BXP (BXP) BofA NY Global Real Estate Conference 2026 summary

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, reflecting tenant urgency amid tight supply.

• Rents are rising sharply in key markets: Manhattan asking rents at 510 Madison have increased from $125 to $175–$200 per sq ft, and San Francisco's 680 Folsom from mid-$60s to mid-$80s.

• Boston and D.C. portfolios are nearly fully leased, with most new activity focused on future expirations.

• Spec suites are widely adopted, especially in San Francisco, accelerating lease-up and reducing downtime and capital costs.

AI and technology sector impact

• AI-driven demand is present but hard to quantify, with direct AI leases at 680 Folsom and spillover effects from tech firms like Dropbox relocating due to AI tenant expansion.

• San Francisco's tenant base is increasingly granular, dominated by fast-growing, VC-backed tech firms, with revenue growth cycles much shorter than in previous tech booms.

• Underwriting for tech and AI tenants focuses on financial backing, revenue models, and security deposits for startups.