Item 2. Properties
Item 2. Properties.
At December 31, 2023, we owned or had joint venture interests in 188 commercial real estate properties, aggregating approximately 53.3 million net rentable square feet of primarily premier workplaces, including 10 properties under construction/redevelopment totaling approximately 2.7 million net rentable square feet. Our properties consisted of (1) 167 office and life sciences properties (including seven properties under construction/redevelopment), (2) 14 retail properties (including two properties under construction/redevelopment), (3) six residential properties (including one property under construction) and (4) one hotel. The table set forth below shows information relating to the properties we owned, or in which we had an ownership interest, at December 31, 2023, and it includes properties held by both consolidated and unconsolidated joint ventures.
Properties Location % Occupied as of December 31, 2023 (1)
Number
of
Buildings Net
Rentable
Square Feet
Office and Life Sciences
767 Fifth Avenue (The GM Building) (60% ownership)
New York, NY 91.6 % 1 1,966,490
200 Clarendon Street
Boston, MA 96.8 % 1 1,734,949
601 Lexington Avenue (55% ownership) New York, NY 95.9 % 1 1,670,790
399 Park Avenue
New York, NY 98.4 % 1 1,577,544
Salesforce Tower
San Francisco, CA 99.0 % 1 1,420,682
800 Boylston Street - The Prudential Center
Boston, MA 91.2 % 1 1,275,253
Times Square Tower (55% ownership)
New York, NY 95.6 % 1 1,238,461
100 Federal Street (55% ownership)
Boston, MA 90.6 % 1 1,233,537
Colorado Center (50% ownership) (2) Santa Monica, CA 87.8 % 6 1,131,511
Santa Monica Business Park Santa Monica, CA 83.8 % 14 1,108,201
599 Lexington Avenue
New York, NY 92.4 % 1 1,106,313
Reston Next Reston, VA 88.4 % 2 1,063,296
Bay Colony Corporate Center
Waltham, MA 53.6 % 4 1,001,068
250 West 55th Street
New York, NY 100.0 % 1 966,976
Embarcadero Center Four
San Francisco, CA 93.9 % 1 942,084
111 Huntington Avenue - The Prudential Center
Boston, MA 100.0 % 1 860,446
200 Fifth Avenue (26.69% ownership) (2) New York, NY 92.5 % 1 855,059
Embarcadero Center One
San Francisco, CA 72.8 % 1 837,386
Embarcadero Center Two
San Francisco, CA 84.5 % 1 801,840
Atlantic Wharf Office (55% ownership)
Boston, MA 99.8 % 1 790,165
Gateway Commons (50% Ownership) (2) South San Francisco, CA 79.7 % 5 788,148
Embarcadero Center Three
San Francisco, CA 77.1 % 1 787,642
Safeco Plaza (33.67% ownership) (2) Seattle, WA 85.3 % 1 779,776
Madison Centre Seattle, WA 78.2 % 1 754,988
7750 Wisconsin Avenue (50% ownership) (2) Bethesda, MD 100.0 % 1 735,573
Dock 72 (50% ownership) (2) Brooklyn, NY 42.4 % 1 668,521
100 Causeway Street (50% ownership) (2) Boston, MA 94.5 % 1 634,535
South of Market
Reston, VA 98.7 % 3 623,250
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Properties Location % Occupied as of December 31, 2023 (1)
Number
of
Buildings Net
Rentable
Square Feet
901 New York Avenue (25% ownership) (2) (3) Washington, DC 83.2 % 1 548,425
Mountain View Research Park
Mountain View, CA 60.7 % 15 542,264
Reservoir Place
Waltham, MA 43.8 % 1 527,029
680 Folsom Street
San Francisco, CA 98.7 % 2 524,793
Fountain Square
Reston, VA 87.0 % 2 524,638
