Boston Properties (BXP) Stock Forecast & Price Target

BXP is benefiting from improving fundamentals as occupancy is modeled to rise 70 bps in 2H26 and another 80 bps in 2027, while the leasing pipeline is said to exceed lease expirations and support a path toward 91% occupancy. The firm’s 2026 FFO estimate was raised to $7.05 per share, with normalized FFO at $7.07 per share, reflecting a stronger NOI run rate, gains on securities, and positive GAAP rent spreads this year and next. Demand from AI companies in San Francisco and New York, plus improving Life Science signals in Boston/Cambridge, reinforces the quality of its 164-property, 51.1 million-square-foot portfolio and supports the stock’s discounted valuation and 4.3% projected dividend yield.

BXP is exposed to a structurally challenged office market, with 164 properties totaling about 51.1 million rentable square feet concentrated in major U.S. gateway cities where demand remains sensitive to economic conditions and office-using employment trends. Its heavy reliance on office buildings, with only limited retail, hotel, and residential diversification, leaves cash flows vulnerable if occupancy does not improve steadily and if space absorption remains weak. A weaker-than-expected economy or a meaningful disruption in the office-using job market could pressure rental rates, slow leasing momentum, and undermine the portfolio’s ability to stabilize fundamentals.