Nicholas Philip Yulico

Nicholas Philip Yulico asked if BXP expects to have largely addressed its vacant space by next quarter, given the projected occupancy build-out timeline and the significant leasing in the pipeline.

Answer

President Douglas Linde clarified that BXP's projections are annual, not quarterly, and expressed confidence in achieving 200+ basis point occupancy increases by the end of 2026 and 2027, driven by 1 million sq ft of signed leases starting in 2026 and strong activity at 360 Park Avenue South. EVP of New York Region Hilary Spann detailed that 360 Park Avenue South has six floors leased, with proposals out for nearly all other floors, and increased tour activity from diverse clients. CEO Owen Thomas added that some urban edge leases in Boston are in existing products requiring less build-out, anticipating 150,000-200,000 sq ft delivery next year.

Nicholas Philip Yulico asked about the progress on BXP's Investor Day occupancy build, specifically concerning the vacant space component, and whether the company anticipates declaring 'victory' on leasing up vacant space by year-end 2026.

Answer

Douglas Linde (President, BXP Inc) reiterated confidence in achieving the projected 200 basis point occupancy increase by the end of 2026, driven by a million square feet of signed leases commencing next year and strong activity at properties like 360 Park Avenue South. Hilary Spann (EVP of New York Region, BXP Inc) provided an update on 360 Park Avenue South, noting six floors leased and proposals out for nearly every other floor, with increasing tour activity from diverse client types. Owen Thomas (CEO, BXP Inc) added that some urban edge leases in Boston are in existing products requiring less build-out, anticipating 150,000-200,000 square feet delivered next year.