Dylan Burzinski

Marc said the redevelopment-acquired assets are being targeted at advanced technology tenants given ceiling heights and power access, with strong activity in Boston, San Francisco and Seattle. The 'other' bucket includes assets like Technology Square 200 needing capital upgrades.

Joel cautioned against using Q2 as a run rate, noting the life science/advanced tech mix makes historical comparisons difficult. Historically ~1M sqft per quarter has been common, but the current environment is different.

Marc said it is too early to predict retention rates on the remaining 1.5M sqft of 2027 expirations beyond the known vacates. For 2026 at Investor Day, they assumed 60%+ retention on normal-course expirations.

Joel clarified the shutdown is a prerequisite but not the sole driver. Hallie added that tour activity shows great companies looking but decisions remain elongated due to regulatory and macro uncertainty.

Joel stated the core strategy is to own more Megacampus rather than less, and the key plan is to rid the balance sheet of non-income-producing property and reduce non-core asset exposure.

Peter explained higher cap rates reflect transitional non-core assets with lease rollover risk, not core mega campus values.

Joel said headwinds are both macro (tariffs, rates, budget) and industry-specific (NIH, FDA, HHS), with agency heads making good decisions despite broader turmoil.

Peter noted TIs remain 50% above pre-COVID levels with turnkey demand the norm, but free rent and concessions are stabilizing and the team believes fundamentals are reaching bottom.

Peter said institutional capital wants life science exposure but has learned to focus on experienced operators like Alexandria rather than inexperienced developers.

Named the three remaining buckets (entitled land, stabilized apartments, unstabilized office) and said the cadence will slow.

Owen said room to improve on office visits and earnings growth is the primary leasing driver, with 2026 corporate earnings growth accelerating above 2025. Doug differentiated: financial services and legal expansion is genuine headcount growth not return-to-office. Jake noted Reston defense/cybersecurity demand driven by tech talent concentration.

Owen said BXP is being patient with preliminary conversations from inbound interest. Asset is appreciating with leasing success and improving markets. Capital commitment should match equity raise timing, with draws accelerating in 2026. Doug noted the three objectives (earnings growth, fund 343, reduce leverage) all support finding a partner.

Doug confirmed 90%+ is the expectation with signed leases not yet commenced, pipeline activity focused on 2026-2027 expirations which are very low, and sustained leasing volume supporting meaningful occupancy gains.

Doug differentiated SF CBD (minimal incremental downsizing) from Silicon Valley (large tech still has excess capacity). Hilary noted large tech stable in Manhattan with Meta taking sublease space off market. Bryan cited Boston clients needing more focused work areas.

Doug confirmed rents rising in Midtown and Back Bay, with double-digit increases on Park Avenue. Cautioned against expecting portfolio-wide rental rate increases. Mike noted no new supply coming in 2026-2027.