Vikram Malhotra: Okay.
Victor Coleman: I don’t know what else…
Vikram Malhotra: I can follow up. I was just wondering whether it’s the lease rate or the occupancy, because if it is occupancy, it must have been your co-designing…
Victor Coleman: Oh!
Vikram Malhotra: … a bunch of deals which would hit occupancy in the second half.
Victor Coleman: Yes. It is. I was being…
Vikram Malhotra: Okay
Victor Coleman: … very specific about occupancy just because that’s what’s informing guidance.
Vikram Malhotra: Okay. Got it. Okay. And then just last one, Harout, could you clarify, I was just confused on what changed in the Stockholm plan that was not there last year and is there this year? I’m wondering, like, have the metrics on which you award stock has that changed or something else? I was just confused, like you said, something was not there last year, but it is this year.
Harout Diramerian: Yeah. So last year we didn’t have our part of the Stockholm plan that is driven by like share metrics, if you will, like share stock price metrics that did not exist last year.
Victor Coleman: Can I just say this again? We forfeit — that senior management team forfeited a portion of our long-term incentive program. We voluntarily did that and so that’s one of the year-over-year differences.
Vikram Malhotra: Okay. That’s helpful. That clearly about. Thanks so much.
Operator: Our final question.
Victor Coleman: Operator, we’re going to take one more question. Yeah. Sorry, sorry, this would be our last question because I’m sorry we went over, but we had a technical problem. Go ahead, Dylan.
Operator: Our final question today comes from Dylan Burzinski with Green Street. Dylan, please go ahead.
Dylan Burzinski: Yeah. Thanks. Thanks for taking the question, guys. Just one quick one, so given everything that’s going on across your markets in terms of just vacancies and steadily availability, continuing to move higher here. I guess, do you guys expect to be able to maintain base rents in this environment or can we finally start to see pressure on this front?
Harout Diramerian: Yeah. I think that’s a really good point. Right now, we did have a slight mark-to-market last year and the year before on an upward mobility. I think we’re looking at being flat right now to slightly down. The interesting thing is, Dylan, we’re not seeing the concessions add in the same way from a free rent change and/or increase in any CapEx or TI’s. That being said, I think we are comfortable at our rent matrices that we’re going out with and we’re not getting pushed around a ton on that, with — at least with the deals that are in negotiations right now. We’re going to continue to monitor that, but it’s not something that’s surprising us to say, oh, we’re coming off some big numbers or we’re coming off current rent numbers.
It’s always going to be based upon the availability and the quality of the space and we still maintain that our quality is high enough to sort of absorb the kind of rental rate structure that we’re currently at.
Dylan Burzinski: Perfect. Thanks for that color. Have a good going guys.
Victor Coleman: Thank you, Dylan. Sorry that we went over and I apologize for those who we couldn’t get to the questions, too. But I know lots of you will be reaching out to the team. Thanks so much, Operator. Have a good day.
Operator: Good-bye.