101 Huntington Avenue - The Prudential Center
Boston, MA 98.7 % 1 506,476
145 Broadway
Cambridge, MA 99.6 % 1 490,086
2100 Pennsylvania Avenue Washington, DC 65.3 % 1 475,849
2200 Pennsylvania Avenue
Washington, DC 94.9 % 1 459,811
One Freedom Square
Reston, VA 82.8 % 1 427,956
Two Freedom Square
Reston, VA 100.0 % 1 423,222
140 Kendrick Street (4) Needham, MA 84.4 % 3 418,600
Market Square North (50% ownership) (2) Washington, DC 77.0 % 1 418,549
325 Main Street Cambridge, MA 91.4 % 1 414,565
The Hub on Causeway - Podium (50% ownership) (2) Boston, MA 93.8 % 1 382,988
One and Two Discovery Square
Reston, VA 89.7 % 2 366,989
888 Boylston Street - The Prudential Center
Boston, MA 100.0 % 1 363,320
Weston Corporate Center
Weston, MA 100.0 % 1 356,995
510 Madison Avenue
New York, NY 98.7 % 1 355,089
One Reston Overlook
Reston, VA 89.7 % 1 319,519
535 Mission Street
San Francisco, CA 67.9 % 1 307,235
Wisconsin Place Office
Chevy Chase, MD 64.2 % 1 302,858
Waltham Weston Corporate Center
Waltham, MA 82.4 % 1 301,611
230 CityPoint
Waltham, MA 94.6 % 1 296,720
17Fifty Presidents Street
Reston, VA 100.0 % 1 275,809
200 West Street Waltham, MA 94.5 % 1 273,365
125 Broadway Cambridge, MA 100.0 % 1 271,000
Reston Corporate Center
Reston, VA 100.0 % 2 261,046
355 Main Street
Cambridge, MA 99.3 % 1 259,640
Democracy Tower
Reston, VA 99.3 % 1 259,441
1330 Connecticut Avenue
Washington, DC 87.4 % 1 253,579
880 Winter Street Waltham, MA 98.5 % 1 243,618
10 CityPoint
Waltham, MA 100.0 % 1 236,570
510 Carnegie Center Princeton, NJ 33.5 % 1 234,160
500 North Capitol Street, N.W. (30% ownership) (2) Washington, DC 98.5 % 1 230,900
751 Gateway (49% ownership) (2) South San Francisco, CA 100.0 % 1 230,592
90 Broadway
Cambridge, MA 98.1 % 1 223,771
Sumner Square
Washington, DC 90.7 % 1 219,412
255 Main Street
Cambridge, MA 87.9 % 1 215,394
20 CityPoint
Waltham, MA 98.1 % 1 211,476
77 CityPoint
Waltham, MA 97.8 % 1 209,711
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Properties Location % Occupied as of December 31, 2023 (1)
Number
of
Buildings Net
Rentable
Square Feet
University Place
Cambridge, MA 100.0 % 1 195,282
North First Business Park (5) San Jose, CA 87.6 % 5 190,636
890 Winter Street Waltham, MA 56.6 % 1 179,312
150 Broadway
Cambridge, MA 100.0 % 1 177,226
Capital Gallery Washington, DC 80.8 % 1 176,809
206 Carnegie Center
Princeton, NJ 100.0 % 1 161,763
210 Carnegie Center
Princeton, NJ 79.2 % 1 159,468
Kingstowne Two
Alexandria, VA 77.4 % 1 156,005
Kingstowne One
Alexandria, VA 34.2 % 1 153,601
105 Broadway
Cambridge, MA 100.0 % 1 152,664
212 Carnegie Center
Princeton, NJ 69.2 % 1 148,942
214 Carnegie Center
Princeton, NJ 65.9 % 1 146,799
2440 West El Camino Real
Mountain View, CA 71.5 % 1 142,789
506 Carnegie Center
Princeton, NJ 82.1 % 1 139,050
153 & 211 Second Avenue Waltham, MA — % 2 136,882
Two Reston Overlook
Reston, VA 100.0 % 1 134,615
508 Carnegie Center
Princeton, NJ 100.0 % 1 134,433
202 Carnegie Center
Princeton, NJ 84.9 % 1 134,068
804 Carnegie Center
Princeton, NJ 100.0 % 1 130,000
504 Carnegie Center
Princeton, NJ 100.0 % 1 121,990
101 Carnegie Center
Princeton, NJ 100.0 % 1 121,619
502 Carnegie Center
Princeton, NJ 94.4 % 1 121,460
