BXP Continues Winning Tenants' Confidence, Secures Another Renewal

BXP Inc. BXP recently announced that it has clinched a long-term lease renewal and expansion with Knitwell Group at 7 Times Square in New York City, NY.  The company is witnessing solid demand from its existing tenants. Last month, it secured a long-term lease renewal with Ropes & Gray, Boston’s largest law firm at the Prudential Tower in Boston, MA.The above renewals and expansions mark the tenants’ confidence in BXP’s service and commitment. They emphasize the fact that a growing number of tenants are scouting for quality office spaces in a bid to retain top talent by offering them co-existential forums for work and amenities for rejuvenation.The lease under consideration spans around 246,000 square feet over the next 20 years. It encompasses the renewal of the existing 191,000 square feet of premises and an expansion of an additional two full floors aggregating around 55,000 square feet.Located in Midtown Manhattan, 7 Times Square has undergone improvements with offerings of conferencing, lounge and café services to curate to the tenants’ requirements and provide the best-in-class experience. Its easy accessibility and reach make it an ideal office occupier.BXP Sees a Recovery in DemandThe return-to-office policies implemented by many companies, coupled with a relatively low unemployment rate and consistent job growth, are driving the demand for BXP's strategically located, high-quality office properties.In the third quarter of 2024, the company executed 74 leases totaling around 1.1 million square feet with a weighted average lease term of 7.2 years. A total of 3.3 million square feet of leasing was executed in the first three quarters of 2024, representing a 25% increase compared to the same period in 2023. With 2.7 million square feet of leases in its pipeline as of Sept. 30, 2024, BXP is well-positioned to navigate the current environment.Image Source: BXP Q3' 2024 Investor PresentationGoing forward, BXP’s high-quality office portfolio, impressive tenant roster, strategic capital allocation, healthy balance sheet and efforts to convert office buildings to laboratory spaces amid strong demand for life-science assets bode well for growth. However, the elevated supply of office properties in some markets is likely to fuel competition and weigh on its pricing power.Over the past six months, shares of this Zacks Rank #3 (Hold) company have risen 1.4% against the industry’s fall of 6.3%.Analysts seem bullish on this office REIT, with the Zacks Consensus Estimate for its 2025 funds from operations (FFO) per share being revised marginally northward over the past week to $7.13.Image Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks to consider from the broader REIT sector are OUTFRONT Media OUT and Cousins Properties CUZ, sporting Zacks Rank #1 (Strong Buy) and carrying Zacks Rank #2 (Buy), respectively, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for OUTFRONT Media’s 2025 FFO per share has been raised by 2.8% over the past two months to $1.86.The Zacks Consensus Estimate for Cousins Properties' 2025 FFO per share has moved northward marginally over the past month to $2.74.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BXP, Inc. (BXP): Free Stock Analysis Report Cousins Properties Incorporated (CUZ): Free Stock Analysis Report OUTFRONT Media Inc. (OUT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks