UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)



X	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, ~~2016~~2017



	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number: 1-9044 (Duke Realty Corporation) 0-20625 (Duke Realty Limited Partnership)

DUKE REALTY CORPORATION

DUKE REALTY LIMITED PARTNERSHIP

(Exact Name of Registrant as Specified in Its Charter)



Indiana (Duke Realty Corporation)		35-1740409 (Duke Realty Corporation)
Indiana (Duke Realty Limited Partnership)		35-1898425 (Duke Realty Limited Partnership)
(State or Other Jurisdiction of Incorporation or Organization)		(IRS Employer Identification Number)
600 East 96^th Street, Suite 100 Indianapolis, Indiana		46240
(Address of Principal Executive Offices)		(Zip Code)

Registrant's telephone number, including area code: (317) 808-6000

Securities registered pursuant to Section 12(b) of the Act:



	Title of Each Class:	Name of Each Exchange on Which Registered:
Duke Realty Corporation	Common Stock ($~~.01~~0.01 par value)	New York Stock Exchange
Duke Realty Limited Partnership	None	None

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.



Duke Realty Corporation	Yes x	No o	Duke Realty Limited Partnership	Yes x	No o

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.



Duke Realty Corporation	Yes o	No x	Duke Realty Limited Partnership	Yes o	No x

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.



Duke Realty Corporation	Yes x	No o	Duke Realty Limited Partnership	Yes x	No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).



Duke Realty Corporation	Yes x	No o	Duke Realty Limited Partnership	Yes x	No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ox

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See ~~definition~~the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and ~~"smaller reporting~~"emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Duke Realty Corporation:



Large accelerated filer x	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o	Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Duke Realty Limited Partnership:



Large accelerated filer o	Accelerated filer o	Non-accelerated filer x	Smaller reporting company o	Emerging growth company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).



Duke Realty Corporation	Yes o	No x	Duke Realty Limited Partnership	Yes o	No x

The aggregate market value of the voting shares of Duke Realty Corporation's outstanding common shares held by non-affiliates of Duke Realty Corporation is ~~$9.3~~$9.9 billion based on the last reported sale price on June 30, ~~2016.~~2017.

The number of common shares of Duke Realty Corporation, ~~$.01~~$0.01 par value outstanding as of February ~~15, 2017~~14, 2018 was ~~355,557,557.~~356,989,593.

DOCUMENTS INCORPORATED BY REFERENCE

Certain portions of Duke Realty Corporation's Definitive Proxy Statement for its 2018 Annual Meeting of Shareholders (the ~~"Proxy~~"2018 Proxy Statement") to be filed pursuant to Rule 14a-6 of the Securities Exchange Act of 1934, as amended, are incorporated by reference into this Form 10-K. Other than those portions of the 2018 Proxy Statement specifically incorporated by reference pursuant to Items 10 through 14 of Part III hereof, no other portions of the 2018 Proxy Statement shall be deemed so incorporated.

EXPLANATORY NOTE

This report combines the annual reports on Form 10-K for the year ended December 31, ~~2016~~2017 of both Duke Realty Corporation and Duke Realty Limited Partnership. Unless stated otherwise or the context otherwise requires, references to "Duke Realty Corporation" or the "General Partner" mean Duke Realty Corporation and its consolidated subsidiaries; and references to the "Partnership" mean Duke Realty Limited Partnership and its consolidated subsidiaries. The terms the "Company," "we," "us" and "our" refer to the General Partner and the Partnership, collectively, and those entities owned or controlled by the General Partner and/or the Partnership.

Duke Realty Corporation is a self-administered and self-managed real estate investment trust ("REIT") and is the sole general partner of the Partnership, owning ~~99.0%~~99.1% of the common partnership interests of the Partnership ("General Partner Units") as of December 31, ~~2016.~~2017. The remaining ~~1.0%~~0.9% of the common partnership interests ("Limited Partner Units" and, together with the General Partner Units, the "Common Units") are owned by limited partners. As the sole general partner of the Partnership, the General Partner has full, exclusive and complete responsibility and discretion in the day-to-day management and control of the Partnership.

The General Partner and the Partnership are operated as one enterprise. The management of the General Partner consists of the same members as the management of the Partnership. As the sole general partner with control of the Partnership, the General Partner consolidates the Partnership for financial reporting purposes, and the General Partner does not have any significant assets other than its investment in the Partnership. Therefore, the assets and liabilities of the General Partner and the Partnership are substantially the same.

We believe combining the annual reports on Form 10-K of the General Partner and the Partnership into this single report results in the following benefits:

enhances investors' understanding of the General Partner and the Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;

eliminates duplicative disclosure and provides a more streamlined and readable presentation of information since a substantial portion of the Company's disclosure applies to both the General Partner and the Partnership; and

creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.

We believe it is important to understand the few differences between the General Partner and the Partnership in the context of how we operate as an interrelated consolidated company. The General Partner's only material asset is its ownership of partnership interests in the Partnership. As a result, the General Partner does not conduct business itself, other than acting as the sole general partner of the Partnership and issuing public equity from time to time. The General Partner does not issue any indebtedness, but does guarantee some of the unsecured debt of the Partnership. The Partnership holds substantially all the assets of the business, directly or indirectly, and holds the ownership interests related to certain of the Company's investments. The Partnership conducts the operations of the business and has no publicly traded equity. Except for net proceeds from equity issuances by the General Partner, which are contributed to the Partnership in exchange for General Partner Units or Preferred Units, the Partnership generates the capital required by the business through its operations, its incurrence of indebtedness and the issuance of Limited Partner Units to third parties.

Noncontrolling interests, shareholders' equity and partners' capital are the main areas of difference between the consolidated financial statements of the General Partner and those of the Partnership. The noncontrolling interests in the Partnership's financial statements include the interests in consolidated investees not wholly owned by the Partnership. The noncontrolling interests in the General Partner's financial statements include the same noncontrolling interests at the Partnership level, as well as the common limited partnership interests in the Partnership, which are accounted for as partners' capital by the Partnership.

In order to highlight the differences between the General Partner and the Partnership, there are separate sections in this report, as applicable, that separately discuss the General Partner and the Partnership including separate financial statements, and separate Exhibit 31 and 32 certifications. In the sections that combine disclosure of the General Partner and the Partnership, this report refers to actions or holdings as being actions or holdings of the collective Company.

TABLE OF CONTENTS

Form 10-K


Item No.		Page(s)		Page(s)

PART I

1.	Business	3	Business	4
1A.	Risk Factors	6	Risk Factors	7
1B.	Unresolved Staff Comments	13	Unresolved Staff Comments	15
2.	Properties	13	Properties	16
3.	Legal Proceedings	17	Legal Proceedings	19
4.	Mine Safety Disclosures	17	Mine Safety Disclosures	19

PART II

5.	Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	17	Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	19
6.	Selected Financial Data	20	Selected Financial Data	22
7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	21	Management's Discussion and Analysis of Financial Condition and Results of Operations	23
7A.	Quantitative and Qualitative Disclosures About Market Risk	51	Quantitative and Qualitative Disclosures About Market Risk	52
8.	Financial Statements and Supplementary Data	52	Financial Statements and Supplementary Data	54
9.	Changes In and Disagreements With Accountants on Accounting and Financial Disclosure	52	Changes In and Disagreements With Accountants on Accounting and Financial Disclosure	54
9A.	Controls and Procedures	52	Controls and Procedures	54
9B.	Other Information	53	Other Information	55

PART III

10.	Directors and Executive Officers of the Registrant	53	Directors and Executive Officers of the Registrant	55
11.	Executive Compensation	54	Executive Compensation	56
12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	54	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	56
13.	Certain Relationships and Related Transactions, and Director Independence	54	Certain Relationships and Related Transactions, and Director Independence	57
14.	Principal Accountant Fees and Services	54	Principal Accountant Fees and Services	57

PART IV

15.	Exhibits and Financial Statement Schedules	55	Exhibits and Financial Statement Schedules	58
16.	Form of 10-K Summary	126	Form of 10-K Summary	129
Signatures		127		130

IMPORTANT INFORMATION ABOUT THIS REPORT

Cautionary Notice Regarding Forward-Looking Statements

Certain statements contained in or incorporated by reference into this Report on Form 10-K for the General Partner and the Partnership, including, without limitation, those related to our future operations, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "believe," "estimate," "expect," "anticipate," "intend," "strategy," "continue," "plan," "seek," "could," "may" and similar expressions or statements regarding future periods are intended to identify forward-looking statements, although not all forward-looking statements may contain such words.

These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any predictions of future results, performance or achievements that we express or imply in this Report or in the information incorporated by reference into this Report. Some of the risks, uncertainties and other important factors that may affect future results include, among others:

Changes in general economic and business conditions, including the financial condition of our tenants and the value of our real estate assets;

The General Partner's continued qualification as a REIT for U.S. federal income tax purposes;

Heightened competition for tenants and potential decreases in property occupancy;

Potential changes in the financial markets and interest rates;

Volatility in the General Partner's stock price and trading volume;

Our continuing ability to raise funds on favorable ~~terms;~~terms, or at all;

Our ability to successfully identify, acquire, develop and/or manage properties on terms that are favorable to us;

Potential increases in real estate construction costs;

Our ability to successfully dispose of properties on terms that are favorable to us, including, without limitation, through one or more transactions that are consistent with our previously disclosed strategic plans;

Our ability to successfully integrate our acquired properties;

Our ability to retain our current credit ratings;

Inherent risks in the real estate business, including, but not limited to, tenant defaults, potential liability relating to environmental matters and liquidity of real estate investments; and

Other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in our other reports and other public filings with the Securities and Exchange Commission ("SEC").

Although we presently believe that the plans, expectations and results expressed in or suggested by the forward-looking statements are reasonable, all forward-looking statements are inherently subjective, uncertain and subject to change, as they involve substantial risks and uncertainties, including those beyond our control. New factors emerge from time to time, and it is not possible for us to predict the nature, or assess the potential impact, of each new factor on our business. Given these uncertainties, we caution you not to place undue reliance on these forward-looking statements. We undertake no obligation to update or revise any of our forward-looking statements for events or circumstances that arise after the statement is made, except as otherwise may be required by law.

