How Does the Starr Lease at 343 Madison Shape BXP's Growth Story?

Core Insights - BXP has secured a significant long-term lease with Starr at 343 Madison Avenue, enhancing its Midtown Manhattan portfolio and demonstrating ongoing tenant interest in modern office spaces [1][2][8] Company Developments - The lease agreement with Starr covers approximately 275,000 square feet, representing about 30% of the building, under a 20-year contract, which improves BXP's future cash flow visibility and reduces leasing risk [2][8] - 343 Madison Avenue is designed as a next-generation office building with a focus on sustainability, wellness, and amenities, aligning with BXP's strategy to upgrade its portfolio [3][6] Market Trends - The office real estate market is selective, with tenants favoring high-quality, well-located offices, particularly in Midtown Manhattan, which benefits landlords like BXP [5][6] - BXP reported strong leasing activity in Q3 2025, signing over 1.5 million square feet with a weighted-average lease term of 7.9 years, marking its best third quarter since 2019 [4] Financial Outlook - The lease with Starr reinforces BXP's positioning in a changing office market, improving income visibility and validating its focus on prime locations and modern design [6] - Analysts have slightly raised BXP's 2025 FFO per share estimates to $6.89, despite a 4.2% decline in shares over the past six months [7]