BXP’s Income Drops, But Leasing Momentum Jumps 25% Year-Over-Year

BXP saw its income and funds from operations drop year-over-year in the first quarter, even as leasing momentum increased. 

Net income for BXP was $61.2 million, or 39 cents per diluted share for the first quarter, below the $79.9 million, or 51 cents per diluted share, reported for the same quarter in 2024. Funds from operations came in at $260.6 million for the quarter, or $1.64 per diluted share, versus the $271.3 million, or $1.73 per diluted share, the company saw in the first quarter of 2024. 

Despite the year-over-year earnings dip, BXP reported a 3.1 percent rise in revenue when compared to the same quarter in 2024. And the total space leased in the first quarter of 2025 was over 1.1 million square feet, a 25 percent year-over-year jump.

Overall, BXP executed 91 leases in the first quarter. Notable deals included the 244,000-square-foot lease by global law firm Goodwin at 200 Fifth Avenue in New York City, and a 126,000-square-foot pre-lease by California-based law firm Cooley at 725 12th Street NW in Washington, D.C. The firm also leased over 260,000 square feet across San Francisco. 

During Wednesday’s earnings call, Owen Thomas, CEO of BXP, described the company’s current leasing pipeline as “robust,” noting that uncertainty in the market had little impact on this activity and tenants are staying put. 

“Our primary concern has been that our clients may delay or terminate space requirements due to the more uncertain operating environment,” Owen said during the call. “This has not happened. To date, only a single 8,000-square-foot prospective user declined to move forward due to market conditions.” 

BXP said keeping that leasing momentum going will be a critical focus this year. In the coming 12 months, the company expects to hit its goal of about 4 million square feet of leasing, which includes about 3 million square feet of leasing on vacant space, Douglas Linde, president and director at BXP, said during the call. The firm’s current pool of leases in negotiation is about 1.1 million square feet, he noted. 

“This 1 million square feet of leasing activity on our near-term exposure, vacant space, and 2025 expirations will drive improvements to our occupancy over the next 12 to 18 months,” Linde said.

Amanda Schiavo can be reached at aschiavo@commercialobserver.com.