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

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WEBVTT 00:00:00.031 -- 00:00:05.397 and Fridays. But it's a combination of both our leasing targets and our optimism 00:00:05.397 -- 00:00:08.178 in people coming back. 00:00:08.340 -- 00:00:13.706 Right. And it does sound like tours are picking up and just leasing volume is up generally. 00:00:13.706 -- 00:00:16.970 When would you expect TIs to start to come down? 00:00:16.970 -- 00:00:19.813 Is that more of a 2026 improvement? 00:00:19.813 -- 00:00:25.319 And where do you think market vacancy should be to cause TIs to start to inflect 00:00:25.319 -- 00:00:26.305 downwards? 00:00:26.305 -- 00:00:32.031 So that's a great question. I actually spoke about this with an investor last week and 00:00:32.031 -- 00:00:36.735 it's interesting. Usually a landlord's market starts to turn at about 90%. 00:00:36.735 -- 00:00:41.760 Once you start getting in the mid 90s, you have a little bit more leverage to push back 00:00:41.760 -- 00:00:46.985 on some of these requests. That being said, you know, 00:00:46.985 -- 00:00:51.189 while there's still vacancy in the market and while there's still uncertainty around 00:00:51.189 -- 00:00:56.307 unit prices, so materials, labor, all these different things with 00:00:56.307 -- 00:01:00.834 what's going on from a macroeconomic perspective I think there's still some uncertainty 00:01:00.834 -- 00:01:06.022 in the market also two brokers are getting paid more and brokers getting paid as much 00:01:06.022 -- 00:01:11.209 like taxes they never go back down once they hit a certain hurdle so I foresee that cost 00:01:11.209 -- 00:01:16.357 always kind of staying where it is and just with the uncertainty around unit costs for 00:01:16.357 -- 00:01:19.481 materials things like that 00:01:19.481 -- 00:01:24.715 I suspect they'll continue on a pe...