LEE NYCMANHATTAN TREND TRACKER1Q2016

THE RETAIL MARKET REPORT

LEE NYCMANHATTANRETAILFALL 2017

600 MADISON AVENUE THIRD FLOOR NEW YORK 10022 WWWW.LEEASSOCIATESNYC.COM

Retail Corridor SubmarketFall

2017Spring2017

Fall2016

% ChangeSpring 2017

% ChangeFall 2016

Bleecker Street | Seventh Avenue South - Houston St West Village 351$ 373$ 471$ -6% -25%Broadway | Battery Place - Chambers Street Financial District 374$ 362$ 369$ 3% 2%Broadway | Houston Street - Broome Street SoHo 644$ 812$ 755$ -21% -15%Broadway | 14th Street - 23rd Street Flatiron 384$ 348$ 390$ 10% -2%Broadway & Seventh Avenue | 42nd Street - 47th Street Times Square 2,100$ 1,930$ 2,170$ 9% -3%Broadway | 72nd Street - 86th Street Upper West Side 291$ 315$ 341$ -8% -15%Columbus Avenue | 66th Street - 79th Street Upper West Side 338$ 344$ 403$ -2% -16%East 57th Street | Fifth Avenue - Park Avenue Plaza District 1,294$ N/A 1,438$ N/A -10%East 86th Street | Lexington Avenue - Second Avenue Upper East Side 450$ 399$ 428$ 13% 5%Fifth Avenue | 14th Street - 23rd Street Flatiron 449$ 456$ 390$ -1% 15%Fifth Avenue | 42nd Street - 49th Street Grand Central 1,158$ 1,163$ 1,259$ 0% -8%Fifth Avenue | 49th Street - 59th Street Plaza District 3,900$ 3,324$ 3,484$ 17% 12%Madison Avenue | 57th Street - 72nd Street Plaza District 1,348$ 1,446$ 1,433$ -7% -6%Third Avenue | 60th Street - 72nd Street Upper East Side 261$ 356$ 340$ -27% -23%West 14th Street | Ninth Avenue - Tenth Avenue Meatpacking 323$ 334$ 345$ -3% -6%West 34th Street | Fifth Avenue - Seventh Avenue Herald Square 633$ 734$ 745$ -14% -15%125th Street | FDR Drive - Henry Hudson Parkway Harlem 123$ 124$ 125$ -1% -2%

Retail Corridor SubmarketFall

2017Spring2017

Fall2016

% ChangeSpring 2017

% ChangeFall 2016

Bleecker Street | Seventh Avenue South - Houston St West Village 371$ 375$ 475$ -1% -22%Broadway | Battery Place - Chambers Street Financial District 400$ 363$ 350$ 10% 14%Broadway | Houston Street - Broome Street SoHo 600$ 850$ 685$ -29% -12%Broadway | 14th Street - 23rd Street Flatiron 328$ 320$ 390$ 3% -16%Broadway & Seventh Avenue | 42nd Street - 47th Street Times Square 2,000$ 2,000$ 2,200$ 0% -9%Broadway | 72nd Street - 86th Street Upper West Side 295$ 335$ 375$ -12% -21%Columbus Avenue | 66th Street - 79th Street Upper West Side 300$ 332$ 412$ -10% -27%East 57th Street | Fifth Avenue - Park Avenue Plaza District 1,250$ N/A 1,400$ N/A -11%East 86th Street | Lexington Avenue - Second Avenue Upper East Side 450$ 345$ 345$ 30% 30%Fifth Avenue | 14th Street - 23rd Street Flatiron 409$ 415$ 400$ -1% 2%Fifth Avenue | 42nd Street - 49th Street Grand Central 1,200$ 1,100$ 1,200$ 9% 0%Fifth Avenue | 49th Street - 59th Street Plaza District 3,900$ 3,472$ 3,500$ 12% 11%Madison Avenue | 57th Street - 72nd Street Plaza District 1,247$ 1,500$ 1,350$ -17% -8%Third Avenue | 60th Street - 72nd Street Upper East Side 275$ 326$ 385$ -16% -29%West 14th Street | Ninth Avenue - Tenth Avenue Meatpacking 300$ 300$ 350$ 0% -14%West 34th Street | Fifth Avenue - Seventh Avenue Herald Square 650$ 700$ 750$ -7% -13%125th Street | FDR Drive - Henry Hudson Parkway Harlem 130$ 114$ 114$ 14% 14%

