Duke Realty Announces Third Quarter Investment Activity; New Investments Total Approximately $185 Million; Third-Party Construction Starts Total $45 Million.

INDIANAPOLIS -- Duke Realty Corporation (NYSE:DRE) announced today $185.3 million of developments and acquisitions and $44.8 million of new third-party construction contracts for the third quarter of 2005. Including its approximately $1 billion flex portfolio sale announced on September 29th, the Company also reported today $1.1 billion of dispositions in the third quarter.

The Company's new developments and acquisitions for the quarter include $99.9 million of developments for its held-for-rental portfolio with an average stabilized yield of 9.3 percent; $57.8 million of developments for its held-for-sale portfolio with an average stabilized yield of 9.0 percent; and $27.6 million of acquisitions at a stabilized capitalization rate of 8.7 percent.

Commenting on Duke's investment activity in the third quarter, Denny Oklak, Chairman and Chief Executive Officer stated,

"With $1.1 billion of dispositions, and more than $230 million of new investments and construction starts, the third-quarter of 2005 is a milestone in the Company's history. Of particular importance, our approximately $1.0 billion sale of primarily flex properties during the quarter allowed us to upgrade the average quality of our assets significantly. Through this transaction, portfolio occupancy was improved, capital expenditure needs were reduced, the average age of the portfolio was reduced, and the remaining portfolio is more efficient to manage. Additionally, as noted by the ramp-up of our development pipeline in recent quarters, we are redeploying much of the sale proceeds into higher quality assets with better returns. I am extremely proud of our team for their efforts to complete the sale of this portfolio and better position the Company for the coming years."

Duke's third quarter acquisitions include one suburban office property in Columbus, Ohio totaling 118,000 square feet and a 505,000 square foot industrial building in Atlanta, Georgia.

The new held-for-rental developments for the quarter include:

--In Atlanta, a 301,000 square foot industrial project located at the Company's Camp Creek Business Center that is 100 percent pre-leased to Hartsfield Warehouse Corporation; and a 657,000 square foot industrial project that is also located at Camp Creek;

--Also in Atlanta, a 193,000 square foot industrial project that is located in Horizon Park that is 100 percent pre-leased to Genera Corporation;

--In Chicago, Illinois, a 804,000 square foot industrial project located at the Company's Park 55 Business Park;

--In Cincinnati, Ohio, a 415,000 square foot industrial project that is located in Duke's World Park at Union Centre Business Park;

--In Nashville, Tennessee, a 46,000 square foot suburban office project located in Duke's Aspen Corporate Center; and a 125,000 square foot suburban office project located in the Company's Creekside Crossing Business Park; and

--In St. Louis, Missouri, a 248,000 square foot industrial project at the Company's Earth City Business Park.

The new held-for-sale developments for the quarter include:

--In Chicago, a 71,000 square foot suburban office project that is 100 percent pre-leased to the General Services Administration and a 58,000 square foot medical office project that is 31 percent pre-leased;

--In Cleveland, Ohio, a 176,000 square foot industrial project that is located in the Company's Strongsville Industrial Park that is 71 percent pre-leased to World Almanac Education Group;

--In Columbus, a 572,000 square foot industrial project in the Village of Groveport; and

--In Tampa, Florida, an 86,000 square foot suburban office project located in Duke's Regency Park North.

Duke's third-party construction activity for the third quarter totaled $44.8 million with an overall fee of 7.7 percent. This brings the company's total year-to-date third-party construction activity to $225.5 million with an overall fee of 10.4 percent. During the quarter, six projects were started including a 217,000 square foot suburban office and research facility for Avery Dennison Corporation in Cleveland.

Duke's $1.1 billion of third quarter dispositions included $1.0 billion of dispositions from it's held-for-rental portfolio at an average stabilized capitalization rate of 8.0 percent. The remaining sales included $34 million from its held-for-sale portfolio at an average capitalization rate of 7.5 percent, generating a pre-tax profit margin on cost of 26.7 percent.

Third quarter held-for-rental dispositions include:

--The previously announced 14.1 million square foot flex industrial portfolio;

--Three suburban office buildings totaling 270,000 square feet in Cincinnati;

--A 63,000 square foot suburban office building in Cleveland;

--A 63,000 square foot industrial building in Minneapolis, Minnesota; and

--A 76,000 square foot industrial building in St. Louis.

Third quarter held-for-sale dispositions include:

--Also in Cincinnati, a 17,000 square foot industrial building recently completed for Progressive Insurance;

--A 39,000 square foot medical office building recently completed in Indianapolis, Indiana;

--A 27,000 square foot industrial building recently completed for Rasmussen Aakers, Inc. in Roseville, Minnesota;

--A 328,000 square foot industrial building fully leased to Cott Beverages that was recently completed in Raleigh, North Carolina; and

--In St. Louis, an 18,000 square foot industrial facility that was recently completed for Progressive Casualty.

As one of the most vertically-integrated real estate companies in the U.S., Duke Realty Corporation specializes in the ownership, construction, development, leasing and management of office and industrial real estate. Duke's properties encompass approximately 103 million rentable square feet leased by approximately 3,500 tenants and approximately 4,500 acres of undeveloped land that can support approximately 64 million square feet of future development. In addition to its office and industrial focus in 13 primary operating platforms in the Midwest and Southeast United States, Duke selectively pursues medical office and retail development opportunities, as well as nationwide opportunities through its National Development and Construction Group. Visit Duke on the web at www.dukerealty.com.