MARKET WATCH. Market Highlights. Select Sitar Transactions 2Q Economic Indicators. Second Quarter 2016

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1 MARKET WATCH Market Highlights Office Total Inventory 363,536,201 SF Total Vacancy Rate 14.10% Average Rate $24.75 PSF YTD Net Absorption (931,887) SF Industrial Total Inventory 808,435,386 SF Total Vacancy Rate 6.70% Average Rate $6.48 PSF YTD Net Absorption 5,395,385 SF Retail Total Inventory 380,029,367 SF Total Vacancy Rate 5.40% Average Rate $19.51 PSF YTD Net Absorption (459,947) SF Q/Q Second Quarter 2016 Continued Strength in the New Jersey Office and Industrial Sectors The northern New Jersey industrial market continues to strengthen as vacancy rates decrease to 6.7% for the second quarter as compared to 6.9% for the first quarter and rents continue to climb with average rents reaching $6.48 per square foot for this quarter. Some of the more notable transactions were the sale of 101 Possumtown Road, Piscataway for $125,000,000 which equates to a 4.76% cap and the lease by Amazon of +/-809,000 square feet at 380 Middlesex Avenue in Carteret and FedEx s lease of +/-695,000 square feet at Talmadge Road in Edison. The northern New Jersey office market vacancy rate remained at 14.1% while the average rents increased this quarter to $24.75 per sq. ft. as compared to $24.40 per sq. ft. for the previous quarter. Class A space reported vacancy rates of 17.3%, while Class B space was at 13.7% and Class C reported rates of 8.6%. One of the larger lease transactions was the lease renewal by Bank of America at 101 Hudson Street, Jersey City for 334,835 square feet from Mack-Cali. Economic Indicators Unemployment Rate National 4.90% New Jersey 5.10% Median Existing Home Price National $247,700 Consumer Confidence Index 98.00% 10 Year Treasury Yield 1.49% WTI Crude Oil Price $48.27 Select Sitar Transactions 2Q 2016 The lease of 15,200 SF of retail space at 231 Route 35, Eatontown by Petco Animal Supplies Stores, Inc. from LGR Associates, LP. Helena Loelius and Trista Ricciardelli were the salespeople in this transaction. The sale of 7.16 acres at 3 Ronson Road, Woodbridge from 3 Ronson Road, LLC to SAMDT for $21,000,000. Douglas Sitar, Robert Bogash, and Joseph Allegro were the salespeople in this transaction. The sale of a 26,000 SF industrial building at 18 Madison Avenue, Keyport from Semcor to SSD, LLC for $1,500,000. Douglas Sitar and Robert Bogash were the salespeople in this transaction. The sublease of 13,862 SF of office space at One Riverfront Plaza, Newark by Walsh Pizzi O Reilly Falanga, LLP from Squire Patton Boggs, LLC. William Sitar Sr. and William Sitar, Jr. were the salespeople in this transaction.

2 Large Blocks of Absorption Second Quarter 2016 Office Daichi Sankyo Pharma 301,800 SF Quest Diagnostics 130,246 SF Newell Brands, Inc. 99,960 SF Industrial TFH Publications 550,050 SF NJ-CAL Warehouse Expediters LLC 324,500 SF UPS 324,381 SF Retail Big SNOW America 180,000 SF TopGolf 65,000 SF Raymour & Flanigan 41,312 SF 211 Mount Airy Road, Basking Ridge 500 Plaza Drive, Secaucus 221 River Street, Hoboken 965 Cranbury South River Road, Monroe 26 Engelhard Drive, Monroe 100 Middlesex Center Blvd, South Brunswick American Dream Meadowlands, Carlstadt 939 US 1, Edison 165 West State Route 4, Paramus FEATURED LISTINGS RETAIL 770 Lighthouse Drive Manahawkin, NJ OFFICE 200 Centennial Avenue Piscataway, NJ INDUSTRIAL 5200 West Side Avenue North Bergen, NJ Please contact: Office: Georgio Vasilis Cell: Please contact: Office: Rob Bogash Cell: Doug Sitar Cell: Please contact: Office: William Sitar Jr. Cell: John Cranley Cell:

3 Office: Quoted Rates by Submarket Office: Vacancy Rates by Submarket

4 Industrial: Quoted Rates by Submarket Industrial: Vacancy Rates by Submarket

5 Retail: Quoted Rates by Submarket Retail: Vacancy Rates by Submarket

6 About Sitar Realty Company One of the greatest strengths of the Sitar Realty Company is our ability to offer experience and expertise in all forms of real estate brokerage. Among our specialties are office and industrial leasing and sales, property disposition, consulting for acquisitions, investments, joint ventures and asset management. We are active in tenant representation as well as owner representation for exclusive agencies. Our intimate knowledge of the New Jersey real estate market has often meant a shorter lease-up period for exclusive properties. Most of our brokerage activity takes place in the New Jersey and New York metropolitan area and Pennsylvania. Yet, our repeated success with corporations seeking space in other states has assured these firms of the Sitar Realty Company s strong brokerage network throughout the country. Time is critical in today s market. Whether the requirement is 2,000 or 800,000 square feet, Sitar Realty Company s personnel utilize the resources available to fulfill the requirement thoroughly and professionally. From site selection through data analysis, advice, negotiation, and closing, Sitar Realty Company offers a turnkey solution to each transaction. Our goal is to provide the vital services our clients need and expect in an expeditious and comprehensive manner. Sitar Realty Company Services Commercial Brokerage Leasing and Sales Investment Services Property Tax Consulting & Appeals Property Management Services Rent Receiver Services Award-Winning Research Consulting and Advisory IRA Real Estate Residential Division Sitar Realty Company Locations Sitar Realty Company specializes in servicing all real estate markets in New Jersey. The Company is headquartered in Middlesex County, New Jersey with two additional offices located in Monmouth County, New Jersey Oak Tree Road - Iselin, NJ Tel: Fax: Washington Boulevard - Sea Girt, NJ Tel: Fax: Lake Avenue - Asbury Park, NJ Tel: Fax: TCN Worldwide TCN Worldwide, a consortium of independent commercial real estate firms, provides complete integrated real estate solutions locally and internationally. With approximately $20.7 billion in annual transactions and over 80 million square feet of space under management, TCN Worldwide ranks as one of the largest service providers in the industry. Across all property types and service groups, TCN Worldwide s 1,200+ brokers and salespeople have a well-earned reputation for independent thinking and cooperative problem solving in more than 200 markets worldwide. The data collected herein has been derived from Dept. of Labor, Dept. of Commerce, The Federal Reserve, CoStar, Sitar Realty Company, U.S. Census Bureau of Labor Statistics, Port Authority of NY & NJ and NJEDA. Data may not reflect what was previously reported due to new information coming available. The information gathered is deemed reliable, but no warranty or representations are made as to the accuracy thereof and is submitted subject to any errors or omissions. The ideas and opinions expressed in this market report reflect the views of Sitar Realty Company.