Scott Brinker: I mean it’s probably the right range and a fair amount of that lease expiration this year and next is going into redevelopment between Point Grand and Oyster Point, both in South San Francisco. So obviously, that comes out of same-store. But the overall mark-to-market across the portfolio is still in that $145 million range. That’s a gross number. Present value is probably closer to $100 million. But the biggest mark-to-market and the biggest lease maturities are in 2025 and thereafter. So you could see a reacceleration at that point. And then obviously, what happens with market rents relative to our escalators would have an impact over time on whether that mark-to-market opportunity grows or contracts.
Ronald Kamdem: Right. That’s just for me. Thanks.
Operator: The next question comes from Michael Griffin with Citi. Please go ahead.
Michael Griffin: Great. Thanks. On the 140,000 of leases under LOI that you mentioned in your prepared remarks, I guess, what’s the momentum and demand you’re seeing for the rest of the year? And then maybe Bohn, what are tenants asking for when you’re talking for them in terms of space needs, concessions, anything like that would be helpful.
Scott Bohn: Sure, Michael. So, demand — I’ll start there, demand numbers certainly come off the record highs in the past few years, as I mentioned. But they’re in line with pre-pandemic levels and the markets continue to be strong with low single-digit vacancies kind of in all three core markets. There’s a lot of active users in the market. Deals are getting done, just like we’ve done at our Pointe Grand campus. I think from a demand perspective as well, I think one note I would say there’s been several larger deals — large and mid-size deal I would say that where a tenant wasn’t necessarily up against the clock with an expiration that got put on hold. I think as the markets continue to improve here, several of those will come back to the market into those demand numbers.
I think in importantly to remember, too, is the fundamental drivers of demand are still incredibly strong with VC new fundraising and investment in biotech. NIH funding the biotech index, S&P increased 40% since mid-June. So, well the valuations are still well off their 2021 highs, we’ve now had six or seven months of fairly steady improvement, which is very encouraging. There’s also capital really available in the secondary markets for companies with good data. And we’ve — in the past week or so, as I said, we’ve seen some good signs in the IPO market. So, I think that from a demand standpoint, we feel pretty good where things are heading on the tenant concessions and what tenets are looking for. We haven’t seen a big uptick on concessions and good, well-located product.
I think some smaller deals with Series A type companies may require a little bit more of a turnkey type build, but those are spaces where you may have otherwise done a spec suite to get at least and get the market quicker. So, your kind of I view those as a little bit of a spec sheet with the tenant and two. We certainly take a good look at the credit on those if we’re going to put in those larger TIs on some of those smaller deals and make sure that we’re building generic space. But the tenants who are out there looking at bigger spaces or new build shelter spaces or have a different credit profile that are still pretty strong.
Michael Griffin : Great. Thanks. And I was curious if you could give a little more color on the deferred revenue as a result of the tenant improvement delays. I think you mentioned that it was something had to do related to M&A activity. And I know that’s obviously harder to predict in the future, but could we see this, I guess, occur down the road? Or do you think this is more kind of a one-off? And any color there would be great.