• Downtown: South of 14th Street• East Side: 60th Street - 96th Street | East of Fifth Avenue • Midtown: 35th Street - 59th Street• West Side: 60th Street - 116th Street | West of Morningside Park • Midtown South: 15th Street - 34th Street• Upper Manhattan: Above 97th Street (East of Fifth Avenue) and Above 116th Street (West of Morningside Park)

Source: Lee & Associates and Real Estate Board of New York

2 | MANHATTAN RETAIL REPORT Fall 2017 LEE & ASSOCIATES NYC

Average Asking Ground Floor RentsSelect Retail Corridors

Median Asking Ground Floor RentsSelect Retail Corridors

Ten Year Growth in Average Asking RentsManhattan 65%

The Manhattan retail leasing market is still in a corrective period. The increased rents of previous years are receding. Deals are still getting done, but they favor parties willing to be flexible with deal structure, uses, asking rent adjustments, and increased concession

packages. The correction may prove healthy for both the short and long-term viability of the Manhattan retail leasing market. Per square foot ground floor retail asking rents

declined year-over-year in 13 of the 17 high profile corridors. The most resilient corridors to this trend were the Flatiron Fifth Avenue corridor, where the ground floor retail

average asking rent rose 15 percent to $449 psf year-over-year; and the Lower Manhattan Broadway corridor,where the average asking rent increased two percent year-

over-year to $374 psf.

