BXP Posts 4.6% Revenue Gain in Q3 After Two Major Sales
The REIT also provided leasing updates at its 343 Madison Avenue office development
By Isabelle Durso October 28, 2026 12:54 pm
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BXP, the largest Class A office owner in the U.S., surpassed revenue estimates during the third quarter of 2026, following a couple of large sale transactions during the period.
The real estate investment trust (REIT) reported revenue of $911.4 million for the quarter ending Sept. 30, a 4.6 increase from $871.5 million during the same three-month period last year and a rise from $895.7 million during the second quarter of this year, according to BXP’s third-quarter earnings report released Wednesday.
During the third quarter, BXP completed the sales of Sumner Square and 1330 Connecticut Avenue in Washington, D.C., with the aggregate gross price of both office sales totaling approximately $155.4 million and resulting in aggregate net proceeds of approximately $150.3 million.
The REIT is also in the process of negotiating a contract to sell 7 Times Square, a 1.2 million-square-foot Class A office tower in Midtown Manhattan. BXP expects to get from $700 million to $750 million for the property.
Plus, in October, BXP completed the sale of a 10.6 percent stake in its under-development 46-story, 930,000-square-foot office tower at 343 Madison Avenue in Midtown Manhattan to AVRS Partners, as Commercial Observer reported.
BXP and AVRS Partners are common partners, as the firms share ownership in the General Motors Building at 767 Fifth Avenue. That property might soon see an occupancy dip from its current rate of 99.9 percent if law firm Weil, Gotshal & Manges — which takes up approximately 400,000 square feet at the GM Building — goes bankrupt following the departure of its incoming chair over the summer.
Douglas Linde, president of BXP, reinforced the GM Building’s nearly full occupancy and alluded to high office rents in Midtown when asked about the tenant during a Wednesday morning earnings call.
“The average office rent at 767 Fifth is under $150 per square foot,” Linde said. “There is a vast gap between where the in-place rent is at the General Motors Building and where we believe and perceive the market is.”
Overall on the leasing front, BXP executed 74 leases during the third quarter totaling approximately 1.2 million square feet, largely driven by demand from artificial intelligence, finance, legal and business services firms, according to BXP CEO Owen Thomas.
BXP executives said the firm has another 1.3 million square feet of leases in the pipeline, potentially including another lease at 343 Madison Avenue. Thomas said the firm is “in negotiations” with a tenant to take five floors of the property, which would bring the planned tower to nearly 70 percent pre-leased, following prior lease commitments by insurance and investment giant C.V. Starr and law firm McDermott Will & Schulte.
Meanwhile, BXP reported funds from operations (FFO) of $1.89 per diluted share during the third quarter, compared to $1.74 per share during the same period in 2025. The firm’s third-quarter FFO exceeded BXP’s midpoint guidance by 8 cents per share.
The REIT’s net income during the third quarter hit $114.5 million, compared to $121.7 million during the same period a year ago.
Isabelle Durso can be reached at idurso@commercialobserver.com.
