CoStar Industrial Statistics T h i r d Q u a r t e r 2 0 1 7
Third Quarter 2017 Long Island Table of Contents Table of Contents................................................................. A Methodology...................................................................... B Terms & Definitions................................................................ C Market Highlights & Overview........................................................ 1 CoStar Markets & Submarkets........................................................ 4 Inventory & Development Analysis..................................................... 5 Inventory & Development Analysis Select Top Deliveries Select Top Under Construction Properties Figures at a Glance................................................................. 9 Figures at a Glance by Building Type & Market Figures at a Glance by Building Type & Submarket Historical Figures at a Glance Leasing Activity Analysis............................................................ 13 Select Top Lease Transactions Sales Activity Analysis.............................................................. 15 Sales Activity Analysis Select Top Sales Transactions Analysis of Individual CoStar Submarket Clusters........................................ 17 Brooklyn Market Central Suffolk Market Eastern Suffolk Market Nassau Market Queens Market Staten Island Market Western Suffolk Market 2017 CoStar Group, Inc. CoStar Industrial Statistics A
Long Island Third Quarter 2017 Methodology The CoStar Industrial Statistics calculates Industrial statistics using CoStar Group's base of existing, under construction and under renovation Industrial buildings in each given metropolitan area. All Industrial building types are included, including warehouse, flex / research & development, distribution, manufacturing, industrial showroom, and service buildings, in both single-tenant and multi-tenant buildings, including owner-occupied buildings. CoStar Group's global database includes approximately 95.6 billion square feet of coverage in 4.4 million properties. All rental rates reported in the CoStar Industrial Report are calculated using the quoted rental rate for each property. For information on subscribing to CoStar s other products and services, please contact us at 1-877-7COSTAR, or visit our web site at www.costar.com Copyright 2017 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or completeness of the information. The publication is provided as is and CoStar expressly disclaims any guarantees, representations or warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. CoStar Group, Inc. 1331 L ST NW Washington, DC 20005 (800) 204-5960 www.costar.com NASDAQ: CSGP B CoStar Industrial Statistics 2017 CoStar Group, Inc.
Third Quarter 2017 Long Island Terms & Definitions Availability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet. Available Space: The total amount of space that is currently being marketed as available for lease in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Build-to-Suit: A term describing a particular property, developed specifically for a certain tenant to occupy, with structural features, systems, or improvement work designed specifically for the needs of that tenant. A build-to-suit can be leased or owned by the tenant. In a leased build-to-suit, a tenant will usually have a long term lease on the space. Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset. Cap Rate: Short for capitalization rate. The Cap Rate is a calculation that reflects the relationship between one year s net operating income and the current market value of a particular property. The Cap Rate is calculated by dividing the annual net operating income by the sales price (or asking sales price). CBD: Abbreviation for Central Business District. (See also: Central Business District) Central Business District: The designations of Central Business District (CBD) and Suburban refer to a particular geographic area within a metropolitan statistical area (MSA) describing the level of real estate development found there. The CBD is characterized by a high density, well organized core within the largest city of a given MSA. Class A: A classification used to describe buildings that generally qualify as extremely desirable investment-grade properties and command the highest rents or sale prices compared to other buildings in the same market. Such buildings are well located and provide efficient tenant layouts as well as high quality, and in some buildings, one-ofa-kind floor plans. They can be an architectural or historical landmark designed by prominent architects. These buildings contain a modern mechanical system, and have above-average maintenance and management as well as the best quality materials and workmanship in their trim and interior fittings. They are generally the most attractive and eagerly sought by investors willing to pay a premium for quality. Class B: A classification used to describe buildings that generally qualify as a more speculative investment, and as such, command lower rents or sale prices compared to Class A properties. Such buildings offer utilitarian space without special attractions, and have ordinary design, if new or fairly new; good to excellent design if an older non-landmark building. These buildings typically have average to good maintenance, management and tenants. They are less appealing to tenants than Class A properties, and may be deficient in a number of respects including floor plans, condition and facilities. They lack prestige and must depend chiefly on a lower price to attract tenants and investors. Class C: A classification used to describe buildings that generally qualify as no-frills, older buildings that offer basic space and command lower rents or sale prices compared to other buildings in the same market. Such buildings typically have below-average maintenance and management, and could have mixed or low tenant prestige, inferior elevators, and/or mechanical/electrical systems. These buildings lack prestige and must depend chiefly on a lower price to attract tenants and investors. Construction Starts: Buildings that began construction during a specific period of time. (See also: Deliveries) Contiguous Blocks of Space: Space within a building that is, or is able to be joined together into a single contiguous space. Deliveries: Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certificate of occupancy must have been issued for the property. Delivery Date: The date a building completes construction and receives a certificate of occupancy. Developer: The company, entity or individual that transforms raw land to improved property by use of labor, capital and entrepreneurial efforts. Direct Space: Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased. Existing Inventory: The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation. Flex Building: A type of building designed to be versatile, which may be used in combination with office (corporate headquarters), research and development, quasi-retail sales, and including but not limited to industrial, warehouse, and distribution uses. A typical flex building will be one or two stories with at least half of the rentable area being used as office space, have ceiling heights of 16 feet or less, and have some type of drive-in door, even though the door may be glassed in or sealed off. Full Service Rental Rate: Rental rates that include all operating expenses such as utilities, electricity, janitorial services, taxes and insurance. Gross Absorption: The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing Activity, which is the sum of all space leased over a certain period of time. Unless otherwise noted Gross Absorption includes direct and sublease space. Growth in Inventory: The change in size of the existing square footage in a given area over a given period of time, generally due to the construction of new buildings. Industrial Building: A type of building adapted for such uses as the assemblage, processing, and/or manufacturing of products from raw materials or fabricated parts. Additional uses include warehousing, distribution, and maintenance facilities. The primary purpose of the space is for storing, producing, assembling, or distributing product. Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the owner/landlord is referred to as the Landlord Rep. Leased Space: All the space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease. Leasing Activity: The volume of square footage that is committed to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings. Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are building-type specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets) Multi-Tenant: Buildings that house more than one tenant at a given time. Usually, multi-tenant buildings were designed and built to accommodate many different floor plans and designs for different 2017 CoStar Group, Inc. CoStar Industrial Statistics C