1265 Main Street (50% ownership) (2) Waltham, MA 100.0 % 1 120,681
701 Carnegie Center
Princeton, NJ 100.0 % 1 120,000
104 Carnegie Center
Princeton, NJ 63.8 % 1 102,930
103 Carnegie Center
Princeton, NJ 73.5 % 1 96,331
33 Hayden Avenue
Lexington, MA 100.0 % 1 80,876
Shady Grove Innovation District (6) Rockville, MD 75.9 % 1 78,915
Reservoir Place North
Waltham, MA 100.0 % 1 73,258
32 Hartwell Avenue
Lexington, MA 100.0 % 1 69,154
250 Binney Street
Cambridge, MA 100.0 % 1 67,362
302 Carnegie Center
Princeton, NJ 100.0 % 1 64,926
100 Hayden Avenue
Lexington, MA 100.0 % 1 55,924
211 Carnegie Center
Princeton, NJ 100.0 % 1 47,025
92 Hayden Avenue
Lexington, MA 100.0 % 1 31,100
17 Hartwell Avenue
Lexington, MA 100.0 % 1 30,000
453 Ravendale Drive
Mountain View, CA 100.0 % 1 29,620
690 Folsom Street
San Francisco, CA 100.0 % 1 26,080
201 Carnegie Center
Princeton, NJ 100.0 % — 6,500
Subtotal for Office and Life Sciences Properties 88.3 % 160 47,935,650
Retail
The Prudential Center (retail shops) (7) Boston, MA 95.5 % — 485,211
Fountain Square Retail Reston, VA 87.6 % 1 198,225
Kingstowne Retail Alexandria, VA 100.0 % 1 88,288
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Properties Location % Occupied as of December 31, 2023 (1)
Number
of
Buildings Net
Rentable
Square Feet
Santa Monica Business Park Retail Santa Monica, CA 88.4 % 7 74,404
Star Market at the Prudential Center Boston, MA 100.0 % 1 57,236
Avant Retail Reston, VA 100.0 % 1 26,179
The Point Waltham, MA 100.0 % 1 16,300
Subtotal for Retail Properties 94.2 % 12 945,843
Residential
Signature at Reston (508 units)
Reston, VA 96.5 % 1 517,783
The Skylyne (402 units) Oakland, CA 86.1 % 1 330,996
Hub50House (440 units) (50% ownership) (2) Boston, MA 95.0 % 1 320,444
Proto Kendall Square (280 units)
Cambridge, MA 96.1 % 1 166,717
The Lofts at Atlantic Wharf (86 units)
Boston, MA 93.0 % 1 87,096
Subtotal for Residential Properties
93.4 % (8) 5 1,423,036 (9)
Hotel
Boston Marriott Cambridge (437 rooms)
Cambridge, MA 72.8 % (10) 1 334,260 (11)
Subtotal for Hotel Property 72.8 % 1 334,260
Subtotal for In-Service Properties
88.4 % 178 50,638,789
Properties Under Construction/Redevelopment (12)
Office
360 Park Avenue South (redevelopment) (71% ownership) (2) (13) New York, NY 18.0 % 1 450,000
Reston Next Office Phase II Reston, VA 4.3 % 1 90,000
Laboratory/Life Sciences
103 CityPoint Waltham, MA — % 1 113,000 (14)
180 CityPoint Waltham, MA 43.0 % 1 329,000 (15)
300 Binney Street (redevelopment) (55% ownership) Cambridge, MA 100.0 % 1 236,000
651 Gateway (redevelopment) (50% ownership) (2) South San Francisco, CA 21.0 % 1 327,000
290 Binney Street Cambridge, MA 100.0 % 1 566,000
Residential
Skymark - Reston Next Residential (508 units) (20% ownership) (2) Reston, VA — % 1 417,000
Retail
760 Boylston Street (redevelopment) Boston, MA 100.0 % 1 118,000
Reston Next Retail Reston, VA — % 1 33,000
Subtotal for Properties Under Construction/Redevelopment 53.5 % (16) 10 2,679,000
Total Portfolio 188 53,317,789
_______________
(1) Represents signed leases for in-service properties for which revenue recognition has commenced in accordance with accounting principles generally accepted in the United States (“GAAP”).
