Prior to beginning, I’d like to remind everyone that certain information discussed during our call may constitute forward-looking statements within the meaning of the federal securities law. Although we believe the estimates reflected in these statements are based on reasonable assumptions, we cannot give assurances that the anticipated results will be achieved. For further information on factors that could impact our anticipated results, please reference our press releases as well as our most recent annual and quarterly reports filed with the SEC.
The third quarter represented a solid continuation of our 2011 business plan execution. Highlights from the quarter: our business plan continues to run better than earlier projections, leasing activity was strong and we saw a continued improvement in our mark-to-market, our leasing pipeline stands at 3.7 million square feet, generally in line with previous quarters, and even with the change in economic climate since our last call, we continue to see good leasing activity levels and a customer base still motivated to execute transactions.
Occupancy levels also improved and we increased our revenue targets again. We continue to see a flight up the quality curve and towards well capitalized landlords that has clearly benefited our portfolio. Our market-driven leasing strategy will continue to vary by submarket. In some markets, we have pushing rents and in others we continue to buy occupancy.
We had strong tenant retention during the quarter. We are also increasing our projected 2011 core occupancy percentage to 86.7%, an improvement over last quarter’s projection and 100 basis points over year-end 2010 levels. Our same store numbers have improved from our original forecast and again from last quarter.We are rebuilding occupancy at a challenging point in the market cycle, so we expect capital costs to be higher. To compensate, we have continued to increase lease terms from the 5.3 year average in 2010 to the 6.3 years today, a 19% increase, and we’re also incorporating annual rental rate steps in most of our leases.
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