BXP has executed a long-term lease agreement with Boston Dynamics for approximately 320,000 square feet at Reservoir Place, a 530,000 square foot building located at 1601 Trapelo Road in Waltham, Massachusetts. The transaction marks one of the largest innovation-driven office transactions in Greater Boston this year and supports Boston Dynamics’ plans for a significant expansion of its Massachusetts operations. The company intends to invest approximately $100 million in the development of a state-of-the-art robotics and AI center at Reservoir Place and create up to 1,250 new jobs by 2033.

Boston Dynamics plans to transform the property into a premier center for robotics and AI innovation. The facility will consolidate and expand manufacturing, research and development, training, and artificial intelligence functions that are currently distributed across multiple locations. The company expects to relocate to Reservoir Place in phases beginning in mid-2027.

Strategic Expansion and Investment

The investment allows Boston Dynamics to launch its third robot platform this decade while maintaining its deep roots in Massachusetts. Located directly across Route 128 from Boston Dynamics’ current headquarters, Reservoir Place provides the scale, flexibility, and connectivity necessary to support the company’s continued growth. The project represents a collaboration between Boston Dynamics, the City of Waltham, and the Commonwealth of Massachusetts.

Reservoir Place and BXP Portfolio

Owned and operated by BXP since 1998, Reservoir Place is part of BXP’s Urban Edge campus. This dynamic mixed-use destination spans more than five million square feet across Waltham, Weston, and Lexington. The portfolio houses a diverse mix of leading technology, life sciences, and professional services companies.

Bryan Koop, Executive Vice President, Boston Region, BXP, stated that the decision underscores the appeal of BXP’s Urban Edge campus and its ability to provide workplace environments that support innovation and talent attraction. Amanda McMaster, Interim CEO of Boston Dynamics, highlighted that the expansion reflects the rapid movement of the industry and provides the necessary space and resources for future growth.

Scotiabank analyst Nicholas Yulico upgraded BXP from Sector Perform to Sector Outperform, citing a revised outlook for the real estate investment trust. The firm raised the price target to $70 from $65, reflecting increased confidence in the company's performance relative to its sector peers. The upgrade signals a shift in expectations, positioning BXP to outperform the broader market index.

Rating and Price Target Changes

The adjustment in rating and price target highlights the analyst's revised valuation of BXP's stock. The move from a neutral Sector Perform rating to a more bullish Sector Outperform rating suggests that recent developments or market conditions favor the company's growth trajectory.