July 4, 2008 Review

Second half of 2008 kicks off Monday:
Tale of the Tape:
Office Space is primarily holding up around key transportation spots around the Garden State.
Suburban office market is generally weakening under the $4.00 per gallon gas and some developers are offering gas cards for prospective tenant employees on deals that are made at their buildings.

Warehouse Space: The 8A mkt. has softened big time with many >100,000 sf availabilities,
flex space is holding rates below 30,000 sf.
Markets north of Exit 9 are in great shape especially Raritan Center and in and around the Port.
However there seems to be a trend toward the weakening as the vacancy in some of these mkts. were at all-time highs.

Retail Space- More retailers will be falling as the consumer shops at Walmart and the food markets.
Very few bright spots on the trend now deepening into minor to moderate vacancies across the main retail roads of the Garden State. The Costco's and BJ's are getting good traffic but looks like the rebate cks. have helped and they will not be around in the 4th quarter.

Chris Galiano