Scott M. Brinker: Yes. Well, it wouldn’t be a tenant coming to us today. I mean the time line to get permits and build something would be far longer than accommodating the tenant you need space today. So the thought process on near-term re-tenanting space is really looking towards credits that are unlikely to renew a lease in the coming years and seeing if we can find a way to early terminate and backfill with the growing tenant who wants a longer-term commitment. In terms of new development starts, we are making really good progress on entitlements in the core markets that we’d be in a position potentially to start construction on something in 2024, where I would get back to my comment that I made about outpatient medical. The decision to actually start depends a lot more on our view of supply and demand, potentially pre-leasing cost of capital and returns and the like.
So it’s not something that we would do today. But as you look into 2024, I mean, we’ll see the market can obviously turn pretty quickly, and we’ve got a huge base of existing tenants that generally are the ones filling up these new developments.
Joshua Dennerlein: Appreciate it, thank you.
Operator: The next question comes from Michael Griffin from Citi. Please go ahead.
Michael Griffin: Great, thanks. Maybe just on leasing for Life Science, you talked about 90% retention from existing tenants. Do you need to see the number of new tenants entering the portfolio in order to achieve longer-term growth or are you comfortable sort of growing with your existing tenant base to drive that growth going forward?
Scott R. Bohn: Sure, hey Greg, it’s Scott Bohn. I mean, I think is 90% at least what we’ve done, as we said, is with existing tenants. That’s a huge competitive advantage of ours. I mean that’s the scale we have in the local markets. It’s certainly easier to do a deal with someone you know. That said, we’re — obviously, we welcome tenants from the outside as well. So it’s a mix of both. But I think we capture our fair share of leasing from tenants that are outside of our portfolio as well, but certainly try to cater to our client base as best we can to accommodate their growth.
Michael Griffin: Thanks. And then just a question on supply. I know there has been kind of market reports out there about elevated supply in core biotech markets. But I mean if you sit back and look at your portfolio, I mean, how does a lot of this compare to your competitive stock, and then if you can give any color on your supply expectations for 2024 and your competitive stock? And then I know it’s a bit early, but 2025 as well, anything you can add would be helpful?
Scott R. Bohn: Yes. From a supply perspective, I mean not a ton of change from last quarter that we talked about in the 2023, 2024 deliveries. As you’d expect, we’re certainly seeing a slowdown in new starts in many of the conversions that have been advertised aren’t doing anything on a spec basis. So we don’t really even count many of those in the competitive supply. And as we’ve noted before, not all supply is built equal. So we think that we’re positioned very well in each of our markets. When you look at the Bay Area, competitive new supply, we think is competitive to our portfolio. It’s about 800,000 square feet in 2023, it’s about 70% pre-leased coming into 2024. There’s about 3 million square feet delivering in the North Peninsula.
