Stephen Sheldon: Hey, good morning. Thanks for taking my questions. First one here, just any general updates on how you’re thinking about the cost structure. It sounds like you’re actually investing behind broker capacity maybe to be better positioned for recovery. Is that kind of a fair read through? And have you taken any notable incremental cost actions elsewhere relative to what you would have thought three months ago?
Emma Giamartino: Yes. So cost is something that we’re consistently focused on. Our Chief Operating Officer, Vikram Kohli, is consistently thinking about ways to drive cost management through our company. And we’re moving from – this isn’t an episodic event where we cut out a bunch of cross and then we move on. It’s something that our leaders are constantly thinking about going forward. And what you’re seeing right now is there is a balance of managing the business and the fixed cost for what’s required just for our base foundation and our base platform and then investments that should drive future growth. So you mentioned broker recruiting. Those are investments that will drive future growth. The integration costs that I talked about within local are expanding into new territories.
Those are investments that will drive future growth. So it’s a constant balance. And we are through the second half of the year. Very focused on ensuring that, we are managing our cost base to an appropriate level for the growth that we’re expecting going forward.
Stephen Sheldon: Got it. That’s helpful. And then as a follow-up in development, I guess, there’s usually not a ton of visibility. But just how are you thinking about the potential monetization there heading into next year? Would you expect actual harvesting activity to maybe pick up later 2024, maybe 2025 once cap rates, et cetera, have hopefully become a little bit more favorable. Just curious what visibility you have there on the outlook and development.
Bob Sulentic: We definitely expect monetization of our Trammell Crow assets to pick up if, in fact, cap rates perform well. And if, in fact, there’s capital availability for buyers, one of the really great things about that business – and just to remind everybody, we have $17 billion of product in development now, and we have another $13 billion behind that in the pipeline. Those are projects that we have control over, but we haven’t started to develop yet. We have those projects capitalized in a way that we have flexibility over when we harvest them. So if you look at a quarter like this, I think Emma, we sold one building in Q3 – excuse me, Q2, we just decided this is not a good time to be selling our assets. And that positions us well for profitability in the future when the time comes to sell those assets.
We’ve got really strong equity partners. We’ve got a little of our own equity in them. We’ve got flexible debt financing. So I think that business is positioned to do very good things for us later next year and beyond when the capital markets come back around.
Stephen Sheldon: Great. Thank you.
Operator: Thank you. The next question we have comes from Michael Griffin from Citi. Please go ahead.
Michael Griffin: Great, thanks. Maybe just going back to the M&A pipeline and potential opportunities there. Just given your expected slowdown in the capital markets environment, do you expect more of these opportunities for M&A to be in the GWS segment or advisory or kind of any color on where you’re seeing acquisition opportunities?
Bob Sulentic: Well, Michael, we don’t want to be too specific about where we see them. I will tell you, we are pursuing M&A opportunities that we think do a couple of things. Number one, they advance our ability to serve our clients in areas where we think we’re not as strong as we’d like to be. Number two; they are really well-run companies that we, in some cases, will bring leaders in to run parts of our business with those acquisitions. And they – when we announced some of these things, they’ll sound kind of consistent with what people might have expected. And some of what we’re doing will sound different than what people might have expected. When we – Emma talked about the Norland acquisition, which has been one of the great ones we made.
