Alexander Goldfarb: Second question, appreciate your comments on the changes from the state level. Always good to hear positive things for landlords. But obviously, LA passed their good cause eviction recently. So as you see the groundwork for your potential apartment pipeline in — which I think is mostly LA and Santa Monica, net-net, between the advantage that the state gave you versus the negative from LA’s recent regulation change. Overall, does it change any of your underwriting one way or the other, does it make it a little tougher, make it a little better or is it sort of a wash when you figure those two policy changes?
Jordan Kaplan: I mean, I don’t like any limits on rent or any of the rest of it. But quite frankly, the good cause eviction stuff, I don’t think runs a foul of any of our habits. I mean someone is less than a month to link with, we collect the money — I mean we don’t keep — or if you’re telling me raising rent on someone that’s in their unit, more than 10%. I mean anybody — and certainly anybody institutional, it’s been the apartment business for a long time, that’s smart enough not to do that anyway. And I don’t think I’m getting ready to pro forma more than 10% of your rent growth, and I’m trying to figure out or I’m going to buy something. So I mean, I don’t think you can — yes, I don’t like what the city passed. I’m not sure it’s going to have a big impact on us or any impact, quite frankly.
But I mentioned the stuff at the state level, because it’s like a giant impact on. I think it’s — I went from telling you guys it’s years to get anything in title to potentially, if this thing goes right that we could just kind of go at our own pace. I mean, it’s a crazy change. I’m surprised it even passed.
Alexander Goldfarb: Maybe they don’t know that they gave you guys a gift.
Jordan Kaplan: Well, if they had known that, they wouldn’t have passed it because there’s no love for developers in Sacramento, but that’s done.
Operator: The next question is from Steve Sakwa with Evercore ISI.
Steve Sakwa: Jordan, I know that you guys were guiding to sort of average office occupancy. But within that range of 82 to 84, could you maybe just give us a little color on what you expect for new leasing volumes in ’23? I know the fourth quarter was probably the lowest quarterly volume on new leasing in about two years. So just any thoughts on the pace of new leasing and the pipeline that you’re seeing today?
Jordan Kaplan: Well, we’ve really been whipsawed by the changes in people’s sort of economic outlook. I mean, I was really surprised going into the fourth quarter that things shifted so quickly as kind of attitudes went towards — and I think you saw that in a lot of people, attitudes went towards we’re going to go into a recession and how quickly the leasing shifted. And one side of absorption and leasing is obviously roll and we give you that for every quarter what the roll looks like. The other side has been so sensitive to people’s kind of point of view on the economy. I mean three incredible quarters and all of a sudden the news turns negative, and we drop off 25%. I mean that’s wild, right? And so guessing about what next year is going to be.