~~This~~The above list of risks and uncertainties ~~however,~~ is only a summary of some of the most important factors and is not intended to be exhaustive. Additional information regarding risk factors that may affect us is included under the

caption "Risk Factors" in this Report, and is updated by us from time to time in Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings that we make with the SEC.

PART I

Item 1. Business

Background

The General Partner and Partnership collectively specialize in the ownership, management and development of bulk distribution ("industrial") ~~and medical office~~ real estate.

The General Partner is a self-administered and self-managed REIT, which began operations upon completion of an initial public offering in February 1986.

The Partnership was formed in October 1993, when the General Partner contributed all of its properties and related assets and liabilities, together with the net proceeds from an offering of additional shares of its common stock, to the Partnership. Simultaneously, the Partnership completed the acquisition of Duke Associates, a full-service commercial real estate firm operating in the Midwest whose operations began in 1972. The General Partner is the sole general partner of the Partnership, owning ~~99.0%~~99.1% of the Common Units at December 31, ~~2016.~~2017. The remaining ~~1.0%~~0.9% of the Common Units are owned by limited partners. Limited ~~Partners~~partners have the right to redeem their Limited Partner Units, subject to certain restrictions. Pursuant to the Fifth Amended and Restated Agreement of Limited Partnership, as amended (the "Partnership Agreement"), the General Partner is obligated to redeem the Limited Partner Units in shares of its common stock, unless it determines in its reasonable discretion that the issuance of shares of its common stock could cause it to fail to qualify as a REIT. Each Limited Partner Unit shall be redeemed for one share of the General Partner's common stock, or, in the event that the issuance of shares could cause the General Partner to fail to qualify as a REIT, cash equal to the fair market value of one share of the General Partner's common stock at the time of redemption, in each case, subject to certain adjustments described in the Partnership Agreement. The Limited Partner Units are not required, per the terms of the Partnership Agreement, to be redeemed in registered shares of the General Partner.

At December 31, ~~2016,~~2017, our diversified portfolio of ~~561~~509 rental properties (including 42 jointly controlled in-service properties with ~~10.7~~11.2 million square feet, 2512 consolidated properties under development with ~~8.4~~7.2 million square feet and ~~two~~four jointly controlled properties under development with ~~1.0~~2.0 million square feet) encompassed ~~139.6~~148.8 million rentable square ~~feet and was~~feet. Our properties are leased by a diverse base of more than ~~1,400~~1,000 tenants whose businesses include e-commerce, government services, manufacturing, retailing, wholesale trade, ~~distribution, healthcare~~ and ~~professional services.~~distribution. We also owned, including through ownership interests in unconsolidated joint ventures (with acreage not adjusted for our percentage ownership interest), ~~2,190~~1,900 acres of land and controlled an additional 1,600 acres through purchase options.

Our headquarters and executive offices are located in Indianapolis, Indiana. We additionally have regional offices or significant operations in 20 other geographic or metropolitan areas including Atlanta, Georgia; Baltimore, Maryland; Central Florida; Chicago, Illinois; Cincinnati, Ohio; Columbus, Ohio; Dallas, Texas; Houston, Texas; Minneapolis, Minnesota; Nashville, Tennessee; New Jersey; Northern and Southern California; Pennsylvania; Raleigh, North Carolina; ~~St. Louis, Missouri;~~ Savannah, Georgia; Seattle, Washington; South Florida; St. Louis, Missouri; and Washington D.C.~~; and South Florida.~~ We had approximately ~~500~~400 employees at December 31, ~~2016.~~2017.

See Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" for information related to our operational, asset and capital strategies.

Reportable Operating Segments

We have ~~three~~two reportable operating segments at December 31, ~~2016,~~2017, the first ~~two of which consist~~consisting of the ownership and rental of ~~(i)~~ industrial ~~and (ii) medical office~~ real estate investments. Properties not included in our reportable segments, which do not by themselves meet the quantitative thresholds for separate presentation as a reportable segment, are generally referred to as non-reportable Rental Operations. The operations of our industrial ~~and medical office~~ properties, as well as our non-reportable Rental Operations (our residual non-industrial properties that have not yet been sold, referred to throughout as "Non-Reportable"), are collectively referred to as "Rental Operations."

referred to as "Service Operations." Our reportable segments ~~offer different products or services and~~ are managed separately because each segment requires different operating strategies and management expertise. Our Service Operations segment also includes our taxable REIT subsidiary ("TRS"), a legal entity through which certain of the segment's aforementioned operations are conducted. See Item 6, "Selected Financial Data," Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Item 8, "Financial Statements and Supplementary Data" for financial information related to our reportable segments.

Competitive Conditions

As a fully integrated commercial real estate firm, we provide in-house leasing, management, development and construction services which we believe, coupled with our significant base of commercially zoned and unencumbered land in existing business parks, should give us a competitive advantage as a real estate operator and in future development activities.

We believe that the management of real estate opportunities and risks can be done most effectively at regional or on local levels. As a result, we intend to continue our emphasis on increasing our market share, to the extent it is in markets or product types that align with our asset strategy (see Item 7), and effective rents in the primary markets where we own properties. We believe that this regional focus will allow us to assess market supply and demand for real estate more effectively as well as to capitalize on the strong relationships with our tenant base. In addition, we seek to further capitalize on our many strong ~~customer~~ relationships ~~to provide third-party construction services across the United States.~~with customers that operate on a national level. As a fully integrated real estate company, we are able to arrange for or provide to our ~~industrial and medical office customers~~tenants not only well located and well maintained facilities, but also additional services such as build-to-suit construction, tenant finish construction, and expansion flexibility.

All of our properties are located in areas that include competitive properties. Institutional investors, other REITs or local real estate operators generally own such properties; however, no single competitor or small group of competitors is dominant in our current markets. The supply of and demand offor similar available rental properties may affect the rental rates we will receive on our properties. Other competitive factors include the attractiveness of the property location, the quality of the property and tenant services provided, and the reputation of the owner and operator. In addition, our Service Operations face competition from a considerable number of other real estate companies that provide comparable services, some of whom may have greater marketing and financial resources than are available to us.

Corporate Governance

Since our inception, we not only have strived to be a top-performer operationally, but also to lead in issues important to investors such as disclosure and corporate governance. The General Partner's system of governance reinforces this commitment and, as a limited partnership that has one general partner owning over 90% of the Partnership's common interest, the governance of the Partnership is necessarily linked to the corporate governance of the General Partner. Summarized below are the highlights of the General Partner's Corporate Governance initiatives.



Board Composition		• The General Partner's Board is controlled by a supermajority ~~(83.3%~~(92.9%) of "Independent Directors," as such term is defined under the rules of the New York Stock Exchange (the "NYSE")

Board Committees		• The General Partner's Board Committee members are all Independent Directors

Lead Director		• The Lead Director ~~of the Independent Directors~~ serves as the Chairman of the General Partner's Corporate Governance Committee

Board Policies		• Proactively amended and restated the General Partner's Bylaws to implement proxy access • Adopted a Board Diversity Policy • No Shareholder Rights Plan (Poison Pill) • Code of Conduct applies to all Directors and employees of the General Partner, including the Chief Executive Officer and senior financial officers; waivers applied to executive officers require the vote of a majority of (i) the General Partner's Board of Directors or (ii) the General Partner's Corporate Governance Committee • Orientation program for new Directors of the General Partner • Independence of Directors of the General Partner is reviewed annually • Independent Directors of the General Partner meet at least quarterly in executive sessions • Independent Directors of the General Partner receive no compensation from the General Partner other than as Directors • Equity-based compensation plans require the approval of the General Partner's shareholders • Board effectiveness and performance is reviewed annually by the General Partner's Corporate Governance Committee • The General Partner's Corporate Governance Committee conducts an annual review of the Chief Executive Officer succession plan • Independent Directors and all Board Committees of the General Partner may retain outside advisors, as they deem appropriate • Prohibition on repricing of outstanding stock options of the General Partner • Directors of the General Partner required to offer resignation upon job change • Majority voting for election of Directors of the General Partner • Shareholder Communications Policy

Ownership		Minimum Stock Ownership Guidelines apply to all Directors and Executive Officers of the General Partner

The General Partner's Code of Conduct (which applies to all Directors and employees of the General Partner, including the Chief Executive Officer and senior financial officers) and the Corporate Governance Guidelines are available in the Investor Relations/Corporate Governance section of the General Partner's website at www.dukerealty.com. A copy of these documents may also be obtained without charge by writing to Duke Realty Corporation, 600 East 96th Street, Suite 100, Indianapolis, Indiana 46240, Attention: Investor Relations. If we amend our Code of Conduct as it applies to the Directors and all Executive Officers of the General Partner or grant a waiver from any provision of the Code of Conduct to any such person, we may, rather than filing a current report on Form 8-K, disclose such amendment or waiver in the Investor Relations/Corporate Governance section of the General Partner's website at www.dukerealty.com.

Recent U.S. Federal Income Tax Legislation

On December 22, 2017, President Donald Trump signed into law tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "2017 Tax Act"), which includes a number of provisions related to REITs and real estate investments. These changes are briefly summarized as follows:

Effective January 1, 2018, the federal corporate income tax rate will be permanently reduced to 21%.

Effective January 1, 2018, individuals are entitled to a 20% deduction for certain business-related income from pass-through entities, such as partnerships and limited liability companies and for ordinary REIT dividends. The 2017 Tax Act also adjusts the income tax brackets for individuals. The top federal income tax rate is reduced to 37%, and various deductions are eliminated or limited. The combination of a top rate of 37% and a 20% deduction for ordinary REIT dividends reduces the top federal income tax rate on ordinary REIT dividends to 29.6%. Most of the changes applicable to individuals are temporary and apply only to taxable years beginning after December 31, 2017 and before January 1, 2026.

For taxable years beginning after 2017, Section 1031 like kind exchanges will be ended for all assets other than real estate.

