Licensed Real Estate Broker CENTRAL NEW JERSEY/I-95 ...€¦ · Logistics JUL 2019 1400 Corbin St., Elizabeth 138,400 B $7.00 N / A N / A 22' 2000 NEW dry sprinklers, 24 docks, 2

CENTRAL NEW JERSEY/I-95 TURNPIKE CORRIDORQ4 2017 INDUSTRIAL KEY MARKET SNAPSHOTS

Rick Marchisio | Principal/PresidentD: 973.475.7055 • C: [email protected]

Crista Governara | Vice PresidentD: 732.204.1121 • C: [email protected]

Drew Maffey | Assistant Vice PresidentD: 973.406.2493 • C: [email protected]

Licensed Real Estate Broker

I-95 / NJ TURNPIKE CORRIDORQ3 2019 INDUSTRIAL MARKET SNAPSHOTLEE &

ASSOCIATESCOMMERCIAL REAL ESTATE SERVICES

Licensed Real Estate Broker Follow us!

669 River Drive, Suite 201 | Elmwood Park, NJ 07407 | 973.337.1144 • 110 Fieldcrest Avenue, Suite 5 | Edison, NJ 08817 | 732.452.0750 • lee-associates.com/newjersey page 1


669 River Drive, Suite 201 | Elmwood Park, NJ 07407 | 973.337.1144 • 110 Fieldcrest Avenue, Suite 5 | Edison, NJ 08817 | 732.452.0750 • lee-associates.com/newjersey

I-95 / NJ TURNPIKE CORRIDORQ3 2019 INDUSTRIAL MARKET SNAPSHOT

page 2

Source: CoStar, Real Capital Analytics and Reis. 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.




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Source: CoStar, Real Capital Analytics and Reis. 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. Source: CoStar, Real Capital Analytics and Reis. Source: CoStar, Real Capital Analytics and Reis. 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. 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.

All information is from a source deemed reliable, however no representation, expressed or implied is made 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.

669 River Drive, Suite 201

Elmw

ood Park, NJ 07407

973.337.1144 - Fax 888-267-3446

lee-associates.com/new

jersey

110 Fieldcrest Avenue, Suite 5

Edison, NJ 08837

732.452.0750 - Fax 732.452.0752

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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 20,886 958,304,109 38,969,110 4.1% (14) 7.0% 3,232,912 $7.49 $11.55 11,932,098 2,012,938 33,589,521

Northern & Central New Jersey 18,287 841,708,974 34,900,531 4.1% (10) 6.7% 1,893,066 $8.46 $12.33 7,624,503 1,132,758 25,016,402

I-95 / NJ TURNPIKE CORRIDOR 4,450 312,491,090 9,419,943 3.0% (0) 5.5% 911,482 $9.23 $18.34 3,728,467 934,382 14,526,258

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 206 76,370,366 2,184,688 2.9% (77) 7.6% 1,393,043 $9.94 $14.84 3,446,976 838,574 13,321,112

Class B 1,340 135,320,247 4,538,353 3.4% 42 5.3% (470,526) $9.66 $18.95 281,491 95,808 1,205,146

Class C 2,904 100,800,477 2,696,902 2.7% 1 4.1% (11,035) $8.59 $15.99 0 0 0

TOTAL: 4,450 312,491,090 9,419,943 3.0% (0) 5.5% 911,482 $9.23 $18.34 3,728,467 934,382 14,526,258

IINNDDUUSSTTRRIIAALL QQ33 22001199 MMAARRKKEETT SSNNAAPPSSHHOOTT

II--9955 // NNJJ TTUURRNNPPIIKKEE CCOORRRRIIDDOORR IINNDDUUSSTTRRIIAALL MMAARRKKEETT BBRREEAAKKDDOOWWNN




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$9.94

$10.44

$8.77

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

Q3 2014 Q3 2015 Q3 2016 Q3 2017 Q3 2018 Q3 2019

DIR

EC

T N

NN

RE

NTS

AVERAGE NNN RENTS

Class A Class B Class C

Source: CoStar

Source: CoStarD

IREC

T N

NN

REN

TSD

IREC

T A

VAIL

IBIL

ITY

& V

AC

AN

CY

7.6%

5.3%

4.1%

2.9%

3.4%

2.7%0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Q2 2014 Q2 2015 Q2 2016 Q2 2017 Q2 2018 Q2 2019DIR

