Michael A. Grossman, Mack-Cali's EVP, said that although leasing activity was up 20% in Q1 in comparison to the fourth quarter of last year, velocity was still below normal levels. He noted that most of the firm's recent deals are small transactions and very few large users are looking in the marketplace.

"We continue to experience downward pressure on first-year rental rates," he said. "But we have not seen an upsurge in concessions and free rent. We average less than one month free rent per deal, which is consistent with the past several years, and our TI costs are in line with previous quarters."

Hersh also revealed during the conference call that it has bought out SL Green's stake in the Belle Mead portfolio with a payment of $5 million and extended its $90.3-million mortgage with Gramercy Capital Corp. for two years. In settling the SL Green JV, Mack-Cali also obtained the rights to build a 205,000-square-foot building net-leased to Sanofi Aventis for 15 years in Bridgewater. Hersh said construction will commence on that project in the summer, with an estimated unleveraged yield on the project of close to 10%, including its fees.

In January, the REIT secured $64.5 million in mortgage financing from Guardian Life Insurance Co. of America secured by four of its properties in Clark and Red Bank. Yet Hersh said that obtaining secured financing in today's environment is difficult and leaves owners with very little flexibility. However, he maintained that the company will pursue nearly all avenues to raise capital, although he sounded less than enthusiastic about asset sales.

"The credit markets are paralyzed, so asset sales in my opinion would be the last and least likely situation you would consider," he said. "The risk of execution, even if you found a buyer, is enormous, and the pricing needs to be depressed because there is no active investment sales market."

Following the conference call, Mack-Cali announced a public offering of 10 million common shares at a price per share of $25. Merrill Lynch & Co. and Deutsche Bank Securities are serving as joint book-running managers. Proceeds will be used to pay down borrowings under its unsecured revolving credit facility and for general corporate purposes.