EDISON, NJ- NJ-Despite a challenging economic climate, Mack-Calisigned 141 second-quarter leases totaling 1,305,847 square feet,1,020,537 square feet of which were office, followed by 269,710square feet of office/flex space, 8,000 square feet of retail and7,600 square feet of industrial. Of these totals, 402,544 squarefeet were for new leases and 903,303 square feet were for leaserenewals and other tenant retention transactions.

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The locally based REIT also revealed its second-quarterfinancial results during a conference call late last week. For thequarter, FFO available to common shareholders amounted to $66.1million, or 71 cents per share, down only one cent from lastquarter. Total revenues for Q2 2010 were $202.8 million, up from$195.9 million in the first quarter.

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Mack-Cali’s portfolio was 88.9% leased at close of the quarter,up slightly from 88.8% at the end of Q1. “Market fundamentalsremain under considerable pressure given the lack of meaningful jobgrowth or corporate expansion,” said Mitchell E. Hersh, presidentand CEO.

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“Notwithstanding these challenges, we have been successful inmaintaining a high portfolio occupancy rate, including completingseveral major lease transactions that enhance the stability of ourcash flows." Still, he continued, rents rolled down by 11.2%,compared to last quarter’s 8.1% roll down, further demonstratingthat fundamentals remain under considerable pressure.

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What’s more, added executive vice president Michael Grossman,new lead activity year-to-date through the second quarter was offof last year’s totals for that same time period by 18% on thenumber of leads. “Notwithstanding this decrease, inquiries forspace in Bergen and Hudson counties remain above last year’slevels,” he said. There is still 895,000 square feet of spaceexpected to expire by year’s end, which accounts for 3.2% ofMack-Cali’s portfolio.

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