Boston Properties says office leasing activity ‘substantially higher’ now (NYSE:BXP)

Boston Properties (NYSE:BXP) talked up its office leasing activity, noting it is “substantially higher” now than at any point over the past four quarters, management said at the Nareit REITweek conference on Tuesday.

“We are effectively eating a bigger piece of the pie,” they said of the current distressed office market. “The pie isn’t necessarily getting larger, but we are getting a far larger share of it, and that’s sort of how we expect we will gain occupancy over the next couple of years.”

BXP’s portfolio has been stable over the last couple of years, they added, even as office real estate broadly remains at a standstill. The company isn’t dealing with the lack-of-lending issue, as “the vast majority of our borrowings are in the investment-grade unsecured market, which we have ready access to, whenever we need it.

There are some upshots for the wider office CRE market going forward, including the potential for big tech companies to come off the sidelines.

“We do believe that long-term, the tech industry will be a sort of marginal generator of demand for office space in New York,” management said.

BXP edged up 0.6% in Tuesday midday trading.