Potter Anderson renews lease for North Market building until 2041

Potter Anderson, based out of 1313 North Market in Wilmington, has extended its lease by 13 years, just in time to start renovations for its upcoming 200th anniversary in the city. | PHOTO COURTESY OF POTTER ANDERSON

WILMINGTON —Potter Anderson & Corroon LLP has extended its lease on offices in downtown Wilmington for another 13 years, showing that the historic firm has no intention of leaving the city as it approaches its 200th anniversary.

Potter Anderson is one of the anchor tenants – and the largest — of Hercules Plaza at 1313 North Market Street, which has undergone significant transformation as it brought a food hall to the northern end of Wilmington’s central business district. 

“Potter Anderson has been an integral part of the Delaware legal community, and a contributor to the success of the greater Wilmington community, for nearly two centuries,” Potter Anderson Chairman Peter Walsh said in a prepared statement. “We are looking forward to the start of our next 100 years as a premier firm in Delaware.”

Signaling its confidence in the commercial market space, the law firm renewed its lease with Johnson Commercial Real Estate four years ahead of its expiration date. The extension for the 82,757-square feet of office space across two floors was negotiated by commercial real estate broker JLL.

The new deal includes plans for a redesign of the Potter Anderson office, timed to be complete in 2026 — right in time for the firm’s 200th anniversary. Those plans include redesigned suites for visiting trial teams and various improved amenities. Potter Anderson declined to comment on the cost of the project.

Chief Operating Officer Mark Price told the Delaware Business Times that the renewal made sense for the firm, outside of preparing for a landmark anniversary.

“A location in the Central Business District permits easy access to the courts, rail transportation, our colleagues at other firms, and downtown restaurants and more,” Price said. “This proximity is important not just for day-to-day work, but for those times when we host visiting clients or co-counsel.”

Despite lingering concerns about the commercial real estate market in major cities, Wilmington’s office vacancy rate is starting to stabilize and sits around 18.5%. There’s very few new buildings in the pipeline to help attract businesses with more modern buildings built after 2000 quickly lease up and hold tenants.

A prime example would be 1313 N. Market Street, with Johnson Commercial Real Estate investing millions to build out The Chancery Food Market which opened in late 2022.  So far this year, The Chancery Market has logged more than 65,000 transactions between eight food vendors and the bar.

“1313 N. Market St has seen minimal turnover and we’re proud to have been actively renewing leases, as well as signing new leases, in the last four years,” said Gaby Indellini, Johnson Commercial Real Estate marketing and communications director.

Over time, the ownership of the 1313 N. Market St. has added other features to the building, including a screening room for events as well as an upgraded outdoor seating area and green plaza. That investment is to work to retain large clients like Potter Anderson, Morris Nichols and other firms.

Next year, Johnson Commercial Real Estate plans on carrying out its master plan, which includes features like private event space at the Chancery Market, a 125-seat art house theater in the lower atrium, an upscale fitness facility and possibly a boutique hotel. New additions include a Top Golf Swing Suite, a luxury sport simulator.