Anthony Powell: Hi. Good morning. A question on new and renewal lease spreads and the leases. I’m curious, what’s the absolute, I guess, rent these two group consultants are paying in terms of both gross and net effective? I’m trying to understand better about what, the actual numbers are from these two, customer groups?
Michael L. Manelis: Hi, Anthony. This is Michael. Can you ask that again? I’m not sure I’m following the absolute rent part of the equation.
Anthony Powell: Yes. So, in terms of this new renewal leases, absolute rent, is there a big difference between the two? Are customers paying, lower or higher of renewing new leases? I’m trying to get a sense of the absolute pricing difference between the two groups of customers.
Michael L. Manelis: Yes. I think when you look at it on the new lease side because of the concessions that we’re offering in some of them, I think it lowers, like, the net effective rate when you look at the absolute average of all the leases that we wrote versus the renewals.
Robert A. Garechana: And one thing to keep in mind, too, Anthony, is when you’re looking at the spread so if you’re starting with market rate rents, right, and looking at market and that’s kind of your pricing trend or whatever. Spreads can vary materially depending on who is in the mix of, moving in and moving out. So, if I have lived in a unit for one year and got a big concession, as Michael used an example, in an expansion market, and I happen to be the one renewing, then that spread can be very different than the absolute. So, just keep that in mind, as you look at any of these spreads. And then particularly keep it in mind as you think about seasonal periods, like the first quarter and the fourth quarter where transaction activity is really low. You can have even more volatility in the number.
Anthony Powell: All right. Thank you. And maybe one more on transaction activity. Do you expect to see any portfolio deals, later this year? Or do you expect your deal activity to be more single asset as we had been recently?
Alexander Brackenridge: Anthony, it’s Alec. I don’t know if I expect to. I certainly hope to and I think we probably will, but it remains to be seen. But there’s some things out there that we’ve heard about that might be interesting, and we’ll certainly be very actively pursuing them.
Anthony Powell: Thank you.
Alexander Brackenridge: Thank you.
Operator: And our next question is going to come from Linda Tsai from Jefferies. Please go ahead.
Linda Tsai: Hi. Thank you. Just one question. In your prepared comments, you highlighted seeing stability and pullback in Seattle and San Francisco. Could you discuss that dynamic more? Is this volatility associated with job loss and return to work mandates or maybe just provide some examples of what drives this push and pull?
Michael L. Manelis: Yes. Hi, Linda. This is Michael. So, I think clearly job growth is one of the catalysts that does that. The migration patterns also influence that. So, where you see a lot more of your move-ins coming to you from within the MSA, that’s usually deal seekers. Those are people that are responding to see in the concessions and either breaking their lease where they were to move into it. So, it just you just haven’t seen, like, the sustained momentum that you would expect based on seasonal trends. I think last year, you saw some of those layoff announcements. You saw a lot of ambiguity around return to office where people were just waiting to see what their employer was going to do, before they decided to make any kind of relocation decisions to get nearer into where their offices were.
I still think some of that exists in the marketplace today. But what we did see and what we see right now is that the setup in both of those markets has positioned us with good occupancy. We are starting to pull back concessions. The marketplace, still has concessions in them, and we’ll just watch and see that build as we get in towards March and April to see what pricing power really looks like. But there’s a lot of factors that are going into why a market all of a sudden kind of stalls out and whether or not it shows you sustained momentum more in-line with seasonal trends.
Linda Tsai: Thank you.
Operator: And I have no further questions left in the queue. I’ll turn it back over to Mark Parrell for closing comments.
Mark J. Parrell: Thank you all for hanging in there on this long call. We appreciate your, interest and your time today. Good day.
Operator: And this concludes today’s call. Thank you for your participation. You may now disconnect.
