More bad news for REITs.

On the heels of the much heralded One Bryant Park in New York (AKA the Bank of America Building), which was developed by the Durst Organization as the first LEED Platinum Certified skyscraper in New York City, Boston Properties had touted its one million square foot office tower at 250 West 55th Street in Manhattan (near Columbus Circle and the Time Warner Center), stating that it would achieve LEED Gold Certification status.

Unfortunately, market conditions have scuttled that deal indefinitely as a result of the Company's inability to secure a lease transaction with a major New York law firm with which it has been negotiating over the last year.

Boston Properties had expected the project to be delivered in 2011. Indeed, construction of the foundations is underway at the site and the Company says it intends to complete the foundation work to be ready for the next stage of construction once market conditions improve.

Boston Properties indicates that Funds From Operations (FFO) for fiscal 2009 may be affected and that it will provide updated guidance for fiscal 2009 as soon as it is reasonably able to do so.

Boston Properties is a publicly traded REIT under the symbol BXP and one of the largest owners and developers of Class A office properties in the United States, concentrated in five markets – Boston, Midtown Manhattan, Washington, D.C., San Francisco and Princeton, N.J.