BXP Reports Solid Q2 Earnings as Midtown Development Launches Construction

Not only did BXP report solid earnings during the second quarter of 2025, but the REIT is also in the midst of three new developments in Manhattan.

BXP, whose portfolio totals 53.7 million square feet across 186 properties, recorded funds from operations (FFO) of $1.71 per diluted share in the second quarter, compared to $1.64 per share during the prior quarter and $1.77 per share during the same time last year, according to BXP’s second-quarter earnings report released Wednesday.

Meanwhile, the REIT’s revenue reached $868.5 million during the second quarter, up slightly from $865.2 million during the first quarter and $850.5 million during the same period last year, the report shows.

As for net income, BXP reported $89 million for the second quarter, compared to $61.2 million during the previous quarter and $79.6 million during the second quarter of 2024, according to the report.

Things were good on the leasing front as well, as BXP executed 91 leases during the second quarter totaling more than 1.1 million square feet, and recorded a total portfolio occupancy rate of 86.4 percent, the report shows.

“I would expect that over the next few quarters, [the number of deals in Midtown] will continue to get higher and higher,” Douglas Linde, president and director at BXP, said during a Wednesday morning earnings call. “From my perspective, the improvement in rents in Midtown Manhattan is real, and we are seeing double-digit annual increases in asking rents in our portfolio in Midtown.”

In addition to strong earnings, BXP is working on three development sites in New York City — one at 3 Hudson Boulevard in Hudson Yards, one at Site K at 418 11th Avenue, and one at the former Metropolitan Transportation Authority headquarters at 343 Madison Avenue.

On Wednesday, BXP announced it has started full vertical construction of 343 Madison Avenue, which will become a 46-story, 930,000-square-foot “premier workplace” with offices, restaurants, terraces and more.

The firm also said it has signed a letter of intent with a “prestigious, investment-grade financial institution” to anchor and occupy 30 percent, or 274,000 square feet, of the building, according to the announcement.

“We are thrilled to move forward with vertical construction of 343 Madison,” Owen Thomas, chairman and CEO at BXP, said in a statement. “At the best-positioned office development site in New York, BXP will deliver a premier workplace that represents a strong and significant value creation opportunity for BXP’s shareholders as well as a core long-term asset within our portfolio.”

Isabelle Durso can be reached at idurso@commercialobserver.com.