MARKET REPORT. 4th Quarter 2017 MARKET REPORT 4Q17. Established in 1932 Local Expertise Global Reach

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1 1 MARKET REPORT 4th Quarter 2017 B B T H E B L AU & B E RG MARKET REPORT 4Q17 C O M PA N Y Established in 1932 Local Expertise Global Reach B B

2 2 Market Trends 4Q17 Northern & Central New Jersey INDUSTRIAL TRENDS The end of year shaped up to be optimistic with GDP close to 3%, construction spending up, employment growth solid, and consumer confidence healthy. The average leasing rate ($7.31 PSF NNN) increased over 46% on average within the last five years. In submarkets, such as the Meadowlands, leasing rates have increased almost 100% which is a concern to many companies coming up for renewal. The vacancy rate decreased 60% in that same five-year period to 4%. Strong demand for industrial space, fueled by e-commerce led to an historic amount of construction volume. An additional 9MSF was delivered (3.2MSF of which was delivered in the 4Q17). The vacancy rate is 0% for big-box facilities available over 500,000 SF. Over 12.5MSF is currently under construction. Majority of the absorption came from Interchange 8A area to such companies as Home Depot, Wayfair, LG Electronics. Leasing Rates Sale Prices Net Absorption Vacancy Levels RETAIL TRENDS Entertainment, food and experimental recreational opportunities may be the way retail establishments embrace the future to keep people coming out. The vacancy rate rises 6.5%. OFFICE TRENDS Leasing velocity is up slightly and vacancy levels remained steady, however corporate mergers and acquisitions may create additional negative absorption in the future. Transit-oriented areas and certain clusters in New Jersey, such as the Short Hills-Summit and Newark office markets continue to see growth. Tenants looking for upgraded amenities & beneficial working environments. ECONOMIC TRENDS Job productivity will be a key factor in the years to come. The US economy will continue to grow at a steady pace barring any global adversity. US unemployment held steady at 4.1% however NJ unemployment rose from 4.7% to 5.0% according to the Bureau of Labor Statistics. Consumer confidence remains strong. Retail sales climbed to 4.9%; online retail increased 18.1%. The overall consumer buying during the holiday period set a record for dollars spend according to the sales report issued by MasterCard spending Pulse. Construction Activity MARKET REPORT 4Q17 Established in 1932 Local Expertise Global Reach B B

3 3 Market Trends 4Q17 Northern & Central New Jersey Latest Values NJ Jobs Latest Value Difference from a Year Ago Civilian Labor Force (Thousands) 4,489,655-18,175 All Employees: Total Nonfarm 4, Unemployment 5.0 % 0.3 % Total Wages and Salaries $ 262,537,228 $ 2,890,616 Total Personal Income $ 564,558,096 $ 11,529,828 Unemployment Rate U.S. and New Jersey s unemployment rate maintained a steady percentage with very little fluctuation over the course of the second quarter. Source: Bureau of Labor Statistics October November December NJ 4.9% 5.1% 5.0% U.S. 4.1% 4.1% 4.1%

4 MARKET TRENDS INDUSTRIAL

5 5 ±824 MSF INDUSTRIAL SPACE AVERAGE LEASE RATE $7.31 INDUSTRIAL OUTLOOK Northern & Central NJ Due to it s port, demographics, and central location between Philadelphia and New York, New Jersey is poised to be an ideal location for ecommerce distributors, household goods warehousing, and port centric companies. Market conditions continue to do well vacancy rates have steadily declined year over year however, with the amount of speculative construction in the que, this rate will stabilize in the future. ±4.0% ±9.88 MSF ±9.11 MSF ±12.5 MSF VACANCY RATE NET ABSORPTION 4Q DELIVERIES UNDER CONSTRUCTION AVERAGE SALE PRICE $113 PSF AVERAGE CAP RATE RANGE 4.25% % NJ UNEMPLOYMENT RATE 5.0% HYPER- SUPPLY RECESSION EXPANSION RECOVERY Sources: CoStar and Internal Research

6 6 Quick Stats 4Q17 Northern & Central New Jersey Industrial HISTORICAL VACANCY & LEASE RATES HISTORICAL NET ABSORPTION % 7.0% 6.0% 4Q2017 3Q2017 2Q % 4.0% 3.0% 1Q2017 4Q2016 3Q2016 2Q % 1Q % Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q % ,000,000 4,000,000 6,000,000 8,000,000 10,000,000 Lease Rates Vacancy Rates Sources: CoStar and Internal Research MARKET REPORT 4Q17 Established in 1932 Local Expertise Global Reach B B

7 Quick Stats 4Q17 Northern & Central New Jersey Industrial Industrial Market Vacancy Rate (%) Average Asking Lease Rate (PSF) Average Asking Sale Price (PSF) Net Absorption (SF) ± Bergen County 5.

