Northern & Central 4Q’15 Retail Report

235 Moore Street 10 Lanidex Plaza West Hackensack, NJ Parsippany, NJ 201 488 5800 973 463 1011 naihanson.com Northern & Central New Jersey 4Q’15 Retail Report Retail

The Northern and Central New Jersey retail market consists of 89,237,533 square feet. Average asking rates jumped $0.17 per square foot from the third quarter to the fourth quarter ending the fourth quarter at $21.25 per square foot. Vacancy increased by 0.2% to end the fourth quarter at 6.7% and leasing ended the quarter at 332,031 square feet.

Bergen County, which posted the strongest leasing numbers at 86,828 square feet, also had the highest average asking rate for the quarter at $28.05 per square foot. Vacancy was lowest in Union County, 3.2%, while the highest was seen in Sussex, 10.7%.

99 Ranch Market was the top lease transaction for the fourth quarter. They leased 59,170 square feet at 450 Hackensack Avenue in Hackensack. Following behind was Crunch Fitness who leased 22,898 square feet at 922-982 Easton Avenue in Somerset and Save-A-Lot who leased 16,000 square feet at 160 W Broadway in Paterson.

The top sale transaction for the quarter was the 5 property portfolio sale in Paramus from Emil Buehler Trust to a joint venture between Advance Realty and Invesco. The 244,084 square foot portfolio 1-15 N Dean Street, Englewood sale included 2 office buildings and 3 retail buildings and sold for $57,415,000. NAI Hanson facilitated the deal. Other significant sales included 55 Hartz Way in Secaucus and 1-15 N Dean Street in Englewood. 55 Hartz Way, a 24,450 square foot building, sold from Anatoly Gurevich to Frederick Goldman, Inc. 1-15 N Dean Street in Englewood, a 20,000 square foot building, sold from The Real Estate Equity Company, LLC to David Goldberg for $5,500,000.

The in Paramus announced a $130,000,000 expansion of 200,000 square feet, which would increase the Emil Buehler Trust Paramus Portfolio Sale mall’s size by 20%. It is reported that the developer, Urban Edge Properties, is going to add another level to the top of the building. Trends for 4Q15 As of September, the mall was 99.9% occupied and is 1,200,000 square feet. This latest news is a sign of the strength in the off-price and outlet tenants. VACANCY RATE ASKING RATE announced their plans for this quarter after the departure of . The plan NET ABSORPTION LEASING includes 25 luxury stores, two new restaurants and a 40,000 square foot movie theater. The company plans to start this construction over Compared to 3Q2015 the next two years. Northern & Central New Jersey 4Q’15 Retail Report Retail

Average Asking Rate vs. Vacancy 4Q2015 $30.00 12.00%

$25.00 10.00%

$20.00 8.00%

$15.00 6.00%

$10.00 4.00%

$5.00 2.00%

$0.00 0.00%

450 Hackensack Avenue, Hackensack

Total Average Asking Rate Total Vacant Available %

Leasing Activity 4Q2015 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 55 Hartz Way, Secaucus 0

Northern & Central New Jersey Overall Vacancy 9.00%

7.00%

5.00%

3.00%

*All information comes from sources deemed reliable from NAI James E. Hanson. Numbers are based on transactions 2,500 + sf Northern & Central New Jersey 4Q’15 Retail Report Retail County Overview: Total Vacant Total Vacant Total Net Total SF RBA Under Total Average County Total RBA Available SF Available % Absorption Leased Construction Asking Rate

NJ Overall 89,237,533 6,015,324 6.70% 238,983 332,031 741,408 $21.25

Middlesex 16,742,022 1,310,733 7.80% 78,422 51,136 89,300 $20.16 Bergen 13,128,608 887,803 6.80% 156,846 86,828 4,550 $28.05 Morris 11,002,192 874,857 8.00% (57,533) 30,270 0 $22.12 Mercer 9,145,382 725,724 7.90% 16,653 10,680 331,041 $17.08 Somerset 8,968,404 418,855 4.70% 949 50,795 0 $20.12 Passaic 6,722,479 560,637 8.30% (7,595) 18,059 0 $20.90 Hudson 5,616,730 239,915 4.30% (7,114) 18,961 0 $24.40 Union 5,545,492 179,229 3.20% 60,845 23,300 66,900 $20.84 Essex 5,179,419 410,909 7.90% 12,097 38,765 195,382 $22.62 Hunterdon 2,799,559 108,288 3.90% 3,944 2,467 54,235 $16.33 Warren 2,718,304 118,977 4.40% (6,251) 0 0 $16.36 Sussex 1,668,942 179,397 10.70% (12,280) 770 0 $12.00

Orange, NY 8,171,004 778,898 9.50% 31,000 900 0 $13.19 Rockland, NY 4,342,852 323,176 7.40% 50,711 1,800 0 $19.92 Significant Lease Transactions: Tenant Address Size (SF) County 99 Ranch Market 450 Hackensack Avenue, Hackensack 59,170 Bergen

Crunch Fitness 922-982 Easton Avenue, Somerset 22,898 Somerset

Save-A-Lot 160 W Broadway, Paterson 16,000 Passaic

City National Bancshares Corp 609 Broad Street, Newark 15,914 Essex Kiddie Academy 269-273 Livingston Street, Northvale 12,000 Bergen AAA 1210 Route 22, North Plainfield 9,288 Somerset High Country Sports 11-85 W Main Street, Chester 8,900 Morris

Regency Memory Care Club* 91 Route 4 East, River Edge 7,500 Bergen Significant Sale Transactions: Address Size (SF) Price Buyer Seller 5 Property Portfolio Sale (office 244,084 $57,415,000 Advance Realty JV Emil Buehler Trust and retail) Paramus* Invesco 55 Hartz Way, Secaucus 24,450 $11,500,000 Frederick Goldman, Inc. Anatoly Gurevich

1-15 N Dean Street, Englewood 20,000 $5,500,000 David Goldberg The Real Estate Equity Company, LLC

*NAI Hanson Deal *All information comes from sources deemed reliable from NAI James E. Hanson. Numbers are based on transactions 2,500 + sf