Have you changed how you underwrite?

[Nathan Weber]

Throwing this out there because I like hearing opinions from the BP community. Has the current environment of inflation, cost of labor going up, supply issues and raising interest rates or anything else going on now, changed how you underwrite a deal?

[Spencer Gray]

We have increased our organic marker rent growth in earlier years to account for current inflation and have also increased our expense growth assumption from 2% to 3%. We're also starting with higher payrolls and higher rehab costs. 

We're also looking at more lower leverage fixed rate agency debt vs. floating bridge at the moment.