7 7 Quick Stats 4Q17 Northern & Central New Jersey Industrial Industrial Market Vacancy Rate (%) Average Asking Lease Rate (PSF) Average Asking Sale Price (PSF) Net Absorption (SF) ± Bergen County 5.0 $8.87 $ ,507 Passaic County 4.7 $6.91 $99.00 (297,565) Essex County 3.7 $7.69 $ ,531 Morris County 6.2 $7.32 $ ,071 Hudson County 4.6 $8.61 $ ,317 Union County 4.7 $6.77 $ ,255 Middlesex County 2.8 $7.22 $ ,856,039 Somerset County 2.4 $7.43 $ ,015,569 Sub Market West Essex 4.3 $6.99 $ ,333 Meadowlands 4.3 $8.90 $ ,783 Port/Airport 3.7 $7.79 $ ,633 Exit $7.94 $ (182,231) Exit $8.11 $ ,720,528 Exit 8A 1.9 $6.65 $ ,771,586 Exit 7A 4.0 $4.80 $ ,526,958 Overall 4.00 $7.31 $ ,883,306 Sources: CoStar and Internal Research MARKET REPORT 4Q17 Established in 1932 Local Expertise Global Reach B B

8 New Development 4Q17 Northern & Central New Jersey Industrial

Meadowlands $13.00 Exit 13A-15: Port $12.

Portside Distribution Center 290K SF 32 docks 40 Clear Exit 13:

Center 540K SF 110 docks 33.50 AC Exit 8A: Cranbury $6.

8 8 New Development 4Q17 Northern & Central New Jersey Industrial Big Box Markets Average Rental Rate (PSF) Exit 16-18: Meadowlands $13.00 Exit 13A-15: Port $12.00 Exit 16 Exit 13A-15 Exit 13 Exit 12 Exit 10 Exit 8A Exit 14 Portside Distribution Center 290K SF 32 docks 40 Clear Exit 13: Linden $10.50 Exit 12: Carteret $8.75 Exit 10: Edison $8.50 Exit 10 eport Logistics Center 1.3M SF 56 AC 3 Bldg Exit 7A Exit 6 Exit 13a Prologis TriPort Center 540K SF 110 docks AC Exit 8A: Cranbury $6.50 Exit 7A: Robbinsville $5.00 Exit 6: Burlington $4.25 Exit 6 Clarion Partners 1.57M SF Exit 8a Sources: CoStar and internal research IDI Eastpointe 450K SF 95 docks 36 Clear MARKET REPORT 4Q17 Established in 1932 Local Expertise Global Reach B B

9 9 TOP INDUSTRIAL SALES Address Submarket Price (±) Buyer Bridge Portfolio Exit $ 1.15 MSF Duke Realty 215 Blair Road Exit 12 $29.2M 175,000 SF BROUR LLC TOP OF THE CHARTS 4Q17 Northern & Central NJ Industrial Cranbury Station Park Exit 8A $168.5M 1.24 MSF Clarion Partners GLP Asset Fairfield $78 M 746,820 SF Cohen Asset Mgmt TOP INDUSTRIAL LEASES Building Submarket SF (±) Tenant 700 Kapkowski Exit ,000 Allied Beverage Prologis Park Cranbury S Exit 8A 504,428 Home Depot 18 Applegate Exit 7A 597,594 Amazon 171 River Road Exit 9 725,000 Best Buy TOP CONSTRUCTION PROJECTS Submarket Type-Tenancy SF (±) Completion (approx.) Exit 13a BTS-Allied Beverage 540,000 4Q18 Exit 15e BTS-Fabuwood 706,000 2Q18 Exit 15e Spec 870,000 4Q18 Exit 8A Spec-Wayfair 1,346,0888 2Q18 Sources: CoStar and Internal Research

