Parsippany in the Changing: Converting Vacant Office Space into Ratables

PARSIPPANY — Another Class A Commercial Building is disappearing from Parsippany.

The building located at Two Hilton Court, previously occupied by Daiichi Sankyo, which relocated to Basking Ridge in 2016, will be demolished and replaced with a warehouse.

Daiichi Sankyo, even though moved out in 2016 maintains the lease on the building until December 2022 and has been paying rent on the vacant building.

The building was purchased in 2020 by Onyx Equities when they purchased a large portion of the former Mack-Cali complex.

In the past year, over one million square feet of vacant office space has been eliminated from the market. Parsippany is a location, location, location town. Approximately 400,000 square feet in the Stanberry Project on Route 10; 400,000 square feet in Lanidex; Two Campus, Four Campus, and 1633 Littleton Road, and this project brings it to over one million square feet.

When Mack-Cali constructed the building in 1991 it was built to specification as a one tenant building, thus making it difficult to lease to multi-tenants, and in the current market it’s considered a “White Elephant.” The Class A office building is complete with a fitness center and restaurant and contains four floors with a total of 181,592 square feet with 726 parking spaces.

Daiichi Sankyo moving out of Parsippany

The plans submitted to the Township of Parsippany-Troy Hills indicate the current building will be demolished and replaced with a 113,000 square foot industrial building containing 102,600 square feet of warehouse and 10,800 square feet of office. The location is very convenient to Route 10 off Dryden Way with access to Route 287, Route 80, and Route 24 within minutes, thus eliminating additional traffic on Littleton Road (Route 202).

In addition in the same complex, the Parsippany-Troy Hills Zoning Board approved 2 Campus LLC., to construct a 172-unit residential building on the property located at 2 Campus Drive (Block 202, Lot 3.20); 4 Campus Drive (Block 202, Lot 3.2); and 1633 Littleton Road (Block 202, Lot 3.1).

Also, the Planning Board approved 1 Campus Associates, 3 Campus Drive, a plan to construct a total of 238 units, with 48 units of affordable housing.

In addition, Stanbery will replace two vacant office buildings at 1515 Route 10 with over 500 multi-family residential dwellings. There is also an office and retail component planned but is being delayed due to COVID-19.

Lanidex Plaza will be transformed into PARQ Parsippany which is a multi-generational, mixed-use development that will encompass townhomes, multi-family residences, retail, expansive and open green spaces, and state-of-the-art facilities.

The approved plan will be implemented in two phases. The first phase includes Multi-Family Building 1, which features 275 multi-family residences, convenience retail, indoor and outdoor amenity space, and ample parking. It will also highlight 75 clustered courtyard townhomes with two-car garages. The townhomes will feature contemporary farmhouse-style architecture with access to a clubhouse and outdoor pool. Convenient, master-down home designs are also available. An athletic field, concession building, restrooms, and playground are also included in the first phase.