Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Ian Weissman - ISI Group.
Ian Weissman - ISI Group
The first question I guess is for Steve Durels if he’s on the line, Steve just talking about or looking at the pace of leasing this quarter, if you look at the deals that tenants are taking, how much of that is growth space? They’re taking advantage of obviously rents down in the marketplace 50%, so I’m trying to get a sense of utilization on leases and are tenants taking growth space given how far rents have dropped?
Steve Durels
I don’t have a number for you, but I can tell you intuitively that a good deal of the transactions that we do where it’s a new tenant coming into the building, rather than just a renewal transaction, that a large number of those deals seem to have some component of growth.
It’s modest, though. It’s generally 10% to 15% of the space. It’s rarely a driver of people’s decision as to why they’re moving. There are a couple of examples out in the marketplace like the CV Star deal, which is done on Park Avenue and some of the recent financial service deals that were done on Park Avenue that were driven by growth, but I think generally speaking, new deals have a growth component.
It’s rare that it’s the driver, but the big news is that guys are really making decisions to take long term deals and they’re making decisions to actually relocate rather than just to renew in place.
Ian Weissman - ISI Group
Just one on that, the deals that you’re seeing or the strength in demand, is there a particular sector, is financial services driving it this time around?
Steve Durels
No, the good news is that it seems to be pretty broad based. We’re seeing user groups from law firms who are doing consolidations, smaller financial service businesses that are actually out there expanding. We’ve had a couple small guys that have picked up 5,000, 10,000-foot and accounting firms seem to be active in the marketplace. We’ve had growth from healthcare, some from education. So it seems to be that it’s no one, not dominated by a particular industry but pretty broad based.
Ian Weissman - ISI Group
For this quarter, you broke out marketable securities and looks like there was a big pickup sequentially from the second quarter. What exactly was the cause of that?
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