Operator: And our next question comes from Camille Bonnel from Bank of America.
Camille Bonnel: Hi, good morning. This morning, you mentioned the quantum of disposition targets this year. Can you talk to the asset types or geographies you’re looking to sell? And more broadly, what your expectations of when we might start to see pricing stability for office properties?
Jerry Sweeney: Yes. Great question. Good morning. Right now, as we look at our sales program for ’23, actually, in all three of our markets, we’ve identified a few properties for sale. That includes Philadelphia as well as the Pennsylvania suburbs. Several properties we target for sale in our Washington, D.C. operation, also looking at test marketing a couple of properties in the suburban areas of Austin. The — we have a number of properties in the market now. And in terms of pricing, I honestly think like everybody is out there doing price discovery. So sellers are trying to figure out what they think pricing will stabilize that. Buyers are trying to figure out where debt yields will be and what kind of price they can pay.
So we’ve actually been pretty happy with the volume of confidentiality rooms that have been signed, people are reviewing the packages and checking out the share file rooms on the due diligence as well as the number of tours. So to give you an example, we have one property on the marketplace where we launched it back in January. This is in the Pennsylvania suburbs; we already have a 56-confidentiality agreement signed. Now how they all translate to pricing; I really don’t know at this point. That’s one of the reasons why we’re going to get as many things in the market during the course of the year as we can. We do know that as a couple of questions have come up and Tom’s articulated, the debt markets, while not ideal, are certainly better today than they were in the fourth quarter of last year.
So we are seeing — and we certainly are seeing that through our Commerce Square financing. The number of lenders looking at that has certainly been a pleasant surprise to us. Where, again, pricing and terms come out, we don’t know. But certainly, a lot more lenders are out there looking for high-quality office loans. And we think once we get more clarity on that, we’ll get more visibility on pricing. But right now, we’re targeting cap rates from the very high 6s, low 7s up to 9 once given the quality of some of the properties we’re selling. But until we actually get offers in, I really can’t give you a definitive read. We’ve thought carefully how we want to sequence some of these properties in the market during the course of the year. And to some degree, that pace will be modulated based upon what we see happening in a macro term level and what we’re hearing from exists from lenders on some of these current refinancings I think if we see that the lending market is opening up a bit and spreads are compressing and terms are a little more favorable, we might accelerate some of those sales opportunities going to the marketplace to take advantage of that window.
Is that helpful? Does that answer your question?
Operator: Our next question comes from Dylan Bazinsky with Green Street.
Unidentified Analyst : Good morning, guys. And thanks for taking the question. Just curious if you can kind of comment on your expectations for net effective rent growth across the portfolio?
Jerry Sweeney: Yes. George, want to comment on that?
