Third Quarter 2017

Market HighlightsOffice Q/Q Total Inventory 364,583,007 SFTotal Vacancy Rate 12.60%Average Rate $25.50 PSFNet Absorption 1,006,505 SF

Industrial Total Inventory 819,657,165 SFTotal Vacancy Rate 5.30%Average Rate $7.26 PSFNet Absorption 4,845,552 SF

Retail Total Inventory 389,978,659 SFTotal Vacancy Rate 4.90%Average Rate $21.14 PSFNet Absorption 289,264 SF

Economic Indicators

UnemploymentRate National 4.20%New Jersey 4.70%

MedianExistingHomePriceNational $245,100

Consumer Confidence Index 102.20%

10 Year Treasury Yield 2.33%

WTI Crude Oil Price $51.67

Select Sitar Transactions3Q 2017

MARKET WATCHOffice and Industrial Rents Continue to RiseOnce again, we are seeing average industrial rents increasing over the previous quarter. Average rents rose to $7.26 PSF NNN while vacancy rates continue to drop with a third quarter vacancy rate of 5.3%. During the quarter, eight buildings totaling 1,955,030 square feet were completed and 14,052,937 square feet are under construction. One notable transaction occurred at 1 Brick Yard Road in Cranbury where Wayfair.com pre-leased 1,300,000 square feet.

Office rents are also on the rise with an average rent of $25.50 PSF in the third quarter as compared to$25.30 PSF last quarter. In addition, the overall vacancy rate for office space dropped from 13.2% to 12.6% with Class A space reporting 17.1% vacancy, Class B reporting 10.6% vacancy and Class C reporting 6.8% vacancy. One of the largest transactions of the quarter was Billtrust’s lease of 88,759 square feet at 1009 Lenox Drive in Lawrenceville.

The acquisition of 6,272 self-storage units measuring approximately 673,558 SF of industrial space with a total sales price of $124,464,308. Prime Group Acquisitions, LLC purchased properties in Clinton, NJ; Lindenwold, NJ; Phillipsburg, NJ; Washington, NJ; Brookfield, CT; Farmington, CT; Newington, CT; New Milford, CT; Boston, MA; Hyde Park, MA; Quakertown, MA; Somerville, MA; and South Boston, MA; and Fairless Hills, PA. Bill Sitar Jr. was the salesperson in these transactions.

The sale of a 36,408 sq. ft. retail center at 3 Walter Foran Boulevard, Flemington, from Arnav Investments, LLC to Flemington Partners, LLC. The sale price was $5,600,000. Giorgio Vasilis was the salesperson in this transaction.

The sale of an 80-room hotel at 2015 Burlington Mount Holly Road, Westampton from 2015 Burlington Mount Holly Road, LLC to Westampton Realty, LLC. The sales price was $3,750,000. Thomas Palumbo was the salesperson in this transaction

FEATURED LISTINGS

RETAIL317 Route 34

Colts Neck, NJ 07722

Please contact: Office: 732.283.9000

JoeAllegroCell: 732.859.5365

OFFICE24 Merchants Way

Colts Neck, NJ 07722

Please contact:Office: 732.283.9000RonSchraderJr.Cell: 732.859.1781

WAREHOUSEFifth Ave

Bradley Beach, NJ

Please contact: Office: 732.283.9000RobertJanTauschCell: 908.513.5350

Large Blocks of AbsorptionThird Quarter 2017

Office BillTrust 87,286 SF 1009 Lenox Drive, Lawrenceville Hovnanian Enterprises, Inc. 70,431 SF 190 Matawan Road, Old Bridge Torre Lazur McCann 65,000 SF 3 Sylvan Way, Parsippany Industrial Wayfair, Inc. 1,346,088 SF 1 Brick Yard Road, Building 1, Cranbury Cascades Containerboard Packaging 451,800 SF 2 Turner Place, Piscataway Rema Foods 320,867 SF 2351 US Highway 130 Dayton Retail Dick’s Sporting Goods 43,459 SF 310 State Route 36, West Long Branch Sierra Trading Post 23,361 SF 1640 Route 22 @ Terrill Road, Watchung HomeSense 18,668 SF 1640 Route 22 @ Terrill Road, Watchung

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

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.