Midtown South 6%Downtown 26%

East Side 8%West Side 2%

Upper Manhattan -2%

Midtown 154%

Property Submarket SF Date Sold Value $ Per SF Buyer Seller1327 Madison Avenue Upper East Side 4,725 2017-09 7,400,000$ 1,566$ - -7 Hubert Street Downtown 2,928 2017-09 3,200,000$ 1,093$ Kinsmen Property Kang Young Eun150 East 55th Street Midtown East 2,900 2017-08 5,100,000$ 1,759$ Izumi Estate Co. J&R Realty Holding806-808 Broadway Midtown South 29,000 2017-07 24,616,667$ 849$ Rubies Costume Co. SPI Holdings47 Mercer Street Downtown 7,500 2017-07 9,300,000$ 1,240$ Zar Property Daniel Langlois201 East 77th Street Upper East Side 4,000 2017-06 5,250,000$ 1,313$ Ashkenazy Acquisition Valley National Bank325 Fifth Avenue Midtown East 5,880 2017-06 23,900,000$ 4,065$ HUBB NYC Continental Properties8 Jay Street Downtown 2,500 2017-06 3,800,000$ 1,520$ Ochre Tribeca Art Flag Company575 Ave. of the Americas Midtown South 3,450 2017-06 6,000,000$ 1,739$ Premier Equities Veritas347 Bowery Midtown South 8,439 2017-06 20,301,250$ 2,406$ Eli Goldstein Urban Muse243 West 60th Street Upper West Side 4,712 2017-06 2,941,363$ 624$ Empire West 60 LLC Algin Management249 Church Street Downtown 5,000 2017-06 6,000,000$ 1,200$ Thor Equities Ashkenazy Acquisition210 Canal Street Downtown 7,580 2017-05 23,550,000$ 3,107$ Nightingale Properties Dean K. Fong415 Greenwich Street Downtown 5,040 2017-05 11,500,000$ 2,282$ KLM Equities Ashkenazy Acquisition10 Madison Square West Midtown South 20,676 2017-04 97,500,000$ 4,716$ TH Real Estate Savanna32-42 West 125th Street Upper Manhattan 8,356 2017-04 10,500,000$ 1,257$ Wharton Properties HVA 125 LLC148 Duane Street Downtown 20,061 2017-04 19,020,790$ 948$ Vornado Summit Equities259 Bowery Downtown 2,860 2017-04 5,500,000$ 1,923$ Thor Equities Charles Saulson42 Lispenard Street Downtown 4,500 2017-03 4,500,000$ 1,000$ Montauk Sofa Colonnade Group5 East 44th Street Midtown East 2,658 2017-03 4,500,000$ 1,693$ Michail Kandov UES Dental PLLC121-133 Hudson Street Downtown 33,500 2017-03 36,000,000$ 1,075$ ASG Equities Centurion Realty1082 Madison Avenue Upper East Side 1,693 2017-02 6,000,000$ 3,544$ Premier Equities John K. Doyle248-258 Bleecker Street Midtown South 8,490 2017-01 20,605,000$ 2,427$ Kroger Inc. Rob Kaufelt25 North Moore Street Downtown 2,508 2017-01 3,500,000$ 1,396$ Debra Hamid 60 Guilders23-31 John Street Downtown 6,290 2017-01 19,550,000$ 3,108$ HUBB NYC Yair Levy170-178 Ninth Avenue Midtown South 4,250 2017-01 5,500,000$ 1,294$ Ashkenazy Acquisition Coutinho Properties959 First Avenue Midtown East 2,713 2017-01 4,500,000$ 1,659$ Sarex Associates Toll Brothers2300 Fred. Douglass Blvd. Upper Manhattan 3,526 2017-01 3,850,000$ 1,092$ Regal Home Collections Heritage Realty496 LaGuardia Place Midtown South 2,280 2017-01 2,975,000$ 1,305$ Zar Apparel Group Boris Nepoe682 Broadway Midtown South 1,450 2017-01 10,000,000$ 6,897$ Ascot Properties Premier Equities56-58 Pine Street Downtown 6,392 2017-01 4,450,000$ 696$ Ariel Aber Rugby Realty733 Amsterdam Avenue Upper West Side 12,800 2016-12 13,000,000$ 1,016$ Cohen Equities Starrett Corp330 East 75th Street Upper East Side 10,357 2016-10 5,500,000$ 531$ RKM Realty III Sherwood Equities42 Hudson Street Downtown 5,400 2016-10 3,400,000$ 630$ Premier Equities Duane Square502 Ninth Avenue Midtown West 1,796 2016-10 3,100,000$ 1,726$ - David Cohen

