lee-associates.com/newjersey

GREATER FAIRFIELD SUB-MARKETQ4 2019 INDUSTRIAL MARKET SNAPSHOT

Q4 2019

669 River Drive, Suite 201 • Elmwood Park, NJ 07407 • Office: 973.337.1144

110 Fieldcrest Avenue, Suite 5 • Edison, NJ 08817 • Office: 732.452.0750

Q4 2019

Licensed Real Estate Broker

All Information is from a source deemed reliable, however no representation, expressed or implied is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omission, change of price, rental or other conditions imposed by our principals.

Page 2lee-associates.com/newjersey

GREATER FAIRFIELD SUB-MARKETQ4 2019 INDUSTRIAL MARKET SNAPSHOT

Class A: Extremely desirable investment-grade properties, commanding the highest rents and sales prices. Buildings are well located and provide efficient tenant layouts. They will contain modern mechanical systems, above average maintenance and management as well as the best quality materials and workmanship in trim and interior/exterior fittings. There is ample car and truck parking, 30’+ ceiling heights, large and plentiful docks. Virtually all new construction is Class A, comprising the majority of product built after 2000.

Class B: Older, middle of the road type properties, usually built 1970’s - 1990’s with 16’-28’ ceilings. Typically have average to good maintenance, management and tenants. Less desirable than Class A to investors and qualified tenants. May be deficient in a number of respects including floor plans, condition and facilities, including less docks, drive-ins and no climate control. They lack prestige and must depend chiefly on a lower price than Class A to attract tenants and investors.

Class C: No-frills properties often built no later than the 1960’s, that offer basic space and command lower rents and sales prices than any other buildings in same market. They have below-average maintenance and management and could have a mixed or low tenant prestige. Inferior or lacking mechanical/electrical systems are common too. Some properties may be lacking docks and tractor trailer parking entirely and could be contaminated. Ceilings are generally under 20’.

Market # of Properties Inventory SF Total Vacant SF Total Vacancy Vacancy Quarterly Change (bps) Total Availability Net Absorption SF Industrial Avg. NNN

Rent Flex Avg. NNN Rent Under Construction SF Delivered SF Proposed SF

New Jersey 20,930 958,584,231 35,356,537 3.7% (18) 6.8% 3,358,197 $7.47 $10.95 17,287,218 1,667,375 32,233,605

Northern & Central New Jersey 18,317 839,252,680 30,134,656 3.6% (28) 6.8% 2,536,892 $8.62 $11.67 13,404,926 186,272 21,622,716

GREATER FAIRFIELD 1,108 54,431,142 2,415,244 4.4% (98) 6.1% 532,150 $9.02 $11.41 0 0 53,000

Market # of Properties Inventory SF Total Vacant SF Total Vacancy Vacancy Quarterly Change (bps) Total Availability Net Absorption SF Industrial Avg. NNN

Rent Flex Avg. NNN Rent Under Construction SF Delivered SF Proposed SF

Class A 18 2,498,061 444,828 17.8% 0 5.9% 0 $11.09 $13.73 0 0 0

Class B 531 31,971,274 1,060,015 3.3% (227) 6.7% 726,741 $8.69 $11.38 0 0 53,000

Class C 559 19,961,807 910,401 4.6% 97 5.1% (194,591) $9.37 $11.97 0 0 0

TOTAL: 1,108 54,431,142 2,415,244 4.4% (98) 6.1% 532,150 $9.02 $11.41 0 0 53,000

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GGRREEAATTEERR FFAAIIRRFFIIEELLDD IINNDDUUSSTTRRIIAALL MMAARRKKEETT BBRREEAAKKDDOOWWNN

Q4 2019

Licensed Real Estate Broker

All Information is from a source deemed reliable, however no representation, expressed or implied is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omission, change of price, rental or other conditions imposed by our principals.

Page 3lee-associates.com/newjersey

GREATER FAIRFIELD SUB-MARKETQ4 2019 INDUSTRIAL MARKET SNAPSHOT

5.9%6.7%

5.1%

17.8%

3.3%

4.6%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2018 Q4 2019

DIR

EC

T A

VA

ILA

BIL

ITY

AN

D V

AC

AN

CY

Class A Class B Class C Class A Class B Class CAVAILABILITY VACANCY

$11.81

$9.51

$9.44

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2018 Q4 2019

RENT

S

Class A Class B Class C

AVAILIBILITY & VACANCY

AVERAGE NNN RENTS

Q4 2019

Licensed Real Estate Broker

All Information is from a source deemed reliable, however no representation, expressed or implied is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omission, change of price, rental or other conditions imposed by our principals.

