For more information, please contact Ron DeLuca, senior vice president, (732) or

Transcription

1 Retail Leasing Specialists 4 PERRINE ROAD SUITE 4 OLD BRIDGE, NJ 887 (732) Fax: (732) Subject line: Vacancy rate increased along NJ retail corridors September, 213 With absorptions of big-box spaces countered by growing small-store closures, the vacancy rate for major retail corridors surveyed by R.J. Brunelli & Co., LLC in central and northern New Jersey increased to 9.% in 213 from 8.7% in 212. On a regional basis, the vacancy rate improved slightly in the north but worsened in central New Jersey. Conducted during the second quarter, our 24th annual study of the retail real estate market in the two regions uncovered a total of.3 million square feet of empty space in the 9.71 million square feet evaluated. The progress in big box spaces of 2, square feet or more was underscored by that fact that these stores share of total vacancies dropped again to 42.1% from 47.% in 212 and 49.6% in 211. As in past years, our study evaluated shopping centers and freestanding buildings exceeding 2, square feet including restaurants, auto service facilities and vacant auto dealerships whose location and configuration makes them viable for retail use. Regional malls and centers under construction or major redevelopment are excluded. In the northern New Jersey market, thanks to absorptions of numerous empty big-box spaces on Route 22, the vacancy rate in retail properties along the region s six major shopping corridors inched down to 8.1% from a high of 8.2% a year ago unusual for a market which boasted a rate of 3% or less in three of the last years. With Route 23 the only other highway to show an improvement from our 212 study, the region s vacancy factor remained stuck above the 8.% mark for each of the last four years. We found 2.4 million square feet of vacancies in the 29. million square feet of space examined along the six corridors, which also included Routes 4, 17, and 46/3. On the other hand, the vacancy rate along central New Jersey s four major corridors escalated to 9.8% from 9.1% in 212, but still below the -year high of.% registered in 211. A total of 2.9 million square feet of empty space was found in the 3.22 million square feet evaluated along Routes 1, 9, 18 and 3 (which includes a section of Route 36). Improvements on Routes 1 and 18 were countered by rising vacancies along Routes 9 and 3. Over the last years, the four corridors had their strongest performance in 26, when the combined vacancy factor stood at just 3.4%. Complete detailed reports on both regions are attached, including our views on what this all means for expansion-minded retail, restaurant and personal services tenants. For more information, please contact Ron DeLuca, senior vice president, (732) or rdeluca@rjbrunelli.com MEMBER, ICSC MEMBER REALTY RESOURCES LICENSED REAL ESTATE BROKER

2 For: R.J. Brunelli & Co., LLC, Old Bridge, N.J. From: Parness & Associates, Aberdeen, N.J. For Immediate Release VACANCY RATE ON NORTHERN NJ RETAIL CORRIDORS EDGES DOWN TO 8.1%, R.J. BRUNELLI ANNUAL SURVEY FINDS OLD BRIDGE, N.J. (9/2/13) Thanks to absorptions of numerous empty big-box spaces on Route 22, the vacancy rate in retail properties along northern New Jersey s six major shopping corridors inched down to 8.1% from a high of 8.2% a year ago, according to the latest survey by R.J. Brunelli & Co., LLC. With Route 23 the only other highway to show an improvement from the firm s 212 study, the region s vacancy factor remained stuck above the 8.% mark for each of the last four years. In its 23rd annual study of the six-county northern New Jersey market, the Old Bridge-based retail brokerage firm found 2.4 million square feet of vacancies in the 29. million square feet of space examined along the six corridors, with availabilities seen in 176 of the 99 properties reviewed. This compared with 2.33 million square feet of vacancies in million square feet of space in the 212 study. Conducted during the second quarter of this year, R.J. Brunelli s 213 study reviewed shopping centers and freestanding buildings exceeding 2, square feet along State Highways 4,, 17, 22, 23 and 46/3, and certain intersecting arteries in Bergen, Essex, Morris, Passaic, Somerset and Union counties. Freestanding restaurants, auto service facilities and auto dealerships are also included, while enclosed regional malls and centers under construction or redevelopment are excluded. Despite the progress shown on the hard-hit Route 22 corridor, northern New Jersey has yet to recover from the effects of the rash of big-box retail bankruptcies that began to elevate vacancies in 29 when the rate jumped to 6.6% from 3.6% the prior year, said Richard