2Q2016 Northern & Central New Jersey Industrial Report

48-50 Station Road, Cranbury Leased by Wayfair.com 2Q2016 Overview Industrial Report Overview

Prologis CEO Hamid Moghadam said in their Q2 earnings call, “the big drivers of [warehouse] demand are consumption fueled by e-commerce and reconfiguration of the supply chain. Those are the real biggies now that global trade has reached the saturation point.” One change in supply chain logistics is the opening of a third set of locks at the Panama Canal. On June 26th, the new locks were opened, which allows ships as large as 13,000 TEU’s (twenty-foot equivalent units) through the canal. The first ship to visit any East Coast port after passing through the new locks was the MOL Benefactor, a 10,100 TEU ship, which docked at GCT USA in Bayonne. The average vessel size calling on Port of New York/New Jersey today is 5,000 TEU’s. Currently, at the Port of New York/ New Jersey, the neo Panamax ships can only call on GCT USA . At the end of 2017, once the Bayonne Bridge is raised, Port Newark and Port Elizabeth will also be able to handle the larger ships.

The flow of goods through the port will be a function of the state of the economy. In June, the Federal Reserve kept interest rates steady in a sign that the economy was not ready to absorb a rate hike in part due to Brexit, the United Kingdom referendum on leaving the European Union, which caused some uncertainty in the markets. It appears that although Britain will face short term issues with leaving the EU, it will not greatly affect the industrial real estate market in the United States. There may be additional capital flowing from outside the EU into Class A real estate in select US cities, but it will be short term in nature. The Federal Reserve is more confident of an interest-rate increase before the end of the year, and maybe as soon as September, as financial markets have stabilized after Britain’s vote to leave the European Union and the economy shows signs of strengthening. Trends 2Q2016

ASKING RATE LEASING Scott K. Perkins, SIOR, CCIM Industrial Council Chairman

NET ABSORPTION VACANCY

Numbers are compared to 1Q2016 Northern & Central 2Q 2016 Submarkets Industrial Report

Sussex

Hamburg

Franklin West Milford

Hardwick Mahwah Montvale Wanaque Newton Sparta Ridgewood Kinnelon Norwood Hopatcong Wayne Tena y Montville Totowa Hackettstown Paramus Boonton Clifton Dover Hackensack Budd West Englewood Lake Parsippany Orange Randolph Rutherford Secaucus Long Valley Morristown Newark Jersey City Union Cokesbury Scotch Elizabeth Bayonne Bedminister Plains Linden Lebanon Warren & Sussex Warren Rahway Carteret Route 46/23/3 Corridor Avenel Somerville Edison Northern Bergen County Flemington Central Bergen County East South Brunswick Amboy Meadowlands

Suburban Essex Princeton Jamesburg Cranbury Robbinsville Morris Region

Hamilton Port Freehold Hunterdon Trenton Somerset

Exit 10/12

Brunswick/Exit 9

Exit 8A

Exit 7A Northern & Central 2Q 2016 Overview Industrial Report

County Overview:

Total Vacant Total Vacant Total Net Total SF RBA Under Total Average Total RBA Available SF Available % Absorption Leased Construction Asking Rate NJ Overall 650,291,179 35,347,790 5.40% 1,758,011 7,385,801 4,430,362 $6.16

Middlesex 183,669,315 7,571,141 4.10% 1,361,719 4,029,338 2,203,437 $5.80 Bergen 91,347,397 6,437,075 7.00% (262,821) 682,198 638,438 $7.43 Hudson 82,183,006 4,379,174 5.30% 777,976 643,587 635,821 $7.42 Essex 65,153,825 2,730,115 4.20% 79,028 332,962 0 $6.37 Union 60,262,637 3,066,854 5.10% (134,251) 738,822 869,451 $6.36 Passaic 53,512,932 2,673,124 5.00% 232,503 205,528 0 $6.08 Morris 39,806,980 2,450,644 6.20% (362,809) 296,981 53,215 $6.34 Mercer 31,602,074 3,596,570 11.40% (110,785) 105,490 30,000 $4.04 Somerset 27,383,965 1,033,705 3.80% 356,345 251,470 0 $5.82 Hunterdon 6,436,486 313,141 4.90% (25,810) 65,825 0 $3.81 Warren 6,433,506 741,617 11.50% (162,034) 33,600 0 $4.79 Sussex 2,499,056 354,630 14.20% 8,950 0 0 $4.94

