Corporate Office Properties Trust Sells Three Retail Centers, Purchases Office Building.

BALA CYNWYD, Pa.--(BUSINESS WIRE)--March 10, 1999--

Company now owns thirteen office buildings totaling

881,000 square feet at BWI Airport business community

Corporate Office Properties Trust (NYSE: OFC) announced today the sale of three retail properties for $14.5 million and the acquisition of a four-story, 68,000 square foot office building in the Baltimore-Washington International Airport business community for $6.6 million.

The purchasers of the retail properties assumed $6.4 million debt and paid the balance of $8.1 million in cash. The three properties totaled 188,000 square feet and are located in Indiana, Minnesota and Wisconsin.

The Company recognized a gain on the sale. The sales proceeds were used to reduce the Company's existing line of credit. With this sale, combined with the sale of Cranberry Square Shopping Center in January, the Company has divested more than 65% of its retail portfolio in 1999.

"The sale of these retail properties underscores our focus on suburban office properties," explained Randall M. Griffin, President and Chief Operating Officer for Corporate Office Properties, adding "we are continuing to market our remaining retail properties."

The acquired office building, located at 849 International Drive in the Baltimore-Washington International (BWI) Airport submarket, is 88% leased to institutions including the Coca-Cola Company, the United States Government and Proctor & Gamble.

Purchased 30% below replacement cost, the addition of this Class A building increases the Company's presence in the Baltimore/Washington corridor to more than 2.3 million square feet of office space among 29 buildings.

According to KLNB, Inc.'s Linthicum/BWI Airport market review, the vacancy rate for Class A office buildings in this submarket is under 3%. Corporate Realty Management (CRM), the Company's property management company, will assume the responsibility for the management of this building.

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 currently owns 54 properties totaling nearly 5 million square feet of space. The Company's property management company, Corporate Realty Management, manages 18 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 judgment 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.