NKF Valuation & Advisory Appraiser, Peter Manotti, Achieves MAI Designation

Philadelphia, PA (August 13, 2018) — Newmark Knight Frank (NKF) is pleased to announce that Valuation & Advisory (V&A) First Vice President Peter Manotti of the Philadelphia office, has obtained the prestigious MAI designation awarded by the Appraisal Institute.

MAI designated appraisers are sought after in the commercial real estate community for their commitment to education, superior ethical standards and proven industry prowess. Attaining the MAI designation involves meeting stringent education requirements, demonstrating high performance standards and successfully passing the comprehensive examination.

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LuckyVitamin Gets a New, Improved Home

Wayne, PA (May 31, 2018) — Newmark Knight Frank (NKF) has announced that LuckyVitamin has expanded and signed a long-term lease at the Spring Mill Corporate Center, located at 1100 E. Hector Street in Conshohocken, PA. The expansion adds 5,700 square feet of space to the existing 18,500. NKF Executive Managing Director Jim Dugan and Managing Director Justin Bell represented the tenant, LuckyVitamin, in the expansion and renewal transaction.

With LuckyVitamin’s recent split from GNC and new partnership with TSG Consumer Partners, based in San Francisco, California, LuckyVitamin needed additional space to accommodate its recent growth. LuckyVitamin’s goal was to enhance the culture and wellness within the company by redesigning the work environment, adding more collaborative working space and improving amenities. The redesigned space will include an expanded wellness area, production studio, health refreshment area, more open creative work areas and open, high ceilings to boost natural light. The finishes chosen include reclaimed timber, stone paver and grass style flooring, and exposed brick from the turn of the century when the complex was originally constructed.

“The most efficient way to achieve LuckyVitamin’s goal was to vacate an inefficient portion of the space on the third floor and relocate the contact support center and other functions to the floor below, with an internal staircase that will connect the two environments,” said Dugan

“We are excited we were able to reach an agreement that allowed us to expand our existing space and stay at the Spring Mill Corporate Center. Our office space is conveniently located for our staff and is within walking distance to regional rail and a short distance to the city and major highways. The team at NKF provided excellent guidance and support to us throughout the process. We look forward to moving into our new enhanced space later this summer,” said Sam Wolf, founder and chief wellness spreader at LuckyVitamin.

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New Warehouse Deliveries Drive Absorption Gains

Philadelphia, PA (April 30, 2018) — Newmark Knight Frank (NKF) released its first-quarter 2018 reports for Greater Philadelphia and the I-81/78 Corridor industrial markets. The combined markets closed the period with 0.8 million square feet of occupancy gains. Quarter-over-quarter, the combined vacancy rate stayed flat at 6.6 percent as the market remained extremely tight. There were only two deliveries this quarter, both warehouse properties. 139 Fredericksburg Road in the Central Pennsylvania submarket delivered a 225,875-square-foot expansion that was promptly occupied by Ace Hardware, while 305 East Church Road in Montgomery County, a 49,102-square-foot building, delivered vacant. The I-81/78 Corridor continued to capture the majority of the warehouse pipeline, where, 8.9 of the combined markets’ 14.4 million square feet of new space is being built.

The Southern New Jersey market recorded 226,511 square feet in negative absorption, its first quarter of negative posting since the second quarter of 2015. The Camden County submarket experienced the greatest loss with 179,120 square feet of negative absorption, followed by Burlington County with 44,461 square feet and Gloucester County with 2,930 square feet. Quarter-over-quarter, overall vacancy in the market increased 20 basis points, but remains low at 4.2 percent. While vacancy in Burlington and Glouster Counties remained steady at 3.7 and 5.8 percent, respectively, vacancy in the Camden County submarket rose 60 basis points to 3.6 percent. Two major moves came as Bellmawr Laundry left 74,000 square feet at 281 Benigno Avenue in Camden County and AMF Holdings vacated 48,000 square feet at 1808 River Road in Burlington Township. Despite the slight uptick in vacancy, optimism for the future of the market remains high. According to Kurt Montagano, NKF senior managing director, “Despite increasing rents in the Southern New Jersey markets, demand continues to outpace supply, creating spec and build-to-suit activity.”