For taxable years beginning after December 31, 2017, the deductibility of business interest expense is generally limited to 30% of a taxpayer's adjusted taxable income, which is taxable business income, excluding business interest income and expense, net operating losses ("NOLs"), the 20% deduction for certain business income and, for taxable years beginning before January 1, 2022, depreciation and amortization. This limitation does not apply to an "electing real property trade or business." Taxpayers that elect out of the interest expense limitations must apply less favorable depreciation rules for real property.

NOLs arising in taxable years beginning after December 31, 2017 may offset only 80% of taxable income. Any NOLs generated in tax years ending after 2017 will no longer be eligible for carryback but will be eligible for indefinite carryforward.

For a more complete discussion of federal income tax considerations, see Exhibit 99.1 hereto.

Additional Information

For additional information regarding our investments and operations, see Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Item 8, "Financial Statements and Supplementary Data." For additional information about our business segments, see Item 8, "Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - (8) Segment Reporting."

Available Information

In addition to this Report, we file quarterly and current reports, proxy statements and other information with the SEC. All documents that are filed with the SEC are available free of charge on the General Partner's corporate website, which is www.dukerealty.com. We are not incorporating the information on the General Partner's website into this Report, and the General Partner's website and the information appearing on the General Partner's website is not included in, and is not part of, this Report. You may also read and copy any document filed at the public reference facilities of the SEC at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at (800) SEC-0330 for further information about the public reference facilities. These documents also may be accessed through the SEC's home page on the Internet (http://www.sec.gov). In addition, since ~~some of~~ the General Partner's ~~securities are~~common stock is listed on the NYSE, you may read the General Partner's SEC filings at the offices of the NYSE, 11 Wall Street, New York, New York 10005.

Item 1A. Risk Factors

In addition to the other information contained in this Report, you should carefully consider, in consultation with your legal, financial and other professional advisors, the risks described below, as well as the risk factors and uncertainties discussed in our other public filings with the SEC under the caption "Risk Factors" in evaluating us and our business before making a decision regarding an investment in the General Partner's securities.

The risks contained in this Report are not the only risks that we face. Additional risks that are not presently known, or that we presently deem to be immaterial, also could have a material adverse effect on our financial condition, results of operations, business and prospects. The trading price of the General Partner's securities could decline due to the materialization of any of these risks, and its shareholders and/or the Partnership's unitholders may lose all or part of their investment.

This Report also contains forward-looking statements that may not be realized as a result of certain factors, including, but not limited to, the risks described herein and in our other public filings with the SEC. Please refer to the section in this Report entitled "Cautionary Notice Regarding Forward-Looking Statements" for additional information regarding forward-looking statements.

Risks Related to Our Business

Our use of debt financing could have a material adverse effect on our financial condition.

We are subject to the risks normally associated with debt financing, including the risk that our cash flow will be insufficient to meet required principal and interest payments and the long-term risk that we will be unable to refinance our existing indebtedness, or that the terms of such refinancing will not be as favorable as the terms of existing indebtedness. Additionally, we may not be able to refinance borrowings by our unconsolidated subsidiaries on favorable terms or at all. If our debt cannot be paid, refinanced or extended, we may not be able to make distributions to shareholders and unitholders at expected levels. Further, if prevailing interest rates or other factors at the time of a refinancing result in higher interest rates or other restrictive financial covenants upon the refinancing, then such refinancing would adversely affect our cash flow and funds available for operation, development and distribution.

We are also subject to financial covenants under our existing debt instruments. Should we fail to comply with the covenants in our existing debt instruments, then we would not only be in breach under the applicable debt instruments but we would also likely be unable to borrow any further amounts under our other debt instruments and other debt obligations may be accelerated, which could adversely affect our ability to fund operations. We also have incurred, and may incur in the future, indebtedness that bears interest at variable rates. Thus, if market interest rates increase, so will our interest expense, which could reduce our cash flow and our ability to make distributions to shareholders and unitholders at expected levels.

Debt financing may not be available and equity issuances could be dilutive to our shareholders and unitholders.

Our ability to execute our business strategy depends on our access to an appropriate blend of debt financing, including unsecured lines of credit and other forms of secured and unsecured debt, and equity financing, including common equity and, at times, preferred equity issued by the General Partner. Debt financing may not be available over a longer period of time in sufficient amounts, on favorable terms or at all. If the General Partner issues additional equity securities, instead of debt, to manage capital needs, the interests of our existing shareholders and unitholders could be diluted.

Financial and other covenants under existing credit agreements could limit our flexibility and adversely affect our financial condition.

The terms of our various credit agreements and other indebtedness require that we comply with a number of customary financial and other covenants, such as maintaining debt service coverage and leverage ratios and maintaining insurance coverage. These covenants may limit our flexibility in our operations, and breaches of these covenants could result in defaults under the instruments governing the applicable indebtedness even if we have satisfied our payment obligations. As a result, we would also likely be unable to borrow any further amounts under our other debt instruments and other debt obligations may be accelerated, which could adversely affect our ability to fund operations.

Downgrades in our credit ratings could increase our borrowing costs or reduce our access to funding sources in the credit and capital markets.

We have a significant amount of debt outstanding, consisting mostly of unsecured debt. We are currently assigned corporate credit ratings from Moody's Investors Service, Inc. and Standard and Poor's Ratings Group based on their evaluation of our creditworthiness. All of our debt ratings remain investment grade, but there can be no assurance that we will not be downgraded or that any of our ratings will remain investment grade. If our credit ratings are downgraded or other negative action is taken, we could be required, among other things, to pay additional interest and fees on outstanding borrowings under our revolving credit agreement.

Credit rating reductions by one or more rating agencies could also adversely affect our access to funding sources, the cost and other terms of obtaining funding as well as our overall financial condition, operating results and cash flow.

If we are unable to generate sufficient capital and liquidity, then we may be unable to pursue future development projects and other strategic initiatives.

To complete our ongoing and planned development projects, and to pursue our other strategic initiatives, we must continue to generate sufficient capital and liquidity to fund those activities. To generate that capital and liquidity, we rely upon funds from our existing operations, as well as funds that we raise through our capital raising activities. In the event that we are unable to generate sufficient capital and liquidity to meet our long-term needs, or if we are unable to generate capital and liquidity on terms that are favorable to us, then we may not be able to pursue development projects, acquisitions, or our other long-term strategic initiatives.

The General Partner's stock price and trading volume may be volatile, which could result in substantial losses to its shareholders and to the Partnership's unitholders, if and when they convert their Limited Partner Units to shares of the General Partner's common stock.

The market price of the General Partner's common stock could change in ways that may or may not be related to our business, our industry or our operating performance and financial condition. In addition, the trading volume in the General Partner's common stock may fluctuate and cause significant price variations to occur. Some of the factors that could negatively affect the General Partner's share price, or result in fluctuations in the price or trading volume of the General Partner's common stock, include uncertainty in the markets, general market and economic conditions, as well as those factors described in these "Risk Factors" and in other reports that we file with the SEC.

Many of these factors are beyond our control, and we cannot predict their potential effects on the price of the General Partner's common stock. If the market price of the General Partner's common stock declines, then its shareholders and the Partnership's unitholders, respectively, may be unable to resell their shares and units upon

terms that are attractive to them. We cannot assure that the market price of the General Partner's common stock will not fluctuate or decline significantly in the future. In addition, the securities markets in general may experience considerable unexpected price and volume fluctuations.

Our use of joint ventures may negatively impact our jointly-owned investments.

We ~~currently~~ have, ~~joint ventures that are not consolidated with our financial statements. We~~and may continue to develop and acquire properties in joint ventures with other persons or entities when circumstances warrant the use of these structures. Our participation in joint ventures is subject to the risks that:

We could become engaged in a dispute with any of our joint venture partners that might affect our ability to develop or operate a property;

Our joint venture partners may have different objectives than we have regarding the appropriate timing and terms of any sale or refinancing of properties;

Our joint venture partners may have competing interests in our markets that could create conflict of interest issues; and

Maturities of debt encumbering our jointly owned investments may not be able to be refinanced at all or on terms that are as favorable as the current terms.

Our business and operations could suffer in the event of system failures or cyber security attacks.

Our systems are vulnerable to damages from any number of sources, including energy blackouts, natural disasters, terrorism, war, telecommunication failures and cyber security attacks, such as computer viruses or unauthorized access. Any system failure or accident that causes interruptions in our operations could result in a material disruption to our business. We may also incur additional costs to remedy damages caused by such disruptions. Any compromise of our security could also result in a violation of applicable privacy and other laws, unauthorized access to information of ours and others, significant legal and financial exposure, damage to our reputation, loss or misuse of the information and a loss of confidence in our security measures, which could harm our business.

We could also be negatively impacted by similar disruptions to the operations of our vendors or outsourced service providers.

Risks Related to the Real Estate Industry

Our net earnings available for investment or distribution to shareholders and unitholders could decrease as a result of factors related to the ownership and operation of commercial real estate, ~~that~~many of which are outside of our control.

Our business is subject to the risks incident to the ownership and operation of commercial real estate, many of which involve circumstances not within our control. Such risks include the following:

Changes in the general economic climate;

The availability of capital on favorable terms, or at all;

Increases in interest rates;

Local conditions such as oversupply of property or a reduction in demand;

Competition for tenants;

Changes in market rental rates;

Delay or inability to collect rent from tenants who are bankrupt, insolvent or otherwise unwilling or unable to pay;

Difficulty in leasing or re-leasing space quickly or on favorable terms;

Costs associated with periodically renovating, repairing and reletting rental space;

Our ability to provide adequate maintenance and insurance on our properties;

Our ability to control variable operating costs;

Changes in government regulations; and

Potential liability under, and changes in, environmental, zoning, tax and other laws.

Further, a significant portion of our costs, such as real estate taxes, insurance and maintenance costs and our debt service payments, are generally not reduced when circumstances cause a decrease in cash flow from our properties. Any one or more of these factors could result in a reduction in our net earnings available for investment or distribution to shareholders and unitholders.

Many real estate costs are fixed, even if income from properties decreases.

