5.5m s/f in deals gives Hartz Mountain best leasing year ever.

2006 was an extraordinary year of leasing even by Hartz Mountain Industries standards, with more than 5.5 million square feet of deals credited to office, retail and industrial properties in its 38 million square foot portfolio.

"The inherent appeal of our location and the persistent strength in the economy is the driving force behind the industrial market, which adds up to our best year ever," says Emanuel Stern, president of Hartz Mountain Industries. "Last year we welcomed the opening of 15X, NJ Turnpike's newest interchange. Due to its advantageous location, 15X continues to be a win-win situation for Harmon Cove, transforming it into one of the most important areas for distribution in New Jersey."

2006 not only saw strong performances across the office, retail and industrial asset classes but also included major renovation projects and the continued evolution of Harmon Meadow, Hartz Mountain's famed 175-acre mixed-use development in Secaucus, NJ.

Capitalizing on the state's growing economy and a thriving commercial real estate market, prime office leases to National Basketball Association (199,113 s/f), Lord Abbett & Co. (148,894 s/f), AGFA Corporation (88,147 s/f), and Laboratory Corporation of America (81,563 s/f) reflected the enduring appeal of the regional office market.

Hartz Mountain's industrial sector continued its impressive growth in 2006 with the renewal of Distribution Solutions, Inc., who inked a deal for 744,390 sq. ft.,among others.

In the third quarter of 2006, Hartz added its first purchase outside of the New York/New Jersey area--a 634,000 s/f Class A distribution center located in Aberdeen, Maryland.

"Advances in communications technology have made the world smaller, and the concentration of properties we already hold in this region has limited our ability to diversify and expand our portfolio, so deals like Aberdeen are more and more appealing.

In November 2006, Hartz Mountain Industries has announced that National Wholesale Liquidators (NWL) leased 60, 727 SF at its Tonnelle Plaza location in North Bergen, NJ and will be the new mall anchor. Beginning in early 2007, Hartz will embark on a major renovation project for the nearly 165,000 SF strip center. Much like many of Hartz Mountain's other mixed-used developments, Tonnelle Plaza will evolve into a highly functional and productive retail destination that will support new and creative retail concepts.

"We are now entering a new generation of consumers and our retail locations need to reflect that," explains Stern.

"The addition of National Wholesale Liquidators will be an important part of Tonnelle Plaza's make-up and is a significant step in the evolution of its retail component and will be a draw for years to come."

The next generation of mixed-use developments for Hartz Mountain will continue to take shape in 2007. Edison Towne Square, a one million square feet development, will be Hartz Mountain's major development focus for the upcoming year.