Dream Office Real Estate Investment Trust (D.UN) Q4 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

and Fridays. But it's a combination of both our leasing targets and our optimism in people coming back. Right. And it does sound like tours are picking up and just leasing volume is up generally. When would you expect TIs to start to come down? Is that more of a 2026 improvement? And where do you think market vacancy should be to cause TIs to start to inflect downwards? So that's a great question. I actually spoke about this with an investor last week and it's interesting. Usually a landlord's market starts to turn at about 90%. Once you start getting in the mid 90s, you have a little bit more leverage to push back on some of these requests. That being said, you know, while there's still vacancy in the market and while there's still uncertainty around unit prices, so materials, labor, all these different things with what's going on from a macroeconomic perspective I think there's still some uncertainty in the market also two brokers are getting paid more and brokers getting paid as much like taxes they never go back down once they hit a certain hurdle so I foresee that cost always kind of staying where it is and just with the uncertainty around unit costs for materials things like that I suspect they'll continue on a per square foot basis to stay relatively high for at least another 18 months to 24 months. And then once the general overall market occupancy starts to tighten a little bit, then you'll probably see better NERs. Okay. And then just lastly, curious if and how the sale of 438 University, how that informs your overall fair values. Is there much to read through for for the balance of your portfolio? Yeah, that's a good question. So in the prepared remarks, we said that for IFRS accounting valuation cycle, we appraised 41% of our portfolio this year. And in a...