The New Castle County, Delaware market slowed compared to fourth-quarter 2017, but remained active. The market reported 124,936 square feet in positive absorption, lowering the vacancy rate by 50 basis points from year-end 2017 to 15.3 percent. With the continued activity, rent in general industrial, warehouse/distribution, and R&D/flex sectors all increased, driving the overall rent up $0.14 to $4.67 per square foot. Lease rates for the R&D/flex sector had the highest gains, jumping $0.60 to $6.68 per square foot, while the warehouse and general industrial sectors ticked up $0.20 and $0.10, respectively, to $4.98 and $4.26 per square foot.

The Southeastern Pennsylvania market closed the first quarter with 273,109 square feet in occupancy loss. In Philadelphia County, Cardone Industries’ 1.325-million-square-foot distribution center, located at 5501 Whitaker Avenue, was put on the market for sale or lease. That disappointing news was offset by the following new deals: Dependable Distributions moved into 332,640 square feet at 9801 Blue Grass Road and 185,000 square feet at 11200 Roosevelt Boulevard, and Rainbow occupied 365,000 square feet at 2951 Grant Avenue. All things considered, vacancy for the quarter still ticked up 10 basis points to 6.4 percent, which is still considered extremely tight. Eustace Wolfington, NKF senior managing director, had this to say; “Demand in the market for industrial space has intensified and lease rates are among the highest this market has ever seen. The scarcity of available properties is driving prices up, benefitting sellers and landlords.” This quarter, the overall lease rate rose $0.02 to $5.48 per square foot, the highest rate in over ten years. The R&D/Flex rate led the way, rising $0.09 to end at $9.06 per square foot – the highest rate ever posted by that sector.

Vacancy for I-81/78 Corridor warehouse/distribution properties stayed flat in the first quarter of 2018 at 6.8 percent. The market recorded 1.2 million square feet of positive absorption, half of the five-year quarterly average of 2.4 million square feet. Tim Brogan, NKF senior managing director, noted, “Though the e-commerce boom in the warehouse sector continues, land and space to fulfill requirements are becoming scarce. 8.9 million square feet of spaces is currently under construction, while at the same time there are approximately fifteen 1.0 to 1.2 million square foot requirements, plus twelve 500,000 to 800,000 square foot requirements pursuing space in the market.” Along with slowing absorption, land scarcity is also driving up rental rates. The overall rate rose $0.08 to $4.44 per square foot, and all three market sectors experienced positive increases. The largest climb was in the warehouse and distribution and R&D/flex sectors, which both rose $0.11 to end at $4.50 per square foot and $7.68 per square foot, respectively. The $4.50 per square foot rental rate for warehouse properties is the highest since the third quarter of 2007.

About Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark”), is one of the world’s leading commercial real estate advisory firms. Newmark has over 4,600 employees in over 120 offices. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents. With roots dating back to 1929, NKF’s strong foundation makes it one of the most trusted names in commercial real estate. We offer a complete suite of services and products for both owners and occupiers across the entire commercial real estate industry.

Our investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting and, under trademarks and names like Berkeley Point and NKF Capital Markets, government sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Our occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. We enhance these services and products through innovative real estate technology solutions and data analytics designed to enable our clients to increase their efficiency and profits by optimizing their real estate portfolio. We have relationships with many of the world’s largest commercial property owners, real estate developers and investors, as well as Fortune 500 and Forbes Global 2000 companies. For further information, visit www.ngkf.com.

Newmark, which is listed on the NASDAQ Global Select Market under the symbol “NMRK”, is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”), a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol “BGCP”. BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol “BGCA”.

Discussion of Forward-Looking Statements about Newmark

Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s and BGC’s Securities and Exchange Commission filings, including, but not limited to, any updates to such risk factors contained in subsequent Forms 10-K, 10-Q, or Forms 8-K.

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Southeastern Pennsylvania Suburbs Begin the Year with a Bang

Philadelphia, PA (April 12, 2018) — Newmark Knight Frank (NKF) released its first-quarter 2018 office reports for the greater Philadelphia region. The reports detail bullish activity in Southeastern Pennsylvania and slowly improving market conditions in the Philadelphia Central Business District (CBD). Market fundamentals remain soft in the Southern New Jersey office market, while Delaware’s suburban office markets out performed Downtown Wilmington.

