Corporate Office Properties Trust To Build 106,000 Square Foot Office Building In Columbia, Md.

BALA CYNWYD, Pa.--(BUSINESS WIRE)--Oct. 21, 1998--

35,000 square feet of space pre-leased to Magellan Health Services 

Corporate Office Properties Trust (NYSE: OFC) announced a groundbreaking ceremony for a new 106,000 square foot, four-story office building at the Columbia Gateway business community in Howard County.

The groundbreaking will be held on Oct. 22, 1998 at 10:00 a.m. The project, named Woodlands Two, will be developed by Corporate Development Services LLC, a subsidiary of Corporate Office Properties. The Company expects that construction on the $14.5 million building to be completed in mid-1999.

The new building features 26,500 square feet of space per floor, nine foot ceilings, three elevators, fiber optic telephone and data system connections and free on-site parking. The exterior will be constructed of decorative pre-cast and glass.

Of the building's 106,000 square feet of space, 35,000 square feet has been pre-leased to Magellan Health Services, the nation's leading specialty managed care organization. The company manages behavioral health care for approximately 61 million individuals across the United States and Canada. Magellan's new Maryland headquarters are located in the adjacent property, Woodlands One.

"Howard County continues to lead the state of Maryland in job growth and, as a result, there is considerable pent-up demand for Class A office space. We are developing Woodlands Two to satisfy the needs of the growing tenant population," explained Randall M. Griffin, president and chief operating officer for Corporate Office Properties.

"Based on the high level of activity we are seeing in the marketplace, we expect to fully lease this facility quickly," he added.

Corporate Development Services will oversee a range of services on behalf of Corporate Office Properties including development, re-development and build-to-suit activities. Dwight S. Taylor, senior vice president for Development, is managing operations for Corporate Development Services, in conjunction with Stanley A. Link, senior vice president for Construction.

The Development Service's group has developed 13 office buildings in the Baltimore-Washington corridor. These properties are 95 percent leased.

Columbia Gateway is a 300-acre business community positioned at the mid-point of Baltimore and Washington D.C. With the Baltimore-Washington International Airport located less than five miles away, the community is located at the intersection of Interstate 95 and MD Route 175.

According to Colliers Pinkard's Office and Industrial Market Review, vacancy levels among Class A office product in the Howard County market remain below 4%.

D.R. Brasher is the building's architect and George W. Stephens Jr. and Associates, Inc. is the civil engineering firm.

Upon completion, the project will increase Corporate Office Properties' presence in the Baltimore/Washington corridor to more than 1.9 million square feet of office space among 23 buildings. On Sept. 28, the Company announced the completion of the initial and most significant stage of its transaction with Constellation Real Estate Group Inc. and its affiliates.

Company Information

Corporate Office Properties Trust is a real estate investment trust which focuses on the acquisition, management, ownership and development of suburban office properties located in high-growth submarkets in the United States. The Company presently owns 43 properties totaling 4.2 million square feet of space.

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.