Question-and-Answer Session
Operator
(Operator instructions) Jordan Sadler, KeyBanc Capital Markets. Please go ahead.
Jordan Sadler – KeyBanc Capital Markets
Thank you. Good morning, guys. Just curious – nice job on the leasing this quarter. Curious as to what the prospects are for the rest of the year and what you are seeing in the pipeline today relative to the first quarter's activity?
Doug Donatelli
We are very pleased with what we were able to accomplish in the first quarter. We thank you for that comment. The balance of the yea, it’s going to be interesting. And we see a lot of good activity in our southern region, as you are pretty much aware that North Virginia is quiet right now. We are hearing that not only from our people, but throughout the market and some good pickup in suburban Maryland in the Baltimore market. So I do believe, as we saw in the first quarter, a lot of our occupancy gain will occur down south. That’s where more than probably half our vacancy is located. So we hope to see some continued improvement in net absorption during the second and third quarter.
Jordan Sadler – KeyBanc Capital Markets
Okay. And the 939,000 or 940,000 square feet, that was all through March 31? Or was that through –?
Doug Donatelli
That is correct. I believe we had one lease of 15,000 square feet that we executed. It was not in that number that’s for quarter two, but the 939,000 represents the full activity for the quarter.
Jordan Sadler – KeyBanc Capital Markets
Okay. So in order to hit the full-year target of 90% to 92% occupancy by year end, you’d have to do, just rough math, you’ve got another 840,000 square feet expiring this year. I think you expect to do around 85% retention. So that would be about 700,000 square feet of leases and then I guess you’d need to do another 360,000 square feet of new leasing of vacancy to get there. So really all in, excluding upcoming renewals from next year or future periods, you would have to do like another 1 million, 1.1 million square feet and that seems to be more feasible at this point?
Doug Donatelli
Yes, if we can run at the same pace of about 100,000 square feet of net absorption per quarter, we’ll gain 400, it allows you to get to that low 90% threshold and anything above that will allow us to move up to that 92% range.
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