Southeastern Pennsylvania continued on a hot streak and recorded 479,334 square feet of positive absorption for the first quarter of 2017. This was 82.0 percent of 2017’s total absorption. Reid Blynn, NKF executive managing director, notes, “There are several tenants with large requirements looking in Southeastern Pennsylvania. It is possible that the market could gain 1.0 million square feet of new occupancy by year’s end.” Annual absorption for Southeastern Pennsylvania has averaged 583,383 square feet over the past five years.

Vacancy fell 50 basis points to 14.5 percent and was the lowest rate in over a decade. In the Blue Bell/Plymouth Meeting submarket, Cotiviti occupied 86,621 square feet at the recently renovated 785 Arbor Way. At 2501 Seaport Drive located in the Central/Southern Delaware submarket, Keystone Sports and Entertainment and PowerHome Remodeling occupied 23,000 square feet and 40,000 square feet, respectively. Over in the Radnor/Main Line market, Brandywine backfilled 40,000 square feet at Radnor Financial Center.

Southeastern Pennsylvania’s Class A rent increased by $0.19, from year-end 2017, to $30.00 per square foot. The Radnor/Main Line submarket concluded the first quarter with an average rent of $39.12 per square foot. It may be possible for Class A rent to break $40.00 per square foot somewhere in the suburbs before the end of the year. Finally, Class B rent grew by $0.23 to $24.59 per square foot, attributed to rent increases at Spring Mill Corporate Center and additional availability at Spring Mill Pavilion. Both properties are located in Conshohocken.

The CBD posted 107,812 square feet of negative absorption for the first quarter of 2018, mainly attributed to tenant activity at a small group of buildings in the West Market’s Class A sector. Downsizing and fewer tenants relocating from outside of the CBD market kept the vacancy at high levels for most of 2017. Some tenants that attributed to the vacancy include: 95,062 square feet formerly occupied by Comcast, at the Logan’s, was returned to the market, Deloitte “right-sizing” from 120,000 square feet to 90,000 square feet at 1700 Market Street, and Montgomery McCracken’s relocating from 120,000 square feet at 123 South Broad Street to 67,000 square feet at 1735 Market Street. As a result, Class A vacancy increased 40 basis points to 12.6 percent. However, NKF forecasts improved market conditions for the rest of the year. The new Comcast Tower will deliver in April and add 1.3 million square feet in positive absorption. NKF assisted Neumann Finance, a newly created equipment-leasing firm in partnership with Beneficial Bank, with a 21,695-square-foot lease at 123 South Broad Street. The company will occupy later this year. In addition, tenants from surrounding submarkets and Southern New Jersey are interested in securing outpost offices in the CBD.

All building classes experienced a bump in gross rent attributed to rising occupancy costs from the implementation of new real estate taxes. From year-end 2017, Class A asking rent increased $1.33 to $33.90 per square foot. Said Craig Scheuerle, NKF executive managing director, “Owners relatively new to the Philadelphia market, including Shorenstein, Coretrust and American Real Estate Partners, are increasing rents with major capital expenditures on lobby renovations and amenity/conference centers.”

Southern New Jersey market fundamentals remained soft at the close of the first quarter. Over the past three months, the average direct Class A rent fell $0.44 to $24.42 per square foot, while the Class B rate decreased by $0.11 to $19.95 per square foot. Quarter-over-quarter, the overall vacancy rate rose by 70 basis points to 14.7 percent. The market recorded 65,371 square feet of negative absorption. DeVry University closed its 14,731-square-foot location at 921 Haddonfield Road in Cherry Hill. Additionally, T&M Associates relocated from 19,000 square feet at 1256 North Church Street, in Moorestown, to 12,000 square feet at 200 Century Parkway, located in Mount Laurel. Anne Klein, NKF executive managing director, notes, “It will take some strong backfilling of space, as tenants occupy their new buildings in the city of Camden over the next 12-18 months, to maintain low vacancy levels.” While the largest new transaction executed in the first quarter was Corporate Synergy Group’s lease of 26,737 square feet at 2 Aquarium Drive, located in the Pennsauken/Camden submarket, most leases were by users under 10,000 square feet.

