BXP Reports $1.1B+ in Dispositions, 3M-SF Leasing Pipeline in Office Real Estate Push

BOSTON — BXP (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, announced Monday that it has completed more than $1.1 billion in net disposition proceeds and assembled a 3.0 million square foot leasing pipeline, reporting strong progress toward the multi-year business plan it unveiled at its September 2025 Investor Day.

The business plan is designed to optimize BXP's premier workplace positioning and portfolio, with the overall goal of increasing funds from operations (FFO) growth per share and deleveraging the company's balance sheet. The firm said progress is on track to meet or exceed its stated targets.

Leasing Activity and Occupancy Targets

BXP completed more than 1.8 million square feet of leasing in the fourth quarter of 2025, representing approximately 114% of the company's historical Q4 leasing average. The activity carried a weighted average lease term of 10.1 years and included 425,000 square feet of leasing on currently vacant space and 620,000 square feet tied to expirations through year-end 2027. Portfolio occupancy rose 70 basis points to 86.7% occupied, or 89.4% leased, as of the end of Q4 2025.

Quarter-to-date in early 2026, BXP said it has executed approximately 600,000 square feet of new leases, with an additional 1.0 million square feet currently in negotiation and 1.4 million square feet in the proposal stage. Of the total 3.0 million square foot pipeline, approximately 1.5 million square feet targets currently vacant space and 820,000 square feet addresses space expiring through 2027.

The company is targeting 89% occupancy (91% leased) by the end of 2026, with further improvement to 91% occupied (93% leased) by the end of 2027.

$1.1B+ in Dispositions Drive Portfolio Optimization

As part of its strategic sales program targeting $1.9 billion in net proceeds over three years, BXP has completed dispositions generating total net proceeds of more than $1.1 billion. The firm said additional dispositions expected in 2026 would bring estimated total net proceeds to approximately $1.25 billion.

Completed dispositions include:

• Eight suburban land parcels across the Boston, San Francisco, and Washington, D.C. regions, generating aggregate net proceeds of approximately $250 million.
• Three residential towers in Boston and Cambridge, Massachusetts, and Reston, Virginia, generating aggregate net proceeds of approximately $460 million.
• Three non-core office and lab properties in Needham, Massachusetts; South San Francisco, California; and Washington, D.C., generating aggregate net proceeds of approximately $397 million.

External Growth Through Development

BXP is also pursuing external growth through premier workplace developments in core markets. The firm launched 343 Madison Avenue in New York City, a 930,000-square-foot office development that is 29% pre-leased, including a 275,000-square-foot commitment from Starr. The project is targeting an unleveraged cash return of 7.5% to 8.0% by 2029.

In Washington, D.C., BXP is advancing 725 12th Street, which the company reported is 79% pre-leased. The firm also disclosed a residential development pipeline of approximately 1,400 units currently underway and more than 5,000 units entitled for future development.

Business Plan Designed for FFO Growth and Deleveraging

BXP's multi-year plan centers on three pillars: increasing occupancy across its premier portfolio, optimizing the portfolio through strategic asset sales, and pursuing selective external growth through development. The firm's portfolio is concentrated in coastal gateway markets including Boston, New York City, San Francisco, and Washington, D.C.

BXP said it will continue to provide updates on execution against the business plan as the year progresses.