Marc Binda: Yeah. We did have some impairments during the quarter here, Jamie. But I think when we look back over three years, we’ve averaged like $96 million over the last three years per year. And so over a longer period, when we look back, the impairments have been pretty modest relative to the size of those gains. So I think we’re thinking about the things that Hallie mentioned upfront, just with some renewed excitement around M&A that we feel pretty comfortable with that number headed into next year.
Jamie Feldman: So do you mean that you think you’ll see some increase in values and take gains on that? Or based on where values are today, you still can deliver that $95 million to $125 million?
Marc Binda: Yes. Hard to say where values go. Yes. No, I think we’re talking about the values today. I think if you look on balance sheet, we’ve got something like north of $300 million of unrealized gains that we could tap. And part of it too, to be fair, a lot of it is outside of our control, whether it’s an M&A event or an acquisition by big pharma or so forth. So some of it, it’s hard to predict because these things kind of happen when they happen.
Joel Marcus: But the fact that we’ve reiterated guidance here, I think Jamie should give you comfort that we think we can hit those numbers pretty comfortably. Otherwise, we wouldn’t stick with it.
Jamie Feldman: Okay. That make sense. Thank you.
Operator: The next question comes from Michael Carroll of RBC Capital Markets. Please go ahead.
Michael Carroll: Yes, thanks. I believe you touched on this earlier, but I wanted to see if I can ask it a different way just regarding overall leasing activity. I know that some tenants have been delaying decisions just given the uncertain environment. I mean are there any examples of this starting to loosen up just given the prospect of interest rates that could continue to drop? I mean, is that activity or urgency for attendance? Is that starting to pick up here?
Joel Marcus: Well, I think, again, if you go back to Hallie’s comments and think about the different sectors, each sector is kind of driven by different issues when it comes to, say, big pharma or big cap bio, those are dependent upon their needs and not on the vicissitudes of the capital markets today or whatever. But then you contrast those to clinical stage biotech who are waiting to hit a clinical milestone or not, than those — that’s where — and Peter has reemphasized this a number of times, boards want to be really careful not to get ahead of their skis. So it really depends on the sector that you’re looking at. It’s not a one-size shoe fits all, if you will.
Michael Carroll: Okay. And then on the five projects that are scheduled to be stabilized in 2025, I mean, how are the leasing prospects on those specific buildings? And I know that we’re still a year out from the expected stabilization. But when should we start to see leases getting signed those projects that are going to be done here in the next few quarters? Is that a good way to think about it?
Joel Marcus: Yes. So maybe let’s do this since we’re doing fourth quarter and year-end 2023, let us and Peter Macken [ph] noted this, will specifically address that on our first quarter call, if you don’t mind.
Michael Carroll: Okay, great. Thanks, Joel.
Joel Marcus: Okay. Thank you.
Operator: Our last question comes from Dylan Burzinski of Green Street. Please go ahead.
Dylan Burzinski: Hi guys. Thanks for taking the question. Peter, I just wanted to go back to one of the comments you made regarding one of the questions asked a little bit earlier on $200 a square foot for new development leases for TIs being the norm last year versus $300 a square foot today. Do you — would you attribute that to solely the imbalance between supply and demand today? Or do you expect that to sort of be the new normal moving forward?
Peter Moglia: I think it’s the new normal going forward? I mean it’s driven certainly by more competition in the market, but it’s also driven by the higher cost to build out space that’s been a considerable increase in construction costs as you guys all know, and I used to comment on. So that alone, I mean, the availability numbers will eventually resolve themselves, but the costs are what they are and the tenants are willing to invest in the space, but only to a certain degree. So, I think that, that that number is here to stay?
Joel Marcus: Yes. And again, I think you have to distinguish different sectors have different tolerances for investing in space and they can be pretty dramatically different. And as Peter said, the structural inflation that we have brought on ourselves over the last number of years as a country and really as a world is pretty much here to stay. So — and that’s true across all real estate classes.
Dylan Burzinski: Okay. I appreciate the details on that. And then one more on sort of the dispositions. You mentioned focusing on noncore noncampus like assets. Can you just talk about sort of typical buyer profile on who’s in bidding tense when you go to market with those types of assets?
Joel Marcus: Yes. I think we’d rather not get into that issue and just let it be at this moment. I don’t think we want to discuss that on an earnings call. Sorry.
Dylan Burzinski: Okay. That’s all I had. Thanks, guys.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Joel Marcus for any closing remarks.
Joel Marcus: Thank you, everybody, and I look forward to our call for first quarter and again, safe and healthy new year.
Operator: The conference has now concluded. Thank you for attending today’s presentation and you may now disconnect.