Orange, NY 26,435,613 1,695,026 6.40% (3,912) 128,514 658,000 $5.04 Rockland, NY 14,513,331 765,558 5.30% (66,356) 75,219 0 $8.08

Submarket Overview:

Total Vacant Total Vacant Total Net Total SF RBA Under Total Average Total RBA Available SF Available % Absorption Leased Construction Asking Rate Ports 132,999,218 6,798,256 5.10% 714,933 1,056,007 869,451 $6.49 Exit 10/12 104,028,074 4,077,772 3.90% 1,357,888 641,353 1,072,521 $6.24 Meadowlands 92,837,925 5,480,961 5.90% 12,765 903,438 995,959 $7.57 Exit 8A 60,853,898 2,330,700 3.80% 21,568 3,287,043 1,130,916 $5.24 Route 46/23/3 Corridor 53,119,045 2,633,913 5.00% 288,631 209,528 0 $6.10 Exit 7A 41,160,101 3,943,227 9.60% (27,935) 134,944 44,000 $4.66 Morris Region 37,927,984 2,386,506 6.30% (374,337) 102,981 53,215 $6.32 Somerset 27,286,103 1,018,705 3.70% 362,345 251,470 0 $5.65 Central Bergen County 27,182,349 1,897,961 7.00% (223,129) 149,618 278,300 $7.30 Suburban Essex 23,542,386 966,503 4.10% (30,663) 135,997 0 $6.41 Brunswick/Exit 9 21,920,686 1,281,956 5.80% (19,055) 100,942 0 $4.97 Northern Bergen County 21,453,665 1,459,599 6.80% (58,756) 152,509 0 $7.56 Warren & Sussex 8,932,562 1,096,247 12.30% (153,084) 33,600 0 $4.85 Hunterdon 6,360,286 313,141 4.90% (25,810) 65,825 0 $3.81

Source: CoStar 10,000 + sf - All information comes from sources deemed reliable by NAI James E. Hanson. Northern & Central 2Q 2016 Sales Industrial Sales Activity

There was over 9,800,000 square feet sold in the second quarter of 2016. The average price per square foot was $63, a decrease of $10 per square foot from the previous quarter. The most activity was seen in the Ports, Morris Region, Northern Bergen County and Route 46/23/3 Corridor.

Notable transactions for the quarter included 401 Cabot Drive in Hamilton,1501-1525 W Blancke Street in Linden, 111 Somogyi Court in South Plainfield and 60 Romanelli Avenue in South 401 Cabot Drive, Hamilton Hackensack. 401 Cabot Drive in Hamilton was purchased by Deutsche Asset and Wealth Management from AEW Capital Management. The 600,600 square foot warehouse/distribution property sold for $53,800,000. Colgate-Palmolive is a tenant in the building. 1501-1525 W Blancke Street in Linden sold from Tulfra Realty to Penwood Real Estate Investment Management. The 115,935 square foot industrial warehouse building is 100% occupied. Tenants include Hello Fresh and Vantage Specialty Chemicals. Penwood purchased the property for $11,593,500. 111 Somogyi Court in South Plainfield also sold this quarter. Tyler Wayne LLC purchased the 64,990 square foot building from Vision Industries Group, Inc. for $7,500,000. The property was purchased for occupancy. The company is from Alabama and is in the process 60 Romanelli Avenue, South Hackensack of expanding operations.

NAI Hanson facilitated the sale of 60 Romanelli Avenue in South Hackensack. Main Event Caterers purchased the 21,500 square foot property from 60 Romanelli LLC to relocate from their space in Englewood. The property sold for $2,600,000 and will be used as a commercial kitchen.

