Resource Realty of Northern New Jersey is the leasing team for Logistics Center at Parsippany, a planned 140,031-square-foot facility at 8 Lanidex Plaza West in Parsippany, where delivery is slated for spring 2026. — Rendering courtesy: RRNNJ
By Joshua Burd
The industrial market in and around Morris County is bouncing back after a challenging stretch, thanks to new tenant demand and the continued appeal of its highway network and labor force.
Those are among the findings of new research by Resource Realty of Northern New Jersey, which noted that vacancy for warehouse and distribution space in the county was a healthy 4 percent at midyear, following a temporary spike in late 2024 due to nationwide supply chain issues. That’s well below the historical average of 5.4 percent, the Parsippany-based firm said, adding that it expects lease rates to grow moderately through year-end.
RRNNJ also highlighted the improvement as part of a broader trend across northern New Jersey and southern New York State, citing evolving demands from small-bay users and other tenants, plus a dynamic construction pipeline.
“We’re seeing a clear rebound across the entire spectrum of industrial properties in this corridor,” said Tom Consiglio, RRNNJ principal and founder. “While 2024 presented headwinds, the fundamental drivers of strong demand and strategic location remain in place. The market, like businesses, is adjusting.”
Principal Scott Peck added: “Trends in one market have a rippling effect into the other. We’re observing similar patterns across both areas as tenants prioritize efficiency, with larger clients opting for modern solutions and small to midsized operators seeking quality Class B or smaller square-footage spaces.”
Morris County, where RRNNJ is especially active, continues to benefit from its easy access to New York City and major corridors such as interstates 80 and 287 and routes 10, 24 and 46. That leads to sustained demand from distribution and logistics users tied to local services, a robust pharmaceutical industry and the ever-expanding ecommerce sector, as does the quality and diversification of the labor force.
“Like Morris County, industrial submarkets in New Jersey’s Essex, Hudson, Union, Bergen, Passaic, Warren and Sussex counties are showing remarkable resilience,” said Brian Wilson, a fellow principal of Resource Realty. “There’s a strong appetite for small-bay facilities, driven by the area’s diverse industries and its location to the workforce.”
RRNNJ is marketing the Logistics Center at Parsippany, a 140,031-square-foot facility at 8 Lanidex Plaza West in Parsippany, with delivery slated for spring 2026. It’s part of a substantial pipeline in Morris County that includes seven buildings with a combined 2 million square feet under construction, the firm said, noting that developers have built nearly 10.2 million square feet of new inventory in the area since 2022.
Still, the brokerage team pointed to a persisting supply-demand imbalance, with some 23 million square feet of existing industrial space in Morris County alone. New construction primarily targets larger tenants in the 70,000- to 500,000-square-foot range, creating a disconnect for spaces under 50,000 square feet, which account for most industrial transactions.
“This dislocation between new supply and the prevailing tenant size is a key consideration,” RRNNJ Principal Greg Sabato said. “Developers are building for large players, but a significant portion of the market seeks smaller, more flexible spaces. This dynamic requires thoughtful leasing strategies and enhanced tenant incentives to ensure occupancy.”
