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Parsippany demolished 2 million square feet of office space. Here's what will replace it

Parsippany demolished 2 million square feet of office space. Here's what will replace it

USA Today06-02-2025
Parsippany demolished 2 million square feet of office space. Here's what will replace it
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Drone video of ParQ, development of over 600 residential units: Video
ParQ residential community in Parsippany consists of over 600 units, including luxury apartments, townhomes and affordable rental units.
PARSIPPANY — While the controversy − and legal battles − heat up over New Jersey's affordable housing mandate, an explosion of construction work is already transforming the landscape of Morris County's largest municipality.
A tour of township sites in early February found demolition and site clearings underway at several vacant office properties, while new buildings rise on land already razed. Around Parsippany, no less than a dozen developments are proceeding, including several at the former Mack-Cali campus off routes 10 and 202.
More than 2 million square feet of office space in the township has fallen to the wrecking ball over the last two years, according to tax assessment records. In its place, almost 2,300 housing units have either been planned or added, with several warehouses and other commercial properties under construction as well.
Parsippany leaders see progress in the building boom: It's replacing dormant facilities with revenue-generating projects, according to Mayor James Barberio and his allies on the township council. Critics − including Councilman Justin Musella, who's challenging Barberio in this year's Republican primary − worry about added density, traffic and student enrollments in a town that has already warned about overcrowding in the schools.
The five largest residential redevelopments already under construction in town total 1,799 new units, with two more approved projects representing 489 units.
The town also has approved warehouses at six other sites. Town officials note that type of redevelopment should generate more tax ratables without adding more students, though some caution about potential impacts on traffic and pollution.
Affordable housing debate continues
A portion of the construction is the result of the town's need to fulfill the Mount Laurel Doctrine, a landmark set of court rulings that require New Jersey towns to provide their "fair share" of low- and moderate-income housing. Last month, a state Superior Court judge in Mercer County denied a request by more than two dozen municipalities, including Parsippany, to pause implementation of legislation passed last year to speed enforcement of the mandate.
The plaintiff towns vowed to continue their appeals. Meanwhile in Parsippany, the knocking down and building up is in full gear.
Here's a look at major projects in town nearly completed, underway or on the drawing boards:
This mixed-use housing and shopping development replacing two buildings along Route 10 South recently erected an electronic sign on the highway announcing leasing is underway and the first occupants will be "arriving early 2025." The sign also advertises retail opportunities. Expect the first residents to move in later this year, while construction on future phases continues.
Monthly rental rates listed on the project website for units available next month range from $2,552 for a one-bedroom studio apartment to $4,143 for a 2-bedroom, 2-bath apartment
500 PARQ
The first phase of this massive project replacing seven office buildings in the Lanidex Plaza off Parsippany Road opened in June. 500 PARQ consists of 276 apartments on six floors. Future phases should bring the total to 600 more units, including townhomes, plus a small retail component. Rents range from $2,700 to $4,200 monthly with extra fees for utilities, parking and pets.
Citizen Parsippany
Both of the two four-story buildings off Upper Pond Road in the Morris Corporate Center were slated to open last year, with a total of 325 residential units. But the property remains under construction. Developer Accurate Builders did not return messages seeking updates.
Mack-Cali Campus
Construction is underway for two residential developments just off Route 202 in the former Mack-Cali corporate campus. Both are replacing demolished office buildings. The project at 2 Campus Drive will have 138 units. A larger building at 3 Campus Drive will have 238.
More: North Jersey's development boom is expected to continue into 2025. What's in store
Parsippany warehouse projects
While a national warehouse boom fueled by the rise of e-commerce appears to have plateaued, construction continues in Parsippany.
A January report from the real estate services firm Cushman & Wakefield put the warehouse vacancy rate in northern and central New Jersey for the end of 2024 at 9%, the highest since the first quarter of 2013. The report cited the surge of new building combined with economic uncertainty over the impact of President Donald Trump's proposed tariffs on Canada, Mexico and China.
2 Hilton Court: A 113,000-square foot office building last occupied by Daiichi Sankyo in 2016 was demolished last year to make way for a new 103,000-square-foot warehouse. Site clearing continues to progress at the 10.1-acre property ahead of construction. No completion date was available.
Lanidex LLC warehouse: The town council last year approved a project to replace a long-vacant building in the Lanidex West office park off Parsippany Road, despite vocal objections from neighboring residents worried about truck traffic and the warehouse's proximity to an elementary school. Demolition was ongoing as of February 4.
Pomeroy Road: The town approved a developer deal in 2023 to replace vacant office space on this 9.1-acre site abutting Route 287. The planning board in December unanimously approved a preliminary and final major site plan, clearing another hurdle.
299 Jefferson Road: Another redevelopment project was approved in 2023 for the office building corridor along Jefferson Road, which is slated for a 106,00-square-foot warehouse. A website for the project states occupancy will begin in the fall.
Projects still to come
Additional Parsippany redevelopments awaiting or recently approved include 489 more residential units, another warehouse and a fitness center.
6 Sylvan Way-7 Campus Drive: A redevelopment plan for these abutting properties covering 19 acres in the Mack-Cali campus was approved in late 2023. Initial demolition work recently began for the mixed-use project, which will include 239 residential units, a Lifetime Fitness facility, 114,000 square feet of warehouse space and about 6,000 square feet of offices.
1500 Littleton Road: The former headquarters of pharmaceutical company GlaxoSmithKline, across the road from the Mack-Cali campus, was demolished in 2023. Work to build 250 age-restricted units there is in progress.
State housing mandate
The development and redevelopment wave in New Jersey is driven largely by the state housing mandate, which dates back to the original Mount Laurel ruling in 1975 and has been upheld by the state Supreme Court in subsequent legal battles over the years.
The latest calculations by the state Department of Community Affairs estimate that municipalities, many of them in North Jersey, need to allow for the construction of 85,000 more units over the next decade, along with the renovation of 65,000 existing residences.
Parsippany's "present need" commitment calls for refurbishing 138 affordable homes. Its "prospective need" requires the construction of 553 additional units, according to the state. Failure to accommodate developers willing to commit 15% to 20% of their proposed new units to low- and moderate-income tenants can expose a municipality to a "builder's remedy" lawsuit in which the courts could permit the developer to build as they wish.
A new bill in the state Senate, sponsored by Sen. Troy Singleton, would authorize the conversion of certain office parks and retail centers to mixed-use developments, which can include residential units, if the vacancy rate drops below 40%.
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