Its office development pipeline is already 70% preleased. The Metro Center and West End projects are approximately 90% and 75% preleased, respectively. Separately, 343 Madison is 56% leased; discussions for its bottom five floors could take that individual project to 70%.
BXP has completed $1.37 billion of a $1.9 billion disposition target through 2028. Four sales under contract would take the completed total to $1.45 billion if they close. It sold a 10.6% stake in 343 Madison this month and is seeking a joint venture partner for its D.C. project under construction.
This updates the October 15 Madison coverage with current expected yields and funding progress. Analysis: Preleasing and partner capital support the development strategy, but expected development yields cannot be compared with acquisition pricing without comparable asset quality, costs and capitalization rates.
Key Takeaways
- BXP expects development yields near 8% in New York and above 9% in D.C. The overall pipeline is already 70% preleased; a potential move from 56% to 70% applies only to 343 Madison.
Bisnow, October 28, 2026, BXP Execs See Better Returns In Building Offices Than Buying Them. Supports expected cash development yields around 8% New York and above 9% D.C.; 70% overall pipeline preleasing; Metro Center approximately 90%, West End 75%, and 343 Madison 56% with talks potentially taking Madison alone to 70%. Also supports $1.37B completed dispositions of a $1.9B target through 2028, $1.45B including four pending sales, 10.6% Madison stake sale, D.C. partner search, 930K SF Midtown and two 320K SF D.C. projects, Q3 revenue $911.4M up 4.6%, income $114.5M versus $121.7M prior loss, CBD occupancy 91.8% and total occupancy 89.4%. https://www.bisnow.com/news/national/office/why-bxp-is-funneling-money-into-office-development-over-acquisitions
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