There was some good news from the investment front. Over the past year, typical purchasers of multi-tenant properties have shifted from REITS to local private investors. The market is now drawing interest from investors outside the region. One is a Texas-based private investor that has four office assets under contract and the other is from a Massachusetts healthcare REIT focused on two Marlton office properties.

In the first quarter, the Wilmington CBD posted 10,436 square feet in negative absorption, while the suburbs recorded 71,663 square feet in occupancy gains. Sallie Mae’s move to 57,576 square feet at 90 Christiana Road in Wilmington South was the main reason for the suburbs positive absorption. Vacancy in the CBD increased for the second consecutive quarter to 17.8 percent. The Wilmington South and Wilmington West submarkets reported quarterly declines of 120 basis points and 60 basis points, respectively, to 10.9 percent and 18.9 percent. There were minor upticks in Class A and Class B rental rates for the CBD. However, the Wilmington North market recorded a $0.49 uptick due to 500,000 square feet, formerly owned by AstraZeneca, which was returned to the market at 1800 Concord Plaza.

Neal Dangello, NKF senior managing director, noted, “The city’s higher operating costs, such as parking, employment and wage taxes, make it less desirable for tenants. Expect to see more back-office operations shifted out of the city.” This could further weaken conditions in downtown, which may contend with more than 500,000 square feet returned to the market if Bank of America’s Bracebridge office buildings are purchased by an investor and added to the inventory.

About Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark”), is one of the world’s leading commercial real estate advisory firms. Newmark has over 4,600 employees in over 120 offices. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents. With roots dating back to 1929, NKF’s strong foundation makes it one of the most trusted names in commercial real estate. We offer a complete suite of services and products for both owners and occupiers across the entire commercial real estate industry.

Our investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting and, under trademarks and names like Berkeley Point and NKF Capital Markets, government sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Our occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. We enhance these services and products through innovative real estate technology solutions and data analytics designed to enable our clients to increase their efficiency and profits by optimizing their real estate portfolio. We have relationships with many of the world’s largest commercial property owners, real estate developers and investors, as well as Fortune 500 and Forbes Global 2000 companies. For further information, visit www.ngkf.com.

Newmark, which is listed on the NASDAQ Global Select Market under the symbol “NMRK”, is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”), a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol “BGCP”. BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol “BGCA”.

Discussion of Forward-Looking Statements about Newmark

Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s and BGC’s Securities and Exchange Commission filings, including, but not limited to, any updates to such risk factors contained in subsequent Forms 10-K, 10-Q, or Forms 8-K.

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NKF Continues Valuation & Advisory Expansion in Philadelphia

Philadelphia, PA (April 12, 2018) — Newmark Knight Frank (NKF) is pleased to announce that four new appraisers have joined Philadelphia’s expanding Valuation & Advisory practice. J. John Gasparre, MAI, Stephen J. Cook II, Andrew Barbato and Joseph Zakrzewski are the newest members of NKF’s Valuation & Advisory practice. All four appraisers are based in the Philadelphia office, led by Joseph D. Pasquarella, MAI, CRE, FRICS.

This local growth is reflective of NKF Valuation & Advisory’s national expansion. Since March of 2017, its national Valuation & Advisory practice has grown from approximately 15 people to more than 300.

Bringing 35 years of experience to his role, J. John Gasparre, MAI, has joined the Philadelphia office as a senior vice president. Prior to joining NKF, he served as a vice president with CBRE, as a member of the firm’s retail, multifamily  and national office valuation team. Throughout his successful career, he has prepared valuations and market analyses on a broad range of property types including super-regional malls, lifestyle centers, single-tenant retail, industrial, office buildings, mixed-use developments and vacant land, to name a few. Mr. Gasparre has carried out valuations for mortgage financing, tax appeal, investment counseling, potential sale or purchase, leasehold and rental analysis and feasibility analysis. His clients have included commercial banks, developers, corporations, individual property owners, public agencies, insurance companies and legal firms. Mr. Gasparre also successfully oversaw the startup of a valuation office for CBRE in New Orleans, Louisiana.

