The following is excerpted from the question-and-answer section of the transcript.
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Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Everybody, and thanks for having me on the call. I appreciate the detail as always. A question on leasing spreads that we saw during
4Q. So I think you had mentioned that the mark-to-market on the portfolio is about 41%, and that is the number baked into guidance.
So I'm wondering what could explain the delta between that 41% number and the 21.5% cash spread posted for 4Q '21. So just for
a little context, I'm operating under the assumption that some of the leases that would have expired during the quarter or of an
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. But just to clarify, the 41% number that's sort of what's being baked into 2022 guidance? .
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. And then could you just remind us then what in-place escalators look like?
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. And one more for me. Looking at construction activity, I mean, let's just focus on the Inland Empire specifically. So I'm seeing
about 30 million square feet under construction, about 28 million of that is spec. So I know you have some presence in the market,
but I'm just thinking out loud.
Is it a possibility that some of the tenants in the L.A. Basin could provide the same service to L.A. proper from the Inland Empire. I
mean, is there a situation where we could see some kind of diffusion from your tenants out of L.A. into the Inland Empire? Or does
that seem unlikely?
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FEBRUARY 10, 2022 / 6:00PM, REXR.N - Q4 2021 Rexford Industrial Realty Inc Earnings Call
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Got it. That's very helpful. I'll leave it there.
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Yes. No, I was just really curious about whether or not that 28 million square feet of spec development would have been somewhat
of a concern, but the color makes sense.
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