Real Estate

6 Months Ended

Jun. 30, 2023

Real Estate [Abstract]

Real Estate

3. Real Estate

BXP

Real estate consisted of the following at June 30, 2023 and December 31, 2022 (in thousands):

	June 30, 2023		December 31, 2022
Land	$	5,189,287	$	5,189,811
Right of use assets - finance leases	237,526		237,510
Right of use assets - operating leases	166,421		167,351
Land held for future development (1)	637,191		721,501
Buildings and improvements	16,054,447		15,820,724
Tenant improvements	3,345,766		3,200,743
Furniture, fixtures and equipment	53,181		50,310
Construction in progress	482,850		406,574
Total	26,166,669		25,794,524
Less: Accumulated depreciation	(6,568,568)		(6,298,082)
	$	19,598,101	$	19,496,442

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(1)Includes pre-development costs.

BPLP

Real estate consisted of the following at June 30, 2023 and December 31, 2022 (in thousands):

	June 30, 2023		December 31, 2022
Land	$	5,094,578	$	5,095,102
Right of use assets - finance leases	237,526		237,510
Right of use assets - operating leases	166,421		167,351
Land held for future development (1)	637,191		721,501
Buildings and improvements	15,782,891		15,547,919
Tenant improvements	3,345,766		3,200,743
Furniture, fixtures and equipment	53,181		50,310
Construction in progress	482,850		406,574
Total	25,800,404		25,427,010
Less: Accumulated depreciation	(6,448,665)		(6,180,474)
	$	19,351,739	$	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 six months ended June 30, 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.

On April 29, 2023, the Company completed and fully placed in-service 2100 Pennsylvania Avenue, a premier workplace project with approximately 476,000 net rentable square feet located in Washington, DC.

On June 1, 2023, the Company completed and fully placed in-service its View Boston Observatory at The Prudential Center, a redevelopment of the top three floors of 800 Boylston Street - The Prudential Center, located in Boston, Massachusetts. View Boston Observatory at The Prudential Center consists of approximately 63,000 net rentable square feet of retail, including food and beverage, and observation space.