However, company executives are expecting that buyers are out there, particularly when it comes to Brandywine's office-building portfolio. They are forecasting to sell $45 million of assets in the fourth quarter and $100 million in next year's second half.
Sweeney said during the company's third-quarter conference call that Brandywine is looking to sell buildings that are in non-core markets or account for the bottom 25% of the firm's NOI. Brandywine will also consider additional dispositions or joint-venture partnerships.
During the third quarter, same-store occupancy was at 92.6%, down 1.2% from the same year-ago period. Though their numbers only took a modest dip, Sweeney said it is rough on the leasing front. "The economic crisis is having a significant impact on tenant demand, tenant psychology and continues to impact leasing velocity," he said.
While leasing rates were down overall across, the company's 39.8 million square feet of real estate saw gains in southern New Jersey and Pennsylvania, specifically Philadelphia's City Center, which posted a 600 basis-point increase.
Management predicts the full-year's FFO to come in between $2.39 per share and $2.43, up from earlier projections of $2.32 to $2.42.
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