Corporate Office Properties Trust Acquires Four-Building Portfolio in...

Business Editors

COLUMBIA, Md.--(BUSINESS WIRE)--Aug. 30, 2001

Company Now Owns Fourteen Buildings, Totaling Nearly 900,000 Square

Feet At Columbia Gateway Business Community

Corporate Office Properties Trust (NYSE:OFC) announced today the acquisition of a four-building, 187,132 square foot office portfolio in Columbia Gateway, a 630-acre business community in Columbia, MD.

This represents the second acquisition by the Company in Columbia Gateway in the past four months, and brings the total amount of suburban office space owned by Corporate Office Properties in Howard County to 1.2 million square feet, including a 43,785 square foot property held through an 80% joint venture.

The four buildings are 100% leased with long-term leases and the Company's Howard County portfolio is over 98% leased. Corporate Office Properties now owns 63 properties totaling 4.7 million square feet of office space in the Baltimore/Washington corridor.

The office buildings - 7061, 7063, 7065 and 7067 Columbia Gateway Drive -- are single-story and two-story projects positioned at the mid-point between Baltimore, MD and Washington, D.C. Columbia Gateway is located at the intersection of MD Route 175 and Interstate 95, with the Baltimore-Washington International Airport located less than five miles away.

This acquisition brings to fourteen the number of Class A office buildings owned by Corporate Office Properties in Columbia Gateway, representing approximately 900,000 square feet of space. The concentration includes One Gateway Exchange, a five-story, 123,000 square foot office building currently under construction, with completion scheduled for the fourth quarter of 2001.

The Company also owns a contiguous 9.6 acre site that would support the construction of two additional 125,000 square foot office buildings.

"The Company continues to pursue attractive acquisition opportunities in Columbia Gateway, to further strengthen our position as a dominant owner with over 45% of the Class A office space in this premiere business community," stated Randall M. Griffin, President and Chief Operating Officer for Corporate Office Properties. "This acquisition, at a 10.7% capitalization rate, accelerates our earnings with very stable properties," he added.

Company Information

Corporate Office Properties Trust is a fully integrated, self-managed real estate investment trust, which focuses on the ownership, development, management and acquisition of suburban office properties located in targeted suburban submarkets in the Mid-Atlantic region.

The Company presently owns 96 office properties totaling 7.2 million square feet of space, including one 43,785 square foot property held through a joint venture. Corporate Development Services, the Company's development company, provides a wide range of development and construction management services.

In addition, Corporate Office Services provides land planning, design/build services, consulting and merchant development to third-party entities. For more information, visit Corporate Office Properties' website at http://www.copt.com.

Forward-Looking Information

This press release contains forward-looking information based upon the Company's current best judgement and expectations. Actual results could vary from those presented herein.

The risks and uncertainties associated with the forward-looking information include the strength of the commercial office real estate market in which the Company operates, competitive market conditions, general economic growth, interest rates and capital market conditions. For further information, please refer to the Company's filings with the Securities and Exchange Commission.