Two notable portfolio sales included a 4 building portfolio sale in Mahwah and a 2 building portfolio sale in Mount Olive. Cabot Properties purchased 100 Corporate Drive (102,269 square feet), 200 Corporate Drive (59,000 square feet), and 750 Corporate Drive (88,617 square feet) as well as 320 Route 17 (110,744 square feet) in Mahwah. The portfolio sold for $53,800,000. The portfolio sale in Mount Olive included 75,000 square feet of office and 364,462 350 Clark Drive, Mount Olive square feet of industrial located at 350 Clark Drive. The portfolio sold from North Jersey Development Group, Inc. to Commercial Realty Group for $27,125,000. Northern & Central 2Q 2016 Leasing Industrial Leasing Activity

The Northern and Central New Jersey industrial market saw over 7,300,000 square feet leased in the second quarter of 2016. Vacancy continues to be on the decline while average asking rates keep rising. The vacancy rate decreased from 5.7% in the first quarter to 5.4% in the second quarter and net absorption remained positive with over 1,700,000 square feet absorbed. Average asking rates increased $0.19 per square foot from the first quarter ending the quarter at $6.16 per square foot, making it the first time in a long time that the average asking rate is above $6.00 per square foot. 48-50 Station Road, Cranbury The highest average asking rate, $7.57 per square foot, was seen in the Meadowlands submarket. This was an increase of $0.67 Northern & Central NJ per square foot from the previous quarter, which was the largest Overall Average Asking Rate vs. Vacancy increase of all the submarkets. The lowest vacancy, 3.7%, was $7.00 8.00% $6.50 7.00% seen in the Somerset submarket followed by Exit 8A with 3.8% and $6.00 $5.50 6.00% Exit 10/12 with 3.9%. One of the largest decreases this quarter $5.00 5.00% $4.50 4.00% was in Exit 8A. The submarket went from 6.1% in the first quarter $4.00 $3.50 3.00% to 3.8% in the second quarter. As a result, Exit 8A finished with the $3.00 2.00% highest leasing activity with over 3,200,000 square feet leased in the second quarter. Following behind was the Ports submarket with NNN Rent Overall Vacant Available Percent Total over 1,000,000 square feet leased.

The top transactions for the quarter included Wayfair.com, TFH Publications, UPS and FedEx. Wayfair.com leased 930,030 square feet at 48-50 Station Road in Cranbury and 310,937 square feet to-be-built adjacent to 48-50 Station Road; TFH Publications leased 550,050 square feet at 965 Cranbury South River Road in Monroe Township; UPS leased 343,485 square feet at 100 Middlesex Center Boulevard in South Brunswick; and FedEx leased

340,000 square feet at 530-584 US Highway 130 in Trenton. 965 Cranbury South River Road, Monroe Township

Top renewals included Coaster Company of America, Inc. and Hair Systems, Inc. Coaster Company of America renewed 298,122 Northern & Central NJ Overall Leasing Activity (SF) square feet at 45 Stults Road in South Brunswick and Hair Systems, 14,000,000 Inc. renewed their 75,556 square feet space at 3 Fitzgerald Avenue 12,000,000 10,000,000 in Monroe Township. 8,000,000 6,000,000 The market continues to tighten with average asking rates rising 4,000,000 2,000,000 and vacancy rates on the decline. With retailers competing with 0 Amazon for warehouse space and shorter shipping times, the question remains how long will asking rents rise. Northern & Central 2Q 2016 Construction Industrial Construction Activity

Site Plan for High Street, Perth Amboy Rendering of 1590 Lower Road, Linden

New Construction/Under Construction: Address Size (SF) Completion Developer Usage 980 High Street, Building C, Perth Amboy 718,219 4Q2016 Bridge Development Partners Investment

2353 Route 130, Building I, South Brunswick 496,320 3Q2016 Clarion Partners Investment

901 W. Linden Avenue, Linden 495,000 3Q2016 Duke Realty Corp. Investment

377-387 Davidsons Mill Rd, South Brunswick 488,800 4Q2016 Bridge Development Partners Investment