Page 4lee-associates.com/newjersey

GREATER FAIRFIELD SUB-MARKETQ4 2019 INDUSTRIAL MARKET SNAPSHOT

1

3

3

1

0

0

0

0

51

44

26

4

6

2

0

0

31

22

18

3

0

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0

0

0 5 10 15 20 25 30 35 40 45 50 55

≤ 5,000 SF

5,001‐15,000 SF

15,001‐45,000 SF

45,001‐75,000 SF

75,001‐150,000 SF

150,001‐250,000 SF

250,001‐350,000 SF

350,001+ SF

# of Blocks

Class C Class B Class ABLOCKS OF AVAILABLE CONTIGUOUS SPACE

0 

532 

0 

6 

 ‐

 2

 4

 6

 8

 10

 12

 14

 16

 18

600

500

400

300

200

100

0

100

200

300

400

500

600

Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2018 Q4 2019

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New Supply Net Absorption Under Construction Months to Lease

12 Gardner Road, Fairfield, NJ

NEW SUPPLY, NET ABSORPTION, UNDER-CONSTRUCTION & LEASE-UP TIME

TENANT SIGN DATE ADDRESS SFNNN RENT

PSFTERM

(Months)RENTAL

ESCALTIONSCEILING HEIGHT

BUILDING CLASS TYPE

YEAR BUILT / RENOVATED

NOTES

Gucci OCT 2018 150 Totowa Rd., Wayne 437,500 $9.65 121 2.50% 40' A NEW 20199 months free rent, $5 PSF TI, 42 docks, 2 drive-ins, 19k SF office, 224 car / 70 trailer parking

Corbion OCT 2018 700 Union Blvd., Totowa, 391,515 $9.75 180 $1+/ 5 yrs 36' B NEW 1980 - 201855 docks, ESFR sprinklers, 262 car parking

Vitaquest International

JUN 2019100 Jefferson Rd., Parsippany

200,000 $9.25 120 3.00% 19' - 38' B NEW 1955 / 1998$2 PSF TI, 524 car parking, ESFR sprinklers

DineInFresh JUL 2018 8 Vreeland Ave., Totowa 126,566 $9.51 125 2.50% 26' A NEW 1984 / 1999$2.25 PSF TI, 5 months free rent, 9 docks, wet sprinklers, 126 car parking

Avantik AUG 2018 19 Chapin Rd., Pine Brook 123,637 $9.75 120 N / A 22' B NEW 1999 Flex, 150 car parking, wet sprinklers

Breeze-Eastern SEP 2019 35 Melanie Ln., Whippany 116,246 $8.18 120 N / A 24' B RENEWAL 1979 251 car parking, wet sprinklers

Zimmer Trabecular Metal Tech

SEP 2018 10 Pomeroy Rd., Parsippany 115,000 $8.17 120 N / A 16' - 24' B RENEWAL 19557 docks, 2 drive-ins, 12k SF office, wet sprinklers

AST Bearings SEP 2017 222 New Rd., Parsippany 107,979 $8.50 N / A N / A 22' B NEW 19889 docks, 2 drive-ins, 5k SF office, 150 car parking, wet sprinklers

Kearfott Guidance Systems

SEP 2018 19 Chapin Rd., Pine Brook 78,500 $9.85 123 3.00% 22' B NEW 1999 wet sprinklers

Signa Stretch Films MAY 201820-30 Continental Dr.,Wayne

70,509 $9.27 36 N / A 18' - 31' B NEW 1980 ESFR sprinklers

WEIGHTED AVERAGE: 176,745 $9.35 118 2.75% 31' - - 1984 / 2005 -

GREATER FAIRFIELD 2017 - 2019 NOTABLE INDUSTRIAL LEASES

Q4 2019

Licensed Real Estate Broker

All Information is from a source deemed reliable, however no representation, expressed or implied is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omission, change of price, rental or other conditions imposed by our principals.

