BXP Tests Metaverse Market With Digital Rights Sale

BXP is bringing the metaverse back.

The office real estate investment trust quietly bundled “digital property rights” into the December sale of a 409,000-square-foot office campus at 140 Kendrick Street in Needham, Massachusetts, according to Bisnow. The deal created what executives say is the first formal transfer of such rights tied to a commercial property.

The $132 million deal with Lincoln Property Company and Cross Ocean Partners looked routine on paper, but included a recorded blockchain transaction documenting control over how the property can be used in augmented and virtual reality environments.

Digital property rights allow building owners to permit or restrict digital overlays — advertisements, graphics or other virtual content — that appear on or around a real-world building through augmented reality platforms.

BXP executive vice president Bryan Koop said the company began exploring the concept after security guards reported people scanning one of its Boston properties with digital scanning devices. The REIT realized companies were already using its buildings as backdrops for digital content without permission.

Koop’s solution: formally stake a claim to the virtual layer of the property.

The transaction was recorded through the Digital Rights Network, a platform founded in 2022 by filmmaker Neil Mandt that allows owners to register and manage digital rights tied to physical assets. Mandt says the registry now covers more than $400 billion in property and 11 billion square feet of real estate.

The idea is partly defensive. As augmented reality usage grows — Pokémon Go being the early mainstream example — property owners face potential liability if people interact with digital experiences tied to their buildings.

Documenting digital rights acts as a type of notice, similar to a “no trespassing” sign, Mandt said, signaling that the owner controls how the property can be used in digital environments.

While the framework hasn’t yet been tested extensively in courts, proponents say it could help reduce legal exposure if someone gets injured while interacting with AR content on site.

There’s also a potential revenue play. Augmented reality advertising can layer digital billboards onto buildings visible through smartphones or smart glasses, allowing brands to place targeted ads without physical signage.

Koop said the strategy could eventually turn even mundane assets — like warehouses along Interstate 95 — into monetizable digital canvases. BXP has already registered its entire portfolio with the Digital Rights Network.

— Holden Walter-Warner