J. Brunelli, president of the firm. Long one of the top-performing retail real estate markets in the nation, the northern region boasted a vacancy rate of just 3% or less in less in three of the last years after hitting an unheard of low of 2% in 23. Our latest study found that big-box vacancies have stabilized as health clubs and retailers looking to expand their footprint in the region led to net absorption over the past year. But we re also seeing rising vacancies in small store space. Small chains and mom and pops continue to struggle to get financing for new locations or start-up ventures. Meanwhile, marginal operators unwilling to try to make a go of it in a tough economy are shutting their doors as leases expire. The 213 survey found that vacancies in the region s big-box stores exceeding 2, square feet declined to 1.6 million square feet, or 4.7% of total empty space, from 1.9 million square feet, or 46.7%, in 212. Approximately 772,27 square feet, or 73%, of this year s empty big box space came from stores that remained vacant since the firm s 212 survey and, in many cases, from 211 and before. Indeed, spaces lingering on the market for at least three years totaled 612,7 square feet, or 8% of the region s big-box inventory. These include locations formerly operated by Circuit City, Linens N Things, Office Depot, Home Depot Expo, Borders, and Pathmark. During this past year, we saw some positive developments in particular with big-boxes left over from the Border s bankruptcy and The Great Atlantic & Pacific Tea Co. s selective closures of underperforming Pathmarks, Mr. Brunelli noted. Among the four Pathmarks that were still available along the corridors in our 212 survey, two have since been absorbed by Costco and ShopRite on Route 22, leaving the pair along Route in play. Similarly, of the four remaining Borders locations, the spaces on Routes 17 and 23 have been leased to DSW Shoes and Jo-Ann Fabrics, respectively, with stores on Routes and 22 still available. Among the four big-box spaces aggregating 12, square feet along Routes, 17 and 22 that were thrown onto the market in the 212 survey from the bankruptcies of Sixth Ave. Electronics, Syms and Einstein Moomjy, only 2, square feet has been spoken for, with growing local chain Buddy s Small Lots taking the former Einstein location on Route in Whippany. A smaller (19,-square-foot) former Sixth Ave. space on Route in Livingston was leased by growing national chain The Tile Shop,

3 which also took approximately 23, square feet of the long-vacant, 32,3-square-foot Circuit City on Route 22 in North Plainfield. Notable big-box vacancies arising over the past year included the 42,-square-foot Daffy s on Route 4 in Paramus. The bankrupt chain s freestanding 3,-square-foot location on Route in East Hanover is being subdivided. To date, Party City has signed for, square feet and a lease is out on a 6,-square-foot unit. R.J. Brunelli is exclusive broker for the remaining space. Results for the individual northern New Jersey roadways are as follows: Route 17. The vacancy factor along the -mile section extending from Paramus to Mahwah rose for the third straight year to 8.3% from 8.2% in 212 and 7.4% in 211. Over the last years, this major retail corridor s vacancy factor has ranged from a low of 3.2% in 2 to a high of 8.7% in 2. All told, the firm s 213 study uncovered 411,224 square feet of vacancies in the corridor s 4.94 million square feet of space. Availabilities were seen in 21 of the properties reviewed. Big-boxes accounted for 6.8% of the vacant space, the highest ratio for any of the retail corridors studied by the firm in northern and central New Jersey, down slightly from a 61.9% share in 212. New big-box vacancies included Electronics Expo, XSRE and Loehmann s stores totaling 6, square feet in Paramus and Ramsey. These added to the 2, square feet of older big-box inventory divided between the roadway s former Home Depot Expo, Syms, Sixth Ave., K&G Menswear, and Pearl Art stores in Paramus and Ramsey. The impact of the newer closures was partially offset by new deals with Basset Furniture for half of the former 4,-square-foot Circuit City store in Paramus Town Center (the since-closed XSRE occupied the other half), and DSW s aforementioned lease for the former 2,-square-foot Border s at Interstate Shopping Center in Ramsey. Additionally, the former 28,-square-foot Lord & Taylor Home store in Paramus Fashion Center was snapped up over the course of the year by Buy Buy Baby, which relocated from Paramus Towne Square. Route 4. Reflecting the aforementioned closure of Daffy s in Paramus Place, the vacancy rate along the three-mile area between River Edge and Paramus increased to.4% from.