New Jersey's industrial markets lead the nation. (Insiders Outlook).

The New Jersey industrial market continues to be recognized as one of the strongest markets in the country. While certain industrial markets in the country have been severely impacted by the national economic slowdown, New Jersey's markets have been one of the healthiest in the industry. First Industrial, one of the industry's largest industrial REITs, has invested significantly in New Jersey and is currently experiencing solid results at all of our new and existing industrial projects throughout the state. Several key factors have contributed New Jersey's continual growth in the industrial sector:

* Location. New Jersey's industrial market is strategically located between three of the most important consumer and business-to-business markets in the country: New York, Philadelphia and Washington, D.C. For this reason, along with our outstanding highway system, access to ports and proximity, to several airports, the state will always be recognized as one of the top markets for industrial users.

* Flexibility, Industrial space today is being used not merely for bulk warehouse or distribution purposes, but for all types of office, research and development tenants that need large open bays and flexible space. These companies are turning to industrial and flex space as a smarter solution to the traditional office space configuration. This creation of a new type of hybrid flex building, which combines office and industrial features, can also be modified to suit a tenant's needs.

* Diversity. At First Industrial, we continue to see very strong demand from smaller space users. One of the main strategies of First Industrial is to be able to meet the requests of any size tenant from 5,000 to 500,000 SF. Here in New Jersey, we built our quality reputation by addressing the needs of both small, entrepreneurial companies as well as the Fortune 500.

* Limited new development. New development has remained in check in New Jersey and most new space is being absorbed before it hits the market. This building-in-check will ensure that there is not an overabundance of space of new market.

* New Opportunities. Across New Jersey, with the market strong and space availability extremely, tight, new pockets are opening up and becoming industrial "hot" spots. There are still excellent land opportunities available in parts of Morris, Middlesex, Somerset and Mercer countries offering excellent development potential.

At First Industrial, we remain very optimistic that the industrial marketplace in New Jersey will continue to be one of the strongest in the nation. New Jersey's industrial markets are not dependent on one industry. The state is somewhat immune from one industry sector, i.e. technology companies, having a severe impact on the market. New Jersey has many growing industries, such as pharmaceuticals, biotech, high-tech, education, automobile, transportation and e-commerce, that are fueling demand for industrial space. A diversified economy, low vacancy rates and limited new development are all positive trends that are driving the industrial market in New Jersey.

Our New Jersey portfolio at First Industrial, consisting of approximately 4.5 million SF of space, is just under 97% occupied and we have therefore commenced engineering and construction of several spec development projects throughout the state in Sayreville, Lawrenceville and Somerset. Our emphasis remains on addressing the needs of tenants who require flexible warehouse, distribution and flex space.

We are very focused on acquiring land sites throughout the state in order to continually meet market demand for the future. At First Industrial, the future of the industrial market in New Jersey looks very bright.