Duke Announces Fourth Quarter Investment Activity; New Developments and Acquisitions are 85 Percent Pre-Leased.

Business Editors/Real Estate Writers

INDIANAPOLIS--(BUSINESS WIRE)--Jan. 21, 2004

Duke Realty Corporation (NYSE:DRE) announced today $121 million of new developments and acquisitions, and $55 million of new third-party construction contracts for the fourth quarter of 2003. The Company also announced today $127 million of fourth quarter dispositions.

The Company's $121 million of new developments and acquisitions announced today total approximately 1.4 million square feet of properties that are expected to generate a stabilized return of 10.4 percent and are over 85 percent leased. New developments for the fourth quarter encompass 298,000 square feet including two build-to-suit projects totaling 137,000 square feet that are 100 percent pre-leased. Duke also completed five acquisitions totaling 1,073,000 square feet during the quarter.

The Company's new developments announced today include:

-- A 106,000 square foot industrial project in Atlanta, Georgia

that is 100 percent pre-leased to Weyerhaeuser Company and

located in Gwinnett Progress Center;

-- A 35,000 square foot retail project that is 100 percent

pre-leased to JoAnn Fabrics and located at Duke's The Shoppes

at Geneva Commons in Chicago, Illinois;

-- In Raleigh, North Carolina, a 32,000 square foot medical

office project that is 100 percent pre-leased;

-- A 31,000 square foot suburban office project that is 100

percent pre-leased to State Farm Insurance and located in the

Company's Lakeside Crossing park in St. Louis, Missouri; and

-- A 94,000 square foot industrial project at the Company's

Fairfield business park in Tampa, Florida.

The Company's new acquisitions announced today include:

-- A 367,000 square foot industrial building and a 96,000 square

foot suburban office building located in Chicago;

-- In Cleveland, Ohio, a 157,000 square foot suburban office

building;

-- Three suburban office buildings in Raleigh totaling 250,000

square feet; and

-- Two suburban office buildings totaling 204,000 square feet

located in St. Louis.

Duke's $55 million of third-party construction starts for the fourth quarter encompass six buildings, including Algonquin Commons, a 312,000 square foot retail project in Chicago. For the year 2003, Duke's third-party construction starts totaled $306 million as compared to $195 million for 2002.

Duke's fourth quarter dispositions included $127 million of properties that were sold at an average capitalization rate of 9.1 percent. These dispositions averaged 77 percent leased and include the sale of 25 industrial buildings totaling 1,176,000 square feet in Minneapolis, Minnesota. Other dispositions in the fourth quarter include:

-- Two industrial buildings and one suburban office building

totaling 122,000 and 51,000 square feet, respectively, located

in Atlanta, Georgia;

-- A 100,000 square foot retail center in Cincinnati, Ohio;

-- The sale of the company's 50 percent interest in a 355,000

square foot industrial building in Columbus, Ohio;

-- A 32,000 square foot suburban office building in Orlando,

Florida;

-- A 146,000 square foot retail property located in Indianapolis,

Indiana; and

-- Two suburban office buildings totaling 32,000 square feet and

an industrial building totaling 182,000 square feet also in

Indianapolis.

Duke Realty Corporation is the largest publicly traded office and industrial real estate company in the United States. Offering a complete range of real estate products and services, Duke produces approximately $800 million in annual revenue from more than 4,200 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 109 million square feet of properties, has over 1,000 employees and owns or controls approximately 3,900 acres of undeveloped land that can support approximately 62 million square feet of future development. Visit Duke on the web at www.dukerealty.com.