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Key Takeaways BXP is expected to post slightly higher Q2 revenues, while FFO per share is projected to remain flat.BXP entered Q2 with 1.44M square feet of signed vacant-space leases and a 1.7M-square-foot pipeline.BXP may benefit from AI-driven leasing and office demand, though costs and interest expense remain headwinds. BXP, Inc. (BXP - Free Report) is slated to report second-quarter 2026 results on July 28, after market close. The company’s quarterly results are likely to display a year-over-year increase in revenues and no change in funds from operations (FFO) per share.In the last reported quarter, this office real-estate investment trust (REIT) reported FFO per share of $1.59, edging past the Zacks Consensus Estimate of $1.58. The quarterly results reflected healthy leasing activity and higher occupancy.
Over the preceding four quarters, BXP’s FFO per share surpassed the Zacks Consensus Estimate thrice and missed in the remaining period, the average beat being 0.49%. This is depicted in the graph below:
US Office Market in Q2Per a Cushman & Wakefield report, the U.S. office market continued to recover in the second quarter of 2026, with AI-driven business expansion emerging as a key catalyst for demand, particularly in major gateway markets. AI companies, along with law firms and other professional-services tenants, increasingly sought high-quality office space to support employee collaboration, productivity and growth.
Although quarterly net absorption was slightly negative at 360,000 square feet, the four-quarter rolling total rose to 14.3 msf — the strongest since 2020 and the seventh consecutive quarter of improvement. Demand was broad-based, with positive annual absorption in 60% of tracked markets.
Vacancy stabilized at 20.1%, while available sublease space fell 15% year over year and 28% from its first-quarter 2024 peak. Class A offices continued to outperform, with vacancy declining 50 bps year over year and four-quarter net absorption reaching 24.5 msf, the highest since mid-2020. This stronger demand also supported premium pricing, with Class A asking rents averaging $44.17 per square foot in second-quarter 2026, well above the $38.38 national average across all office classes.
Supply conditions also remain supportive. Office completions fell to a 14-year low, the construction pipeline stayed below 20 msf, while conversions, demolitions and repositioning surged. These trends should limit oversupply and support further improvement in premium office fundamentals.
BXP: Factors at Play and Q2 ProjectionsBXP’s second-quarter 2026 results are likely to benefit from strong demand for premier offices, return-to-office trends and AI-related leasing in San Francisco and New York. The company entered the quarter with 1.44 million square feet of signed vacant-space leases and a 1.7-million-square-foot negotiation pipeline, supporting further occupancy and rental growth.
However, elevated leasing costs, tenant concessions, redevelopment spending and higher interest expenses may have limited margin expansion.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $813 million, implying a marginal increase from the prior-year quarter’s reported number.
BXP’s activities in the to-be-reported quarter were inadequate in garnering analysts’ confidence. The Zacks Consensus Estimate for second-quarter FFO per share has remained unchanged at $1.71 over the past three months. It suggests no change from the year-ago quarter’s tally.
What Our Quantitative Model Predicts for BXPOur proven model predicts a surprise in terms of FFO per share for BXP this quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.
BXP has an Earnings ESP of +0.18% and currently carries a Zacks Rank of 3. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a LookHere are two other stocks from the broader REIT sector — Digital Realty Trust (DLR - Free Report) and Cousins Properties (CUZ - Free Report) — you may want to consider, as our model shows that these also have the right combination of elements to report an FFO beat this quarter.
Digital Realty is slated to report quarterly numbers on July 23. DLR has an Earnings ESP of +2.30% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cousins is slated to report quarterly numbers on July 30. CUZ has an Earnings ESP of +0.45% and a Zacks Rank of 3 at present.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.