3 | MANHATTAN RETAIL REPORT Spring 2017 LEE & ASSOCIATES NYC

Recent Retail Condominium Sales

Active Retail Condominium Investors

Property Submarket SF Date Sold Value $ Per SF Buyer Seller222 East 58th Street Midtown East 4,032 2017-10 5,600,000$ 1,389$ M&A 222 Realty HM 222 East 58th Street401 East 60th Street Upper East Side 92,000 2017-10 73,250,000$ 796$ Gazit Horizons Brodsky Organization124 Hudson Street Downtown 11,830 2017-10 15,275,000$ 1,291$ Merchants National Time Equities530 Fifth Avenue Midtown West 59,839 2017-09 Buyout GGP Thor Equities1327 Madison Avenue Upper East Side 4,725 2017-09 7,400,000$ 1,566$ F9 Investments -7 Hubert Street Downtown 2,928 2017-09 3,200,000$ 1,093$ Kinsmen Property Kang Young Eun150 East 55th Street Midtown East 2,900 2017-08 5,100,000$ 1,759$ Izumi Estate Co. J&R Realty Holding806-808 Broadway Midtown South 29,000 2017-07 24,616,667$ 849$ Rubies Costume Co. SPI Holdings47 Mercer Street Downtown 7,500 2017-07 9,300,000$ 1,240$ Zar Property Daniel Langlois105 Nassau Street Downtown 4,400 2017-07 4,950,000$ 1,125$ Black Horse Capital Bron New York206-210 West 77th Street Upper West Side 2,046 2017-07 3,510,000$ 1,716$ Quoque Capital Naftali Group201 East 77th Street Upper East Side 4,000 2017-06 5,250,000$ 1,313$ Ashkenazy Acquisition Valley National Bank325 Fifth Avenue Midtown East 5,880 2017-06 23,900,000$ 4,065$ HUBB NYC Continental Properties8 Jay Street Downtown 2,500 2017-06 3,800,000$ 1,520$ Ochre Tribeca Art Flag Company575 Ave. of the Americas Midtown South 3,450 2017-06 6,000,000$ 1,739$ Premier Equities Veritas347 Bowery Midtown South 8,439 2017-06 20,301,250$ 2,406$ Eli Goldstein Urban Muse243 West 60th Street Upper West Side 4,712 2017-06 2,941,363$ 624$ Empire West 60 LLC Algin Management249 Church Street Downtown 5,000 2017-06 6,000,000$ 1,200$ Thor Equities Ashkenazy Acquisition210 Canal Street Downtown 7,580 2017-05 23,550,000$ 3,107$ Nightingale Properties Dean K. Fong415 Greenwich Street Downtown 5,040 2017-05 11,500,000$ 2,282$ KLM Equities Ashkenazy Acquisition10 Madison Square West Midtown South 20,676 2017-04 97,500,000$ 4,716$ TH Real Estate Savanna32-42 West 125th Street Upper Manhattan 8,356 2017-04 10,500,000$ 1,257$ Wharton Properties HVA 125 LLC148 Duane Street Downtown 20,061 2017-04 19,020,790$ 948$ Vornado Summit Equities259 Bowery Downtown 2,860 2017-04 5,500,000$ 1,923$ Thor Equities Charles Saulson42 Lispenard Street Downtown 4,500 2017-03 4,500,000$ 1,000$ Montauk Sofa Colonnade Group5 East 44th Street Midtown East 2,658 2017-03 4,500,000$ 1,693$ Michail Kandov UES Dental PLLC121-133 Hudson Street Downtown 33,500 2017-03 36,000,000$ 1,075$ ASG Equities Centurion Realty1082 Madison Avenue Upper East Side 1,693 2017-02 6,000,000$ 3,544$ Premier Equities John K. Doyle248-258 Bleecker Street Midtown South 8,490 2017-01 20,605,000$ 2,427$ Kroger Inc. Rob Kaufelt25 North Moore Street Downtown 2,508 2017-01 3,500,000$ 1,396$ Debra Hamid 60 Guilders23-31 John Street Downtown 6,290 2017-01 19,550,000$ 3,108$ HUBB NYC Yair Levy170-178 Ninth Avenue Midtown South 4,250 2017-01 5,500,000$ 1,294$ Ashkenazy Acquisition Coutinho Properties959 First Avenue Midtown East 2,713 2017-01 4,500,000$ 1,659$ Sarex Associates Toll Brothers2300 Fred. Douglass Blvd. Upper Manhattan 3,526 2017-01 3,850,000$ 1,092$ Regal Home Collections Heritage Realty496 LaGuardia Place Midtown South 2,280 2017-01 2,975,000$ 1,305$ Zar Apparel Group Boris Nepoe682 Broadway Midtown South 1,450 2017-01 10,000,000$ 6,897$ Ascot Properties Premier Equities56-58 Pine Street Downtown 6,392 2017-01 4,450,000$ 696$ Ariel Aber Rugby Realty733 Amsterdam Avenue Upper West Side 12,800 2016-12 13,000,000$ 1,016$ Cohen Equities Starrett Corp330 East 75th Street Upper East Side 10,357 2016-10 5,500,000$ 531$ RKM Realty III Sherwood Equities42 Hudson Street Downtown 5,400 2016-10 3,400,000$ 630$ Premier Equities Duane Square502 Ninth Avenue Midtown West 1,796 2016-10 3,100,000$ 1,726$ - David Cohen