Long Island Third Quarter 2017 tenant needs. (See also: Tenancy). Net Absorption: The net change in occupied space over a given period of time. Unless otherwise noted Net Absorption includes direct and sublease space. Net Rental Rate: A rental rate that excludes certain expenses that a tenant could incur in occupying office space. Such expenses are expected to be paid directly by the tenant and may include janitorial costs, electricity, utilities, taxes, insurance and other related costs. New Space: Sometimes called first generation space, refers to space that has never been occupied and/or leased by a tenant. Occupied Space: Space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant. Office Building: A type of commercial building used exclusively or primarily for office use (business), as opposed to manufacturing, warehousing, or other uses. Office buildings may sometimes have other associated uses within part of the building, i.e., retail sales, financial, or restaurant, usually on the ground floor. Owner: The company, entity, or individual that holds title on a given building or property. Planned/Proposed: The status of a building that has been announced for future development but not yet started construction. Preleased Space: The amount of space in a building that has been leased prior to its construction completion date, or certificate of occupancy date. Price/SF: Calculated by dividing the price of a building (either sales price or asking sales price) by the Rentable Building Area (RBA). Property Manager: The company and/or person responsible for the day-to-day operations of a building, such as cleaning, trash removal, etc. The property manager also makes sure that the various systems within the building, such as the elevators, HVAC, and electrical systems, are functioning properly. Quoted Rental Rate: The asking rate per square foot for a particular building or unit of space by a broker or property owner. Quoted rental rates may differ from the actual rates paid by tenants following the negotiation of all terms and conditions in a specific lease. RBA: Abbreviation for Rentable Building Area. (See also: Rentable Building Area) Region: Core areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are further divided into market areas, called Markets. (See also: Markets) Relet Space: Sometimes called second generation or direct space, refers to existing space that has previously been occupied by another tenant. Rentable Building Area: (RBA) The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant s rental obligation. Generally RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets. Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis. Sales Price: The total dollar amount paid for a particular property at a particular point in time. Sales Volume: The sum of sales prices for a given group of buildings in a given time period. Seller: The individual, group, company, or entity that sells a particular commercial real estate asset. SF: Abbreviation for Square Feet. Single-Tenant: Buildings that are occupied, or intended to be occupied by a single tenant. (See also: Build-to-suit and Tenancy) Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space. Submarkets: Specific geographic boundaries that serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within (See also: Market). Suburban: The Suburban and Central Business District (CBD) designations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all office inventory not located in the CBD. (See also: CBD) Tenancy: A term used to indicate whether or not a building is occupied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant) Tenant Rep: Tenant Rep stands for Tenant Representative. In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the tenant is referred to as a Tenant Rep. Time On Market: A measure of how long a currently available space has been marketed for lease, regardless of whether it is vacant or occupied. Under Construction: Buildings in a state of construction, up until they receive their certificate of occupancy. In order for CoStar to consider a building under construction, the site must have a concrete foundation in place. Abbreviated UC. Vacancy Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations. Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done, would also be considered vacant space. Weighted Average Rental Rate: Rental rates that are calculated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Unless specifically specified otherwise, rental rate averages include both Direct and Sublet available spaces. Year Built: The year in which a building completed construction and was issued a certificate of occupancy. YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied. D CoStar Industrial Statistics 2017 CoStar Group, Inc.
Overview Third Quarter 2017 Long Island Long Island s Vacancy Increases to 4.1% Net Absorption Negative (1,055,622) SF in the Quarter The Long Island Industrial market ended the third quarter 2017 with a vacancy rate of 4.1%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (1,055,622) square feet in the third quarter. Vacant sublease space decreased in the quarter, ending the quarter at 561,648 square feet. Rental rates ended the third quarter at $15.87, an increase over the previous quarter. A total of four buildings delivered to the market in the quarter totaling 87,952 square feet, with 354,243 square feet still under construction at the end of the quarter. Absorption Net absorption for the overall Long Island Industrial market was negative (1,055,622) square feet in the third quarter 2017. That compares to negative (321,217) square feet in the second quarter 2017, negative (899,056) square feet in the first quarter 2017, and negative (767,254) square feet in the fourth quarter 2016. Tenants moving out of large blocks of space in 2017 include: Icon moving out of (198,712) square feet at 123 Smith St, Sheralven Enterprises LTD moving out of (182,047) square feet at 360 Moreland Rd, and Big Geyser Inc moving out of (175,000) square feet at 5765 48th St. Tenants moving into large blocks of space in 2017 include: Gelberg Braid moving into 85,000 square feet at Sequins Warehouse, CEVA Logistics moving into 66,474 square feet at International Airport Ctr - Bldg B, and rsquared moving into 50,000 square feet at 100 Heartland Blvd. The Flex building market recorded net absorption of positive 113,674 square feet in the third quarter 2017, compared to negative (18,242) square feet in the second quarter 2017, negative (323,905) in the first quarter 2017, and negative (184,435) in the fourth quarter 2016. The Warehouse building market recorded net absorption of negative (1,169,296) square feet in the third quarter 2017 compared to negative (302,975) square feet in the second quarter 2017, negative (575,151) in the