Boston Properties (NYSE: BXP) Downgraded by Piper Sandler, Updates on Midtown Manhattan Development

• Piper Sandler downgraded Boston Properties (NYSE: BXP) from Overweight to Neutral, setting a $64 price target.
• Boston Properties sold a 10.6% equity interest in its 343 Madison Avenue development to AVRS Partners.
• The 343 Madison Avenue office tower, with an estimated $2 billion cost, has secured significant leases covering about 930,000 square feet at reported rents of $200 per square foot.

Boston Properties (NYSE: BXP), an office property developer, has a $64 price target from Piper Sandler. That is about 8.1% above the stock’s $59.20 share price at the time. Piper Sandler also downgrades Boston Properties from Overweight to Neutral, meaning it no longer expects the stock to outperform its peers.

Boston Properties has sold a 10.6% equity interest in its 343 Madison Avenue development in Midtown Manhattan to AVRS Partners, a New York real estate investment firm. The companies do not disclose the sale price, so the transaction’s direct financial impact is unclear.

The 46-story office tower is under construction, with work at the podium level. The project has an estimated cost of $2 billion, a $1.2 billion construction loan secured in September 2026, and an expected completion date in 2029. A construction loan provides funding while a building is being developed.

Insurance company Starr and law firm McDermott Will & Schulte have leased about half of the tower’s 930,000 square feet. Rents are reportedly around $200 per square foot, as highlighted by the New York Post. These leases give Boston Properties committed tenants before construction is complete.

Boston Properties trades at $59.20, down $0.49, or 0.82%, for the day. Its shares have traded between $49.72 and $74.96 over the past year. The company’s market capitalization, the value of all its outstanding shares, is approximately $9.45 billion.