100 Enterprise Drive in Newburgh, New York — Courtesy: Resource Realty of Northern New Jersey
By Joshua Burd
Demand for smaller industrial spaces is accelerating, continuing a trend that emerged in 2025 across dozens of lease and sale transactions by Resource Realty of Northern New Jersey.
In a news release this week, the brokerage firm said it completed 92 deals last year involving nearly 1.8 million square feet of commercial space. More than 50 of those transactions occurred along the Interstate 80 corridor, with small-bay spaces serving as the primary driver as demand for big-box spaces moderated alongside an influx of new deliveries.
RRNNJ also recorded significant activity across Somerset, Essex, Passaic, Warren, Ocean and Bergen counties, as well as Southern New York State.
“Last year the market experienced unquenched demand for spaces under 50,000 square feet, with a smaller tenant profile of private regional and/or local companies,” said Tom Consiglio, a founding principal of the Parsippany-based firm. “These tenants typically provide goods and services to the immediate area, so highway and roadway access remains their highest priority.”
RRNNJ’s notable midsized deals in 2025 included:
- Seven sales totaling more than 300,000 square feet
- A lease at 1155 Bloomfield Ave. in Clifton for 52,606 square feet
- A late-year surge along the western I-80 corridor, with four industrial leases totaling more than 116,000 square feet, including a 45,048-square-foot commitment in Hackettstown
“With land for new construction virtually nonexistent in core submarkets, we are seeing a heightened focus on the functional specs of existing inventory — specifically ceiling heights, loading dock ratios and trailer parking,” said Brian Wilson, a principal with the company. “In 2026, the small-bay leaders will be those owners who proactively upgrade their legacy assets to meet the sophisticated power and logistical requirements of modern regional distributors.”
Another trend mirroring the previous year is that RRNNJ-arranged renewals accounted for 35 percent of all lease transactions, the news release said.
“As we progress through 2026, vacancy rates in the small-bay sector will continue to tighten up and decrease,” Principal Greg Sabato said, noting that Urban Land Institute now ranks northern New Jersey among the top 10 markets for prospect growth in 2026.
RRNNJ also highlighted the growth of its footprint in Southern New York. That includes its role in a 125,000-square-foot renewal by FedEx Corp., at 100 Enterprise Drive in Newburgh, as well as its appointment as the exclusive leasing agent for the Newburgh South Logistics Center, a 422,000-square-foot speculative distribution center developed by Brookfield Properties.
“Southern New York State has emerged as the new frontier for larger, modern warehouse and distribution space, due in large part to the availability of developable land,” RRNNJ Principal Scott Peck said. “This region is especially attractive because of its superior highway infrastructure and Stewart Airport access, which provides immediate, high-speed connectivity to the entire Northeast corridor. The success of the FedEx renewal and the momentum at Newburgh South Logistics Center are proof that institutional developers and global tenants are still prioritizing these strategic transit hubs for their major operations.”