first quarter 2017, and negative (582,819) in the fourth quarter 2016. Vacancy The Industrial vacancy rate in the Long Island market arean increased to 4.1% at the end of the third quarter 2017. The vacancy rate was 3.8% at the end of the second quarter 2017, 3.7% at the end of the first quarter 2017, and 3.5% at the end of the fourth quarter 2016. Flex projects reported a vacancy rate of 6.9% at the end of the third quarter 2017, 7.3% at the end of the second quarter 2017, 7.2% at the end of the first quarter 2017, and 6.0% at the end of the fourth quarter 2016. Warehouse projects reported a vacancy rate of 3.9% at the end of the third quarter 2017, 3.6% at the end of second quarter 2017, 3.5% at the end of the first quarter 2017, and 3.3% at the end of the fourth quarter 2016. Largest Lease Signings The largest lease signings occurring in 2017 included: the 125,000-square-foot lease signed by One Stop Northern at 47-00 Northern Blvd in the Queens market; the 104,000-squarefoot deal signed by Stoney Brook at 500 Commack Rd in the Western Suffolk market; and the 90,000-square-foot lease Vacancy Rates by Building Type 1996-2017 14% Flex Warehouse Total Market 12% 10% Vacancy Rate 8% 6% 4% 2% 0% 2001 4q 2002 4q 2003 4q 2004 4q 2005 4q 2006 4q 2007 4q 2008 4q 2009 4q 2010 4q 2011 4q 2012 4q 2013 4q 2014 4q 2015 4q 2016 4q 2017 CoStar Group, Inc. CoStar Industrial Statistics 1
Long Island Third Quarter 2017 Overview signed by Pall Corporation at 25 Harbor Park Dr in the Nassau market. Sublease Vacancy The amount of vacant sublease space in the Long Island market decreased to 561,648 square feet by the end of the third quarter 2017, from 667,024 square feet at the end of the second quarter 2017. There was 600,955 square feet vacant at the end of the first quarter 2017 and 470,347 square feet at the end of the fourth quarter 2016. Long Island s Flex projects reported vacant sublease space of 81,757 square feet at the end of third quarter 2017, down from the 317,009 square feet reported at the end of the second quarter 2017. There were 279,875 square feet of sublease space vacant at the end of the first quarter 2017, and 21,106 square feet at the end of the fourth quarter 2016. Warehouse projects reported increased vacant sublease space from the second quarter 2017 to the third quarter 2017. Sublease vacancy went from 350,015 square feet to 479,891 square feet during that time. There was 321,080 square feet at the end of the first quarter 2017, and 449,241 square feet at the end of the fourth quarter 2016. Rental Rates The average quoted asking rental rate for available Industrial space was $15.87 per square foot per year at the end of the third quarter 2017 in the Long Island market area. This represented a 2.1% increase in quoted rental rates from the end of the second quarter 2017, when rents were reported at $15.55 per square foot. The average quoted rate within the Flex sector was $20.93 per square foot at the end of the third quarter 2017, while Warehouse rates stood at $15.36. At the end of the second quarter 2017, Flex rates were $18.59 per square foot, and Warehouse rates were $15.27. U.S. Vacancy Comparison Past 9 Quarters Vacancy Rate 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% % Long Island (New York) United States 2015 3q 2016 1q 2016 3q 2017 1q 2017 3q Deliveries and Construction During the third quarter 2017, four buildings totaling 87,952 square feet were completed in the Long Island market area. This compares to six buildings totaling 70,247 square feet that were completed in the second quarter 2017, four buildings totaling 22,592 square feet completed in the first quarter 2017, and 47,572 square feet in eight buildings completed in the fourth quarter 2016. There were 354,243 square feet of Industrial space under construction at the end of the third quarter 2017. Some of the notable 2017 deliveries include: 4927 31st St, a 42,131-square-foot facility that delivered in second quarter 2017 and is now 100% occupied, and Sills Industrial Condos Bldg 2, a 29,052-square-foot building that delivered in third quarter 2017 and is now 17% occupied. The largest projects underway at the end of third quarter 2017 were Kaufman Astoria Complex, a 100,000-square-foot building with 100% of its space pre-leased, and 200 Rogers Way, a 68,774-square-foot facility that, at this moment, is not pre-leased. Inventory Total Industrial inventory in the Long Island market area amounted to 357,000,913 square feet in 15,660 buildings as of the end of the third quarter 2017. The Flex sector consisted of 27,291,399 square feet in 626 projects. The Warehouse sector consisted of 329,709,514 square feet in 15,034 buildings. Within the Industrial market there were 1,813 owner-occupied buildings accounting for 52,876,523 square feet of Industrial space. Sales Activity Tallying industrial building sales of 15,000 square feet or larger, Long Island (New York) industrial sales figures rose during the second quarter 2017 in terms of dollar volume compared to the first quarter of 2017. In the second quarter, 36 industrial transactions closed with a total volume of $537,988,373. The 36 buildings totaled 2,287,491 square feet and the average price per square foot equated to $235.19 per square foot. That compares to 22 transactions totaling $184,090,447 in the first quarter. The total square footage was 1,005,741 for an average price per square foot of $183.04. Total year-to-date industrial building sales activity in 2017 is up compared to the previous year. In the first six months of 2017, the market saw 58 industrial sales transactions with a total volume of $722,078,820. The price per square foot has averaged $219.26 this year. In the first six months of 2016, the market posted 73 transactions with a total volume of $547,823,948. The price per square foot averaged $149.10. Cap rates have been higher in 2017, averaging 6.27%, compared to the first six months of last year when they averaged 5.77%. 2 CoStar Industrial Statistics 2017 CoStar Group, Inc.
Overview Third Quarter 2017 Long Island One of the largest transactions that has occurred within the last four quarters in the Long Island (New York) market is the sale of Bridgedale Plaza in Long Island City. This 656,000- square-foot industrial building sold for $195,000,000, or $297.26 per square foot. The property sold on 7/12/2016. Absorption & Deliveries Past 9 Quarters Net Absorption Deliveries 2.0 1.6 1.5 Reports compiled by: Ashley McClain & Kelly Faulk, CoStar Research Managers 1.0 0.5 0.9 0.1 0.2 0.3 0.1 0.1 (0.5) (0.3) (0.3) (1.0) (1.5) (0.8) (0.9) (1.1) 2015 3q 2016 1q 2016 3q 2017 1q 2017 3q 2017 CoStar Group, Inc. CoStar Industrial Statistics 3
Long Island Third Quarter 2017 Markets CoStar Submarket Clusters & Submarkets In analyzing metropolitan areas, CoStar has developed geographic designations to help group properties together, called Markets, Submarket Clusters and Submarkets. Markets are the equivalent of metropolitan areas, or areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Markets are then divided into Submarket Clusters, which are core areas within a metropolitan area that are known to be competitive with each other in terms of attracting and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group. Submarket Clusters Brooklyn Ind Central Suffolk Ind Eastern Suffolk Ind Nassau Ind Queens Ind Staten Island Ind Western Suffolk Ind Submarkets North Brooklyn Ind South Brooklyn Ind North Central Suffolk Ind Ronkonkoma/Bohemia Ind South Central Suffolk Ind Eastern Suffolk Ind Central Nassau Ind Eastern Nassau Ind Northern Nassau Ind Southeast Nassau Ind Southern Nassau Ind Western Nassau Ind Central Queens Ind Northeast Queens Ind Northwest Queens Ind South Queens Ind Staten Island Ind Deer Park Ind East Farmingdale Ind Hauppauge Ind Northwest Suffolk Ind Southwest Suffolk Ind 4 CoStar Industrial Statistics 2017 CoStar Group, Inc.
