PARSIPPANY — Commercial real estate professionals at Resource Realty of Northern New Jersey say the market is entering a period of stabilization in 2026, following several years of accelerated growth.
The Parsippany-based brokerage reported closing 92 transactions in 2025 totaling nearly 1.8 million square feet. More than 50 of those deals — representing 1.1 million square feet — were concentrated along the Interstate 80 corridor. Additional transactions were completed across Somerset, Essex, Passaic, Warren, Ocean and Bergen counties, as well as in southern New York State.
After what principals described as a robust 2025, the commercial market is now recalibrating.
In Northern New Jersey, the large “big box” industrial sector — buildings ranging from 100,000 to 500,000 square feet — experienced slower absorption last year due to a wave of new construction deliveries that have since plateaued. By contrast, properties under 50,000 square feet have become a primary driver of activity.
“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 Founding Principal Tom Consiglio. “These tenants typically provide goods and services to the immediate area, so highway and roadway access remains their highest priority.”
Among the firm’s notable 2025 transactions were seven sales totaling more than 300,000 square feet, a 52,606-square-foot lease at 1155 Bloomfield Avenue in Clifton, and four industrial leases along the western I-80 corridor totaling more than 116,000 square feet, including a 45,048-square-foot lease in Hackettstown.
Principal Brian Wilson noted that with land for new construction virtually non-existent in core submarkets, landlords are increasingly focused on improving existing inventory.
“We are seeing a heightened focus on functional specs — ceiling heights, loading dock ratios and trailer parking,” Wilson said. “In 2026, small-bay leaders will be those owners who proactively upgrade legacy assets to meet the sophisticated power and logistical requirements of modern regional distributors.”
The firm also reported that lease renewals accounted for 35% of its lease transactions in 2025 — another indicator of stabilization.
“As we progress through 2026, vacancy rates in the small-bay sector will continue to tighten,” said Principal Greg Sabato, noting that the Urban Land Institute ranks Northern New Jersey among the top 10 markets for projected growth in 2026.
While Northern New Jersey remains strong in smaller industrial properties, RRNNJ highlighted significant expansion activity in southern New York. This includes a 125,000-square-foot renewal for FedEx Corp. in Newburgh and the firm’s appointment as exclusive leasing agent for the 422,000-square-foot Newburgh South Logistics Center developed by Brookfield Properties.
“Resource Realty’s performance in 2025 reflects not only the strength of the Northern New Jersey industrial market, but also the strategic advantages Parsippany offers as a business hub. Their success along the Interstate 80 corridor reinforces our township’s reputation as a premier logistics and distribution center. As the market stabilizes in 2026, firms like Resource Realty play a critical role in attracting and retaining high-quality tenants, supporting property owners, and ensuring Parsippany remains competitive in an evolving commercial landscape,” stated Frank Cahill, Chairman Parsippany-Troy Hills Economic Development.
“Southern New York has emerged as the new frontier for larger, modern warehouse and distribution space,” said Principal Scott Peck, citing available developable land and strong transportation infrastructure.
Based in Parsippany, Resource Realty of Northern New Jersey provides brokerage services in sales and leasing, landlord and tenant representation, corporate advisory and investment acquisitions. All of the firm’s principals hold the SIOR designation, recognizing expertise in commercial real estate.
Thomas P. Consiglio, Principal of Resource Realty of Northern New Jersey, will be the featured guest speaker at the upcoming Parsippany-Troy Hills Economic Development Committee meeting on Thursday, April 16, at 6:30 p.m.
The meeting will be held at the offices of Parsippany Focus, 90 East Halsey Road, Suite 304, Parsippany.
Consiglio brings more than 45 years of commercial real estate experience to the discussion. Prior to forming Resource Realty in 1990, he served as a Senior Sales Consultant at Coldwell Banker Commercial in Hackensack, where he consistently ranked among the top five brokers in the New York region during his eight-year tenure. Over the course of his career, he has completed more than 600 transactions totaling in excess of $2 billion.
A graduate of Ithaca College, where he earned a Bachelor of Science degree in Marketing in 1979, Consiglio has represented a prestigious roster of clients, including United Parcel Service, The Children’s Place, Party City, Industrial Property Trust, and TA Realty Associates. His expertise spans industrial, office, and investment transactions, with a particular strength in marketing manufacturing, warehouse, and flex properties, site selection, highest and best use analysis, and investment strategy.
Consiglio is an active member of the Society of Industrial and Office Realtors and the Industrial and Office Real Estate Brokers Association. He has also served as an arbitrator for the American Arbitration Association and as an expert witness in matters of real estate valuation and environmental impact.
Those interested in attending the meeting should contact Chairman Frank Cahill at (973) 559-6000.