1000 High Street, Building A, Perth Amboy 354,302 4Q2016 Bridge Development Partners Investment 530-584 US Highway 130, Trenton 340,000 2Q2017 SunCap Property Group Build-to-Suit Station Road, Cranbury 310,937 1Q2017 Rockefeller Group Development Build-to-Suit 125 North Street, Teterboro 220,883 4Q2016 Forsgate Industrial Partners Investment 1 Eastern Road, Kearny 197,000 1Q2017 Hugo Neu Realty Management Investment 2 Bell Drive, Building A, Ridgefield 195,215 4Q2016 Sitex Group/Cornerstone Investment

50 Cable Drive, Kearny 189,540 4Q2016 River Terminal Development Investment

1590 Lower Road, Linden 156,040 1Q2017 Hartz Mountain Industries, Inc. Investment

101 Herrod Boulevard, South Brunswick 145,796 4Q2016 Forsgate Industrial Investment

38 Porete Avenue, North Arlington 139,255 3Q2017 Porete Development LLC Build-to-Suit

900 Fairmount Avenue, Elizabeth 130,000 4Q2016 Elberon Development Corp. Investment

22 Roosevelt Avenue, Somerset 122,350 4Q2016 F. Greek Development Build-to-Suit

1 County Road, Building A, Secaucus 105,000 2Q2017 Bhasin Properties Investment

1 County Road, Building B, Secaucus 100,000 4Q2016 Bhasin Properties Investment

4 Bell Drive, Building B, Ridgefield 83,085 4Q2016 Sitex Group/Cornerstone Investment

1401 W Blancke Street, Linden 44,411 3Q2016 Hub Realty Investment 662-758 S 2nd Street, Plainfield 44,000 2Q2017 J.G. Petrucci Company Build-to-Suit 92 N Main Street, Building 8, Windsor 30,000 4Q2016 Everest Realty Group Investment 986 Edwards Road, Parsippany 21,708 3Q2016 Edward Holding Realty Investment Northern & Ports Central New Jersey

Overview • The Ports submarket, which is the largest industrial submarket in Northern and Central New Jersey, consists of 132,999,218 square feet in 2,332 buildings. • Average asking rates ended the first quarter at $6.49 per square foot, a decrease of $0.07 from the previous quarter. • At the end of the second quarter, there was 869,451 square feet under construction. 750 Union Avneue, Union Rental Rates Average asking rates ended the second quarter at $6.49 per square foot, which is a decrease of $0.07 per square foot from the previous Average Asking Rate vs. Vacancy quarter. Rates are up $0.58 per square foot from the second quarter of $7.00 8.00% $6.50 7.00% 6.00% 2015 and they are up $0.73 per square foot from the second quarter $6.00 5.00% of 2014. Rates have remained above the $6.00 mark since the third $5.50 4.00% $5.00 3.00% quarter of 2015. 2.00% $4.50 1.00% $4.00 0.00% Leasing Activity NNN Rent Overall Vacant Available Percent Total The Ports submarket saw the second highest level of activity compared to the other submarkets with over 1,000,000 square feet leased. Vacancy decreased from 5.5% in the first quarter to 5.1% in the second quarter and net absorption remains positive with over 710,000 square feet absorbed. Top transactions included Boxed.com leasing 143,752 square feet at 750 Union Avenue in Union; Trade Mango leasing 142,874 square feet at 201 Bay Avenue in Elizabeth; and Metro Fuser leasing 25,124 square feet at 475 Division Street in Elizabeth. NAI Hanson represented the landlord in the leasing at Division Street.

Sales Activity 1501 W Blancke Street, Linden The Ports submarket saw the most sales activity. Notable sales included 1501 W Blancke Street in Linden and 2401 E Linden Avenue in Linden. Penwood Real Estate Investment Management purchased both properties. 1501 W Blancke, a 115,935 square foot building, sold from Tulfra Realty for $11,593,500. 2401 E Linden Avenue, a 82,000 square foot building, sold for $9,100,000 from Everflow Supplies, Inc.

