Brent Smith: And then I would reiterate, Tony, we have no ground up development. So, we fill it – really feel like from a CapEx perspective, there is good cash flow from the assets we are investing in today. And we have proven our ability to drive rents higher post renovation.
Anthony Paolone: Okay. Thank you.
Operator: Your next question is coming from Nick Thillman with Baird. Please post your question. Your line is live.
Nick Thillman: Hey. Good morning guys. Hoping to cut up a little bit of leasing pipeline and kind of just dissect that a little bit. So, just guidance 1.5 million to 2 million for the full year, it looks like at the midpoint, that would be like 1.1 million square feet of leasing for the remainder of the year, you got 800,000 square feet of kind of explorations. And then you mentioned the 700,000 square feet of late stage pipeline. So, just wondering of that pipeline, the breakdown between new and renewal, and then kind of how you think the cadence is for leasing as the year progresses. Thanks.
George Wells: Good morning Nick. This is George. Glad you could join us. Look, I think it’s really important to mention that our field teams are really a key part of this equation, right, where they continue to innovate, refine the workplace proposition which is really essential in today’s hyper competitive environment, right. I mean as a result of that, it’s allowed us to recognize 13 straight quarters of pre-COVID new leasing activity. And also we have some of the highest retention rates in the industry. But coming back to our pipeline that we already mentioned, about 180,000 square feet that’s executed in the month of April, we have got another 700,000 square feet, it’s at legal stage. So, we combine those two numbers, we are looking at 900,000 square feet of overall volume.
That’s really pretty strong compared to our average about a 0.5 million square feet. I would say with that combined pipeline 900,000 square feet, about 30% of that is for new deal activity. And it should be no surprise that a dominant amount of that is related to our Sunbelt market. Though I would just say that activity for new and renewal is pretty strong across all of our markets. And in terms of looking at the industries that are really stepping up the demand elements, I would say insurance, engineering, finance, banking, legal, architects, as well as if I could say a couple of technology companies. If you dig a little further into our proposal stages, where I think I mentioned those 2 million square feet of activity that’s out there that we are hoping to turn into lease documentation stage.
What is really interesting about that is the fact that Minneapolis is emerging with more activity than we have seen in the past and should be no surprise when you consider the fact that Excelsior is now an empty project as well as the impending U.S. – U.S. Bank exploration is coming in May in the suburbs. So, we are seeing about a half a dozen deals in that particular marketplace that range between 15,000 square feet and 50,000 square feet, although it’s new, we do like the fact that the formula that we have used elsewhere in addressing our vacancy seems to have some pretty good early wins in Minneapolis. So, I think with that being said, as I look forward, I feel pretty good that we will continue to provide the kind of results we have seen over the past several quarters.
And it’s not just about improving the workplace environment, but in a market as was reputation here that Piedmont can step up and fund the improvements that are needed in our lease commitments, as well as pay the brokers for the deals that are bringing to the table. So, that’s why we continue to be cautiously optimistic. As you have heard Brent mentioned in his prepared remarks, we continue strong deal flow in our portfolio.
Nick Thillman: That’s really helpful. And then maybe just touching a little bit back on dispositions like good execution in Dallas. Do you see any other opportunities here where maybe it’s an under-leased property that might be fit for an owner user, or is it still just kind of a wait and see approach and that was a unique one-off?
Brent Smith: This is Brent, Nick, and thanks for joining us today. I do believe, like I had mentioned, there are a number of smaller sized assets, they may be well leased, but have some near-term vacancy that some of user groups are looking at. They are unique. I don’t want to make it sound like there is a lot of those out there. But I think a number of firms right now recognize the disruption in the private market for really good quality buildings, and are utilizing that as a means of – particularly if they have a public company or a large lease exposure that goes onto the balance sheet and evaluating that, versus just buying an asset at a very discounted price and putting that on the balance sheet. So, I think you will continue to see similar with financial services firms, and high net worth individuals that are looking at it as both a family office and an investment, continue to look at our assets and others in the market that fit that profile.
Nick Thillman: It’s helpful. And then last one maybe for Bobby, what’s the total capital outlay for the redevelopments in Minneapolis?
Bobby Bowers: Large projects that are there, as we talked about vacant projects being $10 million, the total capital outlay may be…
Brent Smith: It’s probably $10 to $15 a square foot range.
Nick Thillman: Okay. Helpful. Thank you.
Brent Smith: Yes. And I would consider those to be more modest refresh, but do recognize they were single tenant assets. So, really, it’s not only a modernizing adding the names that we have talked about, but also making sure that it suits a multi-tenant environment as well.
Nick Thillman: Thanks for the clarification and the time.
Brent Smith: I would note too, that we continued to see strong leasing there. And as I have noted in my prepared remarks, we have already got about 33,000 square feet amongst those two buildings accomplished with a good pipeline as George alluded to behind it.
Operator: Your next question is coming from Dylan Burzinski with Green Street. Please post your question. Your line is live.
