Looking at the operational components of our business plan several of our markets have a positive pricing dynamic and in these markets we continued seeing encouraging signs of rental rate growth. In all of our markets we continued to benefit from a flight up the quality curve. Our leasing approach remains tactical and is sub-market driven. Our stronger markets Austin, Philadelphia, CBD and the Crescent markets in the Pennsylvania suburbs are experiencing increasing rental rates, lengthening of lease terms and downward pressure on capital concessions.
In other markets we continued to pursue absorption through expanding our market share of current tenant activity levels. Levels of activity in the Philadelphia, CBD the Pennsylvania suburbs and Austin Texas is strong and solid. These three operations will exceed our original business plan revenue forecast. Conversely we have not seen a continuation of leasing activity that we saw last year in Northern Virginia. In particular activities and levels in that market are below our expectations and we will not achieving the 2012 spec revenue levels that we originally anticipated.
Additionally our operations in Richmond are beginning to fall a bit behind plan due a lower level of anticipated tenant activity in our Southwest Richmond market in particular. Our Southern New Jersey operation we continued to experience strong leasing activity significantly above last year’s levels. We anticipate meeting our business plan projections in our New Jersey, Delaware operations. And given the current high activity levels have a potential to perform to the upside. Our expectation is that out-performance in our strongly performing markets will overcome any anticipated shortfalls in either Northern Virginia or Richmond. As such we are maintaining our $44.9 million spec revenue goal and are 87% executed on that target.
From operational and leasing standpoints notable accomplishments during the quarter, the transaction pipeline remained steady at 3.1 million square feet. During the quarter we had a solid 73% customer retention rate which brings us to year-to-date average of 69%. Even given no move-outs, we’re now forecasting an overall improvement to our 2012 retention rate of 60% which is up from 57% in our last forecast. George will outline the operational improvements in more detail. But given the strengthening of the portfolio’s overall metrics we’ve increased our same store NOI growth range on both GAAP and cash basis and we’ve also improved the range of our rental rate mark-to-market.Read the rest of this transcript for free on seekingalpha.com
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