Prentiss Properties Trust Closes Land Sale in Oakland; Announces Office Portfolio Acquisition in Northern San Diego and Changes to Corporate Governance.

Business Editors/Real Estate Writers

DALLAS--(BUSINESS WIRE)--Dec. 9, 2003

Prentiss Properties Trust (NYSE:PP), a real estate investment trust (REIT) which focuses on office ownership and development in select markets, announced today that it has sold 2.53 acres of land that it owns in downtown Oakland to the Catholic Cathedral Corporation of the East Bay. The sales price for the land was $25.5 million plus an additional amount necessary for the Company to replace the parking spaces that it would have to relocate as a result of the land sale. Included in the total sales price is $2.7 million of deferred payments during 2004.

The Company acquired the vacant land in August 2000 in conjunction with its acquisition of Lake Merritt Tower, a 200,994 square foot office building in the Lake Merritt district of downtown Oakland. The vacant land is directly adjacent Lake Merritt Tower I. With no immediate office development opportunities seen by the Company in downtown Oakland, the Company believed that the timing was right for the sale of the land. The Catholic Cathedral Corporation of the East Bay intends to use the site for a new cathedral.

With $6.0 million of the total proceeds from the land sale, the Company entered into a 65 year lease for 150 parking spaces in a nearby garage and purchased a 1.025 acre vacant lot in the Lake Merritt district, both of which will provide tenant parking for the buildings it owns in the Lake Merritt district. Additionally, the vacant lot is zoned for 635,000 square feet of office development, providing future growth opportunities for the Company. The remaining proceeds from the land sale will ultimately be utilized to invest in office acquisitions in the Company's core markets as opportunities arise.

Northern San Diego Office Acquisition

The Company also announced today that it has purchased a portfolio of five office properties, in two transactions, totaling 363,207 square feet in the northern San Diego, California submarket of Carlsbad from Equity Office Properties Trust. The combined contract price for the buildings was $67.0 million.

The following provides a breakdown of the five properties which have a combined occupancy rate of 95% and were constructed between 1986 and 1999:

            Property                          Square Feet
            --------                          -----------
            Pacific Ridge Corporate Center       120,980
            La Place Court                        80,299
            Carlsbad Airport Plaza                60,029
            Camino West Corporate Park            53,219
            Pacific View Plaza                    48,680
                                              -----------
                                                 363,207

The properties have approximately 75 tenants, with the largest tenant comprising less than 9% of the total square footage. Carlsbad is located approximately 35 miles north of downtown San Diego and benefits from its coastal location along Interstate 5, its proximity to executive housing and its location north of the traffic congestion closer to the city. Development in Carlsbad is difficult due to geographic restrictions and a challenging entitlement process.

With the acquisition, the Company now owns 953,000 square feet in Carlsbad and nearby Del Mar, plus 7.4 acres of land in Del Mar that has the potential to accommodate a 154,000 square foot office development.

Corporate Governance 

In order to further the alignment of interest between the Company's senior management and the Company's shareholders, the Company's Board of Trustees voted to require certain officers of the Company to maintain minimum ownership positions in the Company's stock. The amounts are based upon multiples of the officer's base salary. The plan covers the Board of Trustees, Chairman of the Board, Chief Executive Officer and all other senior officers.

About Prentiss Properties Trust

Prentiss Properties Trust is a self-administered and self-managed real estate investment trust ("REIT"). It owns interests in 130 operating properties with approximately 17.4 million square feet. The Company, through various management subsidiaries, manages approximately 28.6 million square feet of office and industrial properties owned by Prentiss, its affiliates and third parties.

With its headquarters in Dallas, Texas, Prentiss Properties focuses on the ownership of office properties in Metropolitan Washington D.C., Chicago, Dallas, Austin, Northern California and Southern California. It is a full service real estate company with in-house expertise in areas such as acquisitions, development, facilities management, property management and leasing.

Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of the Private Litigation Reform Act of 1995. Such statements may use words such as "anticipate," "believe," "estimate," "expect," "intent," "predict," "project" and similar expressions as they relate to Prentiss Properties Trust or our management. When we make forward-looking statements, we are basing them on our management's beliefs and assumptions, using information currently available to us. Although we believe that the expectations reflected in the forward-looking statements are reasonable, these forward-looking statements are subject to risks, uncertainties and assumptions including the risks discussed in our filings with the Securities and Exchange Commission. If one or more of these risks materialize, or if our underlying assumptions prove to be incorrect, actual results may vary materially from what we projected. Any forward-looking statements contained in this press release reflect our current views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We have no current intention, and disclaim any obligation, to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.

For more information on Prentiss Properties Trust, visit the Company's website at www.prentissproperties.com.