Inventory & development Third Quarter 2017 Long Island Historical Deliveries 1982-2017 6.0 Deliveries Average Delivered SF 5.0 4.8 Millions of SF 4.0 3.0 2.0 1.0 4.0 4.0 3.4 3.1 1.9 2.0 1.9 1.7 1.5 1.4 1.3 1.3 1.2 1.2 0.8 0.9 1.0 0.9 0.9 0.7 0.8 0.7 0.8 0.8 0.6 0.5 0.6 0.5 0.5 0.4 0.3 0.3 0.4 0.1 0.1 1982 1986 1990 1994 1998 2002 2006 2010 2014 * Future deliveries based on current under construction buildings. Construction Activity Markets Ranked by Under Construction RBA Under Construction Inventory Average Bldg Size Market # Bldgs Total RBA Preleased SF Preleased % All Existing U/C Queens Ind 5 169,391 158,141 93.4% 23,232 33,878 Eastern Suffolk Ind 2 91,774 0 % 12,329 45,887 Brooklyn Ind 2 53,870 0 % 20,918 26,935 Western Suffolk Ind 1 32,000 32,000 10% 26,967 32,000 Central Suffolk Ind 1 7,208 0 % 23,765 7,208 Staten Island Ind 0 0 0 % 18,207 0 Nassau Ind 0 0 0 % 23,008 0 Totals 11 354,243 190,141 53.7% 22,797 32,204 Recent Deliveries Leased & Un-Leased SF in Deliveries Since 2013 Future Deliveries Preleased & Un-Leased SF in Properties Scheduled to Deliver 0.6 Leased Un-Leased 180 Preleased Un-Leased 0.5 160 140 Millions of SF 0.4 0.3 0.2 Thousands of SF 120 100 80 60 0.1 40 20 2013 2015 2017 0 2017 4q 2019 1q 2017 CoStar Group, Inc. CoStar Industrial Statistics 5
Long Island Third Quarter 2017 Inventory & development Historical Construction Starts & Deliveries Square Footage Per Quarter Starting and Completing Construction 0.4 0.4 0.4 0.3 Construction Starts 0.4 Deliveries 0.3 Millions of SF 0.3 0.2 0.2 0.1 0.1 (0.1) 0.1 0.1 () 0.1 () 0.2 0.1 0.1 0.1 0.2 0.1 0.1 0.1 0.1 2014 1q 2015 1q 2016 1q 2017 1q Recent Deliveries by Project Size Breakdown of Year-to-Date Development Based on RBA of Project Building Size # Bldgs RBA SF Leased % Leased Avg Rate Single-Tenant Multi-Tenant < 50,000 SF 14 180,791 169,745 93.9% $18.80 6,650 174,141 50,000 SF - 99,999 SF 0 0 0 % $0 0 0 100,000 SF - 249,999 SF 0 0 0 % $0 0 0 250,000 SF - 499,999 SF 0 0 0 % $0 0 0 >= 500,000 SF 0 0 0 % $0 0 0 Recent Development by Tenancy Existing Inventory Comparison Based on RBA Developed for Single & Multi-Tenant Use Based on Total RBA 2017 Deliveries Currently Under Construction By Building Type By Tenancy Type 4% 21% 8% 36% 96% 79% 92% 64% Multi Single Multi Single Flex Warehouse Multi Single 6 CoStar Industrial Statistics 2017 CoStar Group, Inc.
Inventory & development Third Quarter 2017 Long Island 2017 CoStar Group, Inc. CoStar Industrial Statistics 7
Long Island Third Quarter 2017 Inventory & development 8 CoStar Industrial Statistics 2017 CoStar Group, Inc.
Figures at a Glance Third Quarter 2017 Long Island Flex Market Statistics Third Quarter 2017 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Brooklyn Ind 59 7,664,118 898,067 898,067 11.7% (197,985) 0 0 $29.46 Central Suffolk Ind 83 2,925,838 201,587 201,587 6.9% 1,219 0 0 $10.13 Eastern Suffolk Ind 10 399,217 0 0 % 0 0 0 $0 Nassau Ind 186 7,349,806 380,306 384,922 5.2% 86,005 0 0 $17.86 Queens Ind 104 2,866,662 111,280 154,580 5.4% (35,135) 13,275 0 $25.26 Staten Island Ind 12 316,979 0 0 % 11,250 0 0 $15.00 Western Suffolk Ind 172 5,768,779 218,305 252,146 4.4% (93,827) 0 0 $15.90 Totals 626 27,291,399 1,809,545 1,891,302 6.9% (228,473) 13,275 0 $20.93 Warehouse Market Statistics Third Quarter 2017 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Brooklyn Ind 4,665 91,152,540 4,348,736 4,510,154 4.9% (452,680) 2,150 53,870 $20.79 Central Suffolk Ind 1,239 28,491,489 735,121 878,035 3.1% (149,035) 81,552 7,208 $9.82 Eastern Suffolk Ind 442 5,173,705 275,649 275,649 5.3% (23,664) 8,341 91,774 $13.48 Nassau Ind 2,295 49,733,917 1,610,842 1,624,175 3.3% 123,652 0 0 $12.58 Queens Ind 3,371 77,863,468 3,184,524 3,251,098 4.2% (1,065,710) 56,331 169,391 $18.84 Staten Island Ind 339 6,073,708 212,771 212,771 3.5% 3,255 19,142 0 $14.79 Western Suffolk Ind 2,683 71,220,687 2,013,845 2,109,497 3.0% (483,240) 0 32,000 $9.53 Totals 15,034 329,709,514 12,381,488 12,861,379 3.9% (2,047,422) 167,516 354,243 $15.36 Total Industrial Market Statistics Third Quarter 2017 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Brooklyn Ind 4,724 98,816,658 5,246,803 5,408,221 5.5% (650,665) 2,150 53,870 $21.97 Central Suffolk Ind 1,322 31,417,327 936,708 1,079,622 3.4% (147,816) 81,552 7,208 $9.88 Eastern Suffolk Ind 452 5,572,922 275,649 275,649 4.9% (23,664) 8,341 91,774 $13.48 Nassau Ind 2,481 57,083,723 1,991,148 2,009,097 3.5% 209,657 0 0 $13.26 Queens Ind 3,475 80,730,130 3,295,804 3,405,678 4.2% (1,100,845) 69,606 169,391 $18.95 Staten Island Ind 351 6,390,687 212,771 212,771 3.3% 14,505 19,142 0 $14.80 Western Suffolk Ind 2,855 76,989,466 2,232,150 2,361,643 3.1% (577,067) 0 32,000 $9.94 Totals 15,660 357,000,913 14,191,033 14,752,681 4.1% (2,275,895) 180,791 354,243 $15.87 2017 CoStar Group, Inc. CoStar Industrial Statistics 9
