MARKET WATCH Third Quarter 2015 Market Highlights Office Total Inventory 362,117,388 SF Total Vacancy Rate 14.20% Average Rate $23.84 PSF YTD Net Absorption 2,217,424 SF Industrial Total Inventory 804,336,981 SF Total Vacancy Rate 7.70% Average Rate $6.24 PSF YTD Net Absorption 2,517,847 SF Retail Total Inventory 373,104,049 SF Total Vacancy Rate 5.30% Average Rate $19.72 PSF YTD Net Absorption 1,070,048 SF Q/Q New Jersey Industrial Market Strength Continues; Retail and Office Markets are Flat The industrial market continued to lead the way across all sectors in the 3rd quarter. Rents rose from an average of $6.18 PSF to $6.24 PSF while vacancy rates edged lower from 7.9% to 7.7%. The market remains tight with positive absorption of 2.2 million square feet in the quarter. Average sales prices were $71.88 PSF, which is up from last quarter and average cap rates are 8.04%. Notable leases were Hackensack University Health Network s 432,000 square feet in Nutley and Romark Logistics 360,000 square feet in Piscataway. Meanwhile the office and retail markets remained essentially flat in the average of $19.90 PSF to $19.72 PSF, while the vacancy rate dropped two ticks down to 5.3%. Net absorption in the quarter was positive 800,000 square feet. Average sale prices were $148 PSF and cap rates were averaging 6.78%. Notable leases were signed in the American Dream Mall by Saks Fifth Avenue at 132,000 square feet and Lord and Taylor at 120,000 square feet. The office market was also flat. Vacancy rates went up one tick to 14.2%, and rents crept up a nickel to $23.84. Absorption was positive at 2.3 million square feet. The Somerset/I-78 corridor and Jersey City Gold Coast submarkets enjoyed positive leasing activity with large deals by Verizon Wireless, Valeant Pharmaceuticals and JP Morgan Chase, respectively. Average cap rates were 7.39% and average pricing was $139 PSF. Economic Indicators Unemployment Rate National 5.10% New Jersey 5.60% Median Existing Home Price National $221,900 Consumer Confidence Index 103.00% 10 Year Treasury Yield 2.06% WTI Crude Oil Price $45.06 Select Sitar Transactions 3Q 2015 The sale of a 101,318 sq. ft. industrial building at 2350 Route 34 in Wall, NJ from Wardell Family, LLC to 287 Route 34 Landlord, LLC- Madison Exchange, LLC, as Ql for 475 Oberlin Avenue South LLC,-Madison Exchange, LLC as Ql for Jackson Commercial and Industrial Properties, LLC. Robert JanTausch was the salesperson in this transaction. Three leases of 61,211 sq. ft. of office space in Freehold, NJ; Wall, NJ; and Charlotte, NC and two leases for 19,300 sq. ft. of industrial space in Chicopee, MA and Ronkonkoma, NY for NRG Home Solar. Ron Schrader Jr. was the salesperson in these transactions. The lease of 20,336 sq. ft. of office space at 1320 Wyckoff Road in Wall, NJ from Mack-Cali to The County of Monmouth. Ron Schrader Sr. was the salesperson in this transaction.
Large Blocks of Absorption Third Quarter 2015 Office JP Morgan Chase 400,000 SF Zoetis 125,445 SF Memorial Sloan Kettering 85,714 SF Industrial Office Star Products 216,049 SF Nestle 198,440 SF Atlantic USA 160,000 SF Retail Saks Fifth Avenue 131,906 SF Lord & Taylor 119,605 SF Burlington Coat Factory 62,100 SF 545 Washington Boulevard, Jersey City 10 Sylvan Way, Parsippany 225 Summit Avenue, Montvale 1 Lladro Drive, Moonachie 1041 Route 202/206, Bridgewater 397 Ferry Street, Newark American Dream Meadowlands, Carlstadt American Dream Meadowlands, Carlstadt 77-79 Willowbrook Boulevard, Wayne FEATURED LISTINGS RETAIL 1292 US Highway 9 Howell, New Jersey 07731 OFFICE 242 old New Brunswick Road Piscataway, New Jersey 08854 INDUSTRIAL 111 North Michigan Avenue Kenilworth, New Jersey 07033 Please contact: Office: 732.283.9000 William Sitar Jr. Cell: 973-202-9119 Giorgio Vasilis Cell: 732-579-7002 Please contact: Office: 732.283.9000 Rob Bogash Cell: 732-319-4680 Douglas Sitar Cell: 732-859-2144 Please contact: Office: 732.283.9000 Ronald Schrader Jr. Cell: 732-859-1781 William Sitar Jr. Cell: 973-202-9119 R E A L E S TAT E
Office: Quoted Rates by Submarket 50.0% Office: Office: Vacancy Rates by Submarket by Submarket 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Brunswick Eastern Monmouth GW Bridge Hackensack Hudson Waterfront Hunterdon Meadowlands Morristown Region Newark North 17 Corridor North Central Bergen North Edison/Woodbri. Ocean County Palisades Parkway Cranford Cor. Parsippany Passaic Rt 46/23 Passaic Urban Region Princeton North Princeton South Ramapo Route 208 Corridor Route 22 East Route 22 West Route 287 Route 3/GSP Route 4/17 Route 46 Corridor Route 78 East Route 78 West Short Hills/Millburn South Edison Southern Monmouth Suburban Essex/Rt 28. Teaneck/Ridgefield Upper Parkway Urban Essex Western Bergen Western Monmouth Western Morris
Industrial: Quoted Rates by Submarket Industrial: Vacancy Rates by Submarket R E A L E S TAT E
$40.00 Retail: Retail: Quoted Rates by Submarket by Submarket $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 Brunswick Eastern Monmouth GW Bridge Hackensack Hudson Waterfront Hunterdon Meadowlands Morristown Region Newark North 17 Corridor North Central Bergen North Edison/Woodbri. Ocean County Palisades Parkway Cranford Cor. Parsippany Passaic Rt 46/23 Passaic Urban Region Princeton North Princeton South Ramapo Route 208 Corridor Route 22 East Route 22 West Route 287 Route 3/GSP Route 4/17 Route 46 Corridor Route 78 East Route 78 West Short Hills/Millburn South Edison Southern Monmouth Suburban Essex/Rt 28. Teaneck/Ridgefield Upper Parkway Urban Essex Western Bergen Western Monmouth Western Morris Retail: Vacancy Rates by Submarket
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. 1481 Oak Tree Road - Iselin, NJ 08830 Tel: 732-283-9000 Fax: 732-283-3103 503 Washington Boulevard - Sea Girt, NJ 08750 Tel: 732-449-2000 Fax: 732-449-2828 607 Lake Avenue - Asbury Park, NJ 07712 Tel: 732-775-3000 Fax: 732-775-5520 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.