3 | MANHATTAN RETAIL REPORT Fall 2017 LEE & ASSOCIATES NYC

Recent Retail Condominium Sales

Active Retail Condominium Investors

Property Submarket SF Date Sold Value $ Per SF Buyer Seller1327 Madison Avenue Upper East Side 4,725 2017-09 7,400,000$ 1,566$ - -7 Hubert Street Downtown 2,928 2017-09 3,200,000$ 1,093$ Kinsmen Property Kang Young Eun150 East 55th Street Midtown East 2,900 2017-08 5,100,000$ 1,759$ Izumi Estate Co. J&R Realty Holding806-808 Broadway Midtown South 29,000 2017-07 24,616,667$ 849$ Rubies Costume Co. SPI Holdings47 Mercer Street Downtown 7,500 2017-07 9,300,000$ 1,240$ Zar Property Daniel Langlois201 East 77th Street Upper East Side 4,000 2017-06 5,250,000$ 1,313$ Ashkenazy Acquisition Valley National Bank325 Fifth Avenue Midtown East 5,880 2017-06 23,900,000$ 4,065$ HUBB NYC Continental Properties8 Jay Street Downtown 2,500 2017-06 3,800,000$ 1,520$ Ochre Tribeca Art Flag Company575 Ave. of the Americas Midtown South 3,450 2017-06 6,000,000$ 1,739$ Premier Equities Veritas347 Bowery Midtown South 8,439 2017-06 20,301,250$ 2,406$ Eli Goldstein Urban Muse243 West 60th Street Upper West Side 4,712 2017-06 2,941,363$ 624$ Empire West 60 LLC Algin Management249 Church Street Downtown 5,000 2017-06 6,000,000$ 1,200$ Thor Equities Ashkenazy Acquisition210 Canal Street Downtown 7,580 2017-05 23,550,000$ 3,107$ Nightingale Properties Dean K. Fong415 Greenwich Street Downtown 5,040 2017-05 11,500,000$ 2,282$ KLM Equities Ashkenazy Acquisition10 Madison Square West Midtown South 20,676 2017-04 97,500,000$ 4,716$ TH Real Estate Savanna32-42 West 125th Street Upper Manhattan 8,356 2017-04 10,500,000$ 1,257$ Wharton Properties HVA 125 LLC148 Duane Street Downtown 20,061 2017-04 19,020,790$ 948$ Vornado Summit Equities259 Bowery Downtown 2,860 2017-04 5,500,000$ 1,923$ Thor Equities Charles Saulson42 Lispenard Street Downtown 4,500 2017-03 4,500,000$ 1,000$ Montauk Sofa Colonnade Group5 East 44th Street Midtown East 2,658 2017-03 4,500,000$ 1,693$ Michail Kandov UES Dental PLLC121-133 Hudson Street Downtown 33,500 2017-03 36,000,000$ 1,075$ ASG Equities Centurion Realty1082 Madison Avenue Upper East Side 1,693 2017-02 6,000,000$ 3,544$ Premier Equities John K. Doyle248-258 Bleecker Street Midtown South 8,490 2017-01 20,605,000$ 2,427$ Kroger Inc. Rob Kaufelt25 North Moore Street Downtown 2,508 2017-01 3,500,000$ 1,396$ Debra Hamid 60 Guilders23-31 John Street Downtown 6,290 2017-01 19,550,000$ 3,108$ HUBB NYC Yair Levy170-178 Ninth Avenue Midtown South 4,250 2017-01 5,500,000$ 1,294$ Ashkenazy Acquisition Coutinho Properties959 First Avenue Midtown East 2,713 2017-01 4,500,000$ 1,659$ Sarex Associates Toll Brothers2300 Fred. Douglass Blvd. Upper Manhattan 3,526 2017-01 3,850,000$ 1,092$ Regal Home Collections Heritage Realty496 LaGuardia Place Midtown South 2,280 2017-01 2,975,000$ 1,305$ Zar Apparel Group Boris Nepoe682 Broadway Midtown South 1,450 2017-01 10,000,000$ 6,897$ Ascot Properties Premier Equities56-58 Pine Street Downtown 6,392 2017-01 4,450,000$ 696$ Ariel Aber Rugby Realty733 Amsterdam Avenue Upper West Side 12,800 2016-12 13,000,000$ 1,016$ Cohen Equities Starrett Corp330 East 75th Street Upper East Side 10,357 2016-10 5,500,000$ 531$ RKM Realty III Sherwood Equities42 Hudson Street Downtown 5,400 2016-10 3,400,000$ 630$ Premier Equities Duane Square502 Ninth Avenue Midtown West 1,796 2016-10 3,100,000$ 1,726$ - David Cohen