Also new to the Philadelphia office are Stephen J. Cook II, who joined as first vice president, and analysts Andrew Barbato, and Joseph Zakrzewski. Mr. Cook has 10 years of real estate experience and specializes in industrial real estate, focusing on suburban Philadelphia, central Pennsylvania, the Lehigh Valley and Northeastern Pennsylvania industrial markets. Mr. Barbato, and Mr. Zakrzewski will utilize their combined 56 years of experience to strengthen the foundation of the Philadelphia Valuation & Advisory team and expand service offerings to our clients throughout the region.

“We are excited to be adding more talent to our Philadelphia office and to offer clients real time market data and the skills of nationally recognized specialty practice leaders. Our local Valuation & Advisory expansion is reflective of NKF’s national strategy to attract the best talent to service our clients’ needs,” said Mr. Pasquarella.

“The enhanced value we gained when Joe Pasquerella and his team joined NKF and formed the Valuation & Appraisal team in Philadelphia is nothing short of exceptional. They are such a trusted, recognized and respected team in the Philadelphia market,” said John Busi, president of NKF’s Valuation & Advisory practice.

About Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark”), is one of the world’s leading commercial real estate advisory firms. Newmark has over 4,600 employees in over 120 offices. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents. With roots dating back to 1929, NKF’s strong foundation makes it one of the most trusted names in commercial real estate. We offer a complete suite of services and products for both owners and occupiers across the entire commercial real estate industry.

Our investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting and, under trademarks and names like Berkeley Point and NKF Capital Markets, government sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Our occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. We enhance these services and products through innovative real estate technology solutions and data analytics designed to enable our clients to increase their efficiency and profits by optimizing their real estate portfolio. We have relationships with many of the world’s largest commercial property owners, real estate developers and investors, as well as Fortune 500 and Forbes Global 2000 companies. For further information, visit www.ngkf.com.

Newmark, which is listed on the NASDAQ Global Select Market under the symbol “NMRK”, is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”), a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol “BGCP”. BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol “BGCA”.

Discussion of Forward-Looking Statements about Newmark

Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s and BGC’s Securities and Exchange Commission filings, including, but not limited to, any updates to such risk factors contained in subsequent Forms 10-K, 10-Q, or Forms 8-K.

# # #

New Warehouse Deliveries Drive Absorption Gains

Philadelphia, PA (January 24 2018) — Newmark Knight Frank (NKF) released its fourth quarter 2017 reports for the Greater Philadelphia and the I-81/78 Corridor industrial markets. The combined markets closed the fourth quarter with 2.2 million square feet of occupancy gains and 15.9 million square feet of positive absorption for the year. Quarter-over-quarter, the combined vacancy rate stayed steady at 6.8 percent as the market, especially in Southeastern Pennsylvania, remained extremely tight. Several buildings also delivered this quarter, the majority of which were warehouse/distribution space: two warehouse buildings delivered in the Southern New Jersey market totaling 0.67 million square feet, and two warehouse buildings delivered in the I-81/78 Corridor market totaling 1.62 million square feet. The I-81/78 Corridor continued to capture the majority of the construction pipeline; 11.0 million square feet of the combined markets’ 16.0 million square feet under construction, is warehouse space.

The Southern New Jersey market recorded only 310,194 square feet in positive absorption, the lowest quarterly absorption in two years. Still, the year-to-date absorption of 5.8 million is almost equivalent to 2016’s 5.9 million. The Burlington and Camden County submarkets drove absorption this quarter, posting occupancy gains of 192,716 square feet and 181,048 square feet, respectively. The Gloucester County submarket posted negative absorption of 63,570 square feet. Quarter-over-quarter, overall vacancy in the market increased 30 basis points to 4.3 percent. While vacancy in Burlington County stayed level at 3.6 percent and Camden County fell 50 basis points to 2.9 percent, the Gloucester County submarket rose 190 basis points to end the year at 7.3 percent. The rise in vacancy was attributed to 480,480 square feet being vacated at 395 Pedricktown Road; Kenco Logistics plans to occupy the property in its entirety in early 2018. Kurt Montagano, NKF senior managing director, had this to say on the health of the market, “Activity remains high, driven mostly by logistics and e-commerce companies. Rental rates are also climbing, but remain low enough to attract companies from Northern New Jersey as even higher rates there drive businesses south.”

