Moving in to the presentation, our actual results are progressing well ahead of our 2011 business plan and we are very pleased to report solid progress during the second quarter. Market conditions range from stable to improving and we continue to see strong tenant activity levels. Certainly the return of strong real estate fundamentals generally is subject to macroeconomics events such as the federal deficit to divide on public policy which appears to be ongoing, steady municipal budgetary constraints and private sector employment growth. Essentially, however, we continue to see a steady recovery. This recovery top with our tactic of aggressively pursuing occupancy has created a solid platform for Brandywine to exceed our original 2011 business forecast.
We will continue this market driving leasing strategy and this approach will vary by submarket. In some we have been pushing rents and in others we will continue to buy occupancy. In those weaker submarkets we will continue this aggressive approach until those markets returned to start activity levels. We also continue to see a slight up the quality curve that has greatly benefited our portfolio.
Some observations on our second quarter leasing, balance sheet, management and investment efforts tacking leasing first. On the leasing front we posted another very strong quarter. There is no single bigger contribution to our growth profile than simply leasing up our existing space. As evidence by our second quarter results we are making strong progress and leasing production remains our primary focus. We had our third consecutive quarter of leasing activity in access of 1 million square feet, additionally our 65% tenant retention rate for the quarter significant had plan and as a result we are projecting a 2011 retention rate of 60% versus 55% in our original plan.
The strength of this leasing production has resulted in the following positive adjustments to our key metrics. We are increasing our projected 2011 core occupancy percentage at year end to be 86.6%, a 90 basis improvement over our projection last quarter, and 100-basis point improvement over our year end 2011 levels.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV