Resource Realty of Northern New Jersey closes 2025 with 92 transactions

Parsippany, NJ With the calendar already reading the middle of Q1 2026, the brokerage professionals at Resource Realty of Northern New Jersey (RRNNJ) report a significant recalibration in commercial real estate markets across Northern New Jersey and Southern New York State.

Following a robust 2025, in which RRNNJ closed 92 transactions totaling nearly 1.8 million s/f, the market has shifted from the hyper-growth phase of previous years toward a period of stabilization. The firm’s activity was heavily concentrated along the I-80 corridor, with over 50 deals totaling 1.1 million s/f, which accounted for the bulk of the year’s volume. RRNNJ also recorded significant activity across Somerset, Essex, Passaic, Warren, Ocean and Bergen counties, as well as Southern New York State.

Industrial Market: Small-Bay Resilience vs. Big-Box Surplus
While the “big box” industrial sector (100,000 – 500,000 s/f) saw slower absorption across Northern New Jersey in 2025, due to an influx of new deliveries that have now plateaued, the sub-50,000 s/f market has become a primary driver of activity.

“Last year the market experienced unquenched demand for spaces under 50,000 s/f, with a smaller tenant profile of private regional and/or local companies,” said RRNNJ founding principal Tom Consiglio. “These tenants typically provide goods and services to the immediate area, so highway and roadway access remains their highest priority.”

The 2025 deal cycle mirrored this shift toward high-utility assets. Notable mid-sized activity included:
• Seven sales totaling over 300,000 s/f.
• A 52,606 s/f lease at 1155 Bloomfield Ave. in Clifton, NJ.
• A late-year surge along the western I-80 corridor, featuring four industrial leases totaling over 116,000 s/f, including a 45,048 s/f commitment in Hackettstown.

“With land for new construction virtually non-existent in core submarkets, we are seeing a heightened focus on the functional specs of existing inventory – specifically ceiling heights, loading dock ratios and trailer parking,” said principal Brian Wilson. “In 2026, the small-bay leaders will be those owners who proactively upgrade their legacy assets to meet the sophisticated power and logistical requirements of modern regional distributors.”

Another trend mirroring the previous year is that RRNNJ-arranged renewals accounted for 35 percent of all lease transactions. “As we progress through 2026, vacancy rates in the small-bay sector will continue to tighten up and decrease,” said principal Greg Sabato, noting that ULI now ranks Northern New Jersey among the Top-10 markets for prospect growth in 2026.

Southern New York: The New Frontier for Modern Logistics 
Countering the small-bay industrial trend in Northern New Jersey, RRNNJ’s footprint in Southern New York grew significantly in 2025, anchored by two major milestones in Newburgh: a 125,000 s/f FedEx Corp. renewal at 100 Enterprise Dr. and the firm’s appointment as the exclusive leasing agent for the Newburgh South Logistics Center, a 422,000 s/f speculative distribution center developed by Brookfield Properties.

“Southern New York State has emerged as the new frontier for larger, modern warehouse and distribution space, due in large part to the availability of developable land,” said principal Scott Peck. “This region is especially attractive because of its superior highway infrastructure and Stewart Airport access, which provides immediate, high-speed connectivity to the entire Northeast corridor. The success of the FedEx renewal and the momentum at Newburgh South Logistics Center are proof that institutional developers and global tenants are still prioritizing these strategic transit hubs for their major operations.”