Our financial results depend on leasing space in our real estate to tenants on terms favorable to us. Our income and funds available for distribution to our shareholders and unitholders will decrease if a significant number of our tenants cannot meet their lease obligations to us or we are unable to lease properties on favorable terms. In addition, if a tenant does not pay its rent, we may not be able to enforce our rights as landlord without delays and we may incur substantial legal costs. Costs associated with real estate investment, such as real estate taxes, ~~and~~insurance maintenance costs and our debt service payments, generally are not reduced when circumstances cause a reduction in income from the investment. As a result, we may have a reduction in our net earnings available for investment or distribution to our shareholders and unitholders.

Our real estate development activities are subject to risks particular to development.

We continue to selectively develop new, pre-leased properties for rental operations in our existing markets when accretive returns are present. These development activities generally require various government and other approvals, which we may not receive. In addition, we also are subject to the following risks associated with development activities:

Unsuccessful development opportunities could result in direct expenses to us;

Construction costs of a project may exceed original estimates, possibly making the project less profitable than originally estimated, or possibly unprofitable;

Time required to complete the construction of a project or to lease up the completed project may be greater than originally anticipated, thereby adversely affecting our cash flow and liquidity;

Occupancy rates and rents of a completed project may not be sufficient to make the project profitable; and

Favorable sources to fund our development activities may not be available.

We may be unsuccessful in operating completed real estate projects.

We face the risk that the real estate projects we develop or acquire will not perform in accordance with our expectations. This risk exists because of factors such as the following:

Prices paid for acquired facilities are based upon a series of market judgments; and

Costs of any improvements required to bring an acquired facility up to standards to establish the market position intended for that facility might exceed budgeted costs.

As a result, we may develop or acquire projects that are not profitable.

We are exposed to the risks of defaults by tenants.

Any of our tenants may experience a downturn in their businesses that may weaken their financial condition. In the event of default or the insolvency of a significant number of our tenants, we may experience a substantial loss of rental revenue and/or delays in collecting rent and incur substantial costs in enforcing our rights as landlord. If a tenant files for bankruptcy protection, a court could allow the tenant to reject and terminate its lease with us. Our income and distributable cash flow would be adversely affected if a significant number of our tenants became unable to meet their obligations to us, became insolvent or declared bankruptcy.

We may be unable to renew leases or relet space.

When our tenants decide not to renew their leases upon their expiration, we may not be able to relet the space. Even if our tenants do renew or we are able to relet the space, the terms of renewal or reletting (including the cost of renovations, if necessary) may be less favorable than current lease terms. If we are unable to promptly renew the leases or relet the space, or if the rental rates upon such renewal or reletting are significantly lower than current rates, then our income and distributable cash flow would be adversely affected, especially if we were unable to lease a significant amount of the space vacated by tenants in our properties.

Our insurance coverage on our properties may be inadequate.

We maintain comprehensive insurance on each of our facilities, including property, liability and environmental coverage. We believe this coverage is of the type and amount customarily obtained for real property. However, there are certain types of losses, generally of a catastrophic nature, such as hurricanes, earthquakes and floods or acts of war or terrorism that may be uninsurable or not economically insurable. We use our discretion when determining amounts, coverage limits and deductibles for insurance. These terms are determined based on retaining an acceptable level of risk at a reasonable cost. This may result in insurance coverage that in the event of a substantial loss would not be sufficient to pay the full current replacement cost of the damaged assets. Inflation, changes in building codes and ordinances, environmental considerations, acts of a governmental authority and other factors also may make it unfeasible to collect insurance proceeds to replace a facility after it has been damaged or destroyed. If an uninsured or underinsured loss occurred, we could lose both our investment in and anticipated profits and cash flow from a property, and we would continue to be obligated on any mortgage indebtedness or other obligations related to the property. We are also subject to the risk that our insurance providers may be unwilling or unable to pay our claims when made.

Our acquisition and disposition activity may lead to long-term dilution.

Our asset strategy is to ~~reposition~~increase our investment concentration ~~among~~in the industrial real estate product ~~types~~type and further diversify our geographic presence. There can be no assurance that we will be able to execute ~~the repositioning of our assets according to~~ our strategy or that our execution of such strategy will lead to improved results.

Acquired properties may expose us to unknown liability.

From time to time, we may acquire properties subject to liabilities and without any recourse, or with only limited recourse, with respect to unknown liabilities. As a result, if a liability were asserted against us based upon ownership of those properties, we might have to pay substantial sums to settle or contest it, which could adversely affect our results of operations and cash flow. Unknown liabilities with respect to acquired properties might include:

liabilities for clean-up of undisclosed environmental contamination;

claims by tenants, vendors or other persons against the former owners of the properties;

liabilities incurred in the ordinary course of business; and

claims for indemnification by general partners, directors, officers and others indemnified by the former owners of the properties.

We could be exposed to significant environmental liabilities as a result of conditions of which we currently are not aware.

As an owner and operator of real property, we may be liable under various federal, state and local laws for the costs of removal or remediation of certain hazardous substances released on or in our property. Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release of the hazardous substances. In addition, we could have greater difficulty in selling real estate on which hazardous substances were present or in obtaining borrowings using such real estate as collateral. It is our general policy to have Phase I environmental audits performed for all of our properties and land by qualified environmental consultants at the time of purchase. These Phase I environmental audits have not revealed any environmental liability that would have a material adverse effect on our business. However, a Phase I environmental audit does not involve invasive procedures such as soil sampling or ground water analysis, and we cannot be sure that the Phase I environmental audits did not fail to reveal a significant environmental liability or that a prior owner did not create a material environmental condition on our properties or land which has not yet been discovered. We could also incur environmental liability as a result of future uses or conditions of such real estate or changes in applicable environmental laws.

We are exposed to the potential impacts of future climate change and climate-change related risks.

We are exposed to potential physical risks from possible future changes in climate. Our properties may be exposed to rare catastrophic weather events, such as severe storms and/or floods. If the frequency of extreme weather events increases due to climate change, our exposure to these events could increase.

We do not currently consider that we are exposed to regulatory risk related to climate change. However, we may be adversely impacted as a real estate developer in the future by stricter energy efficiency standards for buildings.

Risks Related to Our Organization and Structure

If the General Partner were to cease to qualify as a REIT, it would lose significant tax benefits.

The General Partner intends to continue to operate so as to qualify as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"). Qualification as a REIT provides significant tax advantages to the General Partner. However, in order for the General Partner to continue to qualify as a REIT, it must satisfy numerous requirements established under highly technical and complex Code provisions for which there are only limited judicial and administrative interpretations. Satisfaction of these requirements also depends on various factual circumstances not entirely within our control. The fact that the General Partner holds its assets through the Partnership further

complicates the application of the REIT requirements. Even a technical or inadvertent mistake could jeopardize the General Partner's REIT status. Although we believe that the General Partner can continue to operate so as to qualify as a REIT, we cannot offer any assurance that it will continue to do so or that legislation, new regulations, administrative interpretations or court decisions will not significantly change the qualification requirements or the federal income tax consequences of qualification. If the General Partner were to fail to qualify as a REIT in any taxable year, it would have the following effects:

The General Partner would not be allowed a deduction for ~~distributions~~dividends distributed to shareholders and would be subject to federal corporate income tax ~~(including~~(and any applicable ~~alternative minimum tax)~~state and local income taxes) on its taxable income at regular corporate income tax rates;

Unless the General Partner was entitled to relief under certain statutory provisions, it would be disqualified from treatment as a REIT for the four taxable years following the year during which it ceased to qualify as a REIT;

The General Partner's net earnings available for investment or distribution to its shareholders would decrease due to the additional tax liability for the year or years involved; and

The General Partner would no longer be required to make any distributions to shareholders in order to qualify as a REIT.

As such, the General Partner's failure to qualify as a REIT would likely have a significant adverse effect on the value of the General Partner's securities and, consequently, the Partnership's Units.

REIT distribution requirements limit the amount of cash we have available for other business purposes, including amounts that we need to fund our future capital needs.

To maintain its qualification as a REIT under the Code, the General Partner must annually distribute to its shareholders at least 90% of its REIT taxable income, determined without regard to the dividends-paid deduction and excluding net capital gains. The General Partner intends to continue to make distributions to its shareholders to comply with the 90% distribution requirement. However, this requirement limits our ability to accumulate capital for use for other business purposes. If we do not have sufficient cash or other liquid assets to meet the distribution requirements of the General Partner, we may have to borrow funds or sell properties on adverse terms in order to meet the distribution requirements. If the General Partner fails to satisfy the distribution requirement, it would cease to qualify as a REIT.

U.S. federal income tax treatment of REITs and investments in REITs may change ~~which~~in a manner that could adversely affect us or shareholders.

Legislative, regulatory or administrative changes could be enacted or promulgated at any time, either prospectively or with retroactive effect, and may ~~result~~adversely affect us and/or shareholders.

On December 22, 2017, tax legislation commonly referred to as the 2017 Tax Act was signed into law, generally applying in ~~the loss of our tax benefits of operating as a REIT.~~

taxable years beginning after December 31, 2017. The ~~present~~2017 Tax Act makes significant changes to the U.S. federal income tax ~~treatment~~rules for taxation of individuals and corporations. In the case of individuals, the income tax brackets are adjusted, the top federal income rate is reduced to 37%, special rules reduce taxation of certain income earned through pass-through entities and reduce the top effective rate applicable to ordinary dividends from REITs to 29.6% (through a 20% deduction for ordinary REIT dividends received in combination with the 37% top rate), and ~~an investment~~various deductions are eliminated or limited. Most of the changes applicable to individuals are temporary and apply only to taxable years beginning after December 31, 2017 and before January 1, 2026. The corporate income tax rate is reduced to 21%, the corporate alternative minimum tax is repealed, and various changes, including restrictions on certain deductions, may affect the computation of the taxable income of the General Partner and its subsidiaries.

