The “service-industrial” sector is proving to be the new powerhouse of the Northern New Jersey real estate market. Resource Realty of Northern New Jersey (RRNNJ) on Wednesday announced it completed two industrial leasing transactions in Rockaway and East Hanover, highlighting a critical shift toward mid-sized “flex” spaces.
As e-commerce giants dominate massive “big-box” warehouses, a secondary market has matured for units in the 2,500 to 7,500-square-foot range. According to RRNNJ, these spaces have become the “lifeblood of the Main Street economy,” housing the essential contractors and distributors that serve the local population.
The recent deals, brokered by RRNNJ Principals Greg Sabato and Brian Wilson, underscore the strategic importance of highway access for national service brands.
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Rockaway (385 Franklin Rd): Anthony & Sylvan Pools, a major national pool builder, secured a 4,800-square-foot facility. The location was chosen for its immediate proximity to the I-80 and Route 46 corridors, allowing the company to efficiently serve customers across Morris, Sussex, and Warren counties.
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East Hanover (50 Williams Parkway): The Sabato/Wilson team negotiated a 4,000-square-foot lease renewal, representing the landlord. The high retention rate in this submarket reflects the extreme stability and strong occupancy rates typical of the East Hanover industrial pocket.
Market specialists at RRNNJ report that the industrial market is no longer just about global logistics; it is increasingly about localized service delivery. These mid-sized units offer a hybrid layout of warehouse storage and administrative office space—a combination known as “flex-property.”
“High-quality, mid-sized industrial space is a ‘must-have’ for companies that need to be within arm’s reach of their customers,” said Greg Sabato. “The activity we are seeing indicates the market is moving toward small-bay spaces that facilitate faster, more localized service.”