Northern & Exit 10/12 Central New Jersey New Jersey Turnpike

Overview • The Exit 10/12 submarket, consisting of 104,028,074 square feet, is the second largest industrial submarket in Northern and Central New Jersey. • Average asking rates continue to be on the rise and increased $0.14 per square foot from the first quarter. • Vacancy increased slightly and leasing slowed from the previous

quarter. 100 Blue Heron Way, Ediison Rental Rates

Average asking rates increased by $0.14 per square foot from the first Average Asking Rate vs. Vacancy quarter of 2015 to the second quarter of 2016 ending the quarter at $6.40 8.00% $6.20 7.00% $6.24 per square foot. Rates have increased $0.52 per square foot $6.00 6.00% $5.80 5.00% $5.60 from the second quarter of 2015 and are up $0.64 per square foot from 4.00% $5.40 3.00% the second quarter of 2014. Rates continue to rise in this submarket $5.20 $5.00 2.00% and continue to be the highest this submarket has seen since 2007. $4.80 1.00% $4.60 0.00% Leasing Activity NNN Rent Overall Vacant Available Percent Total Leasing activity slowed in the second quarter compared to first quarter activity. The second quarter ended with over 640,000 square feet of space leased. Vacancy rose slightly by .2% and ended the quarter at 3.9% Net absorption increased from the previous quarter and continues to remain positive with over 1,350,000 square feet absorbed. Top transactions for the quarter included Armouth International leasing 110,000 square feet at 170 Circle Drive N in Piscataway; Major Warehouse leasing 94,815 square feet at 100 Blue Heron Way in Edison; and AKA Cars leasing 55,000 square feet at 100 S Washington

Avenue in Dunellen. 445 Hollywood Avenue, South Plainfield Sales Activity Notable transactions for the quarter included 445 Hollywood Avenue in South Plainfield and 111 Somogyi Court in South Plainfield. Jupiter Equity Group LLC sold 445 Hollywood Avenue to Jay Dee, Inc. The 27,000 square foot property sold for $5,346,000. 111 Somogyi Court, a 64,990 square foot building, sold for $7,500,000 from Vision Industries Group, Inc. to Tyler Wayne LLC, who will be occupying the building. Northern & Meadowlands Central New Jersey

Overview • The Meadowlands submarket consists of 1,241 industrial facilities totaling 92,837,925 square feet. • Average asking rates increased by $0.67 from the previous quarter. • Vacancy decreased and leasing activity increased to over 900,000 square feet.

Rental Rates 482 Barell Avenue, Carlstadt Average asking rates increased by $0.67 per square foot from the previous quarter, which was the biggest increase of all the submarkets. The Meadowlands ended the quarter with the highest Average Asking Rate vs. Vacancy average asking rate of the submarkets at $7.57 per square foot. $8.00 9.00% Rates are up $0.82 per square foot from the second quarter of 2015 $7.50 8.00% $7.00 7.00% 6.00% $6.50 and are up $1.08 per square foot from the second quarter of 2014. 5.00% $6.00 4.00% $5.50 3.00% $5.00 2.00% Leasing Activity $4.50 1.00% $4.00 0.00% There was over 900,000 square feet leased in the second quarter of 2016. Vacancy decreased from 6.5% in the first quarter to 5.9% NNN Rent Overall Vacant Available Percent Total in the second quarter and net absorption remained positive with over 12,000 square feet absorbed. Top transactions for the quarter included OMGLOG leasing 175,000 square feet at 1000 Castle Road in Secaucus; Snow Joe leasing 36,750 square feet at 80 Triangle Boulevard in Carlstadt; and Premier Packaging Products, Inc. leasing 36,652 square feet at 482 Barell Avenue in Carlstadt. NAI Hanson facilitated the transactions for 80 Triangle Boulevard and 482 Barell Avenue.