While the changes in the 2017 Tax Act generally appear to be favorable with respect to REITs, the extensive changes to non-REIT provisions in the Code may have unanticipated effects on us or on shareholders. Moreover,

Congressional leaders have recognized that the process of adopting extensive tax legislation in a ~~REIT may~~short amount of time without hearings and substantial time for review is likely to have led to drafting errors, issues needing clarification and unintended consequences that will have to be ~~modified by legislative, judicial~~revisited in subsequent tax legislation. At this point, it is not clear if or when Congress will address these issues or when the Internal Revenue Service will issue administrative ~~action at any time. The administration of President Trump,~~guidance on the House leadership and the Senate leadership all have expressed interest in passing comprehensive tax reform this year. Although none of the descriptions of tax reform proposals have specifically addressed the treatment of REITs, the revisions in U.S. federal income tax laws and interpretations of these laws could adversely affect us and the tax consequences of an investmentchanges made in the ~~General Partner's common shares.~~

Some of the tax benefits identified as possibly being eliminated or reduced include various tax benefits that have been important to the real estate industry, including REITs, such as eliminating the like-kind exchange rules or the deduction of net interest expense. Loss of a deduction for net interest expense would substantially increase our REIT taxable income and, absent amendments to the REIT rules, our distribution obligations. In addition, it is possible that substantially reduced corporate tax rates or Senate interest in integrating taxation of shareholders and corporations could reduce or eliminate the relative attractiveness of REITs as a vehicle for owning real estate.

We cannot predict whether, when or to what extent new U.S. federal tax laws, regulations, interpretations or rulings will be issued, nor is the long-term impact of proposed tax reforms on the real estate industry clear.2017 Tax Act.

We are subject to certain provisions that could discourage change-of-control transactions, which may reduce the likelihood of the General Partner's shareholders receiving a control premium for their shares.

Indiana anti-takeover legislation and certain provisions in our governing documents, as we discuss below, may discourage potential acquirers from pursuing a change-of-control transaction with us. As a result, the General Partner's shareholders may be less likely to receive a control premium for their shares.

Ownership Restriction. Subject to certain exceptions, the General Partner's charter provides that no person or entity may beneficially own, or be deemed to own by virtue of the applicable constructive ownership provisions of the Code, more than 9.8% (in value or by number of shares, whichever is more restrictive) of the General Partner's outstanding common stock or 9.8% in value of its outstanding stock.

Unissued Preferred Stock. The General Partner's charter permits its board of directors to classify unissued preferred stock by setting the rights and preferences of the shares at the time of issuance. This power enables the General Partner's board to adopt a shareholder rights plan, also known as a poison pill. Although the General Partner has repealed its previously existing poison pill and its current board of directors has adopted a policy not to adopt a shareholder rights plan without shareholder approval, the General Partner's board can change this policy at any time. The adoption of a poison pill would discourage a potential bidder from acquiring a significant position in the General Partner without the approval of its board.

Business-Combination Provisions of Indiana Law. The General Partner has not opted out of the business-combination provisions of the Indiana Business Corporation Law. As a result, potential bidders may have to

negotiate with the General Partner's board of directors before acquiring 10% of its stock. Without securing board approval of the proposed business combination before crossing the 10% ownership threshold, a bidder would not be permitted to complete a business combination for five years after becoming a 10% shareholder. Even after the five-year period, a business combination with the significant shareholder would either be required to meet certain per share price minimums as set forth in the Indiana Business Corporation Law or to receive the approval of a majority of the disinterested shareholders.

Control-Share-Acquisition Provisions of Indiana Law. The General Partner has not opted out of the provisions of the Indiana Business Corporation Law regarding acquisitions of control shares. Therefore, those who acquire a significant block (at least 20%) of the General Partner's shares may only vote a portion of their shares unless its other shareholders vote to accord full voting rights to the acquiring person. Moreover, if the other shareholders vote to give full voting rights with respect to the control shares and the acquiring person has acquired a majority of the General Partner's outstanding shares, the other shareholders would be entitled to special dissenters' rights.

Supermajority Voting Provisions. The General Partner's charter prohibits business combinations or significant disposition transactions with a holder of 10% of its shares unless:

The holders of 80% of the General Partner's outstanding shares of capital stock approve the transaction;

The transaction has been approved by three-fourths of those directors who served on the General Partner's board before the shareholder became a 10% owner; or

The significant shareholder complies with the "fair price" provisions of the General Partner's charter.

Among the transactions with large shareholders requiring the supermajority shareholder approval are dispositions of assets with a value greater than or equal to $1,000,000 and business combinations.

Operating Partnership Provisions. The limited partnership agreement of the Partnership contains provisions that could discourage change-of-control transactions, including a requirement that holders of at least 90% of the outstanding Common Units approve:

Any voluntary sale, exchange, merger, consolidation or other disposition of all or substantially all of the assets of the Partnership in one or more transactions other than a disposition occurring upon a financing or refinancing of the Partnership;

The General Partner's merger, consolidation or other business combination with another entity unless after the transaction substantially all of the assets of the surviving entity are contributed to the Partnership in exchange for Common Units;

The General Partner's assignment of its interests in the Partnership other than to one of its ~~wholly-owned~~wholly owned subsidiaries; and

Any reclassification or recapitalization or change of outstanding shares of the General Partner's common stock other than certain changes in par value, stock splits, stock dividends or combinations.

We are dependent on key personnel.

The General Partner's executive officers and other senior officers have a significant role in the success of our Company. Our ability to retain our management group or to attract suitable replacements should any members of the management group leave our Company is dependent on the competitive nature of the employment market. The loss of services from key members of the management group or a limitation in their availability could adversely impact our financial condition and cash flow. Further, such a loss could be negatively perceived in the capital markets.

Item 1B. Unresolved Staff Comments

We have no unresolved comments with the SEC staff regarding our periodic or current reports under the Exchange Act.

Item 2. Properties

Product Review

As of December 31, ~~2016,~~2017, we own interests in a diversified portfolio of ~~561~~509 commercial properties encompassing ~~139.6~~148.8 million net rentable square feet (including 42 jointly controlled in-service properties with ~~10.7~~11.2 million square feet, 2512 consolidated properties under development with ~~8.4~~7.2 million square feet and ~~two~~four jointly controlled properties under development with ~~1.0~~2.0 million square feet).

Industrial Properties: We own interests in ~~455~~496 bulk distribution industrial properties encompassing ~~130.9~~147.5 million square feet ~~(93.7 percent~~(99.1% of our total square feet). These properties are primarily warehouse facilities with clear ceiling heights of 28 feet or more. This also includes ~~eight~~nine light industrial buildings, also known as flex buildings, totaling ~~397,000~~468,000 square feet.

~~Medical Office Properties:~~ ~~We own interests in 86 medical office buildings totaling 6.8 million square feet (4.9 percent of total square feet).~~

Non-Reportable: We own interests in ~~20 suburban office~~13 Non-Reportable buildings totaling ~~2.0~~1.3 million square feet ~~(1.4 percent~~(0.9% of our total square feet).

See Consolidated Financial Statement Schedule III - Real Estate Properties and Accumulated Depreciation for a detailed listing of the Company’s properties and related encumbrances.

Land: We own, including through ownership interests in unconsolidated joint ventures (with acreage not adjusted for our percentage ownership interest), ~~2,190~~1,900 acres of land and control an additional 1,600 acres through purchase options. ~~A portion~~Approximately 1,040 acres of the ~~1,475~~1,325 acres of land that we directly own, and nearly all of our ~~715~~approximately 575 acres of jointly controlled land, isare intended to be used for the development of industrial properties. We directly own ~~451~~285 acres of land that we do not consider strategic and that will be sold to the extent that market conditions permit us to achieve what we believe to be acceptable sale prices.

Property Descriptions

The following tables represent the geographic highlights of consolidated and jointly controlled in-service properties in our primary markets.

