Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Mark Biffert with Oppenheimer Company. Your line is open.
Mark Biffert - Oppenheimer Company
Ted or Walter, I was wondering if you could comment on the leasing environment a little bit more. The pace of your leasing of roughly 13 to 14 million square feet during the quarter is accelerated over the first quarter. I'm just wondering if you're seeing trends improve. Have rents fall in to a level where you're seeing that the demand come back to the market? Who are the types of tenants, as well as have you adjusted your credit terms in terms of allowing in lower type credit tenants to come into the portfolio, just to fill space?
Ted Antenucci
Mark, I will do the best. I can in answering all of the questions, but I may miss one or two. We saw an increase in the velocity on leasing at the end of May and June. Early in the year there was a lot of wait and see. I think it is still a slower environment than it was in 2008 and 2007, certainly. Definitely appears to be improving compared to the first quarter, in the first couple of months in the second quarter.
So, we're seeing a pickup. Rents are certainly down. It’s a competitive environment. Occupancy levels are down, but down at a lesser pace than Q2, than they were in Q1. I think in general credit of most companies has deteriorated over the last 12 months. We're not doing a lot of marginal credit deals. We are not having to, to stretch on that. It is similar to what it was in the past. I don't see any significant change in the way that we're looking at or underwriting. We're certainly mindful of TIs and commissions on deals, where companies don't have great credit.
We are seeing a slight a lot of discussions toward longer-term leases. Although, so far, we have been doing shorter-term leases, but it appears that some of the customers are anticipating that we are getting toward down at the lower levels in rent and wanting to lock in those lower rents for a longer period of time. That appears to be a trend that we might see through the balance of this year.
Walt Rakowich
Chuck, would you like to add anything to that?
Chuck Sullivan
Mark, with regard to the credit of the customers, we are still as rigorous, or more rigorous than we have been in the past, of paying close attention to them. They're looking for an economic transaction, and we are very cautious about how we are structuring those deals, per Ted's comment.
- To read the full transcript on Seeking Alpha, click here »
