Morningstar Rating

Stock Research and Analysis

by Todd Lukasik, CFA

Bulls Say

The strategy of owning quality buildings in great locations in select markets and management's willingness to sell assets into strong markets have served shareholders well across real estate cycles.
Boston Properties' assets have enjoyed relatively strong demand in both good economic times and bad, resulting in historical occupancy rates roughly 5 percentage points higher than its markets' averages.
Boston Properties' leases generally provide some protection in inflationary environments, through annual rent escalators and tenant reimbursements. Read more 

Bears Say

If unemployment remains elevated or job growth remains weak, demand for office space will remain tepid, pressuring rents and occupancy rates.
With significant levels of space either generally available or being developed in Boston Properties' core markets, tenants will retain the upper hand in lease negotiations.
It will be difficult for Boston Properties to earn appropriate returns on acquisitions in the low-rate environment. Read more 

Management

We think Boston Properties exhibits exemplary stewardship. In an industry where many view increased scale as a worthy goal in and of itself, Boston Properties has shown a penchant for placing value creation ahead of portfolio size. Specifically, it   Read more 

Profile

Boston Properties was founded in 1970 by Mortimer Zuckerman and Edward Linde. In the years since, the company has assembled a collection of roughly 125 office buildings,  Read more 

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