MARKET WATCH. Market Highlights. Select Sitar Transactions 4Q Economic Indicators. Fourth Quarter 2016

Transcription

1 MARKET WATCH Market Highlights Office Total Inventory 363,737,578 SF Total Vacancy Rate 13.80% Average Rate $24.83 PSF YTD Net Absorption 516,314 SF Industrial Total Inventory 810,511,130 SF Total Vacancy Rate 5.80% Average Rate $6.85 PSF YTD Net Absorption 11,841,590 SF Retail Total Inventory 383,536,921 SF Total Vacancy Rate 5.10% Average Rate $20.43 PSF YTD Net Absorption 829,570 SF Q/Q Fourth Quarter 2016 Average Rental Rates Continue to Rise throughout New Jersey The Northern New Jersey office market ended the quarter with average rental rates reaching $24.83 per sq. ft., which is an increase of $.10 over the last quarter. In addition, the vacancy rate decreased slightly over the third quarter of 2016 with class A space reporting a vacancy rate of 17.7%, class B reporting 12.7%, and class C space reporting a vacancy rate of 7.6%. In addition, cap rates for 2016 averaged 7.13% versus 7.45% in One of the largest transactions for 2016 was the sale of Novo Nordisk headquarters in Plainsboro for $305,000,000. This was a +/-761,000 sq. ft. office building. The average Northern New Jersey industrial rental rates increased to $6.85 per sq. ft. in the fourth quarter which is $.19 increase over the previous quarter. In addition, the average vacancy rate also decreased from 6.0% to 5.8% indicating a strong industrial market. The largest lease signed in 2016 was Wayfair.com signing a +/- 1,240,000 sq. ft. lease at Cranbury Station Park. Average retail rents also showed an increase in rents from an average of $20.15 per sq. ft. to $20.43 per sq. ft. The largest retail lease of 2016 was Big Snow America signing a +/-180,000 sq. ft. lease at the Meadowlands. Economic Indicators Unemployment Rate National 4.70% New Jersey 4.70% Median Existing Home Price National $232,200 Consumer Confidence Index % 10 Year Treasury Yield 2.45% WTI Crude Oil Price $53.75 Select Sitar Transactions 4Q 2016 The sale of a 44,000 SF warehouse/office building at 1325 Route 34, Wall from 1325 Wall LLC to Chester Lieder. The sales price was $3,100,000. Doug Sitar and Gregg Nowell were the salespeople in this transaction. The lease of 19,809 SF of office space at 1433 Route 33, Farmingdale from Mack-Cali to Northeast Remsco. Gregg Nowell was the salesperson in this transaction. The lease of 12,739 SF of industrial space at 2350 Route 34, Wall from Sudler Iorio LLC to NRG Home Solar. Ron Schrader Jr. was the salesperson in this transaction.

2 Large Blocks of Absorption Fourth Quarter 2016 Office Sharp Electronics 84,667 SF Omnicom Group 79,771 SF Fidessa 77,998 SF Industrial Modway, Inc. 635,000 SF DSV Global Transport & Logistics 507,519 SF Bob s Discount Furniture 359,965 SF Retail Sherwin Williams 25,584 SF Home Goods 22,000 SF ClubMetro USA 20,744 SF 100 Paragon Drive, Montvale 2 Harborside Place, Jersey City 70 Hudson Street, Jersey City Wyckoff Mills Road, Hightstown 1005 W. Middlesex Avenue, Port Reading 50 Middlesex Avenue, Port Reading 498 Milltown Road, North Brunswick 1026 Broad Street, Shrewsbury 2601 Highway 516, Old Bridge FEATURED LISTINGS RETAIL 513 Cookman Avenue Asbury Park, NJ LAND 3530 Route 66 Neptune, NJ INDUSTRIAL 3880 Park Avenue Edison, NJ Please contact: Office: William Sitar Jr. Cell: John Cranley Cell: Please contact: Office: Helena Loelius Cell: Trista Ricciardelli Cell: Please contact: Office: William Sitar Jr. Cell: Rob Bogash 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.