% in 212 and 4.2% in 211. The current rate is nearly half of the -year high of.6% reached in 2, but well above the 1.8% low set in 24. R.J. Brunelli s 213 study found 121,9 square feet of vacancies in the 2.27 million square feet reviewed, with 12 of the highway s 48 properties having dark space. The impact of Daffy s closure was partially offset by the opening of Stickley Furniture in the long-vacant, 2,-square-foot former Levitz building in Paramus. Route. At 13.%, 2-mile stretch from Livingston to Ledgewood again had the highest vacancy factor of any of the highways studied by R.J. Brunelli in New Jersey. The most recent rate was up from 13.1% in 212, but down from the -year high of 13.8% in 211, as new and lingering bigbox vacancies continue to take a toll on a highway where the rate was low as 1.% in 2. The firm s 213 study found 726,6 square feet of vacancies in the.38 million square feet studied, with availabilities in 48 of the 181 properties evaluated. Big-box spaces drove 47.1% of this year s vacancies, down slightly from 48.1% a year ago. Nine spaces aggregating 272,172 square feet have now been on the market for two years or more, representing 81% of the roadway s big-box vacancies. However, approximately 4% of those longer-term vacancies are clustered in a totally empty power center in Livingston. New big-box space becoming available in the past year included a pair of 22,-square-foot pad sites at the Kmart-anchored center in Randolph, as well as a new 2,-square-foot building in Morris Plains.

4 In addition to the aforementioned deals for the former Daffy s and Einstein Moomjy buildings in East Hanover, big-box absorptions during the past year included a physical therapy practice s re-use of the 2,-square-foot Honda Power Sport showroom in Hanover and Home Goods lease of the 23,- square-foot Branch Brook Pools location in East Hanover Plaza. The relatively quick deals for the Daffy s and Branch Brook sites, both of which went on and off the market in the past year, point to the demand for well-located sites along Route, Mr. Brunelli commented. Route 46/3. The vacancy rate for the 21-mile corridor of Route 46 between Dover and West Paterson and the adjoining section of Route 3 in Clifton expanded to.7% from 4.9% in 212, but still below the -year-high of 7.3% reached in 211. Over the last years, this corridor s vacancy factor was as low as 2.1% in 28. R.J. Brunelli s 213 survey found 42,79 square feet of vacancies in the 7.4 million square feet studied, with availabilities in 36 of the 23 sites studied. Big-box spaces accounted for 31.% of the vacant space, up from 26.7% in 212, with just four spaces above 2, square feet currently on the market. Spaces going dark in the past year include a 4,-square-foot building in Parsippany s Morris Hills Shopping Center that became available after P.C. Richards relocated to a 3,-square-foot freestanding store in Wayne previously occupied by Circuit City; the 2,-square-foot All Brands Furniture building in Rockaway; and a 28,-squarefoot space in Ledgewood s Kenvil Shopping Plaza that housed a health club and, previously, an independent grocer. Elsewhere in the Morris Hills Shopping Center, Blink Fitness took approximately18,3 square feet of the former 22,4-square-foot Michaels space that became available in 212 when the arts & crafts chain relocated to a nearby center. Additionally, in Wayne s Holiday Plaza, Buddy s Small Lots took a 23,-square foot space previously occupied by Petco, which moved within the center to take the space previously occupied by Comp USA. Route 23. The -mile corridor between Wayne and Butler once again had the lowest vacancy rate of any of the New Jersey highways studied by R.J. Brunelli, dropping to 4.7% from the -year high of 4.9% reached in 212. Over the last years, Route 23 s vacancy factor has been as low as 1.4% in 2, as the lack of available buildable land continues to keep a lid on the corridor s overall inventory. The firm s 213 survey found 8,433 square feet of vacancies in 2.31 million square feet, with availabilities in of the 76 properties reviewed. With Jo-Ann Fabrics taking the 2,-square-foot Borders at Riverside Exchange, no big-box space is currently available along the highway. Route 22. A series of notable big-box absorptions helped drive down the vacancy rate along northern New Jersey s most heavily-retailed corridor to 8.3% from a -year high of 9.7% in 212, but still above the 8.% recorded in both 211 and 2. The corridor s rate had been under 3% in three of the last years, dropping to a low of 2.4% in 27. R.J. Brunelli s 213 survey uncovered 628,68 square feet of vacant space in the 7.7 million square feet reviewed along the 21-mile stretch of Route 22 from Union to Somerville, as well as nearby properties along intersecting Route 22/26 from the Somerville traffic circle north into Bridgewater, plus the nearby Route 28/287 intersection in Bridgewater. Availabilities were seen in 44 of the 21 sites. Big-boxes accounted for 48.1% of the corridor s vacancies, dropping from 3.