FSP · 10-Q · 2026Q1 · Full report

Occupancy and Leasing Activity

FRANKLIN STREET PROPERTIES CORP /MA/ · 2026-04-28 · Importance 53 · Surprise 32

Owned properties were approximately 68.4% leased as of March 31, 2026, down from 68.9% at December 31, 2025, with vacancy increasing to ~1,520,000 square feet from ~1,497,000. During Q1 2026 the Company executed approximately 145,000 square feet of leases (about 112,000 square feet with existing tenants) at a weighted average term of 6.2 years. Average tenant improvements for these leases were $33.55 per square foot, lease commissions $11.53 per square foot, and rent concessions were approximately five months of free rent; GAAP base rents on these leases averaged $35.16 per square foot (6.4% higher than average rents in the respective properties vs. year ended Dec 31, 2025). The Company reports that roughly half of its operating properties are stabilized (≥75% leased) while the remainder are value-add (<75% leased); leases representing ~4.5% and 10.1% of portfolio square footage are scheduled to expire in 2026 and 2027, respectively.

Key facts

• Total owned properties net rentable square feet were 4,809,487 and occupied weighted square feet were 3,196,933 as of March 31, 2026, resulting in a weighted occupancy of 66.5%.
• Average GAAP base rents under leases executed during the three months ended March 31, 2026 were $35.16 per square foot, 6.4% higher than average rents in the respective properties compared to the year ended December 31, 2025.
• The weighted average GAAP rent per occupied square foot for the Company's total owned properties for the three months ended March 31, 2026 was $30.84.
• The weighted average lease term for leases executed during the three months ended March 31, 2026 was 6.2 years.
• As of March 31, 2026, leases for approximately 10.1% of the square footage in the owned portfolio were scheduled to expire during 2027.
• Approximately half of the Company's operating properties are stabilized with leased occupancy of 75% or more as of the beginning of the second quarter of 2026.
• During the three months ended March 31, 2026, the Company leased approximately 145,000 square feet of office space in its owned properties.
• As of March 31, 2026, leases for approximately 4.5% of the square footage in the owned portfolio were scheduled to expire during 2026.

Impact estimates