Q3 MARKET REPORT Bronx Industrial/Flex Leasing

All information contained herein is based upon information which we considerrd reliable, but because it has been supplied by third parties, we cannot represent that it is accurate or complete, and it should not be relied upon as such. The offerings are subject to Volumeerrors, 3, omissions, changes,Issue including price, or withdrawal3 | without notice.3 The contentQuarter is provided without warranties of any kind,2020 either express or implied. RM Friedland, LLC, its agents or employees shall not be held liable to anyone for any errors, omissions or inaccuracies under any circumstances. You and your advisors should conduct a careful, independent examination of the property to determine to your satisfaction the suitability of the property for your needs. Q3 Market2020 Report BRONX INDUSTRIAL/FLEX LEASING

SUMMARY

The availability rate for the Bronx submarket fell about .5% quarter over quarter to 9.67% overall getting back to where it was around this time last year. Demand remains strong for industrial product in the Borough with nearly every submarket reporting at or below 10% vacancy, a rate which would typically justify the cause for new construction.

The only outliers to this healthy availability rate are Zerega and Central Bronx. In Zerega we spoke last quarter of the 968,000 mega project that was added to our statistical set and remains on the market. There is rumored to be strong activity at the site. The other submarket which has an unusually high rate is the Central Bronx market which can be attributed to the former Modells warehouse which is still on the market and is roughly 366,000 sf and a few older multistory buildings which will likely be slotted for redevelopment. Asking prices continue to grow consistently quarter over quarter in most submarkets.

One of the largest transactions of the third quarter was shleppers’ purchase of six industrial buildings in Morrisania on 164th and 165th street for their own use. Their current building in The Bronx was also sold this quarter as a development site for record breaking numbers. SUBMARKETS BY THE NUMBERS Q 3 2 0 2 0 BRONX TOTAL MARKET SIZE 31,147,055 SF Riverdale

THROGGS Northeast Bronx NECK 30,950 RIVERDALE 63,186 ZEREGA BATHGATE 3,432,036 3,883,606 NORTHEAST BRONX FORDHAM 2,285,104 702,317 Fordham Central 1,376,890 CENTRAL BRONX Bronx

Bathgate HUNTS POINT 8,829,387 MORRISANIA 10,543,579

Zerega Throggs Neck Hunts Point Morrisania

All information contained herein is based upon information which we consider reliable, but because it has been supplied by third parties, we cannot represent that it is accurate or complete, and it should not be relied upon as such. The offerings are subject to errors, omissions, changes, including price, or withdrawal without notice. The content is provided without warranties of any kind, either express or implied. RM Friedland, LLC, its agents or employees shall not be held liable to anyone for any errors, omissions or inaccuracies under any circumstances. You and your advisors should conduct a careful, independent examination of the property to determine to your satisfaction the suitability of the property for your needs. AVAILABILITY RATE AND ASKING PRICE TRENDS

AVAILABILITY ASKING RATE AVG ASKING PRICE 2018-2020 QTR OVER QTR PRICE$30 12%12% $30

$25 10%10% $25

8%8% $20$20

6%6% $15 $15 4%4% $10 10.4% 8.9% 9.1% 9.4% 9.3% 9.9% 9.6% 9.2% 10.2% 10.2% 9.76% $10 2%2% 7% 6.2% 6.2% $5

0%0% $5$0 20182018 Q1 Q1 20182018Q1 Q2 Q2- Q4 201820182018 Q3 Q3 20182018 Q4 Q4 20192019 Q1 Q1 20192019 Q2Q1 Q2 - Q4 201920192019 Q3 Q3 20192019 Q4 Q4 20202020 Q1 Q1 2020Q12020 Q2- Q3 Q2 2020

OVERALL AVAILABILITY RATE 2018-2020 QTR OVER QTR $0

2020 Q1 Availability Rate 2020 Q2 Availability Rate 2020 Q3 Availability Rate Q3 2020 Q1 Asking Price PSF 2020 Q2 Asking Price PSF 2020 Q3 Asking Price PSF HIGHEST 40% $30 HIGHEST AVAILABILITY RATE: ASKING PRICE: Central Bronx 30% Morrisania $20 20% LOWEST $10 LOWEST 10% AVAILABILITY RATE: ASKING PRICE:

Fordham 0% $0 Bathgate Bathgat e Central Bronx Fordham Hunts Point Morrisania Northe as t Zereg a Bathgat e Central Bronx Fordham Hunts Point Morrisania Northe as t Zereg a Bronx Bronx

QUARTER OVER YEAR OVER QUARTER OVER YEAR OVER 9.76% QUARTER $19.83 YEAR QUARTER Q3 AVG YEAR INCREASE Q3 AVG INCREASE INCREASE DECREASE AVAILABILITY ASKING PPSF RATE

*Riverdale and Throggs Neck submarkets showed no significant activity

BRONX SUBMARKETS Q1 TO Q3 2020 SF Q1 2020 Q2 2020 Q3 2020 2020 Q1 Total Available SF 2020 Q2 Total Available SF 2020 Q3 Total Available SF MOST AVAILABLE SF: 1,200, 000 3,039,092 Zerega 1,000, 000 Q3 TOTAL LEAST AVAILABLE SF: AVAILABLE SF 800,000 Fordham

600,000 400,000 154,485 SF 137,001 SF 200,000 INCREASE DECREASE 0 Q3-2019 to Q3-2020 Q2-2020 to Q3-2020 Bathgate Central Bronx Fordham Hunts Point Morrisania Northeast Bronx Zerega

*No significant availability in small submarkets Riverdale and Throggs Neck

1,200, 000 2018 2019 1,000, 000 Q2 2020 800,000 Q1 Q3

600,000

400,000

200,000

0 Bathgate Central Bronx Fordham Hunts Point Morrisania Northeast Bronx Zerega

*Riverdale and Throggs Neck submarkets showed no significant activity

For more information, please contact:

Selom Goka Suzanne Annunziato Research Manager Marketing Manager

[email protected] • 914.968.8500