% in 212. Absorptions of big-box spaces were keyed by the aforementioned deals that are bringing Costco and a Village Super Markets Inc. Shop-Rite to shuttered Pathmark sites in North Plainfield and Union, respectively. Both chains are coming into the centers with bigger footprints than the Pathmarks. Elsewhere, a Nissan dealership took over the 2,-square-foot former Ray s Sports building in North Plainfield, Harbor Freight occupied half of a 2,-square-foot former Saturn dealership in Greenbrook, and The Tile Shop leased 23, square feet of the long-vacant 3,-square-foot Circuit City in the same North Plainfield center that is adding Costco.

5 Those gains on the big-box side were partially offset by the closures of a 3,-square-foot Jason s Furniture in Greenbrook and the 2,-square-foot Sears Auto Center in Union In Union, property owner Sears Holdings is reconfiguring the site to accommodate smaller tenants, Mr. Brunelli said. We expect to see more of this at other Sears-owned sites in New Jersey, as the struggling retailer looks to capitalize on its real estate holdings by converting under-performing store formats in desirable areas into multi-tenant rental properties. R.J. Brunelli expects to release its report on the central New Jersey market next week. For copies of the firm s northern or central New Jersey studies, contact R.J. Brunelli & Co., 4 Perrine Road, Suite 4, Old Bridge, N.J., 887, or visit Telephone is (732) #### Press contacts: At R.J. Brunelli & Co., Ron DeLuca, senior vice president, or Richard J. Brunelli, president, (732) 721-8; at Parness & Associates Public Relations, Bill Parness or Lisa Kreda (732) , parnespr@optonline.net.

6 CENTRAL NJ RETAIL VACANCY RATE RISES TO 9.8%, AS PRESSURES ON SMALLER SPACES OFFSET BIG BOX GAINS, R.J. BRUNELLI SURVEY FINDS (CONDUCTED IN SECOND QUARTER OF 213) After dropping from a -year high of.% in 211 to 9.1% in 212, the retail vacancy rate along central New Jersey s major shopping corridors increased again to 9.8% this summer, as progress in big-box spaces of 2, square feet or more was thwarted by growing closures of smaller shops. Our 24 th annual study of the central New Jersey market uncovered 2.9 million square feet of vacancies in the 3.22 million square feet of space studied along State Highways 1, 9, 18 and 3 in Mercer, Middlesex and Monmouth counties, and a small section of Ocean County. Improvements on Routes 1 and 18 were countered by rising vacancies along Routes 9 and 3. Over the last years, the four corridors had their strongest performance in 26, when the combined vacancy factor stood at just 3.4%. All told, availabilities were seen in 192 of the 796 sites visited throughout the region during this year s second quarter. The study evaluated shopping centers and freestanding buildings exceeding 2, square feet including restaurants, auto service facilities and vacant auto dealerships whose location and configuration makes them viable for retail use. Regional malls and centers under construction or major redevelopment are excluded. When combined with the slight year-over-year decline in the vacancy factor for six northern New Jersey highways (to 8.1% from 8.2%), the overall vacancy rate for the retail corridors surveyed in the central and northern parts of the state increased to 9.% from 8.7% in 212. We found a total of.3 million square feet of empty space in the 9.71 million square feet reviewed, with big-box spaces representing 2. million square feet, or 42.1%, of the vacancies. For central New Jersey, the encouraging news over the past 12 months was the net absorption of over 22, square feet of big-box vacancies, including some that lingered on the market for years. But even as a still-too-high big-box inventory continues to shrink, that positive trend is being countered by growing numbers of smaller-store vacancies up and down the region s corridors. As we saw in northern New Jersey, much of the small-space woes can be attributed to a combination of unprofitable or marginally profitable tenants shutting their doors as leases expire and the inability of small chains, mom & pops and franchisees to take advantage of those vacancies because financing for new ventures or business expansion remains so difficult to get. Until the economy improves and banks genuinely start to loosen the spigots, it will be difficult to make much of a dent in the small store inventory. In terms of the region s big-box inventory, a total of 1.9 million square feet remained available, amounting to 39.1% of the corridors vacant space, down from a 47.1% share in 212 and 4.