Steven Durels: Well, we have, between now — over the next 30 months, 36 months, about 800,000 square feet in the building that rolls. The majority of that space is in the mid to top portions of the building, rents in the building are, call it, roughly $110 to $140 a foot. And the proposals that we have received and the conversations that we’re entertaining with tenants, those rents are in — those tenant expectations are in line with our underwritten rents.
Operator: Our next question or comment comes from the line of John Kim from BMO Capital Markets. Mr. Kim, your line is now open.
John Kim: On the CBS renewal, it looks like they downsized by about 40% from the space that they had. And if that’s the case, it’s quite different from the Fox and News Corp renewals, which I think was all the space that they had at 1211 Americas. Is your anticipation that CBS is taking space elsewhere in New York? Or are they just truly downsizing their space requirements?
Steven Durels: No, it was just downsized. The majority of the people that are there sort of an independent group of operating units, separate distinct from the groups that are over at 1515 Broadway, where they occupy the entire building. So no, I think I don’t — our conversations with them have not suggested that they are on an active program to downsize as we sit here today. But it’s like a lot of these big firms are all trying to figure out their long-term plan as a result of hybrid work environments and more component, things like that. But even though they’re a big advocate of bringing everybody back to the office.
John Kim: Okay. And then on Page 39 of your staff, there was a notable change in your mark-to-market or the implied mark-to-market of the leases expiring in 2023 versus the asking rents and has turned positive on your wholly owned assets last quarter, it was negative. It looks like it’s the same amount of square feet or pretty similar. I’m wondering what that change was to get to that positive mark-to-market?
Matthew DiLiberto: That’s actually a function — John, it’s Matt. That’s actually a function of the leases we were just talking about at 245 Park, where the large tenants rent rolled off. So say, MLB rent rolled off, which was a market rent, and it rolls down to what the rent that the old subtenant current short-term direct tenant is paying. And then those short-term new small direct tenants rents will flow through the exploration years in whatever year those leases expire and the mark-to-market is based on those lower rents as compared to the previous market rents. None of the changes as a result of our view of a change in market rents. It’s simply a function of a change in the starting rent that it’s based.
Operator: Our next question comment comes from the line of Michael Lewis from Truist.
Michael Lewis: Mark, in your conversations with business leaders, I’m just curious, you talk about getting that utilization rates back to that 70% to 80%. But I think the worry is are we stuck in this kind of impaired level of, call it, the low to mid-50s. I guess as we look forward to the balance of this year, I mean, how confident are you that these firms can get their people back in? And is it possible to get back to that previous high watermark?