Long Island Third Quarter 2017 Figures at a Glance Flex Submarket Statistics Third Quarter 2017 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Central Nassau Ind 41 1,110,526 64,203 64,203 5.8% 4,551 0 0 $19.87 Central Queens Ind 14 100,115 0 0 % 2,100 0 0 $40 Deer Park Ind 18 296,088 0 7,000 2.4% (5,900) 0 0 $10.30 East Farmingdale Ind 47 2,051,266 135,100 160,206 7.8% (54,775) 0 0 $14.79 Eastern Nassau Ind 68 4,090,220 236,130 240,746 5.9% 101,081 0 0 $16.50 Eastern Suffolk Ind 10 399,217 0 0 % 0 0 0 $0 Hauppauge Ind 56 2,271,705 68,905 70,640 3.1% (27,147) 0 0 $18.54 North Brooklyn Ind 43 3,283,268 480,167 480,167 14.6% 209,915 0 0 $36.56 North Central Suffolk Ind 11 307,216 11,000 11,000 3.6% 15,613 0 0 $12.00 Northeast Queens Ind 34 641,374 45,100 46,400 7.2% 21,100 13,275 0 $22.97 Northern Nassau Ind 11 222,224 11,000 11,000 4.9% 3,433 0 0 $16.87 Northwest Queens Ind 40 1,718,669 57,000 99,000 5.8% (49,155) 0 0 $25.50 Northwest Suffolk Ind 18 364,134 10,700 10,700 2.9% (10,700) 0 0 $9.00 Ronkonkoma/Bohemia Ind 53 2,076,887 106,086 106,086 5.1% (25,708) 0 0 $9.88 South Brooklyn Ind 16 4,380,850 417,900 417,900 9.5% (407,900) 0 0 $24.93 South Central Suffolk Ind 19 541,735 84,501 84,501 15.6% 11,314 0 0 $11.43 South Queens Ind 16 406,504 9,180 9,180 2.3% (9,180) 0 0 $24.60 Southeast Nassau Ind 1 6,700 0 0 % 0 0 0 $0 Southern Nassau Ind 33 422,218 19,000 19,000 4.5% 2,500 0 0 $15.00 Southwest Suffolk Ind 33 785,586 3,600 3,600 0.5% 4,695 0 0 $18.77 Staten Island Ind 12 316,979 0 0 % 11,250 0 0 $15.00 Western Nassau Ind 32 1,497,918 49,973 49,973 3.3% (25,560) 0 0 $19.25 Totals 626 27,291,399 1,809,545 1,891,302 6.9% (228,473) 13,275 0 $20.93 Warehouse Submarket Statistics Third Quarter 2017 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Central Nassau Ind 421 8,385,272 163,928 163,928 2.0% 156,677 0 0 $11.55 Central Queens Ind 707 20,442,230 826,379 829,079 4.1% (348,412) 0 48,742 $19.06 Deer Park Ind 708 16,757,835 502,937 503,966 3.0% (105,204) 0 0 $9.16 East Farmingdale Ind 574 17,300,611 361,552 440,575 2.5% (153,537) 0 0 $11.15 Eastern Nassau Ind 664 20,625,207 664,760 676,093 3.3% (26,753) 0 0 $12.58 Eastern Suffolk Ind 442 5,173,705 275,649 275,649 5.3% (23,664) 8,341 91,774 $13.48 Hauppauge Ind 597 24,201,669 810,786 820,786 3.4% (112,970) 0 32,000 $8.69 North Brooklyn Ind 3,143 59,343,682 2,115,612 2,182,030 3.7% (933,285) 2,150 5,870 $22.89 North Central Suffolk Ind 188 2,911,430 98,181 98,181 3.4% (73,571) 0 0 $16.04 Northeast Queens Ind 580 11,599,406 211,296 232,596 2.0% (57,922) 14,200 9,399 $19.65 Northern Nassau Ind 92 2,128,880 318,000 318,000 14.9% 23,063 0 0 $11.66 Northwest Queens Ind 1,450 32,087,609 1,568,537 1,595,916 5.0% (385,587) 42,131 111,250 $20.25 Northwest Suffolk Ind 206 3,056,978 101,312 106,912 3.5% (10,011) 0 0 $9.78 Ronkonkoma/Bohemia Ind 678 16,094,440 337,377 431,866 2.7% (47,750) 24,000 0 $9.47 South Brooklyn Ind 1,522 31,808,858 2,233,124 2,328,124 7.3% 480,605 0 48,000 $18.98 South Central Suffolk Ind 373 9,485,619 299,563 347,988 3.7% (27,714) 57,552 7,208 $9.93 South Queens Ind 634 13,734,223 578,312 593,507 4.3% (273,789) 0 0 $15.54 Southeast Nassau Ind 75 868,867 15,000 15,000 1.7% (12,000) 0 0 $17.40 Southern Nassau Ind 751 11,409,857 398,522 398,522 3.5% (24,962) 0 0 $12.23 Southwest Suffolk Ind 598 9,903,594 237,258 237,258 2.4% (101,518) 0 0 $15 Staten Island Ind 339 6,073,708 212,771 212,771 3.5% 3,255 19,142 0 $14.79 Western Nassau Ind 292 6,315,834 50,632 52,632 0.8% 7,627 0 0 $14.33 Totals 15,034 329,709,514 12,381,488 12,861,379 3.9% (2,047,422) 167,516 354,243 $15.36 10 CoStar Industrial Statistics 2017 CoStar Group, Inc.
