Nick Yulico: Okay. I appreciate your thoughts there, Mark. Second question is just, I think — if I think about multifamily, your company, the whole sector right now, I think there’s, at some point, this worry that it’s not so much a 2023 issue relative to guidance. But at some point, if we have a recession over the next year or so, there’s going to be an impact, right? And it’s going to impact the rents and occupancy and revenue. And so, what I’m trying to figure out is, last two recessions were very unusual in terms of the impacts we had to multifamily. How are you guys thinking about — is there any way — this is a tough question, but is there any way to think about a downside impact to your company in what is a maybe more normalized recession and sort of an order of magnitude of — or how much rents could correct or how much revenue or NOI could correct?
Mark Parrell: Yes. I guess I’d just make a few comments on that. Obviously, my crystal ball is as blurry as yours. I mean, a lot of these other recent recessions, there were huge excesses in the economy or like the pandemic, just a panic, as you mentioned, that just made the whole thing very unusual. I don’t feel like we’re terribly out of whack. So, it feels to me like any recession that occurs, it will be more like a slowdown in jobs as opposed to some, we are putting out negative 400,000 jobs a month type numbers. So I feel like if 2024 comes around, the business will perform relatively well and certainly better than the last downturn or so. I also think you got to compare it to what else is going on in the economy. We’ve typically been a pretty good inflation hedge.
We put materials in our book about that. So, if you think you’re going to have a slowdown in the economy, and you’re going to continue to have some inflation, I mean typically, our business has been able to raise rents in excess of the inflation rate in our kind of business. And Michael and his team do a great job of managing expenses. So, I look at it and I think in a slow growth economy, maybe with a little bit of inflation, I think we can still do on a relative basis really well at our company because, again, we manage expenses well. I think the next recession, if there is one late this year or next is I do agree likely to be less about excesses and dramatic type downturns and a little more gradual. And I think our numbers will reflect that.
But boy, it’s really hard to predict, and nobody knows for sure, right?
Operator: And we’ll take our next question from the line of Alexander Goldfarb with Piper Sandler. Please go ahead.
Alexander Goldfarb: Mark, definitely seems like between the bookies making bets on the Super Bowl, we could have the same bet here on whether or not this recession has been affected summer leasing. So certainly a topic we’re all watching. Two questions here. The first question is a lot of regulatory focus recently, the White House, obviously, on fee income, President mentioned it as far as hotels go in the State of the Union. But more importantly, apartments are under a lot of regulations already. So, as you guys think about your fee income that you charge, your new lease fees, the pet fees and all that stuff, as you guys look through all that, do you feel comfortable with where you are? And you’re like, look, we already abide by all the regulations, all the stuff is covered, or is there a concern that the regulators could push harder on some of these line items?