EC

T A

VA

ILA

BIL

ITY

AN

D V

AC

AN

CY

AVAILABILITY & VACANCY

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




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934 911

3,728 5.9

-

2

4

6

8

10

12

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Q3 2014 Q3 2015 Q3 2016 Q3 2017 Q3 2018 Q3 2019

MO

NTH

S TO

LEA

SE

THO

USA

NDS

OF

SQUA

RE F

EET

New Supply Net Absorption Under Construction Months to Lease

110

63

51

18

8

4

0

0

57

76

61

31

20

13

1

4

3

3

13

5

9

6

5

9

0 20 40 60 80 100 120

≤ 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 OF CONTIGUOUS SPACE

Class A

Class B

Class C

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

BLOCKS OF AVAILABLE CONTIGUOUS SPACE

Source: CoStar

Source: CoStar




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TENANT SIGN DATE ADDRESS SFBLDG. CLASS

NNN RENT PSF

TERM (months)

RENTAL ESCALTIONS

CEILING HEIGHT

YEAR BUILT / RENOVATED

TYPE NOTES

Essendant Inc. JUL 2019 100 Liberty Way, Cranbury 575,000 A $7.25 120 3.00% 36' 2003 RENEWAL$1.04 PSF TI, 98 docks, 4 drive-ins, 15k SF office, 100 car parking, ESFR sprinklers

Performance Team JUL 201922 Hightstown Cranbury Station Rd., Bldg. 3, Cranbury

444,426 A $7.50 60 3.00% 40' N / A NEW 111 docks

Logistics Plus SEP 2019 200 Docks Corner Rd., Dayton 309,925 A $6.60 78 3.50% 20' 1957 / 2013 NEW 1 month free, 29 docks, ESFR sprinklers

Garden State Cold Storage JUL 2019 580 Port Carteret Dr., Carteret 278,936 A $15.00 180 N / A 30' 1997 / 2002 NEW44 docks, 21k SF office, 66 car parking, 206 trailer parking

UDS JUL 2019 8 Santa Fe Way, Cranbury 176,540 A $7.25 60 N / A 32' 2001 NEW 26 docks, ESFR sprinklers,

United Airlines JUL 2019 256 Vanderpool St., Newark 175,000 A $10.10 180 N / A 40' 2018 NEW 32 docks, ESFR sprinklers, 1 drive-in

N / A JUL 2019 20 Tower Rd., South Brunswick 167,812 B $9.50 36 N / A 32' 1989 RENEWAL32 docks, 8.4k SF office, 100 trailer parking, 86 car parking

Peleton AUG 2019 1500 Blair Rd., Carteret 156,067 A $9.50 60 3.00% 36' 2018 NEW17 docks, 1 drive-in, ESFR sprinklers, 3.1k SF office, 58 car parking

Di Pinto International Logistics

JUL 2019 1400 Corbin St., Elizabeth 138,400 B $7.00 N / A N / A 22' 2000 NEW dry sprinklers, 24 docks, 2 drive-ins

Goodwill of NY and Northern NJ

AUG 2019 400 Huyler St., South Hackensack 126,433 A $13.94 240 3.00% 40' 1953 NEWESFR sprinklers, 22 docks, 1 drive-ins, 109 car / 35 trailer parking

Arrival Tech JUL 2019 150 Whitman Ave., Edison 124,560 A $9.50 120 3.00% 36' 2019 NEW $4 PSF TI, 23 docks,

UPS JUL 2019 1400 Randolph Ave., Avenel 85,119 A $10.35 60 3.00% 36' 2018 NEW ESFR sprinklers

Sonwil SEP 2019 510 Commercial Ave., Carlstadt 79,000 B $10.15 60 N / A 20' 1966 NEWWet sprinklers, 6 docks, 3k SF office, 74 car parking

Cannabis Company JUL 2019 2600 71st St., North Bergen 62,000 B $9.50 120 2.00% 22' 1973 / 2003 NEWWet sprinklers, 4 docks, 1 drive-ins, 2.5k SF office, 32 car parking, 100 trailer parking

Cannabis Company AUG 2019 45 Jiffy Rd., Somerset 55,900 A $10.50 120 N / A 36' 2019 NEW8 docks, 2 drive-ins, ESFR sprinklers, 3k SF office, 39 car parking

VAL Holdings JUL 2019 90 Triangle Blvd., Carlstadt 50,000 B $10.75 60 3.50% 18' 1970 NEW 3 docks, 1 drive-ins, 5k SF office, wet sprinklers

