Boston Properties (BXP) Declares Net-Zero Lease for Needham Asset
Boston Properties' (BXP) long-term lease commitment with Wellington Management marks the first Net Zero, Carbon Neutral office repositioning on a large scale in Massachusetts.
Boston Properties, Inc. BXP recently announced a long-term, net zero lease commitment with Wellington Management for a 106,000-square feet space at 140 Kendrick Street in Needham, MA. With this commitment, BXP will reposition the premises as Net Zero, Carbon Neutral per LEED Zero Carbon Certification.
Notably, 140 Kendrick Street is a 440,000-square-foot multi-building complex, consisting of three interconnected office buildings. Wellington Management will lease the entire Building A. The multi-building complex provides the Exchange amenity center, shared conference facilities, a full-service cafe, boutique fitness studio and structured parking.
The property is also conveniently located and easily accessible through Route 128/I-95, Route 2, and I-90. This is likely to lure a large number of tenants at this property.
The move will mark the first Net Zero, Carbon Neutral office repositioning on a large scale in Massachusetts. The repositioning will comprise a deep energy retrofit, full electrification of gas-fired systems, HVAC modernization consisting advanced heat recovery, and onsite renewable energy generation from a solar photovoltaic system to exceed annual consumption.
The latest lease will boost occupancy level at Boston Properties’ property and fuel revenue growth from rental income.
In September, Boston Properties signed a 10-year lease renewal and expansion agreement with Wellington Management at Atlantic Wharf. The long-term agreement for 524,000 square foot will commence in 2026. It also includes a 66,000-square-foot expansion within the building, which will commence in 2022.
Per management, “Wellington Management’s commitment at 140 Kendrick Street is a continuation of the success we built at Atlantic Wharf through the development of Boston’s First Green Skyscraper. We look forward to continuing our longstanding partnership through this extraordinary net zero project.”
However, the overall choppy environment for the office real-estate market remains a concern for Boston Properties, which has a concentration of office assets in six markets, namely Boston, Los Angeles, New York, San Francisco, Seattle and Washington, D.C.
Boston Properties currently carries a Zacks Rank #3 (Hold). In the past three months, BXP’s shares have gained 2%, underperforming the industry’s increase of 5.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Note: Anything related to earnings presented in this write-up represent FFO — a widely used metric to gauge the performance of REITs.
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Boston Properties, Inc. (BXP): Free Stock Analysis Report
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