First Quarter 2017

Market HighlightsOffice Q/Q Total Inventory 363,526,845 SFTotal Vacancy Rate 13.40%Average Rate $25.11 PSFYTD Net Absorption 405,481 SF

Industrial Total Inventory 812,881,868 SFTotal Vacancy Rate 5.70%Average Rate $7.00 PSFYTD Net Absorption 624,236 SF

Retail Total Inventory 385,679,759 SFTotal Vacancy Rate 5.10%Average Rate $20.61 PSFYTD Net Absorption 102,177 SF

Economic Indicators

UnemploymentRate National 4.50%New Jersey 4.20%

MedianExistingHomePriceNational $236,400

Consumer Confidence Index 125.60%

10 Year Treasury Yield 2.40%

WTI Crude Oil Price $50.54

Select Sitar Transactions1Q 2017

MARKET WATCHRentsKeepRisinginNewJerseyThe Northern New Jersey industrial market continues to strengthen as we see average rents rising to$7.00 per square foot for the first quarter of 2017 over $6.85 per square foot in the last quarter of 2016. The warehouse vacancy rate decreased slightly from 5.8% in 2016 to 5.7%, while flex projects had a higher vacancy rate of 11.4% at the end of the first quarter. The largest lease signed in 2017, was by Target at Bridgeport Logistics Center for over 718,000 square feet.

The Northern New Jersey office market experienced an increase in average rents from $24.83 per square foot at the end of 2016 to $25.11 per square foot for the first quarter of 2017. The average vacancy rate decreased from 13.8% to 13.4% for the same time periods with Class A having an average of 17.4% vacancy, Class B having an average of 12.4% vacancy and Class C having an average of 7.3% vacancy. One of the larger office transactions of 2017, was Broadridge Financial Solutions, Inc. signing a +/-160,000 square foot lease at Two Gateway in Newark.

The lease of 26,000 sq. ft. of retail space at 136 Monmouth Road, West Long Branch from 136 Monmouth Holdings, LLC to SJM Motorcycles, LLC. Gregg Nowell and Brian Murphy were the salespeople in this transaction.The lease of 99,636 sq. ft. of industrial space at 245 Belmont Drive, Franklin Township from Heller Industrial Park Inc. to Mack Boring and Parts Co. Bill Sitar Jr. and John Cranley were the salespeople in this transaction.The lease of 16,500 sq. ft. of office space at 2121 Route 22 in Bridgewater from Bridgewater East Associates to Capitol Care BR, LLC. Gregg Nowell and Doug Sitar were the salespeople in this transaction.The sale of a 66,000 sq. ft. industrial facility on South Foul Rift Road, Harmony Township from Par Four Associates, LLC to Stateline Fabricators. The sales price was $2,400,000. Ronald Schrader Jr. was the salesperson in this transaction.

FEATURED LISTINGS

INDUSTRIAL720, 730, 740 Federal Avenue

Kenilworth, NJ 07033

Please contact: Office: 732.283.9000RonSchraderJr.Cell: 732.859.1781WilliamSitarJr.

Cell: 973.202.9119

RETAIL614 Cookman AvenueAsbury Park, NJ 07712

Please contact:Office: 732.283.9000

DougSitarCell: 732.859.2144

RETAIL836 Broad Street

Newark, NJ 07102

Please contact: Office: 732.283.9000

BrianMurphyCell: 732.539.3098WilliamSitarJr.

Cell: 973.202.9119

Large Blocks of AbsorptionFirst Quarter 2017

Office Broadridge Financial Solutions, Inc. 160,070 SF Two Gateway, Newark Jeep 56,500 SF 100 Sylvan Avenue, Englewood Cliffs Qualcomm Incorporated 30,307 SF 500 Somerset Corporate Boulevard, Bridgewater Industrial Target 718,219 SF 980 High Street, Perth Amboy Automann, Inc. 365,400 SF 400 Docks Corner Road, Monroe Township OneStop Logistics, Inc. 260,000 SF 77 Executive Avenue, Edison Retail Whole Foods 50,000 SF 100 Chimney Rock Road, Bridgewater Forever 21 43,993 SF 200 State Route 10 W, East Hanover Saks Off 5th 35,975 SF Chimney Rock Road, Bridgewater

Office: Quoted Rates by Submarket

Office: Vacancy Rates by Submarket

Industrial: Quoted Rates by Submarket

Industrial: Vacancy Rates by Submarket

Retail: Quoted Rates by Submarket

Retail: Vacancy Rates by Submarket

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.

Sitar Realty Company Locations

1481 Oak Tree Road - Iselin, NJ 08830Tel: 732-283-9000 Fax: 732-283-3103

503 Washington Boulevard - Sea Girt, NJ 08750Tel: 732-449-2000 Fax: 732-449-2828

607 Lake Avenue - Asbury Park, NJ 07712Tel: 732-775-3000 Fax: 732-775-5520

About Sitar Realty CompanyOne 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

TCN WorldwideTCN 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.