3 | MANHATTAN RETAIL REPORT Spring 2017 LEE & ASSOCIATES NYC

Recent Retail Condominium Sales

Active Retail Condominium Investors

Property Submarket SF Date Sold Value $ Per SF Buyer Seller1327 Madison Avenue Upper East Side 4,725 2017-09 7,400,000$ 1,566$ - -7 Hubert Street Downtown 2,928 2017-09 3,200,000$ 1,093$ Kinsmen Property Kang Young Eun150 East 55th Street Midtown East 2,900 2017-08 5,100,000$ 1,759$ Izumi Estate Co. J&R Realty Holding806-808 Broadway Midtown South 29,000 2017-07 24,616,667$ 849$ Rubies Costume Co. SPI Holdings47 Mercer Street Downtown 7,500 2017-07 9,300,000$ 1,240$ Zar Property Daniel Langlois201 East 77th Street Upper East Side 4,000 2017-06 5,250,000$ 1,313$ Ashkenazy Acquisition Valley National Bank325 Fifth Avenue Midtown East 5,880 2017-06 23,900,000$ 4,065$ HUBB NYC Continental Properties8 Jay Street Downtown 2,500 2017-06 3,800,000$ 1,520$ Ochre Tribeca Art Flag Company575 Ave. of the Americas Midtown South 3,450 2017-06 6,000,000$ 1,739$ Premier Equities Veritas347 Bowery Midtown South 8,439 2017-06 20,301,250$ 2,406$ Eli Goldstein Urban Muse243 West 60th Street Upper West Side 4,712 2017-06 2,941,363$ 624$ Empire West 60 LLC Algin Management249 Church Street Downtown 5,000 2017-06 6,000,000$ 1,200$ Thor Equities Ashkenazy Acquisition210 Canal Street Downtown 7,580 2017-05 23,550,000$ 3,107$ Nightingale Properties Dean K. Fong415 Greenwich Street Downtown 5,040 2017-05 11,500,000$ 2,282$ KLM Equities Ashkenazy Acquisition10 Madison Square West Midtown South 20,676 2017-04 97,500,000$ 4,716$ TH Real Estate Savanna32-42 West 125th Street Upper Manhattan 8,356 2017-04 10,500,000$ 1,257$ Wharton Properties HVA 125 LLC148 Duane Street Downtown 20,061 2017-04 19,020,790$ 948$ Vornado Summit Equities259 Bowery Downtown 2,860 2017-04 5,500,000$ 1,923$ Thor Equities Charles Saulson42 Lispenard Street Downtown 4,500 2017-03 4,500,000$ 1,000$ Montauk Sofa Colonnade Group5 East 44th Street Midtown East 2,658 2017-03 4,500,000$ 1,693$ Michail Kandov UES Dental PLLC121-133 Hudson Street Downtown 33,500 2017-03 36,000,000$ 1,075$ ASG Equities Centurion Realty1082 Madison Avenue Upper East Side 1,693 2017-02 6,000,000$ 3,544$ Premier Equities John K. Doyle248-258 Bleecker Street Midtown South 8,490 2017-01 20,605,000$ 2,427$ Kroger Inc. Rob Kaufelt25 North Moore Street Downtown 2,508 2017-01 3,500,000$ 1,396$ Debra Hamid 60 Guilders23-31 John Street Downtown 6,290 2017-01 19,550,000$ 3,108$ HUBB NYC Yair Levy170-178 Ninth Avenue Midtown South 4,250 2017-01 5,500,000$ 1,294$ Ashkenazy Acquisition Coutinho Properties959 First Avenue Midtown East 2,713 2017-01 4,500,000$ 1,659$ Sarex Associates Toll Brothers2300 Fred. Douglass Blvd. Upper Manhattan 3,526 2017-01 3,850,000$ 1,092$ Regal Home Collections Heritage Realty496 LaGuardia Place Midtown South 2,280 2017-01 2,975,000$ 1,305$ Zar Apparel Group Boris Nepoe682 Broadway Midtown South 1,450 2017-01 10,000,000$ 6,897$ Ascot Properties Premier Equities56-58 Pine Street Downtown 6,392 2017-01 4,450,000$ 696$ Ariel Aber Rugby Realty733 Amsterdam Avenue Upper West Side 12,800 2016-12 13,000,000$ 1,016$ Cohen Equities Starrett Corp330 East 75th Street Upper East Side 10,357 2016-10 5,500,000$ 531$ RKM Realty III Sherwood Equities42 Hudson Street Downtown 5,400 2016-10 3,400,000$ 630$ Premier Equities Duane Square502 Ninth Avenue Midtown West 1,796 2016-10 3,100,000$ 1,726$ - David Cohen

