Boston Properties, Inc. (NYSE:BXP) Q1 2023 Earnings Call Transcript

Helen Han: Why don’t we circle back to Hilary on 360 Park? Hilary?

Hilary Spann: Thanks, Helen. Can you guys hear me now? Okay. It’s Hilary Spann. I just wanted to add a little bit of color to the leasing activity in Midtown South at 360 in addition to what Doug has already described with regards to the pipeline that’s either out for signature or in negotiation. Last quarter, I told everyone that we thought that we would be seeing more demand from 50,000 to 75,000 square foot tenants leading into this year, and that largely proved itself to be correct. We are currently in discussions with five tenants that range from 25,000 square feet to 75,000 square feet at the building. But I think what is more interesting, and this is really just sort of a check on the spot market for leasing in Midtown South is that recently, we have toured 2 150,000 square foot tenant and one 200,000 square foot tenant for 360 Park Avenue South.

And we also toward just yesterday at Tenet that lumped to start at 30,000 square feet and potentially has growth to 100,000 square feet. So it seems that the demand profile is shifting a little bit again toward larger tenancy in the submarket. Obviously, that will take some time to play out as these tenants decide where they’re going to go and document transactions. But I think overall, it’s a positive signal for the market. And if I looked at all of that combined with what we’re trading paper and the tours that are in the market, that represents about 715,000 square feet of tenants that are in the market right now. So just wanted to share that in additional detail with you.

Operator: I’m showing no further questions in the queue. At this time, I would like to turn the call back over to Owen Thomas, CEO, for closing remarks.

Owen Thomas: Just want to thank everyone for your time, attention and interest in BXP. That concludes the call.

Operator: Thank you. This concludes today’s conference call. Thank you all for attending. You may all disconnect at this time