Duke Announces $214 Million of Fourth Quarter Investment Activity; New Activity Trended Up Throughout 2002.

Business Editors

INDIANAPOLIS--(BUSINESS WIRE)--Jan. 14, 2003

Duke Realty Corporation (NYSE:DRE) announced $149 million of new developments and acquisitions today, and $65 million of new third-party construction contracts for the fourth quarter of 2002. As shown below, this continues a positive trend of increasing activity over the previous four quarters:

                         Acquisitions &           3rd Party
    ($ Millions)       Development Starts    Construction Starts Total
                     ----------------------- ------------------- -----
Fourth Quarter 2001            32                    6            38
First Quarter 2002             50                    22           72
Second Quarter 2002            69                    31          100
Third Quarter 2002             64                    77          141

Duke's $149 million of new developments and acquisitions announced today are expected to generate a stabilized return of 10.0 percent and include 758,000 square feet of new developments that are 76 percent pre-leased. The new projects include seven build-to-suit developments including a 224,000 square foot suburban office development in Cincinnati, Ohio that is 100 percent pre-leased to Community Insurance, a subsidiary of Anthem, Inc. It is located in Governor's Pointe Business Park where Duke owns 1.1 million square feet of office assets that are 93 percent leased.

The Company's other new developments announced today include:

-- A 180,000 square foot suburban office building in Indianapolis, Indiana that is 78 percent pre-leased to ALLETE Automotive Services and located at Duke's Hamilton Crossing business park;

-- A 50,000 square foot suburban office development that is 100 percent pre-leased to Bio-Lab Inc. and located at Duke's Hillside at Huntcrest office park in Atlanta, Georgia. Bio-Lab also leased 89,000 square feet in an existing building at Huntcrest;

-- Two suburban office buildings totaling 111,000 square feet and a 25,000 square foot expansion of an industrial building in Orlando, Florida that are each 100 percent pre-leased;

-- A 38,000 square foot suburban office building at the Company's Lakeside Crossing business park in St. Louis, Missouri that is 69 percent pre-leased to Johnson Controls Inc.; and

-- A 131,000 square foot suburban office development at Easton in Columbus, Ohio.

The Company also announced today that it has purchased Interco Corporate Tower, a 344,000 square foot Class "A" office building in the Clayton sub-market of St. Louis, Missouri. During the fourth quarter, Duke also purchased the 50 percent interest of its joint venture partner in four office buildings totaling 332,000 square feet at Sugarloaf and Huntcrest business parks in Atlanta, Georgia.

Duke's $65 million of third-party construction starts for the fourth quarter encompass nine buildings including another industrial facility for Lowe's, Inc. With this project, Duke has built more than 5.7 million square feet of distribution facilities for Lowe's since 1995, including five projects totaling 3.1 million square feet either completed or started in 2002.

Duke Realty Corporation is the largest publicly traded office and industrial real estate company in the United States and a member of the Forbes Super 500. Offering a complete range of real estate products and services, Duke produces approximately $800 million in annual revenue from approximately 4,300 tenants and focuses on building dominant market positions in each of its 13 geographic platforms across the Midwest and the Sunbelt. Duke owns interests in more than 107 million square feet of properties, has approximately 1,050 employees and owns or controls over 3,900 acres of undeveloped land that can support approximately 59 million square feet of future development. Visit Duke on the web at www.dukerealty.com.