Vikram Malhotra: Thanks for taking the questions. Just sort of building upon the Life Science comments you made, can you just help us think about kind of the trajectory or the potential for your Life Science segment going into 2024. Not looking for a specific guide, but just looking for the sustainability given the bumps, given that if leasing velocity remains as it is today and you do have Amgen coming up, which I think is now is a known move out. Let’s assume you’re not able to leave that up for the full year or it goes to redef. Can you just talk about sort of the potential of this segment, assuming trends remain as they are intact today?
Peter A. Scott: Yeah, hey Vikram, it is Pete here. On the Amgen leases that you mentioned, the good news is we’ve actually backfilled a significant portion of those and that’s been a pretty known vacate for a while. I can’t necessarily comment on the LOIs in specificity. But I think you guys see and understand where our leasing focus is right now, and obviously re-leasing the Amgen space is an important focus of ours. But, three of those buildings are currently leased today, and don’t have expirations until the end of this year or early next year. And we’ve always planned to redevelop those and really bring that campus up to a little bit of a better level. It’s adjacent to the cove there. So that’s the Amgen portion of this.
I think just a couple of other things I wanted to point out, the mark to market we have talked about, we still feel good about that the 20 percentish mark to market within our current portfolio. When you look at where market rents are versus in place rent in the portfolio, that’s obviously going to be a nice driver, the next couple of years, we believe of some earnings growth. And, the balance sheet is in great shape. Again, Sorrento, I can’t really speak to that. But that could be a pretty big driver, as we look at 2023 relative to what 2024 could look like. It’s a pretty big number when you consider accepting the leases versus a liquidation there. So I can’t necessarily comment on 2024 much more than that at this point in time. But just to say that I think some of those big explorations we’ve actually been working pretty hard on backfilling.
And actually, in what we previously disclosed, we actually didn’t have a lot of those Amgen leases getting leased up until 2025, as there’ll be some downtime and some CAPEX associated with them. [Multiple Speakers].
Scott M. Brinker: Just maybe on just the trajectory of lab leasing and rents. I mean, the last 18 months, interest rates were up more than 500 basis points. Obviously, that has resulted in Board and management teams essentially say not to expand real estate needs for the most part. The easy answer was just to make do with the existing space. But at the same time, you’ve got a likely outlook where interest rates are probably going to come down over the next year or so, and we are starting to see a little bit more interest in having those types of discussions. And you think about the activity we actually had over the last 18 months despite that change in interest rates, signed leases or LOIs on almost 2 million square feet of space at strong rents, very modest TIs, 90% of that is with existing clients and pretty significant mark-to-markets.
So really in the teeth of a pretty tough market over the last 18 months, I mean, we’ve had significant success, and we see the general macro environment being more favorable over the next 12 to 18 months, not less favorable.
