When it comes to large transactions, 18 deals in excess of 100,000 sf were completed. That's six more than were reported a year ago and three times the number at the 2002 mid-year point.

While law firms continue to be the dominant player in the current leasing market, taking 1.6 million sf to date this year, Krasnow said that there are a number of deals in the marketplace revolving around financial services firms. "I expect financial services to regain its rank as No. 1 in 2004. The latter half of 2004 could be even better."

New leasing activity measured 14.3 million sf, compared to 11.4 million sf in the same time period last year 2003. The overall office vacancy rate fell to 11.8% at the end of the second quarter from 12.5% at year end.