Figures at a Glance Third Quarter 2017 Long Island Total Industrial Submarket Statistics Third Quarter 2017 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Central Nassau Ind 462 9,495,798 228,131 228,131 2.4% 161,228 0 0 $13.17 Central Queens Ind 721 20,542,345 826,379 829,079 4.0% (346,312) 0 48,742 $19.07 Deer Park Ind 726 17,053,923 502,937 510,966 3.0% (111,104) 0 0 $9.16 East Farmingdale Ind 621 19,351,877 496,652 600,781 3.1% (208,312) 0 0 $11.70 Eastern Nassau Ind 732 24,715,427 900,890 916,839 3.7% 74,328 0 0 $13.09 Eastern Suffolk Ind 452 5,572,922 275,649 275,649 4.9% (23,664) 8,341 91,774 $13.48 Hauppauge Ind 653 26,473,374 879,691 891,426 3.4% (140,117) 0 32,000 $9.20 North Brooklyn Ind 3,186 62,626,950 2,595,779 2,662,197 4.3% (723,370) 2,150 5,870 $24.48 North Central Suffolk Ind 199 3,218,646 109,181 109,181 3.4% (57,958) 0 0 $15.59 Northeast Queens Ind 614 12,240,780 256,396 278,996 2.3% (36,822) 27,475 9,399 $19.71 Northern Nassau Ind 103 2,351,104 329,000 329,000 14.0% 26,496 0 0 $12.86 Northwest Queens Ind 1,490 33,806,278 1,625,537 1,694,916 5.0% (434,742) 42,131 111,250 $20.41 Northwest Suffolk Ind 224 3,421,112 112,012 117,612 3.4% (20,711) 0 0 $9.76 Ronkonkoma/Bohemia Ind 731 18,171,327 443,463 537,952 3.0% (73,458) 24,000 0 $9.59 South Brooklyn Ind 1,538 36,189,708 2,651,024 2,746,024 7.6% 72,705 0 48,000 $19.88 South Central Suffolk Ind 392 10,027,354 384,064 432,489 4.3% (16,400) 57,552 7,208 $12 South Queens Ind 650 14,140,727 587,492 602,687 4.3% (282,969) 0 0 $15.67 Southeast Nassau Ind 76 875,567 15,000 15,000 1.7% (12,000) 0 0 $17.40 Southern Nassau Ind 784 11,832,075 417,522 417,522 3.5% (22,462) 0 0 $12.24 Southwest Suffolk Ind 631 10,689,180 240,858 240,858 2.3% (96,823) 0 0 $10.26 Staten Island Ind 351 6,390,687 212,771 212,771 3.3% 14,505 19,142 0 $14.80 Western Nassau Ind 324 7,813,752 100,605 102,605 1.3% (17,933) 0 0 $15.59 Totals 15,660 357,000,913 14,191,033 14,752,681 4.1% (2,275,895) 180,791 354,243 $15.87 2017 CoStar Group, Inc. CoStar Industrial Statistics 11
Long Island Third Quarter 2017 Figures at a Glance 12 CoStar Industrial Statistics 2017 CoStar Group, Inc.
Leasing Activity Third Quarter 2017 Long Island Historical Rental Rates Based on Quoted Rental Rates $25.00 Flex Warehouse Total Market $20 Dollars/SF/Year $15.00 $10 $5.00 $0 2001 4q 2003 4q 2005 4q 2007 4q 2009 4q 2011 4q 2013 4q 2015 4q Vacancy by Available Space Type Vacancy by Building Type Percent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Building Type Long Island (New York) United States Long Island (New York) United States 4% 4% 13% 14% 87% 86% 96% 96% Direct Sublet Direct Sublet Flex Warehouse Flex Warehouse U.S. Rental Rate Comparison Based on Average Quoted Rental Rates Future Space Available Space Scheduled to be Available for Occupancy* $18.00 $16.00 Long Island (New York) United States 1.6 1.4 1.4 $14.00 1.2 Dollars/SF/Year $12.00 $10 $8.00 $6.00 $4.00 $2.00 $0 2015 3q 2016 1q 2016 3q 2017 1q 2017 3q Millions 1.0 0.8 0.6 0.4 0.2 0.4 0.3 0.2 2017 4q 2018 2q 2018 4q * Includes Under Construction Space 2017 CoStar Group, Inc. CoStar Industrial Statistics 13
Long Island Third Quarter 2017 Leasing Activity Select Top Industrial Leases Based on Leased Square Footage For Deals Signed in 2017 Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company 1 80 Grumman Rd W Eastern Nassau Ind 140,000 3rd Unknown Uknown Steel Equities 2 47-00 Northern Blvd Northwest Queens Ind 125,000 1st One Stop Northern Kaplon-Belo Aliates LLC BJH Advisors,LLC 3 500 Commack Rd Northwest Suolk Ind 104,000 3rd Stoney Brook CBRE Steel Equities 4 25 Harbor Park Dr Western Nassau Ind 90,000 2nd Pall Corporation Uknown N/A 5 10615 Foster Ave South Brooklyn Ind 77,000 3rd Unknown Uknown Gamzel 6 120 Wilshire Blvd Deer Park Ind 75,000 3rd Unknown Uknown Heartland Development 7 Brooklyn Navy Yard - Building 77 North Brooklyn Ind 74,000 1st Lafayette 148 Uknown JLL 8 34-24 Vernon Blvd Northwest Queens Ind 70,000 2nd Unknown Uknown Sholom & Zuckerbrot Realty, LLC 9 845 S 1st St Ronkonkoma/Bohemia Ind 64,224 2nd Hilo yale Ashlind Properties Ashlind Properties 10 50 Emjay Blvd Hauppauge Ind 51,400 1st Unknown Uknown N/A 11 100 Heartland Blvd Deer Park Ind 50,000 2nd rsquared Uknown Heartland Development 12 168 Railroad St Northwest Suolk Ind 48,000 1st Unknown Uknown Right Time Realty Inc. 13 12-12 33rd Ave Northwest Queens Ind 47,000 2nd Unknown Uknown Avison Young 14 2 Rodeo Dr Deer Park Ind 44,500 2nd Unknown Uknown Heartland Development 15 1710 Flushing Ave Central Queens