4Q17 NJ & NY IMPORT-EXPORT Year-to-Date Import TEUs Export TEUs Total TEUs Loads Empties Loads Empties Loads Empties Total Total Rail Lifts YTD Dec 2017: 3,396,469 20,491 1,415,322 1,878,535

10 4Q17 NJ & NY IMPORT-EXPORT Year-to-Date Import TEUs Export TEUs Total TEUs Loads Empties Loads Empties Loads Empties Total Total Rail Lifts YTD Dec 2017: 3,396,469 20,491 1,415,322 1,878,535 4,811,791 1,899,026 6,710, ,649 YTD Dec 2016: 3,202,690 26,195 1,356,127 1,666,941 4,558,817 1,693,136 6,251, ,149 % Change 6.10% % 4.40% 12.70% 5.50% 12.20% 7.30% 5.10% Sources: CoStar, Internal Research, 10

11 MARKET TRENDS OFFICE

12 12 VACANCY RATE 20.5% OFFICE MARKET TRENDS 4Q17 Northern & Central NJ ABSORBTION SF -400,000 SF AVERAGE ASKING RATES Class A Class B Class C $28.75 PSF $22.50 PSF $18.50 PSF LEASE SIGNINGS Tenant SF Location City Area Universal Tech 55,000 Garden State Corp Plaza Bloomfield Celularity 50, Technology Drive Route 78 East Power Home 34,180 Lincoln Place South Edison Sources: CoStar and Internal Research

13 13 Office Market Trends 4Q17 Northern & Central New Jersey HISTORICAL RENTAL RATES $30.00 $29.00 $28.00 $27.00 $26.00 $25.00 $24.00 $23.00 $22.00 $ Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 A B Total Market Sources: CoStar and Internal Research MARKET REPORT 4Q17 Established in 1932 Local Expertise Global Reach B B

14 MARKET TRENDS RETAIL

15 15 VACANCY RATE 6.5% RETAIL MARKET TRENDS 4Q17 Northern & Central NJ ABSORBTION SF (150,000) SF AVERAGE ASKING RATES General Retail Mall Power Center Shopping Center $22.10 PSF $45.41 PSF $18.54 PSF $19.50 PSF LEASE SIGNINGS Tenant SF Location City Patterson School 30, Main Street Passaic Happy USA 17, Route 46 Route 46 Target 65, Route 46 Parsippany Sources: CoStar and Internal Research

16 16 Retail Market Trends 4Q17 Northern & Central New Jersey HISTORICAL VACANCY, DELIVERIES & NET ABSORPTION % Deliveries & Net Absorption % 8.0% 6.0% 4.0% Vacancy & National Vacancy 0 2.0% % Deliveries Net Absorption Vacancy National Vacancy Sources: CoStar and Internal Research MARKET REPORT 4Q17 Established in 1932 Local Expertise Global Reach B B

17 About Us Since its inception in 1932, The Blau & Berg Company has secured a leading position in the New Jersey and Tri- State commercial real estate market.

17 17 About Us Since its inception in 1932, The Blau & Berg Company has secured a leading position in the New Jersey and Tri- State commercial real estate market. Headquartered in Short Hills, New Jersey, we are an independent, full-service commercial real estate brokerage firm providing services in the industrial, retail and office spaces, including: site selection, acquisitions, dispositions, leasing, tenant representation, portfolio sales, asset repositioning, and property & construction consulting. MARKET REPORT 1Q17 Established in 1932 Local Expertise Global Reach B B

18 18 GENERAL DISCLAIMER The information contained herein has been obtained from sources considered to be reliable, but no guarantee of its accuracy is made by this company. In addition, no representation is made respecting zoning, condition of title, dimensions, or any matters of a legal or environmental nature. Such matters should be referred to legal counsel for determination. Subject to errors and omissions. The information contained in this document is proprietary to The Blau & Berg Company.

MARKET REPORT. 2nd Quarter 2018 MARKET REPORT 2Q18. Established in 1932 Local Expertise Global Reach

MARKET REPORT. 2nd Quarter 2018 MARKET REPORT 2Q18. Established in 1932 Local Expertise Global Reach 1 MARKET REPORT 2nd Quarter 2018 B B T H E B L AU & B E RG MARKET REPORT 2Q18 C O M PA N Y www.blauberg.com Established in 1932 Local Expertise Global Reach B B 2 Market Trends 2Q18 Northern & Central