BXP (BXP) Citi’s 30th Annual Global Property CEO Conference 2025 summary

Opening remarks and investment rationale

• Largest public company focused on premier workplace segment, benefiting from return-to-office trends, especially on the East Coast and increasingly on the West Coast.

• Corporate earnings growth in 2024 and 2025 is boosting leasing activity as companies expand and hire.

• Premier workplace segment outperforms with lower vacancies and higher rents compared to the broader office market.

• Leasing activity in 2024 was 35% higher than 2023, approaching pre-pandemic levels.

• Limited lease rollover in 2026 and 2027, with smaller tenants increasing renewal prospects and supporting future occupancy and FFO growth.

Leasing environment and market dynamics

• 2024 saw 1.5 million sq ft of vacant space leased; 2025 target is around 2 million sq ft.

• Active lease negotiations in Q1 2025 total 1.6 million sq ft, with significant activity in Boston, New York, D.C., and the West Coast.

• East Coast markets, especially New York and Boston, show strong demand, while West Coast markets lag due to higher availability and less urgency.

• West Coast availability rates remain high (20%-30%), delaying a shift to a landlord's market.

Washington, D.C. and government impact

• Federal return-to-office mandates are increasing office demand and benefiting local businesses and contractors.

• Direct government leasing exposure is minimal, so reductions in GSA space have limited impact.

• Reston, VA, properties outperform with low vacancy and higher rents, driven by a strong ecosystem and contractor demand.

• Contractor leasing activity remains robust despite government efficiency initiatives.