BXP, Inc.

BXP’s ability to push rents depends heavily on submarket health. Q3 2025 shows a bifurcated picture: executed leasing was strong with positive dynamics in Boston and New York, yet second-generation cash rent spreads on leases that commenced in Q3 were negative in several West Coast markets.

By region for Q3 2025 commenced leases, second-generation cash rents increased in New York (+8.1%) and Boston (+3.2%) but declined in San Francisco (−24.6%), Los Angeles (−41.0%), and Washington DC (−11.8%), for a weighted average of approximately −7.1%.

Positive spreads for executed deals indicate potential pricing tailwinds as newer contracts begin, but actual realized spreads at commencement reflect the current supply-demand balance. As utilization normalizes, BXP’s premier assets should retain above-market rent levels, yet broad-based pricing power is not evident across the portfolio today.

We view latent pricing power as medium in NYC/Boston and low in challenged West Coast CBDs.