Owen Thomas, chairman and CEO of BXP, Inc. (NYSE: BXP), sat down for a video interview at Nareit’s REITweek: 2026 Investor Convention in New York, June 1-4.
Thomas mentioned leasing exercise continues to strengthen throughout all the REIT’s markets, led by New York Metropolis, with greater than 1 million sq. toes leased within the first quarter and over 800,000 sq. toes leased up to now within the second quarter. A pipeline of roughly 3.5 million sq. toes beneath letters of intent helps administration’s confidence in elevating occupancy from 87% to 89% in 2026 and by one other two share factors in 2027, he famous.
Thomas mentioned the talk round distant work has largely settled, with firms more and more requiring workplace attendance to enhance collaboration, coaching, tradition, and productiveness. He highlighted synthetic intelligence as essentially the most important driver of latest workplace demand, noting that AI firms are leasing area instantly, whereas additionally displacing different tenants that subsequently search new area in BXP’s buildings.
“With all this capital that is being invested in AI infrastructure, in energy, chips, et cetera, that is creating earnings for authorized firms, monetary service firms, enterprise service firms, and people have all been rising and really sturdy shoppers for us,” Thomas mentioned.
Thomas additionally mentioned how traders proceed to misconceive the workplace sector by specializing in total market emptiness charges relatively than what BXP calls the “premier office” phase. In response to Thomas, top-tier buildings are outperforming dramatically, with emptiness charges under 10%, rents greater than 50% greater than lower-quality properties, and constructive internet absorption. As a result of most of BXP’s portfolio falls into this class, he believes the corporate is nicely positioned to learn from the continuing flight to high quality.
