BXP Reports Solid Earnings and Strongest Leasing Quarter Since 2019

It’s been a busy year for BXP, and it seems like the hard work is paying off.

BXP, whose portfolio totals 54.6 million square feet across 187 properties, recorded funds from operations (FFO) of $1.74 per diluted share during the third quarter of 2025, compared to $1.71 per share the prior quarter and $1.81 per share during the same period last year, according to BXP’s third-quarter earnings report released Wednesday.

Meanwhile, the REIT’s revenue beat estimates during the third quarter at $871.5 million, representing a 1.4 percent increase from the $859.2 million recorded during the same quarter in 2024, the report shows. That’s also an increase from its $868.5 million in revenue recorded last quarter.

The REIT’s net income also skyrocketed, hitting $121.7 million during the third quarter, compared to $89 million during the second quarter and $83.6 million during the same period last year, according to the report.

But BXP’s strongest results this quarter were on the leasing front. The firm announced Tuesday that it signed more than 1.5 million square feet of leases across 79 transactions during the third quarter, with a weighted average lease term of 7.9 years. The numbers represent BXP’s strongest third quarter of leasing since 2019, and a 38 percent increase since the same quarter in 2024, driven largely by strong leasing activity in New York City and Boston.

Following the milestone, leasing activity year-to-date for the firm totals approximately 3.8 million square feet.

“BXP continues to secure additional market share with our premier workplace portfolio,” Owen Thomas, chairman and CEO of BXP, said in a statement Tuesday. “Clients value our well-located, high-quality, highly amenitized properties, and continue to make long-term commitments to occupy our properties to support business success.”

Excluding third-quarter development deliveries, BXP’s portfolio during the third quarter was 89.2 percent leased, an increase of 10 basis points from the previous quarter, according to the report.

Most of that leasing activity was centered in New York City, where more than 475,000 square feet of leases were executed in Midtown Manhattan. BXP signed a large lease extension with an existing financial services client at 399 Park Avenue, as well as two full-floor deals at 360 Park Avenue South for AI-driven writing and communications support provider Grammarly and Dutch trading firm Optiver.

BXP also reached a tentative anchor deal this month at its $2 billion, 930,000-square-foot 343 Madison Avenue office development with insurance and investment giant C.V. Starr, which is set to take 30 percent of the building, or roughly 274,000 square feet. The REIT also said it’s in “active discussions with other prospective clients” at 343 Madison.

In addition, BXP leaders said during a Wednesday morning earnings call that BXP is looking for a financial partner to work with at 343 Madison.

“We want to grow our earnings, and that’s mostly through occupancy and deliveries of developments that are currently underway,” Douglas Linde, president and director at BXP, said during the call. “We want to fund 343 Madison, and we want to reduce our leverage. And so I think that our objectives in finding a partner sort of meet all of those requirements.”

Things are also going well on the sales transaction front, as the firm completed the sale of three land parcels for $42 million during the third quarter, and has additional properties under contract for $400 million, according to the report.

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