- Premium office demand is fueling BXP’s strong leasing activity, with over 1.8M SF leased in Q4 2025.
- BXP expects to sign at least 4M SF of office deals through 2026, supported by a robust pipeline.
- Office sales volume rose 20% in 2025, aided by increased investor interest in the premium office segment.
- BXP’s strategic asset sales are funding new development in core markets such as New York and Washington, D.C.
Leasing Momentum Grows
BXP, the largest US developer and owner of premium office space, closed more than 1.8M SF in deals during Q4 2025, reports CoStar. The company finished the year with over 5.5M SF leased, raising its portfolio occupancy to 92.5%. High-profile transactions, such as the lease with insurer Starr at 343 Madison Ave, highlight tenant preference for premium office demand over commodity space.
Focus on Top-Tier Space
The national office vacancy rate has plateaued at about 14%, with demand shifting to premium office properties in major markets. BXP reported that tenants are upgrading to superior buildings and signing longer leases, reflecting evolving workplace needs. The firm holds an additional 1.25M SF of signed but unoccupied leases, plus another 2.7M SF in its leasing pipeline.
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Sales and Investment Trends
Strong premium office demand and improved investor sentiment pushed office sales volume up 20% year-over-year in 2025. Recent months saw over $17.3B in office sales nationally. BXP aims to close more than $400M in dispositions in 2026, with proceeds earmarked for new developments and inventory upgrades focused on high-end office assets. One such project includes a newly secured office development deal in Washington, D.C., further reinforcing BXP’s presence in core markets.
Looking Ahead
BXP benefits from strong demand for premium office space and a solid pipeline of leases and deals. These factors help the company maintain high occupancy and steady revenue growth.
Office construction remains limited, but investor confidence continues to improve. As a result, BXP anticipates lasting strength in the premium office market through 2026.
