BXP Targets Third Washington, D.C., Trophy Office Project Amid Portfolio Reduction
BXP Targets Third Washington, D.C., Trophy Office Project Amid Portfolio Reduction
BXP is advancing plans for a third trophy office development in Washington, D.C., even as the real estate investment trust continues to reduce its overall asset base. Executives confirmed during the company’s second-quarter earnings call that they are negotiating a joint venture with an institutional owner to facilitate the new project.
The firm, recognized as the largest publicly traded developer, owner, and manager of premier workplaces in the United States, is targeting a lease commitment for the downtown D.C. site by the end of the year. This upcoming project would serve as a follow-up to two similar developments the REIT has undertaken in the city over the past two years. BXP Executive Vice President Pete Otteni indicated that the effort is being driven by inbound client interest in the district’s core market.
The strategy of adding new supply in D.C. comes while BXP is actively shrinking its portfolio elsewhere. By focusing on high-quality assets in gateway markets, the company aims to pivot away from lower-tier properties. BXP currently concentrates its operations in six dynamic markets: Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, D.C.
Shares of BXP reacted positively to the quarterly update, with the stock trading up 4.3% on the day. The stock previously closed at $69.96 and currently sits at $72.97, giving the company a market capitalization of approximately $12.34 billion.
What to watch
- Potential lease commitment: Look for an announcement regarding a signed tenant for the proposed D.C. joint venture by year-end.
- Asset sales: Monitor further updates on the disposition of non-core assets as the REIT continues to shrink its portfolio.
Source: original release