(2) Property is an unconsolidated joint venture.
(3) Our economic ownership has increased based on the achievement of certain return thresholds. At December 31, 2023, our economic ownership was approximately 50%. On January 8, 2024, our joint venture partner in 901 New York
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Avenue transferred all of its ownership interest in the joint venture to us for a gross purchase price of $10.0 million (See Note 17 to the Consolidated Financial Statements).
(4) On July 20, 2023, we completed and fully placed in-service 140 Kendrick Street - Building A, a redevelopment project with approximately 104,000 net rentable square feet in Needham, Massachusetts.
(5) Property is held for redevelopment.
(6) Property is held for redevelopment. Shady Grove Innovation District consists of 15825 Shady Grove Road. 2092 Gaither Road and 2098 Gaither Road were removed from in-service portfolio during 2023 and aggregated approximately 103,375 square feet.
(7) Excludes 760 Boylston Street, the stand-alone building consisting of approximately 118,000 square feet at The Prudential Center (retail shops) that was placed in redevelopment during the year ended December 31, 2022.
(8) Percentage leased is not included in the calculation of the Total Portfolio occupancy rate for In-Service Properties as of December 31, 2023.
(9) Includes 61,511 square feet of retail space that is approximately 79.2% leased as of December 31, 2023. This amount is not included in the calculation of the Total Portfolio occupancy rate for In-Service Properties as of December 31, 2023.
(10) Represents the weighted-average room occupancy for the year ended December 31, 2023. This amount is not included in the calculation of the Total Portfolio occupancy rate for In-Service Properties as of December 31, 2023.
(11) Includes 4,260 square feet of retail space that is 100% leased as of December 31, 2023. This amount is not included in the calculation of the Total Portfolio occupancy rate for In-Service Properties as of December 31, 2023.
(12) Represents percentage leased as of February 20, 2024, including leases with future commencement dates.
(13) On December 14, 2023, we acquired an additional 29% ownership interest in the property, which has increased our total ownership to approximately 71% (See Note 6 to the Consolidated Financial Statements).
(14) The property was 4% placed in-service as of December 31, 2023.
(15) The property was 46% placed in-service as of December 31, 2023.
(16) Total percentage leased excludes Residential.
Percentage Occupied and Average Annualized Revenue per Square Foot for In-Service Properties
The following table sets forth our percentage leased and average annualized revenue per square foot on a historical basis for our In-Service Properties.
December 31,
2023 2022 2021 2020 2019
Percentage occupied (1) 88.4 % 88.6 % 88.8 % 90.1 % 93.0 %
Average annualized revenue per square foot (2) $78.81 $75.99 $73.76 $72.67 $69.72
_______________
(1) Represents signed leases, excluding hotel and residential properties, for which revenue recognition has commenced in accordance with GAAP.
(2) Represents the monthly contractual base rents and recoveries from clients under existing leases as of December 31, 2023, 2022, 2021, 2020 and 2019 multiplied by twelve. These annualized amounts are before rent abatements and include expense reimbursements, which may be estimates as of such date. The aggregate amounts of rent abatements per square foot under existing leases as of December 31, 2023, 2022, 2021, 2020 and 2019 for the succeeding twelve-month period were $2.47, $1.56, $2.15, $1.73 and $1.70, respectively.