In the Delaware market, tenant activity picked up again in the warehouse sector after a slow third quarter. The sector reported 144,920 square feet in positive absorption, lowering the vacancy rate by 130 basis points to end at 7.3 percent. With the increased activity, warehouse and R&D/flex lease rates both rose, moving up $0.26 to $4.81 per square foot and $0.25 to $6.08 per square foot, respectively. Overall rents in Delaware rose $0.10 to $4.54 per square foot as general industrial rents declined along with activity.

Southeastern Pennsylvania’s vacancy rate remained at 6.8 percent for the sixth consecutive quarter. According to Eustace Wolfington, NKF senior managing director, “While activity in the market remains high, industrial sales and leasing is hampered by a lack of product. Build-to-suit opportunities exist, but for prospects with immediate needs, the timing is problematic.” The fourth quarter closed with 393,863 square feet in positive absorption for the market, but only 134,804 square feet for the year. Lancaster and Montgomery Counties posted the largest quarterly occupancy gains, with 207,945 square feet and 203,249 square feet of positive absorption respectively. Large movements included Steel-Tec occupying 43,979 square feet at 167 Greenfield Road in Lancaster County and Provident Marketing occupying 132,405 square feet at 330 S Warminster Road in Montgomery County. While vacancy has remained flat, industrial lease rates have continued to rise, reaching a new high of $5.47 per square foot, an increase of $0.13 per square foot over the previous quarter. The warehouse/distribution sector was the primary driver, as e-commerce demand increased the average lease rate $0.65 to end the year at $4.69 per square foot.

Vacancy for I-81/78 Corridor warehouse/distribution properties stayed steady in the fourth quarter of 2017 to end the year at 6.7 percent, down 20 basis points from the end of 2016, despite the addition of 9.2 million square feet of new space. Tim Brogan, NKF senior managing director, noted, “Construction continued steadily in the I-81/78 Corridor warehouse market, just barely keeping up with demand. 1.6 million square feet delivered this quarter, with 11.0 million in the pipeline, all of which slated for warehouse/distribution space as the e-commerce boom continues.” Rents for warehouse product rose slightly, going up $0.07 to end the fourth quarter at $4.38 per square foot. Overall, the Central Pennsylvania submarket recorded 1.2 million square feet of positive absorption as Kohler occupied one million square feet at 225 Allen Road. Absorption was smaller in the Lehigh Valley and Northeastern Pennsylvania submarkets, but was still positive. Lehigh Valley posted 169,349 square feet in occupancy gains, attributed to Air Liquide’s occupying 105,000 square feet at 1379 South Delaware Drive, while Northeastern PA had just 24,855 square feet of absorption.

About Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark”), is one of the world’s leading commercial real estate advisory firms. Newmark has over 4,600 employees in over 120 offices. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents. With roots dating back to 1929, NKF’s strong foundation makes it one of the most trusted names in commercial real estate. We offer a complete suite of services and products for both owners and occupiers across the entire commercial real estate industry.

Our investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting and, under trademarks and names like Berkeley Point and NKF Capital Markets, government sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Our occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. We enhance these services and products through innovative real estate technology solutions and data analytics designed to enable our clients to increase their efficiency and profits by optimizing their real estate portfolio. We have relationships with many of the world’s largest commercial property owners, real estate developers and investors, as well as Fortune 500 and Forbes Global 2000 companies. For further information, visit www.ngkf.com.

Newmark, which is listed on the NASDAQ Global Select Market under the symbol “NMRK”, is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”), a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol “BGCP”. BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol “BGCA”.

Discussion of Forward-Looking Statements about Newmark

Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s and BGC’s Securities and Exchange Commission filings, including, but not limited to, any updates to such risk factors contained in subsequent Forms 10-K, 10-Q, or Forms 8-K.

