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<SEC-DOCUMENT>0000950137-08-013728.txt : 20090319
<SEC-HEADER>0000950137-08-013728.hdr.sgml : 20090319
<ACCEPTANCE-DATETIME>20081114163757
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950137-08-013728
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20081114

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FIRST INDUSTRIAL REALTY TRUST INC
		CENTRAL INDEX KEY:			0000921825
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				363935116
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		311 S WACKER DRIVE
		STREET 2:		SUITE 4000
		CITY:			CHICAGO
		STATE:			IL
		ZIP:			60606
		BUSINESS PHONE:		3123444300

	MAIL ADDRESS:	
		STREET 1:		150 N WACHER DR
		STREET 2:		SUITE 150
		CITY:			CHICAGO
		STATE:			IL
		ZIP:			60606
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>CORRESP</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;FR LETTERHEAD&#093;</B>
</DIV>




<DIV align="center" style="font-size: 10pt; margin-top: 18pt">November
14, 2008
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>VIA OVERNIGHT UPS </B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securities and Exchange Commission<BR>
Division of Corporation Finance<BR>
100 F Street, N.E.<BR>
Washington, D.C. 20549<BR>
Attention: Mark Rakip

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="93%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Re:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>First Industrial Realty Trust, Inc.</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Form&nbsp;10-K for fiscal year ended December&nbsp;31, 2007</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Filed February&nbsp;25, 2008</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Schedule 14A</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Filed April&nbsp;10, 2008</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>File No.&nbsp;1-13102</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear Mr.&nbsp;Rakip:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are writing to respond to the comments of the Staff contained in a letter, dated September
10, 2008, relating to the above-referenced filings of First Industrial Realty Trust, Inc. (the
&#147;Company&#148;). Set forth below are the comments (in italics) as set forth in the Staff&#146;s letter and
immediately below each comment is the response of the Company. Unless otherwise noted, the page
numbers in our responses refer to the page numbers in the above-referenced filings.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Form&nbsp;10-K for the fiscal year ended December&nbsp;31, 2007 </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Item&nbsp;2. Properties, page 13 </U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><I>1.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Please tell us your average annual rental per square foot on a portfolio basis for the most
recently completed fiscal year and provide such disclosure in future filings.</I></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The average annual rental per square foot on a portfolio basis for 2007 was $4.48.
This was calculated by taking the monthly base rent (cash basis) per the terms of
the leases, as of December&nbsp;31, 2007, and multiplying times twelve. The Company will
include this disclosure in future Form 10-K filings.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securities and Exchange Commission<BR>
Attention: Mark Rakip, Staff Accountant<BR>
November&nbsp;14, 2008<br> Page 2

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><I>2.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note that the average occupancies for several properties listed on page 17 are disclosed
as &#147;N/A.&#148; Please tell us why you are not able to disclose an occupancy rate for those
properties.</I></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The table included on page 17 discloses properties that the Company acquired during
the year ended December&nbsp;31, 2007. The average occupancy disclosure is a point in time
disclosure and is the occupancy of the property or properties as of December&nbsp;31, 2007
for our properties that are classified as in-service. As defined in Item&nbsp;1, our
in-service portfolio includes all properties other than developed, redeveloped and
acquired properties that have not yet reached stabilized occupancy (defined as
properties that are 90% leased). As discussed in footnotes (a)&nbsp;and (b), the occupancy
of any property that the Company has sold prior to December&nbsp;31, 2007 or that is not
classified as in-service, the occupancy is shown as N/A.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>First Industrial Realty Trust. Inc. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Notes to Consolidated Financial Statements </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>3. Summary of Significant Accounting Policies</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Investment in Real Estate and Depreciation, page 61</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><I>3.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note that you classify properties as held for sale when management has approved the
properties for sale. Please tell us whether you consider the other criteria that are to be met
in the period where you classify as held for sale a long-lived asset in accordance with
paragraph 30 of SFAS 144. Further, please clarify your methodology in future filings.</I></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Management ensures that any property that is classified as held for sale meets all
of the criteria (a through f) of paragraph 30 of SFAS No.&nbsp;144. In future filings,
the Company will modify its held for sale disclosure to clarify that all criteria has
been met.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><I>4.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note that you amortize below market leases over the remaining noncancelable terms of the
respective leases. For below market leases, their value should be based on the remaining
non-cancelable lease term plus any fixed rate renewal options, if applicable. The resulting
value would be amortized over the remaining non-cancelable lease term plus any fixed rate
renewal periods, if applicable. Please tell us how the utilization of this methodology as
opposed to your estimation of the remaining expected lease terms</I></TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securities and Exchange Commission<BR>
Attention: Mark Rakip, Staff Accountant<BR>
November&nbsp;14, 2008<BR>
Page 3

