• BXP, Inc. announced that law firm McDermott Will & Schulte previously signed a lease for about 150,000 square feet at the under-construction 343 Madison Avenue in New York City, taking floors 31 through 37 with direct access to Grand Central Terminal’s Madison Concourse.
• This commitment, alongside Starr’s expanded lease and other agreements that bring the tower to 56% pre-leased, reinforces tenant interest in BXP’s large New York development despite the project’s long construction timeline.
• Next, we’ll examine how 343 Madison’s 56% pre-leasing, highlighted by McDermott’s lease, influences BXP’s investment narrative and future expectations.

Find 47 companies with promising cash flow potential yet trading below their fair value.

BXP Investment Narrative Recap

To own BXP, you need to be comfortable with a long term bet on premier office assets in gateway cities and a very large, capital intensive development pipeline. The McDermott lease at 343 Madison improves pre leasing at a key project but does not, by itself, remove the near term risk that new developments dilute headline occupancy and weigh on earnings if lease up or commencements lag guidance.

The most relevant recent data point here is BXP’s Q1 2026 update, where management guided to full year EPS of US$2.15 to US$2.29 after only recently returning to profitability. Against that backdrop, insider share sales over the last three months highlight that balance sheet capacity and interest coverage remain important watch items as BXP funds 343 Madison and other projects.

Yet behind the leasing wins at 343 Madison, investors still need to weigh the risk that interest coverage is tight enough that...

BXP's narrative projects $3.6 billion revenue and $358.7 million earnings by 2029. This requires 4.9% yearly revenue growth and about a $41.5 million earnings increase from $317.2 million today.

Uncover how BXP's forecasts yield a $69.05 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Some of the lowest estimate analysts were assuming revenue growth of only about 2.8 percent and earnings near US$278.6 million by 2029, so if you are comparing that cautious outlook with the potential uplift from 343 Madison and other projects, it is worth remembering that these views were set before this latest lease and may shift as the story evolves.

Explore 2 other fair value estimates on BXP - why the stock might be worth as much as 12% more than the current price!

Reach Your Own Conclusion

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your BXP research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free BXP research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate BXP's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.