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Boston Properties among REITs: Kind of a Big Deal

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A peek at company history

Boston Properties (BXP) was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde. Headquartered in Boston, the company is structured as an REIT (real estate investment trust) and completed an initial public offering in 1997. The company is now the largest publicly traded office REIT in the United States and is a part of the S&P 500 index.

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Business interests

Boston Properties is a fully integrated, self-administered, and self-managed REIT. The company is primarily engaged in the ownership, management, and development of class A office properties in the US. Although the company’s property portfolio mainly comprised class A office buildings, it also has an interest in residential, retail, and hotel properties.

Boston Properties has particular expertise in developing premium CBD (central business district) office buildings, office centers at suburban markets, and customized projects for clients like the US government and major corporate tenants.

Heavy hitters in office leasing

Boston Properties is one of the largest office REIT companies in the US, with a market capitalization of $19.3 billion. The company competes with a number of other office REITs in the US for rental properties. Competition in the office leasing space is mainly driven by factors such as the following:

  • the quality of properties and services provided to tenants
  • the attractiveness of leasing terms
  • location
  • the reputation of a company operating office properties

Major competitors of Boston Properties in the office REIT space include the following:

  • SL Green Realty Corporation (SLG)
  • Alexandria Real Estate Equities (ARE)
  • Kilroy Realty Corporation (KRC)
  • Douglas Emmett (DEI)
  • BioMed Realty Trust (BMR)
  • Highwoods Properties (HIW)
  • Paramount Group (PGRE)
  • Equity Commonwealth (EQC)
  • Columbia Property Trust (CXP)

The iShares Cohen & Steers REIT ETF (ICF) invests ~4.6% of its portfolio in Boston Properties.

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