PARSIPPANY – The Logistics Center at Parsippany, a 140,031-square-foot industrial facility located at 8 Lanidex Plaza West, is set to deliver beginning of 2026 and stands as a marquee project in Morris County’s revitalized industrial landscape. Marketed by Parsippany-based Resource Realty of Northern New Jersey (RRNNJ), the site exemplifies the region’s ongoing rebound from 2024’s supply chain challenges and underscores the growing demand for strategically located logistics space.
The new facility is part of a broader 2 million square feet of industrial product currently under construction in Morris County, contributing to a cumulative 10.2 million square feet delivered in Northern New Jersey since 2022. According to RRNNJ, this construction surge signals strong confidence in the industrial market’s fundamentals, even as it continues to evolve in response to shifting tenant demands.
“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.”
“This project is a great example of smart redevelopment,” said Frank Cahill, Chairman of the Parsippany-Troy Hills Economic Development Committee. “By transforming a long-vacant office building into a modern logistics facility, we’re not only revitalizing underused space but also preserving the character of the community. This site could have easily turned into high-density multifamily housing, but instead it’s creating jobs, boosting our tax base, and meeting the growing demand for industrial space in a way that aligns with Parsippany’s long-term vision.”
Parsippany: A Regional Anchor
Parsippany remains a key industrial hub, benefiting from exceptional highway access via I-80, I-287, and Routes 10, 24, and 46, as well as proximity to the New Jersey Turnpike, Garden State Parkway, and critical infrastructure like the Port of New York and New Jersey and Newark Liberty International Airport. These logistical advantages, combined with a robust local labor force and presence of pharmaceutical and e-commerce industries, position the county as a bellwether for regional performance.
“Like Morris County, industrial submarkets in Essex, Hudson, Union, Bergen, Passaic, Warren, and Sussex counties are showing remarkable resilience,” noted Principal Brian Wilson. “There’s a strong appetite for small-bay facilities, driven by the area’s diverse industries and its access to skilled workers.”
Despite a brief spike in vacancy rates in late 2024, Morris County’s industrial vacancy rate now sits at a healthy 4 percent—well below the historical average of 5.4 percent. Lease rates are expected to grow moderately through the remainder of 2025.
Navigating Supply-Demand Mismatches
While industrial development remains strong, RRNNJ notes a continuing disconnect between supply and tenant demand. New construction tends to focus on facilities in the 70,000–500,000 square foot range, leaving a shortage of spaces under 50,000 square feet—where most leasing activity occurs.
“This dislocation between new supply and the prevailing tenant size is a key consideration,” said RRNNJ Principal Greg Sabato. “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.”
Outlook: A Market in Transition
The industrial market across Northern New Jersey and Southern New York State is undergoing a period of adjustment. As tenants seek modern, efficient spaces—whether large-scale distribution centers or smaller, flexible units—demand continues to drive opportunity.
“The Logistics Center at Parsippany is a clear example of where the market is headed,” said Principal Scott Peck. “Modern, well-located assets like this are essential to support the next wave of growth.”
With construction booming, vacancy tightening, and tenant preferences evolving, RRNNJ anticipates a continued period of strategic development and healthy market activity—anchored by projects like the Logistics Center and a deepening demand for space that supports the region’s economic engine.
