Life Sciences Exit Drives BXP’s West Coast Portfolio Shift

BXP exits West Coast life sciences market, redirecting capital to office and multifamily projects in Boston, NYC, and D.C.

January 30, 2026

Jordan B.

BXP has divested its last West Coast life sciences asset, exiting the regional market class entirely.
The exit is part of a $1.9B disposition plan focused on debt reduction and new project funding.
BXP is redeploying capital toward office and multifamily construction, especially in Boston, New York, and Washington, D.C.
The REIT’s Q4 2025 saw 1.8M SF leased but missed earnings due to tenant defaults.

Key Takeaways

Strategic Asset Shifts

According to Bisnow, BXP has sold its final life sciences property on the West Coast, completing its withdrawal from the region’s lab market. The Boston-based office REIT offloaded its 50% stake in the 793KSF Gateway Commons in South San Francisco, a move aligned with its initiative to reallocate capital away from select assets nationwide.

This transaction, part of a $1.9B asset sale plan, supports BXP’s aim to reduce debt and fund new office and multifamily developments. The disposition enabled BXP to avoid potentially long market recoveries amid high life sciences vacancy and limited near-term upside.

Unlocking Capital for Growth

BXP gained $65.6M from the Gateway Commons sale and an office sale in Massachusetts. This came despite a $145.1M impairment tied to earlier write-downs. CEO Owen Thomas expressed confidence in Greater Boston’s life sciences market. BXP still holds key assets there, including the fully leased 290 Binney St. project in Cambridge. AstraZeneca occupies the entire building.

Recent sales also included land deals to a range of buyers. These helped offset weaker pricing for some office assets trading at higher cap rates. BXP is channeling the capital into major developments. These include the $2B, 930KSF tower at 343 Madison Ave. in New York. The Midtown site continues to attract anchor tenants as leasing momentum builds, with Starr Insurance already committing to 275KSF and more deals under negotiation.

Development and Leasing Pipeline

The REIT is advancing new office and multifamily projects across core markets. Construction on a 320KSF office at 2100 M St. NW in Washington, D.C., preleased to Sidley Austin, will begin in 2028. In multifamily, over 1,400 units are under construction with entitlements being pursued for an additional 3,500 residential units.

BXP also plans to convert two Santa Monica office buildings to 385 residential units, believing this sector offers superior long-term value compared to office at that location.

Why It Matters

Life sciences exit and ongoing asset sales highlight BXP’s active management response to shifting CRE fundamentals. The company’s strategy points to increasing focus on multifamily and tailored office projects in strong markets, as it navigates sector headwinds and positions for future growth.