% in our 212 survey. Landlords have been able to find newcomers for well-located properties, but others remain difficult to fill, underscored by the fact that approximately 74% of the region s vacant big-box space has been on the market for three years or more. Among the notable absorptions, two of the corridors four Pathmark sites were taken, with market newcomer Hobby Lobby opening in the 61,4-square-foot space at Marlboro Plaza on Route 9 and the new Lowes Express concept debuting in 49, square feet on Route 3 in Wall Township. Former Pathmarks on Route 1 in North Brunswick and Route 3 in Middletown remain on the market. Both of the corridors remaining Borders spaces were absorbed, with DSW Shoes taking the 24,4-square-foot space on Route 3 in Eatontown in a deal brokered by R.J. Brunelli and Buy Buy Baby leasing the 28,-square-foot store in Nassau Park on Route 1 in the Princeton area. Buy Buy Baby, meanwhile,

7 BRUNELLI CENTRAL NJ STUDY 2 also opened in another former bookstore, taking the 22,2-square Barnes & Noble space at Consumer Square on Route 36 in West Long Branch. Of the region s three remaining Linens n Things sites, Big Lots leased the 4,9-square-foot store at Woodbridge Crossing on Route 1 and the 28,8-square-foot space on the Freehold Raceway Mall ring road on Route 9, leaving another Route 9 location in Howell still on the block. Rounding out the notable bog-box deals completed over the last 12 months, Shop-Rite debuted in 8, square feet at Bayshore Plaza on Route 3 in Hazlet, combining the center s former Foodtown with a long-vacant children s apparel superstore; the 29,4-square-foot former P.C. Richard building in Edison Woods on Route 1 was subdivided between two growing national retailers: Dollar Tree and The Tile Shop; and Tuesday Morning opened in the 21,6-square-foot former Office Depot space on Route 9 in Howell. These absorptions were partially offset by two big box closures over the past 12 months, both on Route 9: the 16,-square-foot Lowes in Old Bridge and a 2,7-square-foot A.C. Moore in Howell. Another major space will become available On Route 9 in the months ahead when Kmart completes the going-out-of-business sale at its 68,-square-foot location in Howell. Apart from the aforementioned problems with small spaces, the central region s vacancy rate also took a hit from a number of closures of operations in the 8,- to 2,-square-foot range, including Sears Auto centers on Route 9 in Old Bridge, Route 3 in Eatontown and Route 18 in East Brunswick (the latter, part of a Kmart store). Additionally, the January 213 bankruptcy filing by Big M. Inc. (parent of Mandee, Annie Sez and Afaze) and subsequent acquisition of the chains by Canadian retailer YM Inc. led to selective closures of under-performing locations, including an Annie Sez at Woodbridge Crosspointe on Route 9 and Mandee stores on Route 1 in North Brunswick and Route 36 in Eatontown. Finally, three Fashion Bug stores were closed along the corridors by early this year after the new owners of Fashion Bug parent Charming Shoppes, Inc. decided to shutter the entire low-priced chain. These included locations in Hazlet, Freehold and Howell. Results for central New Jersey s individual roadways are as follows: Route 1. With conditions continuing to improve, the vacancy rate along the 3-mile corridor extending from Woodbridge to Trenton declined for the fifth straight year to 6.7% from 7.9% in The highway s vacancy factor over the past years has ranged from a low of 2.4% in both 26 and 27 to a high of 9.% in 29. Our 213 study uncovered 77,266 square feet of vacancies in 8.9 million square feet, with availabilities in 29 of the roadway s 127 retail sites. With no new large store closings, the aforementioned deals for the highway s empty Linens n Things, P.C. Richard and Borders sites brought big-box availabilities down to 296,772 square feet, or 1.4% of Route 1 s total vacancies well below the 6.% ratio posted in 212. Notably, % of the available big-box space has been on the market for at least three years. Indicative of what can happen with well-located big-boxes, as part of its push into New Jersey, Hobby Lobby snapped up the 4,-square-foot former Sports Authority space in Lawrenceville that was not vacant in out 212 survey. R.J. Brunelli represented the landlord on the Hobby Lobby transaction. Route 18. The vacancy rate along the five-mile retail corridor in East Brunswick dropped for the third consecutive year to 11.4% from 12.9% in 212 and the record-high of 22.1% in 211. Over the last years, the roadway has its best performance in 2 with a vacancy factor of 4.%.

