BXP announced that it has secured more than 204,000 sq ft of new office space in San Francisco’s South Financial District, a move that brings the total new leasing volume to 204,000 sq ft across four tenants. Dropbox signed a 64,000‑sq‑ft lease at 50 Hawthorne, while Decagon, Swinerton Builders, and a software company each signed 35,000‑sq‑ft leases at 680 Folsom, and Decagon added an additional 70,000 sq ft at the same address. The new agreements bring 50 Hawthorne to full occupancy and push 680 Folsom to more than 90 % leased.
The San Francisco office market has been in a recovery phase, with CBRE reporting a 44 % increase in tech‑sector leasing between 2024 and 2025. AI‑driven companies are a key driver of this growth, and BXP’s focus on “premier workplaces” in dynamic urban gateway markets aligns with the demand for highly amenitized, transit‑oriented spaces. The new leases reinforce BXP’s repositioning strategy and demonstrate that its refreshed assets are resonating with high‑quality tenants.
These transactions underscore BXP’s ability to attract and retain significant tenants in a competitive market. The new leases are expected to contribute positively to future revenue and Funds from Operations (FFO) in the coming reporting periods, adding to the company’s occupancy momentum and reinforcing its competitive position in San Francisco. The deal also signals that BXP’s investment in property refreshes and strategic positioning is paying off, as the new tenants are among the most sought‑after in the region.
"The activity we're seeing across our San Francisco premier workplace portfolio reflects the continued flight to quality in the market. Today's companies prioritize highly amenitized, transit‑oriented workplaces that foster collaboration and authentically celebrate their culture. Our ongoing investment strategy is directly aligned with this demand, reinforcing the strength of our repositioning efforts and enhancing the competitiveness of our assets in dynamic submarkets like the South Financial District," said Christine Yuen, Senior Vice President, Leasing at BXP. "We're building for the long term and need a workplace that matches both our pace of growth and culture of innovation. Doubling down on San Francisco was a deliberate decision for us, and finding the right partner was crucial. BXP has been instrumental in this next chapter, helping us secure and create a space at 680 Folsom that supports not only how we work today but where we're going as we build the next world‑class enterprise technology company," added Chloe Mark, SVP Operations and People at Decagon.
BXP’s Q4 2025 earnings, released January 27 2026, showed revenue up 2.2 % year‑over‑year and FFO of $1.76 per diluted share, slightly below the midpoint of guidance due to non‑cash rent reserves and higher G&A costs. While the new leases are not yet reflected in that quarter’s financials, they are expected to strengthen future revenue streams and occupancy levels, supporting the company’s long‑term growth trajectory.
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