10-Q Alert: PS Business Parks Discusses its 4.8M SF in the DC/MD/VA Market

The Company owns approximately 3.0 million square feet in the Northern Virginia submarket of Washington D.C., where the average market vacancy rate is 14.2%. The Company's vacancy rate at September 30, 2009 was 5.8%. Vacancy rates in this market increased as tenants downsize their existing space due to the economic recession. The increase in sublease space and decrease in demand have lengthened the time of lease negotiations. For the nine months ended September 30, 2009, the market experienced negative net absorption of 0.4%. The Company's annualized realized rent per square foot increased 3.9% from $20.09 per square foot for the first nine months of 2008 to $20.87 per square foot for the first nine months of 2009. The Company's weighted average occupancy decreased from 97.3% for the first nine months of 2008 to 93.3% for the first nine months of 2009.

The Company owns approximately 1.8 million square feet in the Maryland submarket of Washington D.C. The Company's vacancy rate in the region at September 30, 2009 was 7.8% compared to 14.9% for the market as a whole. For the nine months ended September 30, 2009, the market experienced negative net absorption of 0.9%, which is attributed to a decrease in demand for large blocks of space due to the slowing economy. The Company's weighted average occupancy increased from 91.3% for the first nine months of 2008 to 91.7% for the first nine months of 2009. Annualized realized rent per square foot increased 2.6% from $23.29 per square foot for the first nine months of 2008 to $23.90 per square foot for the first nine months of 2009.