8 BRUNELLI CENTRAL NJ STUDY 3 The 213 survey found 38,824 square feet of vacancies in the roadway s 2.71 million square feet of space, with availabilities in 24 of the 87 properties visited. Hibachi Grill took approximately 14, square feet of the 32,-square-foot space that went dark in the 212 study when Car-Khuff s Furniture closed. All of the 77,437 square feet of big-box space left has been on the market for at least three years. In other news, work is under way on the redevelopment project that will bring an approximate,-square-foot Wal-Mart supercenter to the site that previously housed 232, square-feet of vacant space divided between Sam s Club (which relocated to a bigger space on Route 1), the Route 18 Flea Market and an independent furniture store. Further south on Route 18, an additional Wal-Mart is reportedly coming to a former golf driving range site in Old Bridge. Route 9. With the effects of growing small-store vacancies and the aforementioned Lowes and A.C. Moore closings offsetting gains from the Hobby Lobby, Big Lots and Tuesday Morning openings, the vacancy rate along the 3-mile Woodbridge-to-Lakewood corridor rose to 8.6% from the 7.% posted in both 212 and 211. Over the last years, the highway s vacancy factor ranged from a low of 3.6% in 28 to a high of 7.6% in 29. Our latest study revealed 764,682 square feet of vacancies in the 8.91 million square feet evaluated, with availabilities seen in 63 of the 24 properties reviewed. Empty big-boxes accounted for 269, square feet, or 3.2% of the roadway s vacancies, with 74% of those spaces empty for three years or more. On an encouraging note, Pagano Associates long-awaited Marlboro Commons is well under way, with exclusive leasing agent R.J. Brunelli reporting that leases are signed or out for signature for 9% of the,-square-foot center. The first of the tenants, a 14,-square-foot Walgreens, opened this summer, with Ethan Allen and Verizon scheduled to follow this fall. Meanwhile, Whole Foods just began construction on its 4,-square-foot building. The chain s first store in western Monmouth County is expected to open next spring along with two other national tenants that have leases out. Route 3. Closings of small shops and other spaces below 2, square feet overwhelmed strong progress on the big-box front to elevate the vacancy rate along the 2-mile Aberdeen to Brielle corridor to 13.% from 11.2% in 212 and the previous peak of 12.2% set in 211. Over the last years, the vacancy factor had been as low as 3.4% in 26. The 213 survey found 1.3 million square feet of vacancies in the. million square feet studied, with availabilities in 76 of the 338 properties evaluated. The study area which includes a section of Route 36, extending from its intersection with Route 3 in Eatontown, east to West Long Branch has the most retail space of the corridors evaluated by us each year in central and northern New Jersey. In the absence of large-store closings, the aforementioned openings of Shop-Rite, DSW. Lowes Express and Buy Buy Baby brought the big-box inventory down to 446,663 square feet, or 34.3% of the corridor s vacancies, compared with a 49.8% ratio in 212. All of the remaining big-box space has been on the market for at least three years. Looking ahead, the Eatontown area could see its biggest surge in new space in years as proposed redevelopments of Fort Monmouth and a site currently occupied by a golf course on Route 36 could potentially add, square feet of retail in conjunction with new housing, office space, hotels and other uses being considered for the sites. We believe these properties will have few problems attracting interest from national big box tenants who have been unable to find suitable available space in the

