Scott R. Bohn: Nick, it’s Scott once again. I think first and foremost, I’d say the leases that we’ve signed and the LOIs in all three markets have been at really strong rates in deal terms. Overall, I would say looking at face rates, they flattened as I think we all know, this year, which we expect to probably continue in the near term. Rates for A buildings and A locations with strong sponsorship like Healthpeak have held up well. You’ve seen some a little bifurcation between that and then the B buildings in secondary locations. Luckily, we don’t have a lot of that product at all or really any. From a net effective perspective, we’ve talked about some pressure on TIs with tenants looking to have a little more capital put in by the landlord to extend cash runways, and we’re open to that in select cases depending on tenant credit, usability, TIs, etcetera.
We talked about that getting back to the end of 2022 and 2023. But I would say no real incremental change on that this quarter versus last. So I mean, I think that those ask and those TI levels have leveled off.
Nicholas Yulico: Thanks Scott, appreciate it.
Operator: The next question comes from Connor Siversky from Wells Fargo. Please go ahead.
Connor Siversky: Good morning, thank you for the time. Interesting comment in the prepared remarks that Progressive Health Systems now have 10 outpatient facilities for every hospital. In the context of that comment, I’m wondering how you’re seeing performance trends for on-campus versus off-campus? And then if the shift in delivery continues to align with peak strategy, I mean, what does it take for peak to start putting shovels in the ground again on medical office or outpatient medical, sorry?
Scott M. Brinker: Yes. Well, the good news is the hospitals are busier than ever. So at least the ones we’re on the campus of obviously, we tour those as well and a number of them are undergoing expansion or redevelopment. So they remain extremely profitable. It’s just the health systems are growing their market share and the total pie is expanding. So a lot of the growth is outpatient and off-campus but the hospital campus itself is as busy as ever. So I don’t see it having a negative impact on what we own today. The comment is more forward-looking as we grow the portfolio, we want to align our business plan with the growth in the actual underlying business itself. Klaritch, do you want to take the other.
Thomas M. Klaritch: Yes. With regards to putting shovels in the ground, we did announce, I think it was two quarters ago, our Savannah building, which is with HCA in our development program with them, and we’re in active discussions with quite a few buildings with them also and probably the next quarter or so, we’ll have some more to announce there. So there’s a lot of pent-up demand for MOB development out there. In addition to HCA, we’re having discussions with two or three other systems about potential new buildings with them. So I think it’s going to get pretty active over the next year.
Scott M. Brinker: There’s definitely interest from name brand health systems to partner with us on development in particular, obviously a decision to proceed depends on all the normal things, right. I mean cost of capital and returns and the spread to acquisition cap rates and pre-leasing. I mean, obviously, demand is different than saying, yes, we’ll pull the trigger, but we do see a pretty big pipeline when the numbers start to make sense.
Connor Siversky: Thank you. That’s helpful. And then sticking to outpatient, could you offer any color or quantify at all how much of that space is utilized by, call it, administrative or maybe revenue cycle functions or more broadly speaking, just how do you see the hybrid work environment impacting outpatient operations?