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Activity in the Philadelphia CBD Picks up in the Fourth Quarter

Philadelphia, PA (January 19, 2018) — Newmark Knight Frank (NKF) released its fourth quarter 2017 office reports for the greater Philadelphia region. The reports detail how the Philadelphia Central Business District (CBD) reported positive absorption in the fourth quarter, after downsizing and fewer tenants relocating from outside the market kept CBD vacancy at high levels for most of the year. Suburban Philadelphia performed strongly in 2017, but market fundamentals weakened in both the Southern New Jersey and Delaware office markets.

Year-over-year, the CBD reported a 160 basis point increase in vacancy, which closed the fourth quarter at 13.1 percent. The large blocks of space returned to the market were a result of tenants reworking their floorplans to be more efficient. Over the past twelve months, PNC, Verizon and Deloitte gave back space in the CBD. In addition, the Children’s Hospital of Philadelphia vacated 226,000 square feet at 3535 Market Street, but only to relocate to an owned property across the river.

The amount of Class A space returned to the market pushed Class A vacancy up 230 basis points from the fourth quarter of 2016 to 12.5 percent. While providing more options for tenants seeking premium space, it slowed rent growth for non-trophy Class A properties in the second half of 2017. Sid Smith, NKF executive managing director, said, “The economy is strong and after a brief pause in activity, there has been an increase in interest from tenants wishing to relocate from outside of the market to the CBD.”

Read full press release.

Activity in the Philadelphia CBD Picks up in the Fourth Quarter

Philadelphia, PA (January 19, 2018) — Newmark Knight Frank (NKF) released its fourth quarter 2017 office reports for the greater Philadelphia region. The reports detail how the Philadelphia Central Business District (CBD) reported positive absorption in the fourth quarter, after downsizing and fewer tenants relocating from outside the market kept CBD vacancy at high levels for most of the year. Suburban Philadelphia performed strongly in 2017, but market fundamentals weakened in both the Southern New Jersey and Delaware office markets.

Year-over-year, the CBD reported a 160 basis point increase in vacancy, which closed the fourth quarter at 13.1 percent. The large blocks of space returned to the market were a result of tenants reworking their floorplans to be more efficient. Over the past twelve months, PNC, Verizon and Deloitte gave back space in the CBD. In addition, the Children’s Hospital of Philadelphia vacated 226,000 square feet at 3535 Market Street, but only to relocate to an owned property across the river.

The amount of Class A space returned to the market pushed Class A vacancy up 230 basis points from the fourth quarter of 2016 to 12.5 percent. While providing more options for tenants seeking premium space, it slowed rent growth for non-trophy Class A properties in the second half of 2017. Sid Smith, NKF executive managing director, said, “The economy is strong and after a brief pause in activity, there has been an increase in interest from tenants wishing to relocate from outside of the market to the CBD.”

Suburban Philadelphia reported 561,772 square feet in positive absorption for 2017, slightly higher than 2016’s total. Fourth quarter’s vacancy, at 14.7 percent, was the lowest level recorded since the third quarter of 2007. Most of the occupancy gains were centered in the northern suburban submarkets, which absorbed 451,775 square feet for the year assisted by Cenlar FSB’s move to nearly 106,000 square feet at 780 Township Line Road, Ashfield Healthcare’s occupancy of 82,000 square feet and AON PLC’s relocation to 77,000 square feet, both at 1100 Virginia Drive.

Despite healthy leasing activity, rent growth slowed slightly in the second half of 2017 as landlords tried to move larger blocks of space off the market. There is optimism that market fundamentals in 2018 will be strong. “Absorption will hold steady in 2018”, Reid Blynn, NKF executive managing director notes. “The market could see Class A rents break the $40 per square foot mark for premium space, as landlord’s gain negotiating leverage.”

Quarter-over-quarter, vacancy fell 50 basis points in the Southern New Jersey market to 15.3 percent. Vacancy is also slightly down from the fourth quarter of 2016. After two quarters of negative or barely positive absorption, the last three months of the year reported 81,763 square feet in occupancy gains. During the fourth quarter, Jefferson Health occupied 26,250 square feet at 400 Laurel Oak Road, Jet Brains moved into 4,124 square feet at 10 Lake Center Drive and Comax Manufacturing took 3,598 square feet at 12 East Stow Road.