Sales Activity Top sale transactions for the quarter included 77 Moonachie Avenue 120 Chubb Avenue, Lyndhurst in Moonachie and 120 Chubb Avenue in Lyndhurst. 77 Moonachie Avenue, a 103,774 square foot building, sold from Anthony Brusco to Woodmont Industrial Partners for $8,100,000. 120 Chubb Avenue, a 98,039 square foot building, sold for $7,500,000 from Zara Realty Holding Corporation to J.G. Petrucci Company. Northern & Exit 8A Central New Jersey New Jersey Turnpike

Overview • The Exit 8A submarket consists of 60,853,898 square feet. • Construction remains highest in this submarket as well as leasing at the end of the second quarter. • Vacancy decreased by 2.3% from the previous quarter and average asking rates rose.

Rental Rates 100 Middlesex Center Boulevard, South Brunswick Average asking rates increased by $0.42 per square foot from the first quarter of 2016 to $5.24 per square foot. Rates increased by $0.63 per square foot from the second quarter of 2015 and they are up $0.71 per square foot from the second quarter of 2014. Average Asking Rate vs. Vacancy $6.00 7.00% $5.50 6.00% 5.00% $5.00 Leasing Activity 4.00% $4.50 3.00% $4.00 Leasing was most active in the Exit 8A submarket and registered over 2.00% $3.50 1.00% 3,200,000 square feet. Vacancy decreased from 6.1% in the first quarter $3.00 0.00% of 2016 to 3.8% in the second quarter. This was the biggest decrease in vacancy numbers of all the submarkets. There was over 21,000 square NNN Rent Overall Vacant Available Percent Total feet absorbed in the second quarter. The top transactions included Wayfair.com, TFH Publications and UPS. Wayfair.com leased 930,030 square feet at 48-50 Station Road in Cranbury, which was recently delivered in March, as well as 310,937 square feet adjacent to 48-50 Station Road, which will be delivered in the first quarter of 2017. TFH publications leased 550,050 square feet at 965 Cranbury South River Road in Monroe Township and UPS leased 343,485 square feet at 100 Middlesex Center Boulevard in South Brunswick.

Sales Activity 335 New Road, South Brunswick A notable transaction for the quarter included the sale of 335 New Road in South Brunswick. AGM Windows and Siding purchased the 100,000 square foot property for $5,500,000 from Nassau Realty Corporation. The warehouse has 6 docks, 10 drive-ins and boasts 22’ ceilings. Northern & Route 46/23/3 Corridor Central New Jersey

Overview • There is 53,119,045 square feet in the Route 46/23/3 Corridor submarket in 991 buildings. • Average asking rates and vacancy both decreased. • Absorption remained positive.

Rental Rates

Average asking rates decreased from $6.19 per square foot in the first 210 Clifton Boulevard, Clifton quarter of 2016 to $6.10 per square foot in the second quarter. Rates are up $0.54 per square foot from the second quarter of 2015 and they are up $0.67 per square foot from the second quarter of 2014. Average Asking Rate vs. Vacancy $6.50 6.20% 6.00% $6.00 5.80% $5.50 5.60% Leasing Activity 5.40% $5.00 5.20% The Route 46/23/3 Corridor posted over 200,000 square feet in $4.50 5.00% 4.80% $4.00 leasing activity. Vacancy decreased .4% from the previous quarter and 4.60% $3.50 4.40% ended the second quarter at 5%. There was over 280,000 square feet absorbed in the second quarter. Top lease transactions included MF NNN Rent Overall Vacant Available Percent Total Paper leasing 39,000 square feet at 210 Clifton Boulevard in Clifton and GBW Manufacturing leasing 25,200 square feet at 20 West End Road in Totowa.

