Having said that, there’s still a very heavy housing shortage. And there are haves and have not. There are customers that are able to finance in this segment, in this timing. And there are customers that are able to still build. And some of our development customers, instead of building 4 or 5 projects a year, they may be building 2 or 3. And then geographically, there are submarkets that are very hot and people are continuing to build. So with all those, while the macro is depressed, there’s still enough business for us to go after in the multifamily segment. Specifically, if you look at our value proposition, we help our customers to differentiate their properties, right? So in a tighter market environment and a flight to quality where they’re trying to one up each other to gain that tenant or get a little more rent, we provide an important amenity.
We are long-term sustainable for them with their goals for building more efficiently, providing the path to net zero, saving a little bit of energy. But importantly, this is an amenity users love. That’s actually the main reason we are being successful in this segment. We have very strong user affinity. Now the Inflation Reduction Act on the tax credit of — on the smart windows makes smart windows now affordable. They’re either same cost net of the tax credit. And in a few cases, we are actually saving them a little bit of money. So that’s why we are bullish and focused on the multifamily segment. To your question on other segments. Airports, as you know, primarily, they’re owned by cities or local counties. There’s a lot of investment going on in airports across the United States perhaps partly because for decades, there have been an underinvestment in infrastructure in general and specifically airport facilities.
But secondly, as you know, passengers have gone back up to pre-pandemic levels. Airlines are demanding that the facilities be built to a better standard because a better on-the-ground experience provides a better in-the-air experience. And airports are building and renovating pretty much across the board. We are in about 15 U.S. airports and growing, and we have significant repeat business where they’re building another terminal or renovating in that space. Health care also is facing some of the same financial challenges. But there are hospitals and medical office buildings being built. And then finally, in the office sector, while everyone talks about work from home, I think you’re seeing major employees — employers are bringing people back to work, maybe at least 3 days a week, in some cases, 5 days a week.
And obviously, they’re filling up their existing footprints. But importantly, the key sub trend note, which really makes a big difference for View is the flight to quality is most evident in this sector. For example, in New York City, there are $150 per foot offices that are full and there are $50 per foot offices not too many blocks away that are empty. And what it does show is every employer is obviously not only having a strong desire or a requirement to bring employees back, but they’re using their facilities, their buildings as amenities to create a type of environment and culture that they want to bring their employees back to. So in that sense, even though on a per square foot basis, it’s a higher cost to build a better spec building, to get into a lease with a better spec.
Those are getting more traction, which means you should see, even if there isn’t a new build, renovation of these old tired properties in order to reposition them for a more modern and a more leasable environment. And we already have done renovations over the years. We continue to have renovation business in the right markets with the right locations and that will continue to be a segment. But make no mistake, we are heavily focused on multifamily as a segment for us to get to profitability.
Graham Price: Okay. Understood. And maybe last one for me. I wanted to ask about the Mississippi factory. I think you’re still running it at less than 10% utilization. So just as a way to get some extra revenue in the door in light of, I guess, the revised growth outlook. Would there potentially be a possibility of, for example, leasing out some of that space or maybe partnering with another manufacturer?
Rao Mulpuri: Yes. Good question. Obviously, Graham, we are always looking at how can we cut our structural costs and while we are ramping thoughtfully to get to profitability. I mean, this is a purpose-built facility. We have about $400 million of hardware. If you go inside and look at the facility, it’s a large infrastructure, industrial tech, combined with semiconductor technology. So it’s purpose-built to make smart windows. It’s not really capable of being broken up and used for other purposes. Our goal is to fully fill this facility as we ramp up. And as you’ve noted, at a fraction of the full capacity, we will be cash flow positive. So we’ve cut our cost structure quite a bit and we continue to look for ways to be more and more efficient. I think breaking it up and using it for other uses is not one of them. But using the facility we have thoughtfully and ramping our business appropriately is what we are focused on.
