BXP (BXP) investor relations material

Execution priorities and portfolio performance

• Leasing activity remains robust, with 3 million sq ft leased in H1 and 950,000 sq ft so far in Q3, driving occupancy toward a 2026 target of 89%.

• Asset sales have reached $1.3 billion, with $200 million under contract and $400 million in the market, progressing toward a $1.9 billion goal.

• Development pipeline includes 3.5 million sq ft and $3.2 billion in investment, with notable projects like 290 Binney Street (100% leased) and 343 Madison (56% leased, aiming for 70%).

• Portfolio adjustments focus on reducing suburban exposure and increasing residential entitlements, with several office-to-residential conversions underway.

Leasing trends and market dynamics

• Active lease negotiations have grown to 1.8 million sq ft, with significant early renewals extending into 2028–2030.

• Rents are rising sharply in key markets, with Manhattan and San Francisco seeing increases of 30–50% on lease rollovers.

• Boston and D.C. portfolios are nearly fully leased, with minimal near-term expirations.

• Tenants are increasingly seeking early renewals due to limited new supply, with some setting rents for leases starting as far out as 2032.

Sector and tenant demand shifts

• AI and tech-driven demand is fueling leasing in San Francisco and Seattle, with spillover effects benefiting other tenants.

• San Francisco has shifted to a tech-dominated market, with rapid revenue growth among smaller VC-backed firms.

• Underwriting for new tenants emphasizes financial strength, with larger deposits required for startups and strong backing for hard tech deals.