1315_Nareit Testimonial Owen Thomas_2023-06-22_V2
06/27/2023
| by
Nareit Staff
Owen Thomas, chairman and CEO of BXP (NYSE: BXP), participated in a video interview at Nareit’s REITweek: 2023 Investor Conference, held in New York June 6-8.
Thomas discussed some of the broader factors facing the office sector today and what trends are likely to have the most impact on BXP longer term, as well as BXP’s access to the capital markets, and steps that BXP has taken to diversify into life science and residential real estate.
During the interview, Thomas noted that:
- “The sentiment around office is much, much worse than what we’re experiencing in the operations of our business.”
- “The office business is increasingly segmented between premiere workplaces and the balance of the office market.” Premiere buildings have an “extremely different” operating performance, research shows.
- Leasing volumes continue to be steady; BXP’s occupancy this year will be flat to “maybe up somewhat.”
- Clients are much more focused on the capital structure of the building and the landlord: “BXP sponsorship is increasingly distinctive as we’re working with clients.”
- BXP has access to “lots of different sources of capital.” The REIT currently has $3.2 billion in liquidity between its credit facility and cash on the balance sheet. “That can readily fund our capital needs over the next couple of years.”
- BXP intends to grow its presence in the life science real estate sector by developing and converting buildings that it already owns.