9 BRUNELLI CENTRAL NJ STUDY 4 Eatontown area, which remains a very popular regional retail hub.

10 RETAIL VACANCY PERCENTAGE RATES 4 Perrine Road, Suite 4 NORTHERN & CENTRAL NEW JERSEY S MAJOR HIGHWAYS Old Bridge, NJ (Surveyed Q2 213) tel: fax: ROUTE 17: Mile corridor ROUTE 4: 3 Mile corridor ROUTE : 2 Mile corridor ROUTE 46/3: 21 Mile corridor ROUTE 23: Mile corridor 4.94 Million sf surveyed 2.3 Million sf surveyed.4 Million sf surveyed 7. Million sf surveyed 2.3 Million sf surveyed Properties surveyed 48 Properties surveyed 181 Properties surveyed 23 Properties surveyed 76 Properties surveyed 19 Properties with vacancies 9 Properties with vacancies 47 Properties with vacancies 37 Properties with vacancies Properties with vacancies Rt Rt Rt Rt. 46/ Rt ROUTE 22: 21 Mile corridor ROUTE 3: 2 Mile corridor ROUTE 9: 3 Mile corridor ROUTE 18: Mile corridor ROUTE 1: 3 Mile corridor 7. Million sf surveyed. Million sf surveyed 9.2 Million sf surveyed 2.7 Million sf surveyed 8.6 Million sf surveyed 249 Properties surveyed 339 Properties surveyed 22 Properties surveyed 87 Properties surveyed 127 Properties surveyed 41 Properties with vacancies 72 Properties with vacancies 62Properties with vacancies 24 Properties with vacancies 27 Properties with vacancies Rt Rt Rt Rt Rt THE INFORMATION PROVIDED ABOVE IS FOR GENERAL PURPOSES ONLY AND IS SUBJECT TO CHANGE. NOTHING CONTAINED ABOVE IS INTENDED TO BE A BINDING REPRESENTATION. THE BROKER MAKES NO WARRANTY IN THE ABOVE INFORMATION AS TO THE ACCURACY, CHARACTER, OCCUPANCY OR CONFIGURATION OF THE PROPERTY REPRESENTED.

11 New Jersey's Retail Leasing Specialists VACANCY SURVEY (Surveyed Q1 213)* NORTHERN, NEW JERSEY TOTAL SPACE TOTAL SPACE TOTAL SPACE TOTAL SPACE TOTAL SPACE TOTAL SPACE TOTAL SPACE SURVEYED'13 SURVEYED'12 SURVEYED'11 SURVEYED' SURVEYED'9 SURVEYED'8 SURVEYED'7 VACANT VACANT VACANT VACANT VACANT VACANT VACANT VACANCY VACANCY VACANCY VACANCY VACANCY VACANCY VACANCY PREPARED APRIL'13 PREPARED APRIL'12 PREPARED APRIL'11 PREPARED APRIL' PREPARED FEB.'9 PREPARED FEB.'8 PREPARED FEB.'7 FACTOR FACTOR FACTOR FACTOR FACTOR FACTOR FACTOR ROUTE 17 4,93,691 4,937,47 4,947,6 4,926,6 4,932,8 4,839,8 4,84,8 411,224 4, , , ,84 216,68 26, % 8.2% 7.4% 8.7% 7.% 4.%.3% ROUTE 4 2,266,24 2,233,44 2,238,44 2,78,44 1,138,44 1,91,28 1,163,28 121,9 112,74 93,89 14,441 93,378 1,38 36,833.4%.% 4.2% 6.8% 8.2%.1% 3.2% ROUTE,421,39,12,641,12,641,82,641 4,963,742 4,982,742 4,972,742 84, 669,161 76,1 83,264 36,94 184,9 111,.6% 13.1% 13.8% 11.