B
XP Inc., a publicly traded real estate investment trust, has put construction of a 27-story office building at 171 Dartmouth St. on hold due to high interest rates and construction costs. The developer already has city approval for the project, which would be part of the Back Bay/South End Gateway Project and constructed on air rights above the Massachusetts Turnpike.

    BXP President Douglas Linde cited the high cost of constructing a building in Boston as a major factor in the decision. He noted that new construction costs around $1,400 to $1,600 per square foot, making it difficult to achieve a financial return with current rent levels. For example, the monthly rent at BXP's 200 Clarendon is just over $84 per occupied square foot.

    Linde stated that if interest rates continue to decline and lending conditions improve, there may be a different conversation about starting construction in the future. However, for now, starting work on 171 Dartmouth St. is not part of BXP's plans for 2025. The company has a diverse portfolio of properties across Boston and other major cities, including New York City, San Francisco, Seattle, and Washington, D.C.