MARKET WATCH. Market Highlights. Economic Indicators

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1 MARKET WATCH Third Quarter 2017 Market Highlights Office Total Inventory 364,583,007 SF Total Vacancy Rate 12.60% Average Rate $25.50 PSF Net Absorption 1,006,505 SF Industrial Total Inventory 819,657,165 SF Total Vacancy Rate 5.30% Average Rate $7.26 PSF Net Absorption 4,845,552 SF Retail Total Inventory 389,978,659 SF Total Vacancy Rate 4.90% Average Rate $21.14 PSF Net Absorption 289,264 SF Q/Q Office and Industrial Rents Continue to Rise Once again, we are seeing average industrial rents increasing over the previous quarter. Average rents rose to $7.26 PSF NNN while vacancy rates continue to drop with a third quarter vacancy rate of 5.3%. During the quarter, eight buildings totaling 1,955,030 square feet were completed and 14,052,937 square feet are under construction. One notable transaction occurred at 1 Brick Yard Road in Cranbury where Wayfair.com pre-leased 1,300,000 square feet. Office rents are also on the rise with an average rent of $25.50 PSF in the third quarter as compared to$25.30 PSF last quarter. In addition, the overall vacancy rate for office space dropped from 13.2% to 12.6% with Class A space reporting 17.1% vacancy, Class B reporting 10.6% vacancy and Class C reporting 6.8% vacancy. One of the largest transactions of the quarter was Billtrust s lease of 88,759 square feet at 1009 Lenox Drive in Lawrenceville. Economic Indicators Unemployment Rate National 4.20% New Jersey 4.70% Median Existing Home Price National $245,100 Consumer Confidence Index % 10 Year Treasury Yield 2.33% WTI Crude Oil Price $51.67 Select Sitar Transactions 3Q 2017 The acquisition of 6,272 self-storage units measuring approximately 673,558 SF of industrial space with a total sales price of $124,464,308. Prime Group Acquisitions, LLC purchased properties in Clinton, NJ; Lindenwold, NJ; Phillipsburg, NJ; Washington, NJ; Brookfield, CT; Farmington, CT; Newington, CT; New Milford, CT; Boston, MA; Hyde Park, MA; Quakertown, MA; Somerville, MA; and South Boston, MA; and Fairless Hills, PA. Bill Sitar Jr. was the salesperson in these transactions. The sale of a 36,408 sq. ft. retail center at 3 Walter Foran Boulevard, Flemington, from Arnav Investments, LLC to Flemington Partners, LLC. The sale price was $5,600,000. Giorgio Vasilis was the salesperson in this transaction. The sale of an 80-room hotel at 2015 Burlington Mount Holly Road, Westampton from 2015 Burlington Mount Holly Road, LLC to Westampton Realty, LLC. The sales price was $3,750,000. Thomas Palumbo was the salesperson in this transaction

2 Large Blocks of Absorption Third Quarter 2017 Office BillTrust 87,286 SF Hovnanian Enterprises, Inc. 70,431 SF Torre Lazur McCann 65,000 SF Industrial Wayfair, Inc. 1,346,088 SF Cascades Containerboard Packaging 451,800 SF Rema Foods 320,867 SF Retail Dick s Sporting Goods 43,459 SF Sierra Trading Post 23,361 SF HomeSense 18,668 SF 1009 Lenox Drive, Lawrenceville 190 Matawan Road, Old Bridge 3 Sylvan Way, Parsippany 1 Brick Yard Road, Building 1, Cranbury 2 Turner Place, Piscataway 2351 US Highway 130 Dayton 310 State Route 36, West Long Branch 1640 Route Terrill Road, Watchung 1640 Route Terrill Road, Watchung FEATURED LISTINGS OFFICE 24 Merchants Way Colts Neck, NJ WAREHOUSE Fifth Ave Bradley Beach, NJ RETAIL 317 Route 34 Colts Neck, NJ Please contact: Office: Ron Schrader Jr. Cell: Please contact: Office: Robert JanTausch Cell: Please contact: Office: Joe Allegro 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: 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.