Fourth Quarter 2016

Market HighlightsOffice Q/Q Total Inventory 363,737,578 SFTotal Vacancy Rate 13.80%Average Rate $24.83 PSFYTD Net Absorption 516,314 SF

Industrial Total Inventory 810,511,130 SFTotal Vacancy Rate 5.80%Average Rate $6.85 PSFYTD Net Absorption 11,841,590 SF

Retail Total Inventory 383,536,921 SFTotal Vacancy Rate 5.10%Average Rate $20.43 PSFYTD Net Absorption 829,570 SF

Economic Indicators

UnemploymentRate National 4.70%New Jersey 4.70%

MedianExistingHomePriceNational $232,200

Consumer Confidence Index 113.30%

10 Year Treasury Yield 2.45%

WTI Crude Oil Price $53.75

Select Sitar Transactions4Q 2016

MARKET WATCHAverageRentalRatesContinuetoRisethroughoutNewJerseyThe Northern New Jersey office market ended the quarter with average rental rates reaching $24.83 per sq. ft., which is an increase of $.10 over the last quarter. In addition, the vacancy rate decreased slightly over the third quarter of 2016 with class A space reporting a vacancy rate of 17.7%, class B reporting 12.7%, and class C space reporting a vacancy rate of 7.6%. In addition, cap rates for 2016 averaged 7.13% versus 7.45% in 2015. One of the largest transactions for 2016 was the sale of Novo Nordisk headquarters in Plainsboro for $305,000,000. This was a +/-761,000 sq. ft. office building.

The average Northern New Jersey industrial rental rates increased to $6.85 per sq. ft. in the fourth quarter which is $.19 increase over the previous quarter. In addition, the average vacancy rate also decreased from 6.0% to 5.8% indicating a strong industrial market. The largest lease signed in 2016 was Wayfair.com signing a +/- 1,240,000 sq. ft. lease at Cranbury Station Park.

Average retail rents also showed an increase in rents from an average of $20.15 per sq. ft. to $20.43 per sq. ft. The largest retail lease of 2016 was Big Snow America signing a +/-180,000 sq. ft. lease at the Meadowlands.

The sale of a 44,000 SF warehouse/office building at 1325 Route 34, Wall from 1325 Wall LLC to Chester Lieder. The sales price was $3,100,000. Doug Sitar and Gregg Nowell were the salespeople in this transaction.

The lease of 19,809 SF of office space at 1433 Route 33, Farmingdale from Mack-Cali to Northeast Remsco. Gregg Nowell was the salesperson in this transaction.

The lease of 12,739 SF of industrial space at 2350 Route 34, Wall from Sudler Iorio LLC to NRG Home Solar. Ron Schrader Jr. was the salesperson in this transaction.

FEATURED LISTINGS

INDUSTRIAL3880 Park AvenueEdison, NJ 08820

Please contact: Office: 732.283.9000WilliamSitarJr.

Cell: 973-202-9119RobBogash

Cell: 732-319-4680

RETAIL513 Cookman AvenueAsbury Park, NJ 07712

Please contact:Office: 732.283.9000WilliamSitarJr.

Cell: 973-202-9119JohnCranley

Cell: 908-370-9808

LAND3530 Route 66Neptune, NJ

Please contact: Office: 732.449.2000HelenaLoelius

Cell: 908-285-4322TristaRicciardelliCell: 908-232-9800

Large Blocks of AbsorptionFourth Quarter 2016

Office Sharp Electronics 84,667 SF 100 Paragon Drive, Montvale Omnicom Group 79,771 SF 2 Harborside Place, Jersey City Fidessa 77,998 SF 70 Hudson Street, Jersey City Industrial Modway, Inc. 635,000 SF 329-359 Wyckoff Mills Road, Hightstown DSV Global Transport & Logistics 507,519 SF 1005 W. Middlesex Avenue, Port Reading Bob’s Discount Furniture 359,965 SF 50 Middlesex Avenue, Port Reading Retail Sherwin Williams 25,584 SF 498 Milltown Road, North Brunswick Home Goods 22,000 SF 1026 Broad Street, Shrewsbury ClubMetro USA 20,744 SF 2601 Highway 516, Old Bridge

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.