Duke Announces Fourth Quarter Investment Activity.

Business & Real Estate Editors

INDIANAPOLIS--(BUSINESS WIRE)--Jan. 14, 2002

Duke Realty Corporation (NYSE:DRE) announced today approximately $32 million of new developments and $6 million of new third-party construction contracts for the fourth quarter of 2001. The Company also announced that it sold $36 million of properties during the quarter.

Duke's $32 million of new developments announced today average 71 percent pre-leased and total 1.4 million square feet with an expected stabilized return of 10.7 percent. The most significant of these projects is a 601,000 square foot industrial building that is 100 percent pre-leased to United Stationers and located at Duke's Horizon Business Park in Atlanta, Georgia. This project is under development in a joint venture in which Duke owns a 50 percent interest.

Other new developments announced today include:

-- A 404,000 square foot acquisition and redevelopment of an industrial
building in Chicago, Illinois that is 96 percent pre-leased to Guinness UDV;

-- A 305,000 square foot industrial development located at Carol Stream
Industrial Park in Chicago, and;

-- A 75,000 square foot industrial development at Southridge Business Center in
St. Louis, Missouri.

In 2001, Duke started $298 million of new developments with an expected stabilized return of 11.2 percent, including $18 million of projects that were placed in the Company's held-for-sale portfolio.

The Company's $6 million of new third-party construction activity in the fourth quarter includes four projects for existing clients. For all of 2001, Duke's third-party construction starts totaled $224 million.

Duke's $36 million of fourth quarter dispositions announced today were sold at an average capitalization rate of 9.1 percent, including $19 million from the Company's held-for-sale portfolio. These dispositions include:

-- A 42,000 square foot industrial building in Atlanta, Georgia;

-- Two suburban office buildings totaling 139,000 square feet in

Cincinnati, Ohio; and

-- A 123,000 square foot suburban office building in St. Louis.

For all of 2001, Duke sold $541 million of properties at a stabilized cap rate of 9.9 percent, including $103 million of properties from the Company's held-for-sale portfolio.

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 approximately 4,500 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 approximately 106 million square feet of properties, has approximately 1,050 employees and owns or controls approximately 4,300 acres of undeveloped land that can support more than 65 million square feet of future development. Visit Duke on the web at www.dukerealty.com.