Sales Activity Sale activity flourished in the second quarter. Two notable transactions included 190 19th Avenue in Paterson and 64 Bushes Lane in Elmwood Park. 190 19th Avenue was purchased for $1,700,000. The 34,000 square foot building sold from Kevart Inc. Mobil to Anthony Pisani. The 64 Bushes Lane, Elmwood Park 11,500 square foot building located at 64 Bushes Lane in Elmwood Park sold from KTS Machine Shop to Pierre Zriek for $1,200,000. Northern & Somerset Central New Jersey

Overview • The Somerset submarket has 418 industrial facilities with 27,286,103 square feet. • Average asking rates increased while vacancy decreased. • Leasing increased and net absorption remained positive.

Rental Rates Average asking rates increased $0.18 per square foot from the first 15 Easy Street, Bridgewater quarter of 2016. Rates have been on the rise for the last 4 quarters. Compared to the second quarter of 2015, rates are up $0.60 per square foot and they are up $0.73 per square foot compared to the second quarter of 2014. Average Asking Rate vs. Vacancy $5.80 6.00%

$5.60 5.00% $5.40 4.00% Leasing Activity $5.20 3.00% $5.00 2.00% Leasing activity registered over 250,000 square feet in the second $4.80 quarter. Vacancy is the lowest in this submarket and ended the quarter $4.60 1.00% $4.40 0.00% at 3.7%, a decrease of 0.5% from the previous quarter and there was over 362,000 square feet absorbed. Top lease transactions for the quarter included Royal Cabinet Company leasing 36,000 square feet NNN Rent Overall Vacant Available Percent Total at 15 Easy Street in Bridgewater; L&T Import and Export Corporation leasing 27,750 square feet at 230 Industrial Parkway in Somerville; and Prestige Millwork, LLC leasing 16,000 square feet at 27 Chimney Rock Road in Bridgewater.

Sales Activity Top transactions for the quarter included 400 Route 22 E in Bridgewater and 300 Sunnymeade Road in Hillsborough. 400 Route 22 E, a 42,000 square feet building, sold from E&B Distributors to Joseph S. Aboyoun 400 Route 22 E, Bridgewater for $4,500,000. Yannuzzi Group purchased 300 Sunnymeade Road from C&F Metal Fabricators, Inc. for $490,000. The building is 10,885 square feet. Northern & Northern Bergen County Central New Jersey

Overview • The Northern Bergen County submarket consists of 21,453,665 square feet in 461 buildings. • Average asking rates decreased while the vacancy rate stayed constant. • Net absorption ended the second quarter negatively.

Rental Rates 1 Reuten Drive, Closter The Northern Bergen County submarket saw a decrease of $0.06 per square foot in the second quarter of 2016 compared to the first quarter. This submarket follows the Meadowlands submarket having Average Asking Rate vs. Vacancy $7.80 9.00% the second highest average asking rate. Although rates declined in the $7.60 8.00% $7.40 second quarter, they are still up $0.16 per square foot compared to the 7.00% $7.20 second quarter of 2015 and are up $0.80 per square foot compared to $7.00 6.00% $6.80 5.00% the second quarter of 2014. $6.60 4.00% $6.40 $6.20 3.00% Leasing Activity

NNN Rent Overall Vacant Available Percent Total There was over 150,000 square feet leased in the second quarter. Vacancy remained constant at 6.8% compared to the previous quarter and net absorption ended negatively with -58,756 square feet absorbed. Top lease transactions included Intimatrend renewing their 11,185 square foot space at 1 Reuten Drive in Closter; Welltone Trading Limited leasing 4,400 square feet at 620-634 Swan Street in Ramsey; and Yankeeville, Inc. leasing 3,608 square feet at 59 Greenwood Avenue in Midland Park.

