Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from Jamie Feldman from the Bank of America. Please go ahead with your question.
Jamie Feldman - Bank of America-Merrill Lynch
Thank you. Stuart just a question on the guidance. Just in terms of the math. So you're saying if you take the third quarter run rate and annualize that and then take off for the interest expense, I guess what I'm trying to figure out is does that mean like same-store should be flat from this quarter? Is that how you guys are thinking about it.
Stuart Brown
Yeah. Our same-store probably declined a bit from this quarter's run-rate but you remember, this same-store NOI, net operating income in then third quarter has already declined then from first and second quarter. So we're certainly cycling. In 2010 we will be cycling a stronger first half. So we'll probably trend down a little bit. Mostly some what relative to that rollover. And some of that will be offset by probably a little bit lower bad debt expense.
Jamie Feldman - Bank of America-Merrill Lynch
Okay. And then bigger picture just in terms of the activity that you saw this quarter. Can you characterize it a little bit more, provide a little bit more color and I mean, the GDP numbers we saw, there is a lot talk about it being driven by government stimulus and orders. And just do you think this is a short term pop or what gives you conviction that these businesses that are looking now are going to stay in the market for a while?
Philip Hawkins
Let me it's Phil. I'll answer that and ask Daryl or Mike to give you some color. The GDP numbers are really what drives my belief that were positive stabilization. Your comment that GDP may be fleeting, does drive my concern that the recovery may not be happening as quickly as some optimists might be predicting or hoping.
So we are showing that activity levels until the leasing proposals, leased documentation and then sign leases, that continues based on the current environment. Not some ramping up in the economy. Clearly as we talk to tenants they give us hope is that if we talk to tenants, we are getting much more positive feedback or more positive feedback from more tenants, than we certainly were six to twelve months ago.
Not that that's a high bar to jump over. But that is -- so it's really more that and the fact that tenants are now, I think more confident in their businesses, more confident in where are market rents are certainly stabilized. And so those who can make decisions are now no longer as worried about are they getting the timing wrong. And as a result, I think we are going to start seeing more deals coming down the road.
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