Ind 40,000 3rd Unknown Uknown The Goldex Group 16 75 Modular Ave Hauppauge Ind 40,000 1st Moreno New York Uknown Schacker Real Estate Corp. 17 200 McKay Rd Northwest Suolk Ind 40,000 2nd Unknown Uknown Floral Management Realty Corp. 18 Gate 1 North Brooklyn Ind 40,000 1st Unknown Uknown One Stop L.I.C., LLC 19 65 Robinson Ave South Central Suolk Ind 39,000 2nd Unknown Uknown Ashlind Properties 20 2095 Expressway Dr N Hauppauge Ind 38,000 2nd Unknown Uknown Ashlind Properties 21 63 Flushing Ave - Bldg 22 North Brooklyn Ind 36,149 3rd Unknown Uknown Brooklyn Navy Yard Development Corp 22 Executive Plaza Deer Park Ind 36,000 1st Nikon Colliers International Heartland Development 23 170 Flushing Ave North Brooklyn Ind 35,000 2nd Unknown Uknown City Real Estate Inc. 24 Brooklyn Navy Yard - Bldg 12B North Brooklyn Ind 34,850 1st Unknown Uknown Brooklyn Navy Yard Development Corp 25 999 S Oyster Bay Rd Eastern Nassau Ind 33,000 2nd Unknown Uknown Steel Equities 26 Equi-park Bldg #5 Ronkonkoma/Bohemia Ind 32,454 3rd Unknown Uknown Long Island Industrial Group 27 2110 Fifth Ave Ronkonkoma/Bohemia Ind 30,000 2nd Re-Commerce Ashlind Properties Ashlind Properties 28 10101 Foster Ave South Brooklyn Ind 30,000 2nd Unknown DY Realty Services LLC N/A 29 537 Sackett St North Brooklyn Ind 30,000 2nd Unknown Direct Deal Ats Realty Inc 30 51-18 Grand Ave Central Queens Ind 28,000 2nd Unknown Uknown Kalmon Dolgin Aliates, Inc. 31 1306 38th Ave Northwest Queens Ind 27,000 2nd Unknown Uknown Sholom & Zuckerbrot Realty, LLC 32 Fairchild Corporate Center Eastern Nassau Ind 26,090 1st Momentum Solar Uknown Newmark Knight Frank 33 46-01 20th Ave Northeast Queens Ind 25,400 2nd Unknown Uknown Muslim American Society Of Queens 34 Brooklyn Navy Yard - Building 20 North Brooklyn Ind 25,378 3rd Unknown Uknown Brooklyn Navy Yard Development Corp 35 999 S Oyster Bay Rd Eastern Nassau Ind 25,000 3rd Unknown Steel Equities Steel Equities 36 280 Duy Ave Eastern Nassau Ind 25,000 2nd Unknown Uknown Long Island Industrial Group 37 58-30 Grand Ave Central Queens Ind 25,000 2nd Unknown Uknown Kingsun Usa Inc. 38 95 Executive Dr Deer Park Ind 25,000 3rd Lorraine & Gregory Uknown Heartland Development 39 165-35 145th Dr South Queens Ind 24,440 3rd Eat Club Inc. Uknown NAI Long Island 40 225 Community Dr Western Nassau Ind 24,086 2nd N/A Uknown Liptak Commercial Realty * Renewal 14 CoStar Industrial Statistics 2017 CoStar Group, Inc.
Sales Activity Third Quarter 2017 Long Island The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates Per Quarter 12.0% Cap Rate Price/SF $1,560 1% $1,360 Cap Rate Percentage 8.0% 6.0% 4.0% 2.0% $1,160 $960 $760 $560 Dollars/SF % 2014 3q 2015 3q 2016 3q $360 Source: CoStar COMPS Sales Volume & Price Sales Analysis by Building Size Based on Industrial Building Sales of 15,000 SF and Larger Based on Industrial Bldg Sales From July 2016 - June 2017 $600 Sales Volume Price/SF $250 Bldg Size # RBA $ Volume Price/SF Cap Rate Millions of Sales Volume Dollars $500 $400 $300 $200 $100 $200 $150 $100 $50 Price/SF < 25,000 SF 25K-99K SF 100K-249K SF 236 2,356,244 $561,064,501 $ 238.12 7.92% 72 3,411,039 $530,459,415 $ 155.51 5.39% 15 2,027,189 $373,809,271 $ 184.40 11.50% $0 2014 1q 2015 1q 2016 1q 2017 1q $0 >250K SF 4 1,733,942 $395,750,000 $ 228.24 - Source: CoStar COMPS Source: CoStar COMPS U.S. Price/SF Comparison Based on Industrial Building Sales of 15,000 SF and Larger U.S. Cap Rate Comparison Based on Industrial Building Sales of 15,000 SF and Larger $260 Long Island (New York) US 12.0% Long Island (New York) US $240 $220 $200 $180 $160 $140 $120 $100 Cap Rate Percentage 1% 8.0% 6.0% 4.0% 2.0% $80 % 2014 1q 2015 1q 2016 1q 2017 1q 2014 1q 2015 1q 2016 1q 2017 1q Source: CoStar COMPS Source: CoStar COMPS 2017 CoStar Group, Inc. CoStar Industrial Statistics 15
16 CoStar Industrial Statistics 2017 CoStar Group, Inc. Long Island Third Quarter 2017 Sales Activity
