Meadowlands Industrial ReportWinter2015

At A Glance...• Therearecurrently1,013buildingswith20,000+sfintheMeadowlandsSubmarket.

•Thetotalrentablesquarefeet(RBA)is90.13millionsfwith6.7millionsfavailableforlease.

• Vacancyin4Q2014was7.4%,adecreaseof.4%from4Q2013whenthevacancywas7.8%.Thevacancyiscurrently7.3%.

• Therewas4.7millionsfleasedin2014.

• Theaverageaskingrateended2014at$6.49psf.Therateisup$.37from4Q2013andiscurrently$6.47psf.

Meadowlands Market

Leasing ActivityThere iscurrently6.7millionsf available for lease in theMeadowlands, representing a 7.3% vacancy rate. Thereiscurrently588,758sfofnetabsorption.Netabsorptionremainedpositiveinthethirdandfourthquartersof2014.This submarket continues to have the highest averageasking rate in the Northern and Central New JerseyIndustrialmarket,whichiscurrentlyat$6.47psf.

During the second half of 2014, there were 80 leasetransactionsforspacesexceeding20,000sf.Thelargesttransactionwas VeecoServices renewing their 615,016sf space at 6801 West Side Avenue in North Bergen.TotalOfficePlanningServices,Inc.movedintoa113,260sf space at 333 Starke Road in Carlstadt and AtlanticPlywood Corporation, represented by Tom Vetter, JeffDeMagistrisandBarryCohorskyofNAIJamesE.Hanson,leased79,670sfat75AmorAvenueinCarlstadt.

SIGNIFICANTLEASETRANSACTIONS

VeecoServices-615,016sfrenewal6801WestSideAvenue,NorthBergen

TotalOfficePlanningServices-113,260sf333StarkeRoad,Carlstadt

AtlanticPlywoodCorporation-79,670sf(Hansondeal)75AmorAvenue,Carlstadt

Sales ActivityThere were 24 sale transactions in the second half of2014. The sale of the Pepsi Bottling Building at 680Belleville Turnpike in Kearny was one of the largertransactions. Pepsiwill remainas thesole tenant in the135,115sfbuilding.TIAA-CREFpurchasedthebuildingfor$32,050,000,or$237.21psf,fromRussoDevelopment.1 Lladro Drive in Moonachie sold for $18,000,000 or$82.00psf.PrincipalRealEstateInvestorspurchasedthe216,049sfbuildingat1LladrofromLladroUSA,Inc.

SIGNIFICANTSALESTRANSACTIONS

680BellevilleTurnpike,Kearny135,115sfsoldfor$32,050,000Buyer:TIAA-CREFSeller:RussoDevelopment,LLC

1LladroDrive,Moonachie216,049sfsoldfor$18,000,000Buyer:PrincipalRealEstateInvestors,LLCSeller:LladroUSA,Inc.

630NewCountyRoad,Secaucus141,025sfsoldfor$14,500,000Buyer:EPC630,LLCSeller:ApexXpress,Inc.

526USHighway46,Teterboro74,590sfsoldfor$9,950,000Buyer:TIAA-CREFSeller:JosephHoll

1,995,757

1,160,845 1,063,531

1,592,204

868,856

500,000

700,000

900,000

1,100,000

1,300,000

1,500,000

1,700,000

1,900,000

2,100,000

2013 4Q 2014 1Q 2014 2Q 2014 3Q 2014 4Q

Total SF Leased

Total SF Leased

Pepsi Bottling Company, 680 Belleville Turnpike, Kearny

Update on the American Dream Project...TheprojectisstillontracktoopenpartoftheAmericanDreaminthefallof2016.SaksFifthAvenueandLordandTaylorwillbetheanchors.CirqueduSoleilisestablishingatheaterforshowsattheAmericanDream.TripleFive,the developer of the project, released a statement saying that they haveabout 50 retailers such as Victoria’s Secret that have committed to takespaceattheAmericanDream.ThereisalsospeculationthatFAOSchwartzwillrelocateitsstorefromNewYork.Theirleaseissettoexpirein2017.

Update on the Teterboro Landing Project...Costco officially announced their move to Teterboro Landing fromHackensack inOctober2014.Theyexpect tomake themove inmid-to-late2015.ThismovewillallowCostcotooperateoutofalargerstoreandbeabletosellgasolineon-site.

