Numerous financial and economic changes are occurring, and significantly, the cost of debt is sure to impact investment activities. Hopefully, inflation will trend down to a 5% range by the end of the year. Any strength and stability we are experiencing in our portfolio are the result of our high-quality tenants who are leasing space in our buildings. Our portfolio has very good, financially strong companies who have been attracted to our office buildings because of the high-quality business environment and exceptional operations in which their firms can conduct business.
Reports are showing all of the major world economies will be in or near a recession during the next quarter, but the U.S. market should perform better than the others. The entrepreneur talent within U.S. companies continues to advance successful firms through challenging economic times.
Although we have experienced a decline in occupancy below 86% in our nearly 10 million-square-foot portfolio during the first two quarters, we have recently benefited from an increased level of leasing in a number of our prize buildings. Additionally, we are finalizing the disposition of selected assets and have successfully negotiated sales agreements with quality buyers. I suggest our successes are the result of not only the quality of the assets we manage, but also of the professional marketing efforts and diligent work achieved by our entire team. Thank you for your contributions. God bless America.
President and Chairman, KBS