Owen Thomas, chairman and CEO of BXP (NYSE: BXP), sat down for a video interview during Nareit’s REITworld: 2025 Annual Conference in Dallas, Dec. 8–11.
Thomas described how BXP sees a clear shift in what modern office tenants value, driven by employers’ efforts to encourage employees back to the office through experience rather than mandates. Ease of commute has become critical, making proximity and access to transit a top priority. Tenants also increasingly value flexible meeting and conference space that can be used on demand rather than leased year-round.
BXP’s repositioning strategy reflects these priorities, Thomas noted. In urban markets, the company is heavily amenitizing assets with conference centers, clubs, food, and wellness offerings, exemplified by recent projects in San Francisco, Boston, New York, and Detroit. New developments, such as 343 Madison in Midtown Manhattan, are dedicating significant space to shared amenities to enhance collaboration and leasing appeal. In suburban markets, BXP is pursuing residential conversions where feasible, securing entitlements to sell land or develop apartment projects, particularly in Boston, Washington, D.C., and Los Angeles.
Market-wise, Midtown Manhattan has already rebounded, with tight class A availability, strong rent growth, and renewed development activity. BXP is also seeing strength in Boston’s Back Bay and Reston Town Center. Looking to 2026, BXP expects selective new office development to resume in top-tier markets and anticipates a gradual return of capital to the office sector as sentiment improves.