Consolidated Properties


	Square Feet														Annual Net Effective Rent (1)		Annual Net Effective Rent per Square Foot (2)		Percent of Annual Net Effective Rent		Square Feet											Annual Net Effective Rent (1)		Annual Net Effective Rent per Square Foot (2)		Percent of Annual Net Effective Rent
	Industrial			Medical Office			Non-Reportable			Overall			Percent of Overall		Annual Net Effective Rent (1)		Annual Net Effective Rent per Square Foot (2)		Percent of Annual Net Effective Rent		Industrial			Non-Reportable			Overall			Percent of Overall		Annual Net Effective Rent (1)		Annual Net Effective Rent per Square Foot (2)		Percent of Annual Net Effective Rent
Primary Market
Chicago																					14,559,225			—			14,559,225			11.3	%	$	58,343,101	$	4.22	10.5	%
Indianapolis	13,538,423			351,839			986,480			14,876,742			12.5	%	$	62,062,823	$	4.23	10.3	%	13,538,423			—			13,538,423			10.5	%	43,077,746		3.18		7.8	%
Chicago	12,651,681			161,443			—			12,813,124			10.7	%	53,597,351		4.32		8.9	%
Atlanta	10,335,671			889,486			97,969			11,323,126			9.5	%	57,724,190		5.27		9.6	%	11,277,689			97,969			11,375,658			8.9	%	42,550,266		4.05		7.7	%
South Florida																					6,260,038			—			6,260,038			4.9	%	41,088,632		7.23		7.4	%
Southern California																					7,528,831			—			7,528,831			5.9	%	36,379,677		5.60		6.6	%
Cincinnati	9,695,979			548,483			181,970			10,426,432			8.7	%	40,717,649		4.33		6.7	%	9,695,979			181,970			9,877,949			7.7	%	33,828,822		3.45		6.1	%
New Jersey																					4,878,186			—			4,878,186			3.8	%	30,453,956		7.08		5.5	%
Dallas																					8,202,462			—			8,202,462			6.4	%	29,563,542		3.60		5.3	%
Columbus	9,864,550			—			—			9,864,550			8.3	%	30,238,961		3.16		5.0	%	8,844,365			—			8,844,365			6.9	%	29,113,241		3.29		5.3	%
Dallas	7,919,955			1,183,117			—			9,103,072			7.6	%	54,862,128		6.05		9.1	%
Savannah	6,431,246			—			—			6,431,246			5.4	%	20,668,798		3.21		3.4	%	7,866,996			—			7,866,996			6.1	%	27,067,233		3.57		4.9	%
South Florida	5,110,346			107,000			143,535			5,360,881			4.5	%	37,843,156		7.40		6.3	%
Houston	4,084,478			168,850			—			4,253,328			3.6	%	22,517,459		5.72		3.7	%	4,856,978			—			4,856,978			3.8	%	24,281,037		5.00		4.4	%
Minneapolis-St. Paul	4,064,797			—			—			4,064,797			3.4	%	18,898,390		4.75		3.1	%	4,690,081			—			4,690,081			3.6	%	22,668,332		4.89		4.1	%
Pennsylvania																					4,316,072			—			4,316,072			3.4	%	21,413,223		4.96		3.9	%
Nashville	3,806,218			175,076			—			3,981,294			3.3	%	22,803,142		5.78		3.8	%	3,806,228			—			3,806,228			2.9	%	18,969,127		5.06		3.4	%
Central Florida	3,274,066			472,162			—			3,746,228			3.1	%	25,366,951		7.01		4.2	%	3,611,513			—			3,611,513			2.8	%	17,348,408		4.91		3.1	%
Pennsylvania	3,687,597			—			—			3,687,597			3.1	%	17,495,945		4.74		2.9	%
Raleigh																					2,908,939			—			2,908,939			2.3	%	16,173,659		5.87		2.9	%
St. Louis	3,225,135			—			—			3,225,135			2.7	%	10,797,283		3.35		1.8	%	4,491,915			—			4,491,915			3.5	%	14,933,335		3.53		2.7	%
Raleigh	2,756,787			356,835			—			3,113,622			2.6	%	23,023,455		7.42		3.8	%
Southern California	3,000,186			—			—			3,000,186			2.5	%	16,808,155		5.60		2.8	%
New Jersey	2,469,811			57,411			—			2,527,222			2.1	%	17,690,205		7.02		2.9	%
Washington DC																					842,167			489,665			1,331,832			1.0	%	13,868,680		10.92		2.5	%
Baltimore	2,089,529			—			—			2,089,529			1.7	%	12,035,361		5.76		2.0	%	2,258,529			—			2,258,529			1.8	%	12,035,329		5.76		2.2	%
Northern California	1,936,349			—			—			1,936,349			1.6	%	8,912,457		4.60		1.5	%	1,936,349			—			1,936,349			1.5	%	9,434,591		4.87		1.7	%
Seattle	1,136,109			—			—			1,136,109			1.0	%	7,566,139		6.66		1.3	%	1,136,109			—			1,136,109			0.9	%	7,566,135		6.66		1.4	%
Washington DC	842,167			100,952			42,854			985,973			0.8	%	9,899,359		10.63		1.6	%
Other (3)	446,500			1,099,745			—			1,546,245			1.3	%	31,879,524		21.86		5.3	%	—			119,030			119,030			0.1	%	3,487,188		29.30		0.6	%
Total	112,367,580			5,672,399			1,452,808			119,492,787			100.0	%	$	603,408,881	$	5.19	100.0	%	127,507,074			888,634			128,395,708			100.0	%	$	553,645,260	$	4.49	100.0	%
Percent of Overall	94.0		%	4.8		%	1.2		%	100.0		%									99.3		%	0.7		%	100.0		%
Annual Net Effective Rent per Square Foot (2)	$	4.16		$	24.33		$	13.98		$	5.19										$	4.42		$	15.78		$	4.49

~~Jointly Controlled~~Unconsolidated Properties


	Square Feet														Annual Net Effective Rent (1)		Annual Net Effective Rent per Square Foot (2)		Percent of Annual Net Effective Rent		Square Feet											Annual Net Effective Rent (1)		Annual Net Effective Rent per Square Foot (2)		Percent of Annual Net Effective Rent
	Industrial			Medical Office			Non-Reportable			Overall			Percent of Overall		Annual Net Effective Rent (1)		Annual Net Effective Rent per Square Foot (2)		Percent of Annual Net Effective Rent		Industrial			Non-Reportable			Overall			Percent of Overall		Annual Net Effective Rent (1)		Annual Net Effective Rent per Square Foot (2)		Percent of Annual Net Effective Rent
Primary Market
Dallas	6,206,547			458,396			—			6,664,943			62.1	%	$	36,311,057	$	5.50	60.0	%	6,047,818			—			6,047,818			54.1	%	$	22,737,641	$	3.89	54.5	%
Indianapolis	3,057,160			273,479			—			3,330,639			31.0	%	17,811,094		5.57		29.4	%	4,049,220			—			4,049,220			36.2	%	11,459,225		3.57		27.5	%
Washington DC	—			—			530,037			530,037			4.9	%	5,469,358		18.33		9.0	%	—			450,970			450,970			4.0	%	4,787,379		17.88		11.5	%
Columbus																					423,810			—			423,810			3.8	%	1,791,534		4.23		4.3	%
Other (3)																					152,944			—			152,944			1.4	%	512,362		3.35		1.2	%
Cincinnati	57,886			—			—			57,886			0.6	%	398,667		6.89		0.7	%	57,886			—			57,886			0.5	%	398,667		6.89		1.0	%
Other (3)	152,944			—			—			152,944			1.4	%	512,362		3.35		0.9	%
Total	9,474,537			731,875			530,037			10,736,449			100.0	%	$	60,502,538	$	5.87	100.0	%	10,731,678			450,970			11,182,648			100.0	%	$	41,686,808	$	4.18	100.0	%
Percent of Overall	88.3		%	6.8		%	4.9		%	100.0		%									96.0		%	4.0		%	100.0		%
Annual Net Effective Rent per Square Foot (2)	$	3.74		$	28.58		$	18.33		$	5.87										$	3.81		$	17.88		$	4.18


	Occupancy %																Occupancy %
	Consolidated Properties								Jointly Controlled Properties								Consolidated Properties						Unconsolidated Properties
	Industrial		Medical Office		Non-Reportable		Overall		Industrial		Medical Office		Non-Reportable		Overall		Industrial		Non-Reportable		Overall		Industrial		Non-Reportable		Overall
Primary Market
Savannah	100.0	%	—		—		100.0	%	—		—		—		—
Southern California	100.0	%	—		—		100.0	%	—		—		—		—
Indianapolis																	100.0	%	—		100.0	%	79.3	%	—		79.3	%
Dallas																	100.0	%	—		100.0	%	96.7	%	—		96.7	%
Columbus																	100.0	%	—		100.0	%	100.0	%	—		100.0	%
Houston																	100.0	%	—		100.0	%	—		—		—
Pennsylvania	100.0	%	—		—		100.0	%	—		—		—		—		100.0	%	—		100.0	%	—		—		—
Northern California	100.0	%	—		—		100.0	%	—		—		—		—		100.0	%	—		100.0	%	—		—		—
Seattle																	100.0	%	—		100.0	%	—		—		—
Cincinnati																	99.8	%	71.3	%	99.3	%	100.0	%	—		100.0	%
Minneapolis-St. Paul																	98.8	%	—		98.8	%	—		—		—
Nashville																	98.6	%	—		98.6	%	—		—		—
Central Florida																	97.7	%	—		97.7	%	—		—		—
Savannah																	96.2	%	—		96.2	%	—		—		—
Washington DC																	94.9	%	96.1	%	95.4	%	—		59.4	%	59.4	%
Chicago																	95.0	%	—		95.0	%	—		—		—
Raleigh																	94.7	%	—		94.7	%	—		—		—
St. Louis	100.0	%	—		—		100.0	%	—		—		—		—		94.2	%	—		94.2	%	—		—		—
Baltimore	100.0	%	—		—		100.0	%	—		—		—		—		92.5	%	—		92.5	%	—		—		—
Seattle	100.0	%	—		—		100.0	%	—		—		—		—
Atlanta																	93.1	%	0.0	%	92.3	%	—		—		—
South Florida																	90.8	%	—		90.8	%	—		—		—
New Jersey	100.0	%	86.4	%	—		99.7	%	—		—		—		—		88.2	%	—		88.2	%	—		—		—
Dallas	100.0	%	97.1	%	—		99.6	%	99.4	%	94.9	%	—		99.1	%
Raleigh	99.6	%	100.0	%	—		99.6	%	—		—		—		—
Nashville	99.0	%	100.0	%	—		99.1	%	—		—		—		—
Indianapolis	99.0	%	97.8	%	94.5	%	98.7	%	95.7	%	100.0	%	—		96.1	%
Minneapolis-St. Paul	97.9	%	—		—		97.9	%	—		—		—		—
Columbus	97.0	%	—		—		97.0	%	—		—		—		—
Atlanta	97.7	%	97.2	%	—		96.8	%	—		—		—		—
Chicago	96.7	%	99.7	%	—		96.8	%	—		—		—		—
Central Florida	97.7	%	89.1	%	—		96.6	%	—		—		—		—
South Florida	96.9	%	100.0	%	39.3	%	95.4	%	—		—		—		—
Washington DC	96.0	%	100.0	%	50.2	%	94.4	%	—		—		56.3	%	56.3	%
Houston	93.6	%	64.9	%	—		92.5	%	—		—		—		—
Cincinnati	90.2	%	100.0	%	58.5	%	90.2	%	100.0	%	—		—		100.0	%
Southern California																	86.2	%	—		86.2	%	—		—		—
Other (3)	100.0	%	92.0	%	—		94.3	%	100.0	%	—		—		100.0	%	—		100.0	%	100.0	%	100.0	%	—		100.0	%
Total	97.6	%	95.1	%	76.8	%	97.2	%	98.2	%	96.8	%	56.3	%	96.0	%	96.2	%	80.9	%	96.1	%	90.3	%	59.4	%	89.1	%


(1)	Represents the average annual base rental payments, on a straight-line basis for the term of each lease, from space leased to tenants as of December 31, ~~2016,~~2017, excluding additional amounts paid by tenants as reimbursement for operating expenses. Joint venture properties are shown at 100% of square feet and net effective rents, without regard to our ownership percentage.


(2)	Annual net effective rent per leased square foot.


(3)	Represents properties not located in our primary markets.

Item 3. Legal Proceedings

We are not subject to any ~~material~~ pending legal proceedings, other than routine litigation arising in the ordinary course of business. We do not expect these legal proceedings to have a material adverse effect on our financial condition, results of operations, or liquidity.

Item 4. Mine Safety Disclosures

Not applicable.

