You can contrast that with some of the markets in the Southwest where you’re just seeing that shift as the COVID demand had waned and you’re seeing a bit lower occupancy than where you were last year and a bit lower rents than we were last year. So I think you then delve into secondary and tertiary and our expectation is, over time, they’re more susceptible to new supply, and they’re just more volatile markets. And so as we expect things to more normalize, I think the strong demographic markets will outperform.
Operator: The next question comes from the line of Michael Goldsmith with UBS.
Michael Goldsmith: Digging into New York a little bit more sequentially, the MSA underperformed the portfolio average on same-store revenue growth, but maybe outperformed sequentially on same-store NOI growth. So as you think about the outlook for this market in the upcoming year, are you thinking if this is going to be an outperformer due to the stability of the market as trends sort of moderate? Or is there another thought process that you have on this key MSA for you.
Chris Marr: I think as we look out, I think the strength of the New York market is a combination of waning supply impact, the positive demographics, as I answered in response to the previous question create a customer profile that is stickier than in other parts of the country. I think you’ve got a good backdrop in terms of demand drivers. And I think the portfolio is obviously best-in-class and is well positioned to capture the demand that exists in that market. So I think it’s going to continue to get better. I think we talked about on the third quarter call, we had a relatively easy comp in ’21 in the third quarter. So the third to fourth quarter, slight deceleration was not 100% everything we expected it to do. I would say the portfolio in Q4 in the New York MSA more broadly exceeded our expectations just a bit.
So ending on a high note, starting in a real good spot here for January and February and just again think about as other high-flying markets return to more normalized levels, New York will bubble up to the top of our performers.
Michael Goldsmith: That’s really helpful. And you kind of noted that the percentage of your portfolio impacted by supply is expected to be down 5 percentage points this year. Is there a good benchmark of how — how much this can add to same-store revenue growth? Is that a — despite like this 500 basis point — as that moves down, does that translate to 50 or 100 basis points of same-store revenue growth? And do you have the number of the change in supply impacting your locations in the New York Metro.
Chris Marr: Okay. That was a lot to unpack. Let me track some of these. The impact of that decline from 35% exposure to 30% is difficult to quantify in any way. When we think about doing it from a budgetary perspective, it’s a range. It can go from — frankly, it’s such a wide range. We have some properties that have the impact of new supply that actually outperformed for market, submarket, local market reasons. And then we have other properties that are more directly impacted. It’s largely also dependent upon the brand of the competitor, and their pricing strategy as they try to lease up assets, so that can have an impact positively or negatively. So it’s hard to put a specific number of basis points on that impact. When you think about New York City and — I’ll answer it by just focusing in on the expectation in ’23, I think by borough, the Bronx, the impact of new supply has been and is in the rearview mirror.
