Art Suazo: Yeah. To put a finer point on what Mark said about 1455, yeah, some of the space we have actively in negotiation and the deals behind that or the square footage behind that is both on the Uber and the Squarespace. So, looking at both of them concurrently. And then beyond that, there’s some mid-sized deals that we’re in negotiations on that are perhaps right sizing, but nothing that’s alarming beyond the first kind of couple of deals that Mark mentioned.
Rich Anderson: Okay. Okay. Fair enough. Thanks.
Operator: The next question comes from Tom Catherwood with BTIG. Please go ahead.
Tom Catherwood: Thank you, and good afternoon, everybody. Victor, in the press release and your prepared remarks, you noted your commitment to delevering. Can you provide your thoughts on near-term levers to progress towards that and maybe what parts of the portfolio you consider untouchable when it comes to raising capital to repay debt?
Victor Coleman: Great question. First of all, we have a few deals right now that we’ve got some reverse inquiries on. We’re currently not marketing any asset to delever the portfolio, but we have at least three transactions that have come to us and two of which are by users. I think we maintain that we want to look at our B assets in the portfolio and eventually get rid of them at the right price and the right terms and the right conditions. There is no fire sale going on because we did a phenomenal job in the $1 billion last year that sort of re-write the ship from the capital market standpoint. But we do have a couple assets that I think will fall into the category of disposition for the first half of this year and potentially the ones that are, as you look at it, like off the table, there really is only one asset that we currently have in the portfolio that would be considered a Class A asset that we’ve got a reverse inquiry on that we would consider.
The rest of them are not things that we can’t live without, I guess, I would put it that way.
Tom Catherwood: Appreciate those thoughts. Thanks, Victor. And then maybe moving over to San Francisco, the GitHub renewal was a welcome surprise, especially given CEOs prior plans to go fully remote. Can you share any insights you may have into their change in real estate strategy and maybe whether there’s any read through for other tech tenants in your portfolio?
Victor Coleman: I mean, on a general basis, there is a lot of these tenants have come back and revisited the work-from-home status. We are — as you said in the prepared remarks, we feel very comfortable. We’re at the tail end of this. Candidly, we’re a little surprised that it’s taken this long and the West Coast is a slower mover as we’re all feeling and unfortunately living with every single day. I guess you guys all know what my thoughts are around that. But that being said, I think there’s a there’s a there’s a generic push for interaction, for onboarding and culture and GitHub is a great example of that. They realized that they needed space, albeit they didn’t need all of it, but they needed space. And hopefully that follows suit with some of the other ones we’re talking to right now that we thought we’re also going to take a different direction and now we’ve come back and asked for renewals.
So that that’s the general tenor. It seems as if the majority of the tech tenants have made their decision as to what direction they’re going in and how they’re executing on it.
Mark Lammas: That’s right. Tom, it was a win all around for the reasons Victor mentioned and we are seeing that with the other tenants. They’re this idea about right sizing and really discovery period to figure out. They figure out now people are coming back. They figured out we need space. Now they’re just trying to figure out how much space and this is a great example of that.
Tom Catherwood: And just quick follow up on that. Is this, and again, I know each lease is different, each tenant is different. But is this a trend you’re seeing more of in specific markets or is the kind of rethinking and setting of the real estate strategy pretty consistent across every — across your portfolio?
Victor Coleman: Yeah. I think this decision making is consistent across the Board, right? It starts with cost savings, getting your employees back, which by the way, has been no small task and we’re past — we’re getting through that hurdle. But now we’re seeing it everywhere.
Tom Catherwood: Got it. Appreciate the insights. Thanks, everyone.
Operator: The next question comes from Ronald Kamdem with Morgan Stanley. Please go ahead.
Ronald Kamdem: Hey. Just my first one is, just starting with the I guess both the studio and the same-store NOI guide and so number one, can you just contextualize sort of what did the studio do in 2023 and how much is baked into the guidance in 2024 versus ultimate — the ultimate amount, which I think was 120 plus. Just what’s that — what’s the context on that? And then so tying it to the same-story NOI, trying to get a better understanding of this down 12. What are the pieces, right? How much of that is, again, I know you’re not breaking out studio versus office, but maybe what are the big lease expirations doing to it? What other pieces can we think about this down 12, which is a pretty large number?