PART II

Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market Information and Holders

The General Partner's common stock is listed for trading on the NYSE under the symbol "DRE." The following table sets forth the high and low sales prices of the General Partner's common stock for the periods indicated and the dividend or distribution paid per share or Common Unit by the General Partner or the Partnership, respectively, during each such period. There is no established trading market for the Partnership's Common Units. As of February ~~13, 2017,~~14, 2018, there were ~~5,684~~5,376 record holders of the General Partner's common stock and ~~107~~87 record holders of the Partnership's Common Units.


	2016						2015						2017						2016
Quarter Ended	High		Low		Dividend/Distribution		High		Low		Dividend/Distribution		High		Low		Dividend/Distribution		High		Low		Dividend/Distribution
December 31	$	27.26	$	22.97	$	0.19	$	21.46	$	18.84	$	0.18	$	29.58	$	26.65	$	0.20	$	27.26	$	22.97	$	0.19
September 30	28.99		26.18		0.18		20.42		17.60		0.17		30.14		27.23		0.19		28.99		26.18		0.18
June 30	26.69		21.11		0.18		22.25		18.49		0.17		29.25		26.17		0.19		26.69		21.11		0.18
March 31	22.70		18.52		0.18		22.70		19.93		0.17		27.28		23.93		0.19		22.70		18.52		0.18

On January ~~25, 2017,~~31, 2018, the General Partner declared a quarterly cash dividend/distribution of ~~$0.19~~$0.20 per share or Common Unit, payable by the General Partner or the Partnership, respectively, on February 28, ~~2017,~~2018, to common shareholders or common unitholders of record on February ~~16, 2017.~~15, 2018. Our future distributions may vary and will be determined by the General Partner's Board of Directors upon the circumstances prevailing at the time, including our financial condition, operating results, estimated taxable income and REIT distribution requirements, and may be adjusted at the discretion of the Board.

Stock Performance Graph

The following line graph compares the change in the General Partner's cumulative total shareholders' return on shares of its common stock to the cumulative total return of the Standard and Poor's 500 Stock Index ("S&P 500") and the FTSE NAREIT Equity REITs Index ("FTRETR") from December 31, ~~2011~~2012 to December 31, ~~2016.~~2017. The graph assumes an initial investment of $100 in the common stock of the General Partner and each of the indices on December 31, ~~2011,~~2012, and the reinvestment of all dividends. The performance graph is not necessarily indicative of future performance.

This graph and the accompanying text are not “soliciting material,” are not deemed filed with the SEC and are not to be incorporated by reference in any filing by the company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing.

Tax Characterization of ~~Distributions~~Dividends

A summary of the tax characterization of the ~~distributions~~dividends paid per common share of the General Partner for the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014~~2015 follows:


	2016			2015			2014			2017			2016			2015
Distributions paid per share	$	0.73		$	0.69		$	0.68
Distributions paid per share - special	—			0.20			—
Total Distributions paid per share	$	0.73		$	0.89		$	0.68
Dividends paid per share										$	0.77		$	0.73		$	0.69
Dividends paid per share - special										0.85			—			0.20
Total Dividends paid per share										$	1.62		$	0.73		$	0.89
Ordinary income	72.6		%	4.2		%	59.2		%	23.7		%	72.6		%	4.2		%
Return of capital	2.6		%	—		%	2.5		%	—		%	2.6		%	—		%
Capital gains	24.8		%	95.8		%	38.3		%	76.3		%	24.8		%	95.8		%
	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Sales of Unregistered Securities

The General Partner did not sell any of its securities during the year ended December 31, ~~2016~~2017 that were not registered under the Securities Act.

Issuer Purchases of Equity Securities

From time to time, we may repurchase our securities under a repurchase program that initially was approved by the General Partner's board of directors and publicly announced in October 2001 (the "Repurchase Program").

On January 27, 2016, the General Partner's board of directors adopted a resolution that amended and restated the Repurchase Program and delegated authority to management to repurchase a maximum of $100.0 million of the General Partner's common shares, $500.0 million of the Partnership's debt securities and $500.0 million of the

~~General Partner's preferred shares, subject to the prior notification of the Chairman of the Finance Committee of the board of directors of planned repurchases within these limits. We~~During 2017 we did not repurchase any equity securities ~~through~~under the Repurchase ~~Program during the year ended December 31, 2016.~~Program.

On January ~~25, 2017~~31, 2018 the General Partner's board of directors adopted a resolution that amended and restated the Repurchase Program and delegated authority to management to repurchase a maximum of $100.0 million of the General Partner's common shares, $500.0 million of the Partnership's debt securities and $500.0 million of the General Partner's preferred shares, subject to the prior notification of the Chairman of the Finance Committee of the board of directors of planned repurchases within these limits.

Item 6. Selected Financial Data

The following table sets forth selected financial and operating information on a historical basis for each of the years in the five-year period ended December 31, ~~2016.~~2017. The following information should be read in conjunction with Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Item 8, "Financial Statements and Supplementary Data" included in this Form 10-K (in thousands, except per share or per Common Unit data):


	2016		2015		2014		2013		2012			2017		2016		2015		2014		2013
Results of Operations:
General Partner and Partnership
Revenues:
Rental and related revenue from continuing operations	$	813,434	$	816,065	$	822,351	$	762,164	$	661,375		$	686,514	$	641,701	$	658,809	$	682,653	$	657,349
General contractor and service fee revenue	88,810		133,367		224,500		206,596		275,071			94,420		88,810		133,367		224,500		206,596
Total revenues from continuing operations	$	902,244	$	949,432	$	1,046,851	$	968,760	$	936,446		$	780,934	$	730,511	$	792,176	$	907,153	$	863,945
Income (loss) from continuing operations	$	313,271	$	189,205	$	215,590	$	59,502	$	(80,435	)
Income from continuing operations												$	290,592	$	298,421	$	188,248	$	221,162	$	76,954

General Partner
Net income (loss) attributable to common shareholders	$	312,143	$	615,310	$	204,893	$	153,044	$	(126,145	)
Net income attributable to common shareholders												$	1,634,431	$	312,143	$	615,310	$	204,893	$	153,044

Partnership
Net income (loss) attributable to common unitholders	$	315,232	$	621,714	$	207,520	$	155,138	$	(128,418	)
Net income attributable to common unitholders												$	1,649,607	$	315,232	$	621,714	$	207,520	$	155,138

General Partner
Per Share Data:
Basic income (loss) per common share:
Basic income per common share:
Continuing operations	$	0.88	$	0.53	$	0.51	$	0.06	$	(0.50	)	$	0.80	$	0.84	$	0.53	$	0.53	$	0.11
Discontinued operations	0.01		1.24		0.09		0.41		0.02			3.78		0.05		1.24		0.07		0.36
Diluted income (loss) per common share:
Diluted income per common share:
Continuing operations	0.88		0.53		0.51		0.06		(0.50		)	0.80		0.84		0.53		0.53		0.11
Discontinued operations	—		1.24		0.09		0.41		0.02			3.76		0.04		1.24		0.07		0.36
Distributions paid per common share	$	0.73	$	0.69	$	0.68	$	0.68	$	0.68		$	0.77	$	0.73	$	0.69	$	0.68	$	0.68
Distributions paid per common share - special	$	—	$	0.20	$	—	$	—	$	—		$	0.85	$	—	$	0.20	$	—	$	—
Weighted average common shares outstanding	349,942		345,057		335,777		322,133		267,900			355,762		349,942		345,057		335,777		322,133
Weighted average common shares and potential dilutive securities	357,076		352,197		340,446		326,712		267,900			362,011		357,076		352,197		340,446		326,712
Balance Sheet Data (at December 31):
Total Assets (1)	$	6,772,002	$	6,895,515	$	7,725,001	$	7,721,105	$	7,527,283		$	7,388,196	$	6,772,002	$	6,895,515	$	7,725,001	$	7,721,105
Total Debt (1)	2,908,477		3,320,141		4,382,801		4,222,868		4,413,352			2,422,891		2,908,477		3,320,141		4,382,801		4,222,868
Total Preferred Equity	—		—		—		447,683		625,638			—		—		—		—		447,683
Total Shareholders' Equity	3,465,818		3,181,932		2,860,325		3,013,243		2,591,414			4,532,844		3,465,818		3,181,932		2,860,325		3,013,243
Total Common Shares Outstanding	354,756		345,285		344,112		326,399		279,423			356,361		354,756		345,285		344,112		326,399
Other Data:
Funds from Operations attributable to common shareholders (2)	$	428,420	$	300,816	$	363,111	$	347,041	$	265,204		$	455,743	$	428,420	$	300,816	$	363,111	$	347,041

Partnership
Per Unit Data:
Basic income (loss) per Common Unit:
Basic income per Common Unit:
Continuing operations	$	0.88	$	0.53	$	0.51	$	0.06	$	(0.50	)	$	0.80	$	0.84	$	0.53	$	0.53	$	0.11
Discontinued operations	0.01		1.24		0.09		0.41		0.02			3.78		0.05		1.24		0.07		0.36
Diluted income (loss) per Common Unit:
Diluted income per Common Unit:
Continuing operations	0.88		0.53		0.51		0.06		(0.50		)	0.80		0.84		0.53		0.53		0.11
Discontinued operations	—		1.24		0.09		0.41		0.02			3.76		0.04		1.24		0.07		0.36
Distributions paid per Common Unit	$	0.73	$	0.69	$	0.68	$	0.68	$	0.68		$	0.77	$	0.73	$	0.69	$	0.68	$	0.68
Distributions paid per Common Unit - special	$	—	$	0.20	$	—	$	—	$	—		$	0.85	$	—	$	0.20	$	—	$	—
Weighted average Common Units outstanding	353,423		348,639		340,085		326,525		272,729			359,065		353,423		348,639		340,085		326,525
Weighted average Common Units and potential dilutive securities	357,076		352,197		340,446		326,712		272,729			362,011		357,076		352,197		340,446		326,712
Balance Sheet Data (at December 31):
Total Assets (1)	$	6,772,002	$	6,895,515	$	7,725,001	$	7,721,105	$	7,527,283		$	7,388,196	$	6,772,002	$	6,895,515	$	7,725,001	$	7,721,105
Total Debt (1)	2,908,477		3,320,141		4,382,801		4,222,868		4,413,352			2,422,891		2,908,477		3,320,141		4,382,801		4,222,868
Total Preferred Equity	—		—		—		447,683		625,638			—		—		—		—		447,683
Total Partners' Equity	3,490,509		3,201,964		2,877,434		3,037,330		2,616,803			4,573,407		3,490,509		3,201,964		2,877,434		3,037,330
Total Common Units Outstanding	358,164		348,772		347,828		330,786		283,842			359,644		358,164		348,772		347,828		330,786
Other Data:
Funds from Operations attributable to common unitholders (2)	$	432,666	$	303,955	$	367,768	$	351,780	$	269,985		$	459,980	$	432,666	$	303,955	$	367,768	$	351,780

(1)Total assets and total debt include reclassifications as a result of the adoption of the Financial Accounting Standards Board’s (“FASB”) ASU 2015-03, Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs. See Item 8 of this Annual report on Form 10-K for more information.

