Real Estate

3 Months Ended

Mar. 31, 2023

3. Real Estate

BXP

Real estate consisted of the following at March 31, 2023 and December 31, 2022 (in thousands):


	March 31, 2023		December 31, 2022
Land	$	5,189,287	$	5,189,811
Right of use assets - finance leases	237,503		237,510
Right of use assets - operating leases	166,699		167,351
Land held for future development (1)	626,137		721,501
Buildings and improvements	15,783,962		15,820,724
Tenant improvements	3,291,322		3,200,743
Furniture, fixtures and equipment	50,242		50,310
Construction in progress	618,770		406,574
Total	25,963,922		25,794,524
Less: Accumulated depreciation	(6,424,547)		(6,298,082)
	$	19,539,375	$	19,496,442

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(1)Includes pre-development costs.

BPLP

Real estate consisted of the following at March 31, 2023 and December 31, 2022 (in thousands):


	March 31, 2023		December 31, 2022
Land	$	5,094,578	$	5,095,102
Right of use assets - finance leases	237,503		237,510
Right of use assets - operating leases	166,699		167,351
Land held for future development (1)	626,137		721,501
Buildings and improvements	15,512,406		15,547,919
Tenant improvements	3,291,322		3,200,743
Furniture, fixtures and equipment	50,242		50,310
Construction in progress	618,770		406,574
Total	25,597,657		25,427,010
Less: Accumulated depreciation	(6,306,326)		(6,180,474)
	$	19,291,331	$	19,246,536

_______________

(1)Includes pre-development costs.

Developments/Redevelopments

On January 5, 2023, the Company commenced the development of 290 Binney Street, an approximately 566,000 net rentable square foot laboratory/life sciences project in Cambridge, Massachusetts. Concurrent with the commencement of this project, the Kendall Center Blue Parking Garage was taken out of service and demolished to support the development of this project. 290 Binney Street is 100% pre-leased to AstraZeneca.

On January 30, 2023, the Company commenced the redevelopment of 300 Binney Street at Kendall Center in Cambridge, Massachusetts. 300 Binney Street consisted of an approximately 195,000 net rentable square foot premier workplace that is being redeveloped into approximately 236,000 net rentable square feet of laboratory/life sciences space. BXP and BPLP recognized approximately $11.0 million of depreciation expense during the three months ended March 31, 2023 associated with the acceleration of depreciation on the assets being removed from service and demolished as part of the redevelopment of the property. The project is 100% pre-leased to the Broad Institute.