Sales Activity There was a healthy amount of sale activity in the Northern Bergen 32 Spruce Street, Oakland County submarket for the second quarter. Sales included a portfolio sale from Prologis to Cabot Properties for $39,400,000. The properties included 100 Corporate Drive, 200 Corporate Drive, 750 Corporate Drive and 320 Route 17, all in Mahwah. The buildings totaled 360,630 square feet. Another top transaction included 32 Spruce Street in Oakland, a 43,090 square foot building, which sold for $4,500,000 from Labeling Systems, Inc. to Melrose Lots. Significant Significant Leases Leases and Sales and Sales

Significant Leases Tenant Address Size (SF) Submarket Wayfair.com 48-50 Station Rd., Cranbury 930,030 Exit 8A TFH Publications 965 Cranbury S River Rd., Monroe Township 550,050 Exit 8A

UPS 100 Middlesex Center Blvd., South Brunswick 343,485 Exit 8A

FedEx 530-584 US Highway 130, Trenton 340,000 Exit 7A OMGLOG 1000 Castle Rd., Secaucus 175,000 Meadowlands Boxed.com 750 Union Ave., Union 143,752 Port Armouth International 170 Circle Dr. N., Piscataway 110,000 Exit 10/12 Major Warehouse 100 Blue Heron Way, Edison 94,815 Exit 10/12

ABC Supply Company 662-758 S 2nd St., Plainfield 44,000 Port

Worldpac* Renewal 343 Walsh Dr., Parsippany 43,419 Morris Region

MF Paper 210 Clifton Blvd., Clifton 39,000 Route 46/23/3 Corridor

Snow Joe* 80 Triangle Blvd., Carlstadt 37,750 Meadowlands Premier Packaging Products LLC* 482 Barell Ave., Carlstadt 36,652 Meadowlands Old Dutch International* Renewal 421 N Midland Ave., Saddle Brook 31,550 Central Bergen County Metro Fuser* 475 Division St., Elizabeth 25,124 Port

Significant Sales Address Size (SF) Price Buyer Seller 401 Cabot Dr., Hamilton 600,600 $53,800,000 Deutsche Asset & AEW Capital Wealth Management Management 100, 200 & 750 Corporate Dr. & 360,630 $39,400,000 Cabot Properties Prologis 320 Rt 17, Mahwah (4 building portfolio sale) 350 Clark Dr., Mount Olive 439,462 $27,125,000 Commercial Realty North Jersey (2 building portfolio sale) Group Development Group 530 & 584 US Highway 130, 316,115 $22,500,000 SunCap Property Matrix Development Hamilton Group Group 11 Applegate Dr., Robbinsville 135,000 $22,000,000 Industrial Property Trust Sleepy’s

1501-1525 W Blancke St, Linden 115,935 $11,593,500 Penwood Real Estate Tulfra Realty

120 Chubb Ave., Lyndhurst 98,039 $7,500,000 J.G. Petrucci Co. Zara Realty Holding 111 Somogyi Ct., South Plainfield 64,990 $7,500,000 Tyler Wayne LLC Vision Industries Group

33 NJ 17, East Rutherford* 78,000 $5,450,000 Hampshire Companies R&C Realty Corp. 60 Romanelli Ave., South 21,500 $2,600,000 Main Event Caterers 60 Romanelli LLC Hackensack*

*NAI Hanson Deal Northern & Our Industrial Team Central New Jersey

Barry J. Cohorsky Jeffrey W. DeMagistris Eric Demmers Lewis Dorf

Dominic M. Fittizzi Fernando Garip Gregory James James Kenah Steven G. Leitner

Patrick Lennon Kenneth D. Lundberg Steve Pastor Scott K. Perkins Andrew Somple

Christopher D. Todd Russell J. Verducci Thomas A. Vetter Michael G. Walters Walter Wolf

About NAI James E. Hanson

• 60 years of experience in the New Jersey Industrial Market. • Largest independently owned commercial real estate firm in the State. • Through the affiliation with NAI Global, we are part of a managed network of over 6,700 professionals in 375 offices in 55 countries throughout the world. • Represented over 12 million sf of industrial space over the last five years. William C. Hanson President • NAI James E. Hanson currently holds 10 SIOR designations, the most SIORs over any other Commercial Real Estate firm in the State. • Two offices located in Parsippany and Hackensack with over 40 real estate professionals. • One of the largest industrial teams with a massive industrial presence in the State.

235 Moore Street 10 Lanidex Plaza West Hackensack, NJ 07601 Parsippany, NJ 07054 201 488 5800 973 463 1011 naihanson.com