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>would have affected your financial statements. Further, please clarify your methodology in
future filings.</I></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Management agrees with the Staff&#146;s comment that in some cases the fair value of below
market leases should include the non-cancelable lease term and applicable renewal
options and also that the amortization period for the liability should coincide with
the period used in measuring the liability at the acquisition date. The Company&#146;s
calculates below market lease liabilities and the corresponding amortization periods
related to below market leases on the remaining non-cancelable lease terms plus any
fixed rate renewal periods only for leases that contain bargain renewal options. The
Company looks to the definition of bargain renewal options within paragraph 5(e) of
Statement of Financial Accounting Standard No.&nbsp;13, &#147;a provision allowing the lessee, at
his option, to renew the lease for a rental sufficiently lower than the fair rental of
the property at the date the option becomes exercisable that exercise of the option
appears... to be reasonably assured.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Company evaluates each real estate lease acquired to determine whether a renewal
option is a bargain renewal option based on the facts and circumstances existing at
the acquisition date. The Company concluded none of the leases included bargain
renewal options. Accordingly, the liability for each below market lease acquired was
calculated solely based on the non-cancelable lease term and is being amortized over
that same period. The Company will update its disclosure in future Form 10-K filings
to reflect the consideration the Company gives to option renewals.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>5. Mortgage Loans Payable, Senior Unsecured Notes, Net and Unsecured Line of Credit, page 70</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><I>5.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Please tell us, and disclose in future filings, whether you were in compliance with the
covenants related to your senior unsecured debt and your Unsecured
Line of Credit as of the
balance sheet date.</I></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">As of December&nbsp;31, 2007, the Company was in compliance with all of its covenants
related to its senior unsecured debt and its Unsecured Line of Credit. In future
Form 10-Q and Form 10-K filings, the Company will disclose its compliance status.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Schedule&nbsp;14A Filed April&nbsp;10,2008 </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Executive Compensation Discussion and Analysis, page 1 </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Base Salary, Page 13 </U>
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securities and Exchange Commission<BR>
Attention: Mark Rakip, Staff Accountant<BR>
November&nbsp;14, 2008<br> Page 4

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note the disclosure here that base salaries are determined by agreements and that
increases are determined by the committee. Please tell us the material terms of the
employment agreements for each named officer that dictates the components of executive
compensation. For instance, tell us how the base salary was determined based on the terms of
the agreements. Also, please tell us how the increases in base salaries were determined and
the factors considered. Please provide such disclosure in your future filings.</I></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Each Named Executive Officer&#146;s employment agreement identifies a specific minimum
base salary, and provides that such Named Executive Officer&#146;s base salary will be
subject to discretionary increase on an annual basis as approved by the Compensation
Committee in accordance with the Company&#146;s compensation policies, as they may be
established from time to time. The terms of the agreements do not limit the
discretion of the Committee to any factors. The agreements do establish minimum
amounts but these minimums were set several years ago at the time that the
agreements were executed and therefore are not material to an understanding of the
Named Executive Officers&#146; current base salaries.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">As indicated on page 13, the Compensation Committee may consider a number of factors
in determining increases to the Named Executive Officers&#146; respective base salaries.
Further, base salary determinations were made by the Compensation Committee
following recommendations provided by the Chief Executive Officer and the Chief
Financial Officer as indicated on page 12. However, the Compensation Committee
determined only to make modest cost-of-living increases to each Named Executive
Officer&#146;s base salary except in the case of the CEO. The Compensation Committee
determined that the strong performance of the Company in 2006 and the Chief
Executive Officer&#146;s leadership of the Company warranted an additional increase to
the Chief Executive Officer&#146;s base salary. This determination was subjective and
not based upon specific criteria established prior to, in or following 2006. In
future filings, the Company will provide disclosure identifying the factors
considered by the Compensation Committee in determining whether further increases in
base salary are appropriate.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><I>7.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note the reference to the compensation consultants. Please identify the consultants and
tell us their role in your compensation determinations. Provide similar disclosure in future
filings.</I></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">As indicated on page 13, the base salaries of the Named Executive Officers are a
function of the minimum base salaries specified in their employment agreements and
the increases to such base salaries approved by the Compensation Committee.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securities and Exchange Commission<BR>
Attention: Mark Rakip, Staff Accountant<BR>
November&nbsp;14, 2008<br> Page 5

