Unidentified Analyst: Okay, perfect. And then, just one question regarding Old Post Road. Is the 3PL tenant — are you still — are they still engaging — or is there any update around that contract that was going to be awarded? Or are you moving on and looking to market the asset to a new tenant altogether?
Peter Schultz: So A.J., it’s Peter Schultz. We continue to market the asset. In terms of the 3PL group, we continue to talk with them. The government continues, for whatever reason, to postpone the final decision on that contract award. The latest information is that they’re supposed to issue that award sometime later this quarter. Given our experience with this process over the last year our confidence level, I would say, is not high which is why, as you heard from us earlier, we decided to push the lease up into 2024. It’s certainly possible that this could get done this quarter but our probability is that it’s less likely just given the way this process has gone.
Operator: The next question comes from Michael Carroll with RBC Capital Markets.
Michael Carroll: Just following up on Old Post Road. I know this has been taking a couple of years to get done. I mean at what point do you just decide to kind of go multi-tenant and try to lease it to some smaller tenants that might want that space?
Peter Schultz: Mike, that’s a good question. It’s Peter Schultz again. So we’re certainly — have been and are open to that. As we’ve talked about on some of these prior calls, demand from larger users in this submarket and others has been slower, where historically, that size range was very active along that quarter. That’s something we’re open to. And it’s really about the timing of market demand and how tenants make decisions.
Michael Carroll: Okay. And then just real quick on your comments on the smaller blocks of the space. I know for the past few quarters, you’ve highlighted the tenant activity for those small to midsized blocks as were still pretty healthy. Is that still a fair comment today? Or has that changed over the past 3-plus months, given kind of the slowdown that you’ve seen in demand?
Peter Schultz: So I would say it’s consistent. If you look at our in-service portfolio, occupancy is very, very high. We continue to see good demand and backfilling spaces quickly. But for the Old Post Road building that we just talked about and a couple of our developments that are larger, right? Demand continues to be very active. I mean there’s — and those tenants operate with more urgency and diligence and some of the bigger commitments to our earlier points where they’re just not in a hurry to make those decisions and commitments today given the broader macro factors that are impacting everybody.
Operator: The next question comes from Nick Thillman with Baird.
Nick Thillman: Question on the land bank. It looks like the fair value of the land bank was marked down like 10% quarter-over-quarter. Some of that could be related to some land sales but just curious if you did make some changes in your estimates for fair value to land and maybe which markets in particular saw the biggest haircuts.
Peter Baccile: Do you want to take that?
Scott Musil: Yes, Nick, it’s Scott. A couple of things happened is from the land bank, we removed the land in Phoenix related to the land sale and then we removed the land that’s being ground leased. So that’s going to cause a fair value drop alone in 3Q compared to 2Q because it’s still longer in the population. I’ll have Jojo talk about adjustments we made to the — what’s left over…
