Rechler said the REIT had two of its best leasing quarters this year. He called Long Island and New York City markets "good" and the New Jersey, Westchester and Connecticut markets "continuing to recover. I expect to see a more balanced market and true pricing power to return in 2005."

The firm inked an 86,800-sf early renewal with WestPoint Stevens that will enable a block of space at 1185 Ave. of the Americas to become available in 2007. It is also on track to complete $100 million in investment activity by the end of the year. Rechler said he believes residential development to be taking up space traditionally deemed office, noting that upwards of 50% of the company's available land attracting buyers who are interested in potential residential development.

Reckson reported diluted funds from operations of $37.1 million, or $0.52 per share, for the second quarter of 2004, as compared to FFO of $35.4 million, or $0.54 per share, for the same time period last year. During the first half of the year, the company completed office leasing transactions totaling approximately 1.6 million sf. "That's approximately double our annual run rate for the previous three years," Rechler said. Approximately 35% of second quarter leasing activity was comprised of renewals of leases expiring in 2005 and beyond. The company reported office occupancy at June 30, 2004 of 94.0%. This compares to 93.3% at March 31, 2004 and 91.7% at June 30, 2003. In total, 66 leases totaling 764,397 sf were executed during the quarter, 500,000 sf of that total represented renewals.