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Top 20 Clients by Square Feet
Our 20 largest clients by square feet as of December 31, 2023 were as follows:
Client Square Feet (1) % of In-Service Portfolio (1)
1. salesforce.com 891,231 2.10 %
2. Biogen 848,021 2.00 %
3. Google 836,110 1.97 %
4. Fannie Mae 710,121 1.68 %
5. Akamai Technologies 658,578 1.55 %
6. Snap 607,287 1.43 %
7. Microsoft 599,200 1.41 %
8. Ropes & Gray 539,467 1.27 %
9. Kirkland & Ellis 428,187 1.01 %
10. Wellington Management 401,665 0.95 %
11. Shearman & Sterling 384,813 0.91 %
12. Integrated Holding Group (aka Millennium Management) 373,007 0.88 %
13. Arnold & Porter Kaye Scholer 367,878 0.87 %
14. Marriott 367,787 0.87 %
15. WeWork 367,338 0.87 %
16. Leidos 352,394 0.83 %
17. Blue Cross Blue Shield 347,618 0.82 %
18. Bank of America 330,350 0.78 %
19. US Government 319,359 0.75 %
20. Bain Capital 315,833 0.75 %
__________________
(1) Amounts are calculated based on our consolidated portfolio square feet, plus our share of the square feet from the unconsolidated joint ventures properties (calculated based on our ownership percentage), minus our partners’ share of square feet from our consolidated joint venture properties (calculated based upon the partners’ percentage ownership interests).
Client Diversification
Our client diversification by square feet as of December 31, 2023 was as follows:
Sector % of In-Service Portfolio (1)
Technology & Media 21.3%
Legal Services 17.5%
Financial Services - all other 13.5%
Real Estate & Insurance 9.0%
Life Sciences 9.1%
Other Professional Services 7.8%
Financial Services - commercial & investment banking 5.8%
Retail 5.8%
Manufacturing 4.6%
Government / Public Administration 3.0%
Other 2.6%
__________________
(1) Amounts are calculated based on our consolidated portfolio square feet, plus our share of the square feet from the unconsolidated joint ventures properties (calculated based on our ownership percentage), minus our partners’ share of square feet from our consolidated joint venture properties (calculated based upon the partners’ percentage ownership interests).
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Lease Expirations (1)(2)
Year of Lease Expiration Rentable Square Feet Subject to Expiring Leases Current Annualized Contractual Rent Under Expiring Leases Without Future Step-Ups (3) Current Annualized Contractual Rent Under Expiring Leases Without Future Step-Ups p.s.f. (3) Current Annualized Contractual Rent Under Expiring Leases With Future Step-Ups (4) Current Annualized Contractual Rent Under Expiring Leases With Future Step-Ups p.s.f. (4) Percentage of Total Square Feet
2023 (5) 160,589 $9,802,660 $61.04 $9,802,660 $61.04 0.33 %
2024 2,676,191 175,925,225 65.74 177,083,389 66.17 5.47 %
2025 3,150,406 240,715,108 76.41 244,631,629 77.65 6.44 %
2026 2,682,236 231,970,206 86.48 236,502,157 88.17 5.48 %
2027 2,445,283 193,144,607 78.99 205,179,627 83.91 5.00 %
2028 3,417,177 279,177,909 81.70 301,397,445 88.20 6.98 %
2029 3,818,976 282,099,562 83.87 318,387,006 83.37 7.80 %
2030 2,925,267 227,515,075 77.78 249,994,406 85.46 5.98 %
2031 2,313,899 194,176,879 83.92 216,462,874 93.55 4.73 %
2032 2,290,559 179,323,608 78.29 209,859,249 91.62 4.68 %
Thereafter 16,898,552 1,387,847,687 82.13 1,714,163,976 101.44 34.52 %
_______________
(1) Includes 100% of unconsolidated joint venture properties. Does not include residential units or the hotel.
(2) Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement clients with future commencement dates. In those cases, the data is included in the year in which the future lease with the replacement client expires.
(3) Represents the monthly contractual base rent and recoveries from clients under existing leases as of December 31, 2023 multiplied by twelve. This amount reflects total rent before any rent abatements and includes expense reimbursements, which may be estimates as of such date.
(4) Represents the monthly contractual base rent under expiring leases with future contractual increases upon expiration and recoveries from clients under existing leases as of December 31, 2023 multiplied by twelve. This amount reflects total rent before any rent abatements and includes expense reimbursements, which may be estimates as of such date.
(5) Represents leases that expired on December 31, 2023.