% 7.3% 3.7% 2.2% ROUTE 46/3 7,37,844 6,417,333 6,4,33 6,392,733 6,9,13 6,2,377 6,26, ,12 3,776 46,3 394, ,9 132,37 144,2 6.7% 4.9% 7.3% 6.2%.6% 2.1% 2.3% ROUTE 23 2,31,8 2,216,33 2,216,33 2,216,33 2,436, 2,436, 2,341, 8,433 8,87 76,789,689 83,64 93,64 72, 4.7% 4.9% 3.% 4.% 3.4% 3.8% 3.1% ROUTE 22 7,61,861 7,413,87 7,847,848 7,831,48 7,978,328 7,976,611 7,989, , ,23 62,31 627,331 93, , ,3 8.8% 9.7% 8.% 8.% 7.4% 3.4% 2.4% w/22/26 Circle TOTAL NORTH JERSEY 29,24,8 28,339,8 28,781,371 28,28,271 27,99,287 27,82,8 27,78,326 2,624,73 2,329,81 2,331,664 2,273,98 1,84,262 1,,814 8, % 8.2% 8.1% 8.% 6.6% 3.6% 2.9% CENTRAL, NEW JERSEY TOTAL SPACE TOTAL SPACE TOTAL SPACE TOTAL SPACE TOTAL SPACE TOTAL SPACE TOTAL SPACE SURVEYED 13 SURVEYED 12 SURVEYED 11 SURVEYED' SURVEYED'9 SURVEYED'8 SURVEYED'7 VACANT VACANT VACANT VACANT VACANT VACANT VACANT VACANCY VACANT VACANT VACANCY VACANCY VACANCY VACANCY PREPARED Ap;ril '13 PREPARED Ap;ril '12 PREPARED March'11 PREPARED APRIL' PREPARED FEB.'9 PREPARED FEB.'8 PREPARED FEB.'7 FACTOR FACTOR FACTOR FACTOR FACTOR FACTOR FACTOR ROUTE 3,9,38 9,993,783 9,911, ,629,382 9,69,382 9,69,382 1,32,734 1,122,48 1,29,323 1,177,83 714,984 88,218 1, % 11.23% 12.2% 11.9% 7.4% 6.1%.2% ROUTE 9 8,894,4 9,199,926 9,49, ,121,271 8,8,872 8,1, , ,11 63,162 67,297 6,72 29,4 38,8 8.69% 6.9% 6.96% 6.7% 7.6% 3.6% 4.8% ROUTE 18 2,79,334 2,64,814 2,66, ,463,483 2,418,483 2,368, ,46 343,361 88,623 37,62 444,2 177,2 124, 12.9% 12.93% 22.12% 13.% 18.% 7.3%.2% ROUTE 1 8,92,244 8,684,96 8,67, ,127,79 7,92,97 7,48,97 648, ,682 76,88 79,9 768,43 279,2 184,4 7.% 7.88% 8.74% 9.4% 9.% 3.% 2.4% TOTAL CENTRAL JERSEY 3,2,336 3,33,119 3,278,443 3,13,999 28,341,7 28,112,694 27,28,994 3,6,2 2,79,39 3,184,988 2,932,91 2,43,334 1,334,622 1,19,463.% 9.14%.2% 9.8% 9.% 4.7% 4.3% *NOTE: Effective with 2, R.J. Brunelli & Co. has shifted the study period for the annual survey to April from February in recognition of the fact that many retailers wait until after the holiday season to begin liquidating failing stores. We believe reflect the year in which the survey was actually conducted. Thus, 2 (prepared in February 21) is now listed as 21, and so on. All historical data remains unchanged. THE INFORMATION PROVIDED ABOVE IS FOR GENERAL INFORMATION PURPOSES ONLY AND IS SUBJECT TO CHANGE. NOTHING CONTAINED ABOVE IS INTENDED TO BE A BINDING REPRESENTATION. BROKER MAKES NO WARRANTY FOR THE ABOVE INFORMATION AS TO THE ACCURACY, CHARACTER, O Combined North and Central GLA SURVEYED VACANT Vacancy Factor ,73,186 8,872,177 9,9,814 8,42,27 6,31,2,694,72,7,32,689,93,119,62,16,62,26,49 4,383,96 2,34,436 2,,63 9.3% 8.7% 9.34% 8.89% 7.79% 4.2% 3.63% 8/3/2 4:3 PM Page 1 \\BRU-FS1\Public\NICK DeLUCA\213 Vacancy FINAL 2.xls