</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Although the Compensation Committee consulted with outside compensation consultants
during the negotiation of the Named Executive Officers&#146; respective employment
agreements in 2002 and 2005, the input received from such consultants is no longer
considered by, and is therefore not material to the determinations of, the Company&#146;s
Compensation Committee. To eliminate confusion, the Company will remove from
future filings the reference to the role of outside compensation consultants in
setting the base salaries identified in each Named Executive Officer&#146;s employment
agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">As further indicated on page 13, in determining appropriate base salary increases,
the Compensation Committee considers, among other things, peer information provided
by compensation consultants. As disclosed on page 11, FPL Associates, an outside
consultant, was retained in 2007 to review the appropriateness of the compensation
of the Named Executive Officers and, as part of its review, surveyed a range of real
estate companies that included not only the Company&#146;s industrial peers, but
similarly sized companies and companies with similar operating strategies from other
sectors of the REIT industry. The Compensation Committee used this survey to gauge
generally the appropriateness of the Company&#146;s executive compensation programs. In
future filings, the Company will include disclosure to clarify that the survey
prepared by the Company&#146;s outside compensation consultants is used, among other
things, to gauge the appropriateness of the levels of base compensation paid to its
Named Executive Officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Incentive Bonuses, page 13 </U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><I>8.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note the disclosure of the maximum cash and equity bonuses in the table towards the bottom
of page 13. The disclosure in the noted table does not reconcile with the disclosure on the
previous page that the break down of total compensation was a 1/3 vs. 2/3 split between base
salary and incentive compensation. Please tell us how the disclosure reconciles and provide
similar disclosure in future filings.</I></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The disclosure on page 12 reflects both philosophy and fact. The Compensation
Committee&#146;s philosophy is that a majority of executive compensation should be
performance-based. Further, in recent years, base salary and benefits/perquisites
has constituted approximately 1/3 of each Named Executive Officer&#146;s compensation,
while incentive compensation has comprised approximately 2/3 of each Named Executive
Officer&#146;s compensation. The Summary Compensation Table indicates that this
proportion was achieved in each of 2006 and 2007. In future filings, the Company
will clearly indicate that the proportion of base salary and benefits/perquisites to
incentive compensation is a historical measurement, and that the proportion may vary
in future years.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securities and Exchange Commission<BR>
Attention: Mark Rakip, Staff Accountant<BR>
November&nbsp;14, 2008<br> Page 6

</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Although, as the Staff notes, the Named Executive Officers have the opportunity to
achieve maximum cash and equity bonuses in amounts exceeding 2/3 of the Named
Executive Officer&#146;s total compensation, maximum bonuses have not been earned
historically. In the event that the maximum cash and equity bonuses are achieved by
one or more of the Named Executive Officers in a given year, causing the base salary
and benefits/perquisites paid to such Named Executive Officers to represent less
that 1/3 of their total compensation, the result would nevertheless be consistent
with the Compensation Committee&#146;s compensation philosophy, outlined on page 12, that
executive officers&#146; compensation should be largely tied to performance criteria
designed to maximize the Company&#146;s overall performance.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><I>9.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note of the five performance categories, three appear to be objective categories. Please
revise to disclose all the performance targets used to determine the amount of incentive
bonuses to award. Also, discuss how actual results compared to those targets resulting in the
bonuses awarded for fiscal year 2007. Please refer to Compliance and Disclosure
Interpretations Question 118.04 located at</I>
<U><I>http://www.sec.gov/divisions/corpfin/guidance/regs-kinterp.htm</I></U><I> for further guidance.
Similar disclosure should be provided in future filings.</I></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">As indicated on page 14, when granting awards for 2007 under the Executive Officer
Bonus Plan, the Compensation Committee evaluated five broad performance categories, each
of which contained one or more sub-categories, with the aggregate number of
sub-categories totaling 32. Of the broad performance categories, &#147;earnings growth&#148;
was assigned a weight of 50%, while each of the other categories was assigned a
weight of 12.5%. Because of the disproportionate weights assigned to the performance
categories and the substantial number of subcategories, the Company does not believe
that any sub-categories are individually material other than the funds from
operations growth percentage target discussed on page 14. As such, the Company
believes that discussion of any other individual target would be inappropriate, and
is not necessary to an investor&#146;s understanding of the Company&#146;s compensation plan.
The Company believes that it is more meaningful, and material, to investors for the
Company&#146;s disclosure to focus on the material performance categories rather than on
the immaterial sub-categories.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">As described in the Current Report on Form 8-K filed by the Company on May&nbsp;20, 2008,
the Compensation Committee has approved modifications of the criteria it will
evaluate when granting incentive awards to the Named Executive Officers in 2008 and
beyond. As a result of these modifications, when evaluating the Company&#146;s
performance in 2008 in connection with the Executive Officer Bonus Plan
determinations, the Compensation Committee will consider fewer
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securities and Exchange Commission<BR>
Attention: Mark Rakip, Staff Accountant<BR>
November&nbsp;14, 2008<br> Page 7

