills in focus. Sallie Mae: The Newark-based lender reported a third-quarter net loss of $32.3 million, or 19 cents a share, and revenue of $616.5 million; both results fell short of analyst expectations. Broadband Investment: Delaware is pairing Verizon’s federal broadband funding with its JobsFirst Accelerator to connect more than 2,000 homes, aiming to speed construction and expand access for businesses. Rail and Agriculture: Delmarva Central Railroad received a $10.1 million federal grant for track upgrades between Harrington and Bridgeville, improving freight service and preparing for a major Mountaire facility. Employer Costs: Delaware workers’ compensation insurance rates will fall 3.9%, marking a tenth straight annual decrease.

Utility Costs: Delmarva Power is seeking a $75.8 million rate increase for grid upgrades that could add about $8 a month to residential bills. Delaware regulators must decide by Dec. 9. Manufacturing: Apple is expanding its work with Delaware-based Qnity Electronics, which will make advanced films in the U.S. for the iPhone 18 Pro camera system, as part of a broader push to strengthen domestic supply chains. Workers’ Compensation: Delaware insurance rates are set to fall 3.9%, marking a tenth straight annual decrease and easing costs for employers. Small Business: The state has launched a pilot to coordinate inspections for new businesses, aiming to streamline the process for entrepreneurs. Local Innovation: Delaware startup Heatbit has opened preorders for a water-heater component that also mines Bitcoin, with shipments expected in early 2027.

Utility Costs: Wilmington residents sharply criticized Delmarva Power’s proposed $75.8 million rate increase, while the company said rising electricity-generation costs—not its delivery rates—are driving bills higher. Gov. Matt Meyer is backing a review of how regulators set utility profits. Airport Expansion: Velocity Maintenance is tripling its hangar space at Wilmington Airport, adding capacity for aircraft maintenance and repairs; the expanded facility is expected to be fully operational by Nov. 1. Business Taxes: Fresh coverage of Delaware’s HB 400 highlights concerns that higher annual taxes and fees on LLCs and other businesses could weaken the state’s competitiveness, especially for smaller firms. Insurance Costs: Delaware workers’ compensation insurance rates are set to fall for a tenth straight year, offering employers some relief.

Aviation Growth: Velocity Maintenance is more than doubling its Wilmington Airport hangar space to 40,000 square feet, with the expanded facility expected to be fully operational by Nov. 1. The Bombardier subsidiary says upgrades supported by the Delaware River and Bay Authority will enable added repair capabilities. Delaware Suppliers: Apple expanded its agreement with Delaware-based Qnity Electronics, which makes films for the iPhone 18 Pro camera system, as the company grows its U.S. manufacturing network. Business Costs: Delaware workers’ compensation insurance rates are set to fall for a 10th straight year, offering employers another year of lower premiums. Small Business: Gov. Matt Meyer launched a pilot to coordinate inspections for new businesses, aiming to simplify the startup process. Utility Bills: The state’s Public Advocate asked regulators to review how utilities’ profits are set, a model that accounts for more than 10% of a typical electric bill. State Finances: Delaware’s latest revenue forecast points to a stronger budget outlook.

Corporate Restructuring: Getty Images has begun Chapter 11 proceedings in Delaware as part of a debt restructuring that would take the company private. It expects to complete the process by year-end and says operations will continue normally. Small Business: Gov. Matt Meyer launched a pilot to coordinate inspections for new businesses, aiming to make the startup process easier. Jobs and Broadband: Verizon’s broadband project was added to Delaware’s Jobsfirst Accelerator Program, linking a major internet-access initiative with the state’s workforce effort. Energy Development: Sussex County approved three solar-array applications as council members called for possible limits to protect farmland. State Finances: Delaware’s latest revenue forecast offers a boost to the budget outlook.

Business Taxes: Delaware’s House passed a tax and fee increase for LLCs and other businesses by the minimum required margin, 25 votes. The State Chamber warned higher costs could hurt startups and the state’s competitiveness. Apple Supply Chain: Delaware-based Qnity Electronics will make advanced films for the iPhone 18 Pro camera under Apple’s expanded U.S. manufacturing program. Broadband Investment: Verizon’s $43.3 million BEAD project, added to the state’s JobsFirst permitting program, aims to connect more than 2,000 Delaware homes and businesses. Utility Costs: Delmarva Power is seeking a $75.8 million rate increase; the company estimates an average residential bill would rise about $8 a month. Employer Costs: Delaware workers’ compensation rates are set to fall for a tenth straight year, with average loss costs down 3.99% in the voluntary market starting Dec. 1. Small Business Permits: The state’s new joint inspection pilot is designed to coordinate reviews and help new businesses open sooner.

