PARSIPPANY — Colliers announced 2 Gatehall Drive, a 389,000-square-foot Class A office property is set to go up for auction on October 7-8.
The property is part of a master-planned, 58-acre corporate campus in the heart of Parsippany and has benefited from nearly $6 million in capital improvements. A tax appeal is also in process, which could reduce the property’s tax expense by approximately $600,000, adding further value to potential buyers.
Led by Vice Chair Jacklene Chesler, the Colliers team, which includes Vice President Patrick Norris, associate Jake Moss, and Director Philippe Jomphe, highlights the building’s modern three-story atrium, lifestyle amenities, and energy-efficient features—such as a 600-kilowatt backup generator, a 1.52-megawatt solar array, and a 24/7 state-of-the-art security system—as key selling points for forward-thinking businesses.
Originally built to support Big Data and technology operations, the building offers enhanced floor loads capable of accommodating high-tech equipment, making it ideal for companies requiring advanced infrastructure, according to Colliers officials.
“This property presents a unique opportunity for investors seeking stability and growth,” said Chesler. “Currently, the building is 30% leased to credit tenants including major companies such as Prudential, Siemens, and Ricoh, providing positive cash flow. There’s also a significant value-add opportunity to boost net operating income by leasing up the remaining vacant space, making it an attractive asset in today’s market.”
The property is listed on Ten-X, the world’s largest online commercial real estate marketplace. Click here for more information. Starting bid is $6,500,000.
The property boasts a wide array of amenities, including 24-hour access, controlled access, an expansive atrium, a conferencing facility, a convenience store, a fitness center, a food court, and food service options. On-site property management and security staff, as well as skylights, outdoor seating, a welcoming reception area, air conditioning, balconies, and smoke detectors, further enhance the building’s appeal. These modern conveniences, combined with Haussmannian-inspired design elements, offer tenants a well-rounded work environment.
Chesler expressed optimism about the auction’s outcome. “In just two weeks on the market, we’ve seen interest from office investors, developers, and users. The quality of the asset and the auction format are attracting different buyer types, especially those looking for a favorable price well below replacement costs.”
She added that Parsippany’s evolving market, which is surrounded by new industrial, multifamily, and retail developments, further enhances the property’s appeal. “Some of the most prominent owners and developers have already invested in Parsippany, and this property is situated to benefit from the surrounding market growth.”
“Additionally, there is a draw for the property due to the surrounding market fundamentals. This area has transformed over the years and is surrounded by new and pipeline development projects that have and continue to deliver industrial, multifamily and retail projects. This is why some of the most prominent owners and developers have invested in Parsippany.”
Located at the intersection of Routes 10 and 202, and only minutes away from Interstates 80 and 287, the property is surrounded by a vibrant, amenity-rich area that is witnessing substantial growth and development.
Among the latest developments in the area are the Whole Foods-anchored Parsippany Marketplace, PARQ Parsippany, the District at 15fifteen, and the upcoming Topgolf entertainment complex.
Recent data highlights the strength of Parsippany’s commercial and residential growth. It’s estimated over 2.5 million square feet of office space is coming offline, with properties being repositioned for industrial and multifamily use. Additionally, over 3,000 new and scheduled residential units and another estimated 500,000 square feet of proposed and approved industrial conversions are planned. This evolving landscape offers significant opportunities for businesses and investors alike.