MeadowlandsMarket

Projects Underway

Rendering of American Dream

NAI Hanson Availabilities One Palmer Terrace, CarlstadtNewconstructionforsaleorleaseAvailableSpace: 53,000sf Build-to-suitofficesCeilingHeight: 32’ Loading:5loadingdocks 1drive-in

482 Barell Avenue, CarlstadtAvailableSpace: 35,636sf Office: 2,400sfCeilingHeight: 16’ Loading:6loadingdocks

86-110 Orchard Street, Hackensack 495 Barell Avenue, CarlstadtAvailableSpace: 23,700sf Office: 1,500+/-sf AvailableSpace: 23,000sf Office: 2,500sfCeilingHeight: 14’-25’ Loading:2loadingdocks CeilingHeight: 16’ Loading:3loadingdocks 1drive-in

60 Romanelli Avenue, South Hackensack 525 Main Street, BellevilleAvailableSpace: 22,500sf Office: 3,000sf AvailableSpace: 96,930sf Office: 4,800sfCeilingHeight: 14’ Loading:1loadingdocks CeilingHeight: 15’ Loading:8loadingdocks 1drive-in

Rendering of One Palmer Terrace, Carlstadt

LeaseTransactions79,670 sf -75AmorAvenue,Carlstadt 50,000 sf-90TriangleBoulevard,Carlstadt 47,266 sf-506Route46West,Teterboro 44,452 sf-30WesleyStreet,SouthHackensack 39,881 sf -472BarellAvenue,Carlstadt39,309 sf -131WCommercialAvenue,Moonachie36,517 sf -80TriangleBoulevard,Carlstadt33,000 sf -50AmorAvenue,Carlstadt26,112 sf-455BarellAvenue,Carlstadt22,203 sf -60SaddleRiverAvenue,SouthHackensack20,155 sf -30WesleyStreet,SouthHackensack19,600 sf-101IndustrialAvenue,LittleFerry

LeaseTransactionsContinued12,000 sf-140GrandAvenue,Carlstadt4,885 sf -240S.MainStreet,SouthHackensack4,200 sf -600HuylerStreet,SouthHackensack2,800 sf -211-KGatesRoad,LittleFerry

SaleTransactions39,832 sf-472BarellAvenue,Carlstadt*35,636 sf-482BarellAvenue,Carlstadt*26,112 sf -455BarellAvenue,Carlstadt25,210 sf-450BarellAvenue,Carlstadt*24,000 sf-485BarellAvenue,Carlstadt*23,040 sf-495BarellAvenue,Carlstadt*8,300 sf -5905KennedyBoulevard,NorthBergen

*Fivebuildingportfoliosale.

Tom and Jeff’s 2014 Meadowlands Transactions

Meadowlands Team

For more information:

Jeffrey W. DeMagistris, sior201 488 5800 x147jdemagistris@naihanson.com

Thomas A. Vetter, sior201 488 5800 x105tvetter@naihanson.com

Jeff DeMagistrisTom Vetter

Tom and Jeff represent several prominent Meadowlands landlords including

The Hampshire Companies, Sitex Group and Safer Development. In the

past 12 months they have completed 32 transactions and have

leased/sold over 900,000 square feet. They are members of NAR,

SIOR, The Hackensack Meadowlands Chamber of Commerce, The Coalition

of Commercial Real Estate Associations and the Liberty Board of Realtors.

NAI James E. Hanson is committed to providing the highest quality commercial real estate services in and has been since it was founded in 1955.

We primarily cover Northern New Jersey and Southern New York, but have expanded our coverage into the counties of Somerset, Hunterdon and Sussex, as well as eastern Pennsylvania.

Our staff 60+ includes: 10 SIOR designees (highest in NJ) 3 CCIM designees 2 MSRE designees (NYU graduates)

We are a part of NAI Global, a managed network of 6,700 professionals with 375 offices in 55 countries and is one of the largest commercial real estate service providers worldwide.

• Ranked #1 Network by Watkins Research Survey

• Named Global Broker of the Year by Private Equity Real Estate magazine

• Ranked #1 Network and #3 Overall Corporate Services Provider in Watkins Research Group Survey of Corporate Real Estate Executives.

• Ranked #4 on Lipsey’s Top 25 Real Estate Brands

• Ranked #6 on National Real Estate Investor magazine’s Top 25 Brokerage Organizations.

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