3 | MANHATTAN RETAIL REPORT Summer 2017 LEE & ASSOCIATES NYC

Recent Retail Condominium Sales

Active Retail Condominium Investors

TOTAL MANHATTAN RETAIL INVENTORY

104,904,466Square Feet

TOTAL AVAILABILITY RATE

15%

GROUND AVAILABILITY RATE

8%

YEAR-TO-DATE LEASED

3,613,133

Y/Y 3Q LEASING VOL. GROWTH

-20%

Total Manhattan Retail Inventory104,904,466 Square Feet

Peter Braus James Wacht Henry Abramov Carly FarkasManaging Principal President Research Director Retail Research

212.776.1203 212.776.1202pbraus@lee-associates.com jwacht@lee-associates.com

4 | MANHATTAN RETAIL REPORT Fall 2017 LEE & ASSOCIATES NYC

Y/Y 4Q Leasing Vol. Growth-20%

Total Availability Rate15%

Ground Availability Rate8%

Year-to-Date Leased3,613,133

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

988 980 1099 1297 1371 1473 1869 1746 1585 1797

1494

Manhattan Retail Lease Transactions

$278

$232

$206 $220

$209

$230

$253 $262

$234

$206

$233 Ten Year Average

$150

$170

$190

$210

$230

$250

$270

$290

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Manhattan Average Base Rents Over a Decade

Base Rent 10-Year Average

$274

$221

$201 $214

$200

$224 $238

$252

$204 $196

$222 Ten Year Average

$150

$170

$190

$210

$230

$250

$270

$290

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Manhattan Average Net Effective Rents Over a Decade

Net Effective 10-Year Average

Total Manhattan Retail Inventory104,904,466 Square Feet

Peter Braus James Wacht Henry Abramov Carly FarkasManaging Principal President Research Director Retail Research

212.776.1203 212.776.1202pbraus@lee-associates.com jwacht@lee-associates.com

4 | MANHATTAN RETAIL REPORT Fall 2017 LEE & ASSOCIATES NYC

Y/Y 4Q Leasing Vol. Growth-20%

Total Availability Rate15%

Ground Availability Rate8%

Year-to-Date Leased3,613,133

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

988 980 1099 1297 1371 1473 1869 1746 1585 1797

1494

Manhattan Retail Lease Transactions

$278

$232

$206 $220

$209

$230

$253 $262

$234

$206

$233 Ten Year Average

$150

$170

$190

$210

$230

$250

$270

$290

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Manhattan Average Base Rents Over a Decade

Base Rent 10-Year Average

$274

$221

$201 $214

$200

$224 $238

$252

$204 $196

$222 Ten Year Average

$150

$170

$190

$210

$230

$250

$270

$290

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Manhattan Average Net Effective Rents Over a Decade

Net Effective 10-Year Average

Peter Braus, Managing Principalpbraus@lee-associates.com212.776.1203

James Wacht, Presidentjwacht@lee-associates.com 212.776.1202

Henry AbramovResearch Director

Carly FarkasRetail Research