BXP Close to Signing Another Major Tenant at 343 Madison Avenue

BXP reported relatively steady earnings for the fourth quarter of 2025, all while the office-focused real estate investment trust moves forward with several large development projects.

BXP, whose portfolio now totals 52.6 million square feet across 179 properties, recorded funds from operations (FFO) of $1.76 per diluted share during the fourth quarter, compared to $1.74 per share the previous quarter and $1.79 per share during the same period in 2024, according to the REIT’s fourth-quarter earnings report released Wednesday.

Meanwhile, the firm’s quarterly revenue saw a big jump. BXP reported revenue of $877.1 million in the fourth quarter, an increase from $871.5 million in the third quarter and $858.6 million during the fourth quarter of 2024.

BXP’s net income also skyrocketed to $248.5 million in the fourth quarter, a significant rise from $121.7 million the previous quarter and an increase from $230 million during the same period in 2024, according to the earnings report.

The numbers come as the REIT works on several new developments, including three in New York City: a 1.8 million-square-foot office tower at 3 Hudson Boulevard; a residential and hotel project at Site K at 418 11th Avenue; and a 930,000-square-foot office tower at the former Metropolitan Transportation Authority headquarters at 343 Madison Avenue.

Scheduled for completion in 2029, 343 Madison has already secured a coveted anchor tenant. Insurance and investment giant C.V. Starr late last year signed a deal for roughly 275,000 square feet, or around 30 percent of all space at the development. 

And another large tenant lease at 343 Madison appears to be in the works. Owen Thomas, chairman and CEO of BXP, said during the Wednesday morning earnings call that the company is currently “negotiating a letter of intent for another 16 percent of the building, located just above Starr.”

It’s unclear who the new tenant might be, but Hilary Spann, executive vice president of BXP’s New York region, said the firm has seen “very strong demand from financial services tenants.”

“That is, very typically, an asset or wealth management business, or in some instances, more of a foreign bank-type tenancy,” Spann said during the call. “And they continue to come through at a pretty decent clip, looking at space in the podium of the building. We feel very good about where rents are trending for the building, and we will meet the market for rent, whatever that is, and we’ve had no trouble whatsoever meeting our pro forma on the terms that we’re negotiating with existing and prospective clients.”

As for BXP’s overall leasing performance during the fourth quarter, the company executed 87 leases totaling more than 1.8 million square feet during the period, according to the earnings report. BXP’s full-year 2025 leasing reached more than 5.5 million square feet. The company also has an additional 1.1 million square feet of lease deals in negotiation today, Douglas Linde, president at BXP, said during the Wednesday call.

Meanwhile, BXP is also working on big things in Washington, D.C. Just last month, the REIT acquired 2100 M Street NW for $55 million, with plans to demolish the existing office building and develop a new, approximately 320,000-square-foot office tower. Global law firm Sidley Austin already signed a lease for roughly 240,000 square feet of the future office building, which is expected to be delivered in 2031, Thomas said Wednesday.

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