Deliveries, Absorption & Vacancy B r o o k l y n M a r k e t MARKET HIGHLIGHTS - Flex & Warehouse Third Quarter 2017 Long Island 0.600 Delivered SF Absorption SF Vacancy 7.0% 0.400 6.0% 0.200 00 (0.200) (0.400) 5.0% 4.0% 3.0% 2.0% Percent Vacant (0.600) 1.0% (0.800) 2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q % Vacant Space Quoted Rental Rates 6.00 Direct SF Sublet SF $23.50 $23.00 5.00 $22.50 $22.00 4.00 3.00 2.00 Dollars/SF/Year $21.50 $21.00 $20.50 $20 $19.50 1.00 $19.00 $18.50 0 2016 1q 2016 3q 2017 1q 2017 3q $18.00 2016 1q 2016 3q 2017 1q 2017 3q Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2017 3q 4,724 98,816,658 5,408,221 5.5% 141,577 0 0 2 53,870 $21.97 2017 2q 4,726 98,928,370 5,661,510 5.7% (166,478) 0 0 1 48,000 $22.81 2017 1q 4,728 98,958,306 5,535,044 5.6% (625,764) 1 2,150 1 48,000 $22.71 2016 4q 4,729 99,079,226 5,020,124 5.1% (233,357) 0 0 2 50,150 $22.42 2016 3q 4,729 99,079,226 4,786,767 4.8% (26,424) 0 0 2 50,150 $22.56 2016 2q 4,733 99,135,046 4,813,863 4.9% (172,112) 1 3,626 1 48,000 $21.28 2016 1q 4,737 99,293,743 4,805,446 4.8% (190,372) 0 0 2 44,326 $19.71 2015 4q 4,741 99,493,553 4,819,184 4.8% 59,700 0 0 2 44,326 $19.00 2015 3q 4,745 99,528,761 4,914,292 4.9% 522,058 1 19,414 1 3,626 $20.85 2015 2q 4,746 99,645,847 5,553,136 5.6% 144,649 0 0 1 19,414 $19.72 2015 1q 4,754 99,870,645 5,919,083 5.9% 73,833 1 273,401 1 19,414 $19.46 2014 4q 4,759 99,989,589 6,111,860 6.1% (45,344) 0 0 2 292,815 $18.67 2014 3q 4,768 100,402,099 6,485,626 6.5% (444,270) 1 10,000 1 273,401 $18.23 2014 2q 4,772 100,472,609 6,111,866 6.1% (43,198) 0 0 2 283,401 $17.87 2014 1q 4,776 100,527,973 6,124,032 6.1% (56,390) 0 0 1 10,000 $16.68 2013 4q 4,784 100,933,225 6,472,094 6.4% (217,395) 0 0 1 10,000 $15.97 2017 CoStar Group, Inc. CoStar Industrial Statistics 17
Long Island Third Quarter 2017 Deliveries, Absorption & Vacancy C e n t r a l S u f f o l k M a r k e t MARKET HIGHLIGHTS - Flex & Warehouse 0.300 Delivered SF Absorption SF Vacancy 6.0% 0.200 5.0% 0.100 00 (0.100) 4.0% 3.0% 2.0% Percent Vacant (0.200) 1.0% (0.300) 2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q % Vacant Space Quoted Rental Rates 1.20 Direct SF Sublet SF $10.50 1.00 $10 0.80 0.60 0.40 Dollars/SF/Year $9.50 $9.00 0.20 $8.50 0 2016 1q 2016 3q 2017 1q 2017 3q $8.00 2016 1q 2016 3q 2017 1q 2017 3q Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2017 3q 1,322 31,417,327 1,079,622 3.4% (133,698) 3 81,552 1 7,208 $9.88 2017 2q 1,319 31,335,775 864,372 2.8% 34,143 0 0 4 88,760 $9.97 2017 1q 1,319 31,335,775 898,515 2.9% (48,261) 0 0 4 88,760 $9.92 2016 4q 1,319 31,335,775 850,254 2.7% (96,239) 0 0 4 88,760 $10.27 2016 3q 1,319 31,335,775 754,015 2.4% 6,040 0 0 4 88,760 $9.27 2016 2q 1,320 31,337,775 762,055 2.4% (111,979) 0 0 1 29,052 $8.96 2016 1q 1,321 31,357,275 669,576 2.1% 92,320 0 0 1 29,052 $9.01 2015 4q 1,321 31,357,275 761,896 2.4% 248,303 0 0 1 29,052 $8.75 2015 3q 1,321 31,357,275 1,010,199 3.2% 226,789 0 0 1 29,052 $8.76 2015 2q 1,321 31,357,275 1,236,988 3.9% 154,010 2 52,000 0 0 $8.73 2015 1q 1,319 31,305,275 1,338,998 4.3% (72,283) 0 0 2 52,000 $8.60 2014 4q 1,319 31,305,275 1,266,715 4.0% 258,772 0 0 2 52,000 $8.37 2014 3q 1,319 31,305,275 1,525,487 4.9% 122,759 1 158,000 2 52,000 $8.32 2014 2q 1,318 31,147,275 1,490,246 4.8% (207,437) 0 0 3 210,000 $8.24 2014 1q 1,318 31,147,275 1,282,809 4.1% (75,544) 0 0 1 158,000 $8.46 2013 4q 1,320 31,411,618 1,471,608 4.7% (185,452) 0 0 1 158,000 $8.50 18 CoStar Industrial Statistics 2017 CoStar Group, Inc.
Deliveries, Absorption & Vacancy E a s t e r n S u f f o l k M a r k e t MARKET HIGHLIGHTS - Flex & Warehouse Third Quarter 2017 Long Island 0.140 0.120 0.100 Delivered SF Absorption SF Vacancy 1% 9.0% 8.0% 80 60 40 20 00 (20) (40) 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% Percent Vacant (60) 2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q % Vacant Space Quoted Rental Rates 0.35 Direct SF Sublet SF $16.00 0.30 0.25 0.20 0.15 Dollars/SF/Year $14.00 $12.00 $10 $8.00 $6.00 0.10 $4.00 5 $2.00 0 2016 1q 2016 3q 2017 1q 2017 3q $0 2016 1q 2016 3q 2017 1q 2017 3q Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2017 3q 452 5,572,922 275,649 4.9% (18,420) 0 0 2 91,774 $13.48 2017 2q 452 5,572,922 257,229 4.6% 43,116 1 8,341 2 91,774 $13.41 2017 1q 451 5,564,581 292,004 5.2% (48,360) 0 0 3 100,115 $13.27 2016 4q 451 5,564,581 243,644 4.4% 32,736 0 0 0 0 $10.30 2016 3q 451 5,564,581 276,380 5.0% 21,664 0 0 0 0 $12 2016 2q 452 5,568,781 298,044 5.4% 35,536 2 23,260 0 0 $8.62 2016 1q 450 5,545,521 310,320 5.6% 57,518 0 0 2 23,260 $7.99 2015 4q 450 5,545,521 367,838 6.6% 19,040 0 0 2 23,260 $8.96 2015 3q 450 5,545,521 386,878 7.0% 25,318 0 0 1 14,860 $9.10 2015 2q 450 5,545,521 412,196 7.4% (1,650) 0 0 1 14,860 $8.82 2015 1q 450 5,545,521 410,546 7.4% 52,800 1 70,000 0 0 $8.77 2014 4q 449 5,475,521 393,346 7.2% 22,450 0 0 1 70,000 $8.45 2014 3q 449 5,475,521 415,796 7.6% (19,403) 1 7,500 0 0 $7.97 2014 2q 448 5,468,021 388,893 7.1% 117,960 0 0 1 7,500 $8.03 2014 1q 448 5,468,021 506,853 9.3% 11,129 0 0 1 7,500 $7.99 2013 4q 448 5,468,021 517,982 9.5% (113,240) 0 0 1 7,500 $7.78 2017 CoStar Group, Inc. CoStar Industrial Statistics 19