And hopefully, we’ll know more in the next couple of months with respect to what our plans are with that.
Brendan Maiorana: And Georgi, it’s Brendan. Just in terms of the trajectory as we move throughout the year. So we’ll probably dip a little bit in Qs two and three. So maybe around that average for the year around 88% or so. There’s just a little bit of movement within the portfolio. There are some spaces that we’re proactively taking back early in the second quarter that we have then backfilled and expect to move the new users in by year-end. And then as we’ve stated, we think year-end will be the low point for us for this year, given what Ted talked about, which is principally the EQT expiration in the fourth quarter. But we do think that we’re going to end the year at a higher level than what we had previously expected when we provided our original outlook in February. So we think we’re tracking well. But certainly the year-end will be — should expect to have the low point in terms of occupancy for the year.
Georgi Dinkov: And just a second question for me. We’ve noticed occupancy decline in Tampa and Orlando quarter-over-quarter, can you just comment on what was the driver? And is this a sign of challenges in these specific markets? And I guess, can you just comment on your markets, which ones are performing better and which one are kind of like lagging behind?
Brian Leary: Georgi, this is Brian. I’ll take a couple of things. First, you mentioned Orlando and Tampa specifically. Last quarter, Orlando really hit a high watermark in terms of their occupancy over a great period of time. They’re doing a fantastic job. Nothing is under construction in Orlando. They have the best buildings in Downtown. So they’re doing a good job there. We feel good about the long-term maintenance of occupancy within a bandwidth of the high watermark last quarter and where they are this year. So I think nothing to really expound upon more with regard to Orlando. Tampa is a dynamic market. We have multiple parks kind of within the Westshore BBD. And so you’re seeing ebbs and flows across there. Nothing to highlight anything specifically.
We’re very happy with the movement in Tampa, the folks continuing to grow there. Now globally, in terms of the other markets, they’re all our favorite children, so there’s none that are favorite. But look, Nashville continues to be a place people want to be, it posted as an overall market, positive quarterly absorption last quarter, which stood out nationally for the year of 2023. It was four in the country for positive absorption. Some of you may have noticed just yesterday Larry Ellison was getting interviewed by Bill Frist in Nashville and reference that Nashville will become Oracle’s global headquarters at some point in the future, which supports the story that CBRE put out there that Nashville is top five in the country for new headquarters.
So Nashville is in a good place. Charlotte, well, in some ways, it’s a tale of two cities. In some cases, there’s a clear delineation in separation between location, lineage and landlord in terms of who’s winning and who’s not in Charlotte. We’re sitting here at 96.2% occupied. We feel really good about our assets. Charlotte continues to grow lots of interesting things going on there. Dallas, Dallas will soon, they say in the next five years past Chicago in terms of population. It’s the fourth largest metro right now led the US in 23 population growth. We couldn’t be happier with our partnership there in the Granite, happy with the existing McKinney & Olive asset in Uptown the leasing momentum at 23Springs and leasing that’s picking up an interest in inbounds and tours at GP Six.
So I think that sort of kind of gives you a little bit of color of the spectrum of markets. I don’t know if Ted has anything else to add?
Georgi Dinkov: Great. Thank you for taking my questions.
Operator: Thank you. We now have Blaine Heck from Wells Fargo on the line.
Blaine Heck: Ted, you mentioned this in your prepared remarks, but recently, we’ve been hearing a lot about the flight to capital or tenants looking for landlords that are willing and able to fund TIs on new leases. I guess can you just give a little bit more color on that trend broadly? And then maybe comment on how much of the market vacancy might be attributable to space that’s owned by a landlord that’s unwilling to fund TI? And then lastly, I’m just wondering whether there are any specific instances you can cite where you think you’ve won out on a deal because of that ability that you guys have to fund TIs?
Ted Klinck: Sure. A lot to unpack there. Remind me if I don’t hit all parts of that. So in general, it’s exactly what you said. We’re seeing a — there’s a bifurcation of assets and ownership that there are some cases we’ve heard that landlords or brokers aren’t showing space, if they understand the capital stack. The capital stack is upside down or there’s just risk of the building just effectively become a zombie-type building. So there’s many instances out there, one in particular here in Raleigh, we got a full floor user from a building that was in distress and it was really from a cold call. And this was very similar to what all of our leasing reps are doing. It’s — all the buildings that have got maturing debt that we’re targeting those buildings because of the capital that we can invest in the TIs and commissions that we can pay.
So this was a direct result of cold call that we got. We got a full floor user. The user didn’t want to stay in the building because they couldn’t get enough money to recap to redo their space. So it was a great win for our team and it shows that just the resourcefulness of our team and that we’re seeing that in other markets as well. In terms of the number of — the amount of vacancy, it’s concentrated. It’s really the vacancy is concentrated in B and C buildings in general. It’s concentrated in less desirable submarkets and then it’s concentrated in the buildings that have been really in distress for the last call it two or three years. As we all know, the lenders have been kicking the can. Lenders don’t want to take a lot of these assets back.