State Budget: Delaware’s latest forecast adds $188 million to expected fiscal 2027 revenue and $363 million for fiscal 2028, lifting the projected spending limit to $7.97 billion. Officials caution that economic and geopolitical shifts could change the outlook. Small-Business Launches: Gov. Matt Meyer’s new pilot gives prospective owners one coordinated route through state applications and pre-opening inspections, aiming to cut delays without removing safety requirements. Corporate Litigation: Albertsons’ $24.6 billion lawsuit against Kroger is underway in Delaware Chancery Court. Albertsons says Kroger failed to do enough to win approval for their merger; Kroger argues regulators would have blocked it regardless. Manufactured-Housing Rents: Delaware’s Department of Justice warns community owners not to combine inflation-based and market-rate rent increases in the same year, and urges those who did so to correct course.

Small-Business Rules: Delaware has launched a coordinated inspection pilot to help new businesses navigate permits and pre-opening checks through one process, replacing a patchwork of agency applications. Housing Costs: Dover’s new sprinkler mandate for newly built homes is drawing opposition from builders and affordable-housing advocates, who warn systems could add thousands of dollars to construction costs. Transportation Funding: Delaware is weighing fares or a change in operator for the Woodland Ferry, which costs about $755,000 a year and carries an average of 87 vehicles daily. Business Litigation: Albertsons is seeking at least $8 billion from Kroger in a Delaware Chancery Court trial over their failed merger, including a $600 million breakup fee. Local Investment: Velocity Maintenance Solutions is expanding its hangar facilities at Wilmington Airport, adding capacity for aviation operations. Employer Compliance: Delaware’s updated privacy law takes effect in January 2027, tightening rules on employers’ use of AI and profiling in workplace decisions.

Delaware Courtroom: Albertsons is seeking about $8 billion from Kroger in a Delaware trial over the failed supermarket merger, alleging Kroger did not do enough to secure approval. Wilmington’s AI Case: Character.AI filed for Chapter 11 in Wilmington, with Disney proposing a $20 million technology license and plans to hire much of the startup’s engineering team while leaving its liabilities behind. Local Investment: Velocity Maintenance Solutions announced a major expansion of its hangar facilities at Wilmington Airport, a potential boost for the airport’s business activity. Life Sciences: Wilmington-based Incyte plans to present new oncology data at a European medical conference, including findings from experimental cancer treatments. Public Costs: Delaware is weighing a minimum property tax and higher water bills to help close a budget gap, changes that could affect households and businesses. Coastal Commerce: A ferry partnership is steering fall visitors toward coastal businesses, while Rehoboth’s jazz festival is also drawing crowds that support local commerce.

Corporate Deal: Disney’s proposed Character.AI deal in Delaware bankruptcy court would pay $20 million for a technology license and spend about $180 million over three years hiring and retaining staff, while leaving the startup’s liabilities behind. Skilled Hiring: Sussex County professional and technical services employers filed 14 H-1B petitions in 2025; 12 were approved. Airport Investment: Velocity Maintenance Solutions announced a major expansion of its hangar facilities at Wilmington Airport. Health Care: Bayhealth unveiled expansion projects in Kent and Sussex counties. Coastal Business: Dewey Beach officials are advancing an ordinance to keep bar closing time at 1 a.m., citing pressure on police, EMS and other public-safety resources from late-night crowds.

Aviation Growth: New Castle-based Velocity Maintenance Solutions is expanding at Wilmington Airport, moving into a 75,000-square-foot facility that will double its hangar footprint. The aircraft-services company expects to add technicians and other workers over the next 12 to 18 months. Health Care Investment: Bayhealth outlined projects totaling at least $373.7 million, including a Dover campus expansion and a new hybrid emergency room; most are expected to be operating by 2029. Separately, Delaware set aside $1.38 million to recruit and retain physicians in rural Kent and Sussex counties. Local Costs: Delaware is considering a minimum property tax and higher water bills as officials seek to close a budget gap.