Anthony Paolone : Okay. And maintenance CapEx?
Karen Brennan : Yes. We’re continuing to invest in our platform and our people, and we don’t expect significant increases from where we’ve been trending historically. We tend to look at sizing that on an annual basis within a certain band. So keeping that — an amount that’s reasonable for the size of our business and our activities.
Operator: The next question comes from the line of Chandni Luthra with Goldman Sachs.
Chandni Luthra : I’d like to stick with the theme of capital allocation, little bit in 2023. When do you expect to bring buyback in the mix? And how should we think about free cash conversion in 2023? Especially, as you know, sort of the changes that you made last year, you’ll be lapping those. So help us understand that a bit, please.
Karen Brennan : Yes. Sure. So on share repurchases, I mentioned in the remarks that we intend to resume our share repurchases over the course of 2023. We’ll certainly be looking at the broader macro environment, our free cash flow and our overall debt levels as we think about the size and timing of those amounts that we’re repurchasing. As it relates to driving free cash flow, it’s certainly an area of focus for us going forward. I listed out the number of specific factors that impacted that in 2022. And as you think about the first couple of those, I ticked off, which were one, the higher commissions related to strong record fourth quarter activity in 2021; as well as higher bonus and incentive compensation payments in March of 2022 which were also related to 2021.
You’ll have the reverse effect in the first quarter of 2023. So to have that factor at play. And the other element that we’ll be watching carefully is how the recovery of the transaction businesses manifest over the course of the year because that obviously has a significant impact on our cash flow overall.
Chandni Luthra : Got it. And Karen, would it be possible for you to give us some guide post around fee revenue in 2023, especially as we think about investment sales and leasing? I understand you’re not giving revenue guidance, but help us understand how should we model perhaps first quarter with respect to the fourth quarter that you guys just reported or frame the year in terms of first half versus second half? Any guide post would be helpful.
Karen Brennan : Sure. It’s certainly — it’s a great question because it’s certainly a challenging year that we’re heading into. Right now, we’re expecting a continued continued set of headwinds for particularly investment sales and leasing in the first and second quarter of the year and are planning accordingly. Based on what we know right now and sentiment from our clients as we talk to them and based on expectations for the broader market. We expect that things will begin to recover in the second half of the year. We’ll obviously be watching that very closely and looking at our pipelines, which still look healthy and are growing as we continue to have conversations with clients. But the time to convert that to actual transaction is really being extended in this period of uncertainty. So we look at our conversion rates and monitoring that closely in report. We report back each quarter on progress we’re making and what we’re seeing in each of those lines.
Chandni Luthra : Got it. And I’ll squeeze one more as well. Christian, this is for you. Could you give us a sense of where our cap rate is now across different property types? And how much more correction is needed before buyers and sellers meet? I guess what I’m trying to understand is how much is transaction activity, a function of cap rates as opposed to capital and debt market availability and lower interest rates.
Christian Ulbrich : I can’t give you where cap rates are because it depends so much which country and which asset class and then what type of asset within that asset class you’re talking about. There is a very, very strong correlation…
Chandni Luthra : I guess the U.S.
