Joe Fisher: And I do think, too, if you take kind of the what’s next piece and look at revenue, Mike talked about the 50 basis points that’s additive to our guidance expectations this year. I think that’s a big differentiator when you look at what we’ve seen from others put out there in terms of other income expectations. I think just given a little bit more concrete facts behind it as we do have identified projects with that. So that’s a lot of our bulk Internet, our package lockers, third-party parking, tenant deposit, insurance, things of that nature, that’s very well identified. So it’s not a hope that we get that 50 bps, I think it’s a known. And I think that’s a key differentiator for us as we go into €˜23. But also as you look back into €˜22, just to give Mike a pat on the back, we think when all said and down here in fourth quarter, we’re shaping up for the number two overall same-store revenue growth this year, which is a phenomenal outcome given the diversified portfolio that we have.
We don’t have as much Sunbelt as some of the others. So coming in number two, I think a prideful fact that’s driven by market selection, submarket selection, everything that’s taken place on the innovation front. So more to come on that for sure.
Michael Goldsmith: That’s really helpful detail. And you talked about the affordability of renting and those that are moving out due to buying a new home is down, I believe, you said 30%. I guess given the slowdown in single-family home price appreciation and signs of stabilization in mortgage rates, do you expect move-outs to purchase a home to rise in €˜23, and so maybe that becomes a little bit more of a pressure as the year progresses?
Joe Fisher: I think, usually, what you see from a psychology perspective is that home prices come down even as affordability improves. You do see a delayed response in terms of that affordability. So when we had the kind of €˜07, €˜08 crisis and that shift to rentership, that was a shift that developed and took place for the next 7 years or so. And so you do have a different psychological impact that sticks with you a lot longer. So I’d expect that trend to stay with us throughout all of 2023.
Michael Goldsmith: Got it. Thank you very much. Good luck this year.
Joe Fisher: Thank you.
Operator: Thank you. Our next question is from Joshua Dennerlein with Bank of America. Please proceed with your question.
Joshua Dennerlein: Hey, guys. Thanks for the time. I noticed in Seattle, effect of new lease growth in 4Q is down 7.4%. Just kind of what are you seeing in that market? And I guess, what’s your expectation built into 2023 for Seattle?
Mike Lacy: Great. Josh, this is Mike. Just starting with kind of our exposure if you will, we are around 6.5% of our NOI in Seattle. A lot of that is in the Bellevue area and the remainder is out in the suburb. So what we experienced during the quarter was strong growth in the suburbs. I mean what we saw was 10% to 12% growth on a revenue basis. Down in Bellevue, we are still in that 5% to 6% range. What we’re experiencing today, rates are coming back a little bit. Over the last few weeks, we’ve seen market rents increase. We’re really not utilizing any concessions in either Bellevue or out in the suburbs, and we expect new lease growth to start to show positive here in February and March, and our blend should be in that 2% to 3% range as we move forward here.
And ideally, this is a very seasonal market. What we’ve seen in the past is typically about a 600-basis-point drop off from the third quarter. It was a little bit more pronounced this quarter, but we do expect that, that market will bounce back just given that it’s so seasonal in nature.