Subaru’s new headquarters on the Camden waterfront delivered in the fourth quarter. There is concern about the impact on vacancy in the surrounding submarkets when Subaru consolidates to its new building in spring of 2018 and American Water consolidates to its new Camden headquarters at the end of 2018. Said Anne Klein, NKF executive managing director, “Although the new Camden office park developments, along with NJ Grow state incentives, are luring office users a few miles down the road, not all of the potential half a million square feet of new vacancy may be dumped on the market. The lead time we have to backfill space, in addition to the expansion of other existing office users and the repurposing of certain buildings, may help to limit the increase in vacancy over the next few years.”

The Wilmington metro office market posted a second consecutive quarter of negative absorption (46,300 square feet) and recorded only 2,361 square feet in occupancy gains for the year. According to Wills Elliman, NKF senior managing director, “The Delaware market faces the unenviable position of having both weak demand for and an oversupply of quality properties.” Year-over-year, overall vacancy increased 10 basis points to 16.3 percent mostly due to rising availability in the Class A market. Class A vacancy rose 80 basis points over the past twelve months to 16.3 percent.

There was good news for the Wilmington metro market in the fourth quarter when Sallie Mae leased 57,756 square feet at 84-90 Christiana Road and the United States Attorney’s Office signed a lease for 35,573 square feet at 1313 North Market Street. Despite weakening market fundamentals, the Wilmington CBD was home to two of 2017’s largest deals in the region: Capital One’s renewal and expansion of 330,000 square feet at 800 and 802 Delaware Avenue, and the Chemours sale and leaseback of 256,000 square feet at the DuPont Building.

About Newmark Knight Frank
Newmark Knight Frank (NKF) is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents.

With roots dating back to 1929, NKF’s strong foundation makes it one of the most trusted names in commercial real estate. NKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing, corporate advisory services, consulting, project and development management, property and corporate facilities management services, valuation and advisory services, and capital markets services provided through its NKF Capital Markets brand. For further information, visit www.ngkf.com.

NKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit www.bgcpartners.com.

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NKF Capital Markets Retained to Sell Bay Colony in Wayne, PA

Wayne, PA (December 28, 2017) — Newmark Knight Frank (NKF) announced that it has been retained as the exclusive sales agent to market Bay Colony, a ± 250,000-square-foot, Class A, four-building office park located in one of suburban Philadelphia’s most desirable locations. The office park is 99 percent leased to a well-diversified rent roll with a weighted average lease term of nearly six years. The NKF Capital Markets Philadelphia team, including Mike Margolis, Dave Dolan and Dave Garonzik, as well as local market experts Jeff Mack and Adam Shute, will be marketing the building.

The Swedesford Road Class A office market has been one of the highest performing corridors in the entire suburban Philadelphia area. The proximity to an abundant amenity base, unique and favorable tax structure, excellent vehicular access to four of the most traversed thoroughfares in the Philadelphia region, and one of the highest concentrations of wealth and talent in the Philadelphia MSA has fueled great demand for modern office space.

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Vacancy Remains at High Levels in the Philadelphia Central Business District

Philadelphia, PA (October 4, 2017) — Newmark Knight Frank (NKF) has released its third quarter 2017 office reports for the greater Philadelphia region. The reports detail how downsizing by tenants within the Philadelphia Central Business District (CBD), and fewer regional companies relocating to the CBD this year, kept vacancy at high levels. Market fundamentals weakened in both the Southern New Jersey and Delaware office markets, but Suburban Philadelphia continues to record gains in occupancy.

The CBD recorded its highest level of vacancy since the third quarter of 2014, closing the third quarter of 2017 at 13.7 percent. Tenants such as PNC, Wells Fargo and Verizon continued to downsize in the CBD. Downtown has been slow to absorb these large blocks of vacant space. Wayne Fisher, NKF executive managing director relates, “The number of tenants relocating from the suburbs to downtown has dwindled. Also, a decline in leasing activity by co-working firms and Comcast have failed to move space off of the market so far this year.” Year-over-year, Class A vacancy increased 250 basis points to 13.1 percent; over the same time period, the average direct rental rate for Class A space declined by $0.31 per square foot to $32.78 per square foot.

Click here to read the full press release.