BXP, Inc.

BXP’s moat is anchored in scarce, CBD trophy assets in supply-constrained submarkets, long-duration tenant relationships, development expertise, and operating scale across Boston, New York, Washington DC, Los Angeles, San Francisco, and Seattle.

Intangible assets and reputation: 65/100. The brand and trophy locations (for example 399 Park Avenue and Salesforce Tower SF JV exposure) support demand from financials, law firms, and tech when these tenants decide to be in core CBDs.

Switching costs: 70/100. Large tenants face significant relocation costs and disruption, and BXP’s average lease term was 7.6 years with 89.1% leased as of June 30, 2025, providing stickiness and time to manage rollover.

Efficient scale: 70/100 within targeted CBDs; BXP’s 53.7 million square feet and 186 properties confer leasing, construction, and operating advantages at the city level.

Cost advantages: 55/100. Historically, BXP’s investment-grade balance sheet lowered cost of capital relative to peers; recent rating outlooks and higher rates compress this benefit. Network effects: 20/100 (limited). While clustering increases tenant appeal, there is no true network effect.

Durability risks: hybrid work lowers aggregate demand, especially in San Francisco and parts of LA, while backfill economics can be negative on commenced leases. Reinvestment into high-quality redevelopments (360 Park Ave South) and new builds (343 Madison) can strengthen competitive position but require capital and successful lease-up.

Overall weighted moat score is moderated by the risk of long-term secular shifts in office usage and continued pressure on certain markets.