Boston Properties (BXP) secures lease renewal and extension
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Boston Properties, Inc. BXP recently signed a 10-year lease renewal and extension agreement with Wellington Management at Atlantic Wharf. The long-term agreement for 524,000 square feet will begin in 2026. It also includes a 66,000 square foot extension within the building, which will begin in 2022. The lease reflects strong demand for the property located at 280 Congress Street, Boston, MA.
Located on Boston’s waterfront, this 790,000 square foot office tower features creative office space and residential units. It offers underground parking, a waterfront plaza and on-site shops including Nebo, Sorelle, Smith & Wollensky and Trade restaurants.
The property is also easily accessible from I-90 and I-93 as well as major commuter train, Amtrak, MBTA bus, and Boston subway stations. This probably prompted the tenant to opt for the renewal and extension of the lease for this property. Based at Atlantic Wharf since the building opened in 2011, Wellington will occupy 22 floors of the 31-story building.
The latest lease will increase the occupancy level of the Boston Properties property and fuel growth in income from rental income.
Despite a lackluster office real estate market scenario, the company has seen an increase in rental activity in recent quarters and has signed long-term leases with media, technology and consulting firms. In June, he signed a seven-year lease with a leading entertainment company for 351,000 square feet of space. He also signed a 140,000 square foot expansion lease at Santa Monica Business Park in Santa Monica, California with a technology company.
During the second quarter, the company signed 1.2 million square feet of leases with a weighted average term of 7.5 years.
In addition, with the further reopening of the economy and the distribution of vaccines at a faster pace, an increase in clerical jobs is expected in the coming months. In this context, Boston Properties’ portfolio of modern Class A office buildings is well positioned to benefit from the flight-to-quality preference of office tenants.
Year-to-date shares of this company Zacks Rank # 3 (Hold) have gained 17.7%, outperforming the industry rally by 15.7%. You can see The full list of today’s Zacks # 1 Rank (Strong Buy) stocks here.
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