- - WEIGHTED AVERAGE: 187,820 - $9.04 104 3.00% 33' 1993 / 2006 - -

I-95 NJ TURNPIKE CORRIDOR Q3 2019 NOTABLE INDUSTRIAL LEASES




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Source: CoStar

* Denotes Lee & Associates NJ Transaction

PROPERTY SALE DATE SIZE (SF) PRICE PSFCEILING HEIGHT

YEAR BUILT / RENOVATED

BLDG. CLASS

SELLER / BUYER NOTES

225 Long Ave., Bldgs. 2 & 3, Hillside

SEP 2019 388,222 $14,000,000 $36 12' 1967 / 1997 BLandone Corporation / AMERCO Real Estate Company

100% leased, 14 docks, 80 drive-ins, 6 elevators, wet sprinklers, 100 car parking

970 New Brunswick Ave., Rahway

SEP 2019 297,000 $19,500,000 $66 14' - 18' 1932 BRahway Industrial Sites / Herald Realty Management, LLC

6% cap rate, 94% leased, 20 docks, 2 drive-ins, 50 car parking, wet sprinklers

1-11 Market St., Passaic SEP 2019 250,000 $12,350,000 $49 N / A N / A C Ethan Allen Interiors, Inc. / Sun Equity Partners Redevelopment project

99 & 111 Amor Ave., Carlstadt SEP 2019 175,300 $25,200,000 $144 16' - 21' 1970 C Asha44, LLC / Clarion Partners 14k SF office, 14 docks, wet prinklers, 197 car parking

601 W Linden Ave., Linden JUL 2019 162,782 $12,100,000 $74 14' - 18' 1958 C National Better Bags, Inc. / RHS Realty Group5k SF office, 36 docks, 1 drive-in, 100 trailer parking, 1 freight elevator, dry sprinklers, cross-docks

5 & 8 Commerce Way, Hamilton JUL 2019 109,400 $19,500,000 $178 20' 1984 / 2008 B Thompson Management Co. / JBM EstatesFlex portfolio sale, 98% leased, 14 docks, 3 drive-ins, 372 car parking, 82k Sf office, ESFR sprinklers

190 Jony Dr., Carlstadt SEP 2019 102,611 $15,000,000 $146 23' 1969 / 2000 B Verbena Road Holdings Ltd. / Cabot Properties, Inc.6.1% cap rate, 100% leased, wet sprinklers, 6 docks, 3 drive-ins, cross docks, 38k SF office, 140 car parking

2121 State Route 27 S, Bldg. 2, Edison

AUG 2019 99,260 $21,905,655 $221 12' 1984 CAngelo, Gordon & Co. / Broadstone Real Estate, LLC

Flex, 3-stories, 100% leased, 300 car parking

600 Guyon Dr., Harrison SEP 2019 48,500 $13,000,000 $268 23' 2013 BAR Global Investments, LLC / J. Supor & Son Trucking & Rigging Co.

Flex,16k SF office, 20k SF lab, 100% sub-leased through 2028, wet sprinklers, 60 car parking, 4 docks

333 Cantor Ave., Linden SEP 2019 42,788 $6,000,000 $140 14' 1980 CLongpoint Realty Partners / Around The World Logistics

Owner-user sale, 15 docks, 2 drive-ins, wet sprinklers, 2k SF office

WEIGHTED AVERAGE: 167,586 $15,855,566 $95 16' 1973 / 2002 - - -

I-95 NJ TURNPIKE CORRIDOR Q3 2019 NOTABLE INDUSTRIAL SALES




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Rick Marchisio | Principal/PresidentD: 973.475.7055 • C: [email protected]

Crista Governara | Vice PresidentD: 732.204.1121 • C: [email protected]

Drew Maffey | Assistant Vice PresidentD: 973.406.2493 • C: [email protected]

Compiled by Lee & Associates New Jersey. Methodology: Inventory includes all existing, under-construction and under-renovation Class A, B and C industrial and fl ex properties. *All vacancy and rent metrics are direct and do not include sublet market data. All Informationis 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.

LEE & ASSOCIATES - NEW JERSEYis part of the 60 offi ce Lee National network

$15+BILLIONTRANSACTION VOLUME (2018)

1000+BROKERS AND GROWINGNATIONWIDE

1stPRIVATE

BROKERAGE FIRMIN UNITED STATES

91%INCREASE

TRANSACTION VOLUME OVER 5 YEARS

Documents

Licensed Real Estate Broker CENTRAL NEW JERSEY/I-95 ...€¦ · Logistics JUL 2019 1400 Corbin St., Elizabeth 138,400 B $7.00 N / A N / A 22' 2000 NEW dry sprinklers, 24 docks, 2