</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">performance categories, all of which are objective. Materiality determinations for
2007 are likely to have little relevance to the Company&#146;s materiality determinations
for 2008. In future filings, the Company intends to disclose with particularity
material performance targets and thresholds relating to each performance category
for the relevant fiscal year and intends to clearly illustrate the manner in which
actual performance dictates the percentage of the bonus potential associated with
such performance category actually achieved.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><I>10.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note the references to &#147;high grade&#148; and &#147;average grade&#148; in your discussion in this section.
In connection with the preceding comment, please elaborate for us how the grades are determined and
their significance in your overall consideration regarding incentive bonuses. Please provide
similar disclosure in future filings.</I></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">As discussed in the Company&#146;s response to Comment 9, because of the disproportionate
weights assigned to the performance categories, the Company does not believe that
any of the performance sub-categories are individually material, other than the
funds from operations growth percentage target that is discussed on page 14. As
such, the Company believes that discussion of the Compensation
Committee&#146;s analysis
of these sub-categories would be inappropriate, and that it is more meaningful, and
material, to investors, for the Company&#146;s disclosure to focus on the Compensation
Committee&#146;s analysis of the broader performance categories.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><I>11.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note the disclosure of the bonus ranges in the last paragraph on page 14. Please tell us the
percentage awarded to each named officer and discuss how that percentage was determined based on
the goals you set and the actual results achieved. Please provide similar disclosure in future
filings.</I></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">In response to your comment, the Company notes supplementally that the bonuses
awarded by the Compensation Committee to the Named Executive Officers that
participate in the Executive Officer Bonus Plan represented the following
percentages of each such Named Executive Officer&#146;s maximum cash bonus potential and
maximum equity bonus potential, respectively:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">% Maximum Cash</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">% Maximum Equity</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Named Executive Officer</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Bonus Potential</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Bonus Potential</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael W. Brennan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">58</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">58</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael J. Havala</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">87</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">87</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Johannson L. Yap</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">87</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">87</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">David P. Draft</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">66</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">66</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securities and Exchange Commission<BR>
Attention: Mark Rakip, Staff Accountant<BR>
November&nbsp;14, 2008<br> Page 8

</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">After completing its evaluation of the various performance criteria described on
page 14 in the Company&#146;s proxy statement and thereby determining the estimated cash
and non-cash payout for each Named Executive Officer, the Compensation Committee has
the discretion to increase or decrease the amounts of such payouts, and to adjust
the mix of cash versus non-cash compensation. In determining whether such
adjustment would be appropriate for 2007, the Compensation Committee considered
certain qualitative factors, as described on page 14, including the Chief Executive
Officer and Chief Financial Officer&#146;s recommendations concerning compensation, as
noted on page 12. As disclosed at the bottom of page 14 of the Company&#146;s proxy
statement, following the review of all relevant factors, the Compensation Committee
rewarded Messrs.&nbsp;Havala and Yap for their exceptional individual performances in the
prior fiscal year. The Company will provide in future filings greater
specifity regarding any qualitative factors creating future differences in incentive compensation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with responding to the above comments, the Company hereby acknowledges that it
is responsible for the adequacy and accuracy of the disclosures in the filings; staff comments or
changes to disclosure in response to staff comments do not foreclose the Commission from taking any
action with respect to the filings; and the Company may not assert staff comments as a defense in
any proceeding initiated by the Commission or any person under the federal securities laws of the
United States. If you have any questions about any of the Company&#146;s responses to your comments or
require further explanation, please do not hesitate to telephone me at (312)&nbsp;344-4380.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">Very truly yours,

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">/s/
Scott Musil

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Enclosures
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">cc:</TD>
    <TD>&nbsp;</TD>
    <TD>Michael Havala<br>
John H. Clayton<br>
William E. Turner II</TD>
</TR>
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




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