Operator: Thank you. And I show our next question comes from the line of Ronald Kamdem from Morgan Stanley. Please go ahead.
Ronald Kamdem: Hey, thanks so much. Just a quick two-parter. So the first is on the occupancy expectations for a pickup in the back half of the year. You talked about sort of the strength in Back Bay and Park Avenue, but those markets are — have relatively higher occupancy versus the rest of the portfolio. So I guess I’m trying to understand where is the biggest sort of occupancy gains, expectations in the back half? Is it the stronger markets? Or is it other parts of the portfolio like suburban? That’s part one. Part two is just a quick. Any sort of update on life sciences demand? Obviously, we’re seeing a better fundraising environment, curious what you guys are seeing on the ground? Thanks.
Douglas Linde: So the answer to your first question is it’s pretty what I would refer to as granular. It includes occupancy pickups in buildings like the General Motors building, where we are in active conversations with tenants right now to take some space pretty quickly in 2024. It’s in Princeton, whereas Hilary described, we have a pipeline of activity, and we believe some of those transactions will happen in 2024. It’s in the greater Metropolitan Washington, D.C. market, primarily in Western Virginia, where we have a significant pipeline of active smaller deals that are going to occur in 2024. It’s the activity that I described in Waltham, almost all of that activity is expiring or vacant space, and the majority of that will land in 2024.
And so it’s kind of everywhere, and there’s no really what I would offer you is big ticket that’s going to dramatically change things one way or the other. And so we’re — again, that’s why we’re saying we think we’re going to get back to where we were, which is effectively the 88% plus or minus percent occupancy by the end of 2024. And look, I hope that we see some positive surprises in addition to that where tenants move into space earlier. The lease — we believe the leases will get signed. The question, and you’ve heard me say this before, is we just don’t necessarily have a good handle on what the timing is going to be for when we can start recognizing revenue relative to whether the space has been demolished or we’re doing a turnkey buildup where we’re in control of it, and getting decisions made by our clients in terms of what they want in the space and having all that work to the point where they’re actually physically able to occupy the space in 2024, which would mean that it would be able to be in part of our occupancy role numbers.
On life science, I think life science demand is relatively slow. I’ll let Bryan describe the life science demand in the greater Boston market, and I’ll let Rod take a poke at talking about what’s going on in South San Francisco.
Bryan Koop: So in the Waltham market, which is the only spot we have vacancy, we don’t have any in Cambridge. I’d say it’s the same as it was in the previous quarter, but maybe a little bit more encouraging. Where we are encouraged is, as you noted, was yes, there is more funding coming back into the life science sector. But also when we talk to clients, we are encouraged by the fact that they are, call it, producing the things that they said they were going to do to their investors, and there is encouragement in terms of the possibility of products down the pipeline. So that’s where we’re getting most of our encouragement is that the clients we have are very excited about what they have going on.
Rodney Diehl: Yes. Just in South San Francisco, our one project is the 651 Gateway building, and that is the — it’s basically a converted office building 16 stories. And that building is completed, and we’ve done three deals in there, three, four floor deals, and those tenants are in various stages of moving in. But in terms of new activity, it’s been very slow. The few deals that are in the market tend to be smaller, call them 10,000 to 20,000 feet, not the 200,000 foot deals that were in the market several years back. So that section has been quiet. But our building is actually very well positioned to attract that demand that is in the market. We have a space that is going to be built on a spec basis. We’re going to do a full floor, which is going to be ready to accept that tenant when they’re out there. So — but the larger tenants are not there.
Operator: Thank you. And I show our next question comes from the line of Richard Anderson from Wedbush Securities. Please go ahead.
Richard Anderson: Hey, thanks. Good morning everyone. First to comment, I’d say if you were most any other REIT, you would have normalized out your $0.06 or a lot of it and be up today, not down 3%. So I commend you for a commitment to FFO, as defined by NAREIT, I think it’ll be rewarded for that over time. On to my question on — just taking a peek at the Castle data and still utilization in the office space is sub-60%. I don’t know how that compares to your premier asset type, but utilization is still not near where it was pre-pandemic. Is there a scenario where the BXP story can still work long-term, if we’re looking at sort of a permanent condition of underutilization of office? Or do you feel like you need to get fully back to have a long-term story to tell. I’m just curious what you think about sort of the very long-term when it comes to office utilization? Thanks.