Page 5lee-associates.com/newjersey

GREATER FAIRFIELD SUB-MARKETQ4 2019 INDUSTRIAL MARKET SNAPSHOT

Source: CoStar

Source: CoStar

* Denotes Lee & Associates NJ Transaction

PROPERTY SALE DATE SIZE (SF) PRICE PSFCEILING HEIGHT

BUILDING CLASS

YEAR BUILT / RENOVATED

SELLER / BUYER NOTES

100 Jefferson Rd., Parsippany OCT 2018 553,436 $60,200,000 $109 19' - 38' B 1955 / 1998PNY Technologies, Inc. / Turnbridge Equities

28% leased, ESFR sprinklers

19 Chapin Rd., Pine Brook JUL 2019 529,110 $92,250,000 $174 22' B 2002Advance Realty & Camber RE Partners LLC / Intercontinental RE Corp. & Cohen Asset Mgmt. Inc.

Flex, 4 building portfolio sale

700 Union Blvd., Totowa NOV 2018 391,515 $51,000,000 $130 36' B 1980 / 2018 The Hampshire Companies / AEW 0% leased, 55 docks, ESFR sprinklers, 7 property portfolio sale

5 Henderson Dr., West Caldwell MAY 2017 210,530 $28,482,029 $135 16' B 1967 The Hampshire Companies / AEW 7 property portfolio sales, 100% leased, wet sprinklers, 11 docks

95 Demarest Dr., Wayne OCT 2017 163,253 $43,263,000 $265 36' A 2017Rockefeller Group / CenterPoint Properties

5.79% cap rate, 50 docks

134 Clinton Rd., Fairfield MAR 2019 135,000 $14,330,004 $106 23' C 1980 Ramfair Associates / Blackstone REIT7 property portfolio sale, 100% leased, wet sprinklers, 17 docks, 12k SF office

20 Audrey Pl., Fairfield SEP 2017 106,869 $12,637,904 $118 20' C 1975 Prologis, Inc. / Blackstone REIT11 property portfolio sales, 100% leased, 13 docks, 1 drive-in, 26k SF office

10 Washington Ave., Fairfield JUN 2019 71,849 $9,900,000 $138 21' B 1974The Hampshire Companies / Colony Capital

32 property portfolio sale, 100% leased, wet sprinklers, 13 docks, 2 drive-ins

60 E Halsey Rd., Parsippany AUG 2019 67,434 $8,000,000 $119 16' B 1965Kent International, Inc. /Longpoint Realty Partners

Sale-leasebacl, 12k SF office, 7 docks, wet sprinklers, 56 car parking

34 Owens Dr., Wayne AUG 2019 61,700 $7,250,000 $118 22' B N / AThe Tucker Group /Shaf International, Inc.

100% leased, 4 docks, 8 docks, 1 drive-in, 6,200 SF office, 50 car parking

40 New Dutch Ln., Fairfield DEC 2017 50,400 $7,200,000 $143 22' B 1972 / 2015Schuman Cheese / Terreno Realty Corporation

Sales-leaseback, 5.68% cap rate

WEIGHTED AVERAGE: 212,827 $30,410,267 $143 26' - 1979 / 2010 - -

GREATER FAIRFIELD 2017-2019 NOTABLE INDUSTRIAL SALES

Q4 2019

Licensed Real Estate Broker

All Information is from a source deemed reliable, however no representation, expressed or implied is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omission, change of price, rental or other conditions imposed by our principals.

Page 6lee-associates.com/newjersey

GREATER FAIRFIELD SUB-MARKETQ4 2019 INDUSTRIAL MARKET SNAPSHOT

Jason LynchPrincipal

jason.lynch@lee-associates.comC 732.742.8672 O 973.475.7054

PRESENTED BY:

LEE & ASSOCIATES - NEW JERSEY is part of the 60 office Lee National network

$15+ BILLION TRANSACTION VOLUME (2018)

1000+ BROKERS AND GROWINGNATIONWIDE

1st

PRIVATE BROKERAGE FIRMIN UNITED STATES

91%INCREASE

TRANSACTION VOLUME OVER 5 YEARS

Q4 2019

Licensed Real Estate Broker

All Information is from a source deemed reliable, however no representation, expressed or implied is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omission, change of price, rental or other conditions imposed by our principals.

Page 7lee-associates.com/newjersey

GREATER FAIRFIELD SUB-MARKETQ4 2019 INDUSTRIAL MARKET SNAPSHOT