Corporate Office Properties Trust Acquires Office Portfolio in Timonium, Mixed-Use Project in Baltimore.

Business Editors

BALA CYNWYD, Pa.--(BUSINESS WIRE)--Jan. 7, 2000

$24 million in Preferred Units issued to United Properties Group

in partial consideration for 337,285 square feet of space

Corporate Office Properties Trust (NYSE:OFC) announced today the $41 million acquisition of two multi-story office buildings in the suburban north Baltimore office market, totaling 233,623 square feet of space and a 103,622 square foot mixed-use waterfront development in Baltimore City.

As consideration, the Company issued $24 million of Convertible Preferred Units to the seller, United Properties Group, and assumed $17 million in debt.

The acquisition brings to 44 the number of office buildings owned by Corporate Office Properties in the Baltimore-Washington corridor, representing more than three million square feet of space. The cumulative occupancy level of the Company's portfolio is 98%.

The acquisition of 9690 Deereco Road, an eight-story, 132,819 square foot project and 375 Padonia Road, a two-story, 100,804 square foot project, marks the Company's initial entry into the suburban north Baltimore office market. The two-building portfolio, which is 95% leased, is positioned off the Padonia Road exit of Interstate 83 in Timonium, MD. The properties had been owned by Highwoods Properties, Inc.

The downtown Baltimore project, known as Brown's Wharf and located in the historic section of Fells Point, combines 75,990 square feet of office space with 27,672 square feet of retail space. The project is currently 100% leased with an affiliate of Johns Hopkins University, the largest tenant.

"This strategic acquisition is groundbreaking on two fronts," explained Randall M. Griffin, President and Chief Operating Officer for Corporate Office Properties. "The portfolio in Timonium provides the Company with a strong foothold into the suburban north Baltimore office market, and ideally positions us for future opportunities in this healthy office environment. Secondly, we have raised $24 million in equity from United Properties Group, an institutional investor that recognizes our consistently strong performance and is committed to our long-term growth potential."

Corporate Realty Management, LLC (CRM), the Company's property management subsidiary, will assume the responsibility for the management of the new portfolio.

Company Information

Corporate Office Properties Trust is a fully-integrated, self-managed real estate investment trust which focuses on the ownership, development, management and acquisition of suburban office properties located in targeted suburban submarkets in the United States. The Company presently owns 76 office properties totaling 5.7 million square feet of space. The Company's property management company, Corporate Realty Management, manages 16.5 million square feet for the Company and third parties. Corporate Development Services, the Company's development company, provides a wide range of development and construction management services.

Forward-Looking Information

This press release contains forward-looking information based upon the Company's current best judgement and expectations. Actual results could vary from those presented herein. The risks and uncertainties associated with the forward-looking information include the strength of the commercial office real estate market in which the Company operates, competitive market conditions, general economic growth, interest rates and capital market conditions. For further information, please refer to the Company's filings with the Securities and Exchange Commission.