(2) Funds from operations ("FFO") is a non-GAAP measure used in the real estate ~~industry.~~industry and is calculated in accordance with standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). See ~~definitions and~~ a ~~complete~~ reconciliation of ~~FFO and Core~~NAREIT FFO to net ~~earnings for the most recent three years~~income attributable to common shareholders under ~~the caption~~ "Year in Review" under Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations." NAREIT-defined reconciling items between net income and NAREIT FFO totaled ~~$193,997~~$158,218 and ~~$391,349~~$193,997 for the General Partner, and ~~$196,642~~$160,248 and ~~$398,403~~$196,642 for the Partnership, in ~~2013~~2014 and ~~2012,~~2013, respectively.

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

Business Overview

The General Partner and Partnership collectively specialize in the ownership, management and development of industrial ~~and~~real estate.

During 2017, through a series of asset sales, we completed the disposition of nearly all of our medical office properties (the "Medical Office Portfolio Disposition"). We also sold nearly all of our remaining suburban office properties during 2017. Aside from a few residual assets, which we intend to dispose of in the relatively near future, we are now positioned solely as an owner and operator of industrial real ~~estate.~~estate assets.

The General Partner is a self-administered and self-managed REIT that began operations in 1986 and is the sole general partner of the Partnership. The Partnership is a limited partnership formed in 1993, at which time all of the properties and related assets and liabilities of the General Partner, as well as proceeds from a secondary offering of the General Partner's common shares, were contributed to the Partnership. Simultaneously, the Partnership completed the acquisition of Duke Associates, a full-service commercial real estate firm operating in the Midwest whose operations began in 1972. We operate the General Partner and the Partnership as one enterprise, and therefore, our discussion and analysis refers to the General Partner and its consolidated subsidiaries, including the Partnership, collectively.

At December 31, ~~2016,~~2017, we:

Owned or jointly controlled ~~561~~509 primarily industrial ~~medical office and office~~ properties, of which ~~534~~493 properties ~~totaling 130.2~~with 139.6 million square feet were in service and 2716 properties ~~totaling 9.4~~with 9.2 million square feet were under development. The ~~534~~493 in-service properties were comprised of ~~492~~451 consolidated properties ~~totaling 119.5~~with 128.4 million square feet and 42 jointly controlled unconsolidated properties ~~totaling 10.7~~with 11.2 million square feet. The 2716 properties under development consisted of 2512 consolidated properties with ~~8.4~~7.2 million square feet and ~~two~~four jointly controlled unconsolidated properties with ~~1.0~~2.0 million square feet.

Owned ~~including~~directly, or through ownership interests in unconsolidated joint ventures (with acreage not adjusted for our percentage ownership interest), ~~2,190~~approximately 1,900 acres of land and controlled ~~an additional~~approximately 1,600 acres through purchase options.

Our overall strategy is to continue to increase our investment inprimarily through development, on both a speculative and build-to-suit basis, of quality industrial properties supplemented with acquisitions in ~~both existing and select new~~higher barrier markets ~~and to continue to increase our investment in on-campus or hospital affiliated medical office properties.~~with the highest growth potential. Based on in-place net operating income, the Company's overall portfolio was comprised of ~~78%~~98% industrial ~~21% medical office~~ and ~~1% non-reportable~~2% Non-Reportable rental operations at December 31, ~~2016~~2017 and ~~73%~~78% industrial ~~19% medical office~~ and ~~8% non-reportable~~22% Non-Reportable rental operations at December 31, ~~2015.~~2016.

We have ~~three~~two reportable operating segments at December 31, ~~2016,~~2017, the first ~~two of which consist~~consisting of the ownership and rental of ~~(i)~~ industrial ~~and (ii) medical office~~ real estate investments. Properties not included in our reportable segments, which do not by themselves meet the quantitative thresholds for separate presentation as a reportable segment, are generally referred to as non-reportable Rental Operations. Our non-reportable Rental Operations primarily include our office properties. The operations of our industrial ~~and medical office~~ properties, as well as our ~~non-reportable~~Non-Reportable Rental Operations, are collectively referred to as "Rental Operations."

~~The third~~ Our second reportable segment consists of various real estate services such as property management, asset management, maintenance, leasing, development, general contracting and construction management to third-party property owners and joint ventures, and is collectively referred to as "Service Operations." Our reportable segments ~~offer different products or services and~~ are managed separately because each segment requires different operating strategies and management expertise. Our Service Operations segment also includes our taxable REIT subsidiary, a legal entity through which certain of the segment's aforementioned operations are conducted.

Operational Strategy

Our operational focus is to drive profitability by maximizing cash from operations as well as NAREIT FFO through (i) maintaining and increasing property occupancy and rental rates, while also keeping lease-related capital costs contained, by effectively managing our portfolio of existing properties; (ii) selectively developing new build-to-suit, substantially pre-leased and, in certain circumstances, speculative development projects; ~~(iii) leveraging our construction expertise to act as a general contractor or construction manager on a fee basis;~~ and ~~(iv)~~(iii) providing a full line of real estate services to our tenants and to third parties.

Asset Strategy

Our strategic objectives include (i) increasing our investment in quality industrial properties through development; (ii) ~~managing our medical office portfolio nationally to focus on hospital system relationships in order to take advantage of demographic trends; (iii)~~ acquiring industrial properties in markets we believe provide the best potential for future rental growth; and ~~(iv)~~(iii) maintaining an optimal land inventory through selected strategic land acquisitions, new development activity and sales of surplus land. We are continuing to execute our asset strategy through a disciplined approach by identifying development opportunities, identifying select acquisition targets where the asset quality and pricing meet our objectives and continually evaluating our portfolio for disposition by regularly identifying assets that no longer meet our long-term objectives.

Capital Strategy

Our capital strategy is to maintain a strong balance sheet by actively managing the components of our capital structure in coordination with the execution of our overall operational and asset strategies. We are focused on maintaining our current investment grade ratings from our credit rating agencies. As of December 31, ~~2016,~~2017, our senior unsecured notes have been assigned a rating of Baa1 by Moody's Investors Services and BBB+ by Standard & Poor's Ratings ~~Group, which reflect increases to both ratings during 2016.~~Group.

In support of our capital strategy, we employ an asset disposition program to sell non-strategic real estate assets, which generate proceeds that can be recycled into new property investments that better fit our growth objectives or otherwise manage our capital structure.

We continue to focus on ~~improving our balance sheet by~~ maintaining a balanced and flexible capital structure which includes: (i) extending and sequencing the maturity dates of our outstanding debt obligations; (ii) borrowing primarily at fixed rates by targeting a variable rate component of total debt less than 20%; and (iii) issuing common equity as needed to maintain appropriate leverage parameters or support significant strategic developments or acquisitions. With our successes to date and continued focus on maintaining a strong balance sheet, we expect to be in a very strong position to be opportunistic in our investment opportunities ~~on a self-funding basis.~~.

Environmental, Social and Governance Strategy

As a leading commercial real estate firm in the United States, we are committed to sustainable practices in environmental, social and corporate governance initiatives. Our sustainability practices have included research, development, and deployment of sustainable building strategies and technologies, staff education and LEED accreditation to construct high-performing sustainable buildings and to operate an energy-efficient portfolio. We have successfully redeveloped a number of environmentally impacted sites by removing obsolete, unused buildings and cleaning up environmental contaminants. We are committed to charitable giving, volunteerism, diversity and inclusion ~~that~~as we strive to make a positive impact on the communities in which we conduct business. We are also committed to maintaining an effective corporate governance structure and ~~compliance~~complying with applicable laws, rules, regulations and policies. Through these efforts, we demonstrate that operating and developing commercial real estate can be conducted with a conscious regard for the environment and community, while ~~mutually~~also benefiting our tenants, investors, employees and the communities in which we operate.

Results of Operations

A summary of our operating results and property statistics for each of the years in the three-year period ended December 31, ~~2016,~~2017, is as follows (in thousands, except number of properties and per share or per Common Unit data):


	2016		2015		2014		2017		2016		2015
Rental and related revenue from continuing operations	$	813,434	$	816,065	$	822,351	$	686,514	$	641,701	$	658,809
General contractor and service fee revenue	88,810		133,367		224,500		94,420		88,810		133,367
Operating income	476,981		448,396		411,068		388,621		433,312		412,123
General Partner
Net income attributable to common shareholders	$	312,143	$	615,310	$	204,893	$	1,634,431	$	312,143	$	615,310
Weighted average common shares outstanding	349,942		345,057		335,777		355,762		349,942		345,057
Weighted average common shares and potential dilutive securities	357,076		352,197		340,446		362,011		357,076		352,197
Partnership
Net income attributable to common unitholders	$	315,232	$	621,714	$	207,520	$	1,649,607	$	315,232	$	621,714
Weighted average Common Units outstanding	353,423		348,639		340,085		359,065		353,423		348,639
Weighted average Common Units and potential dilutive securities	357,076		352,197		340,446		362,011		357,076		352,197
General Partner and Partnership
Basic income per common share or Common Unit:
Continuing operations	$	0.88	$	0.53	$	0.51	$	0.80	$	0.84	$	0.53
Discontinued operations	$	0.01	$	1.24	$	0.09	$	3.78	$	0.05	$	1.24
Diluted income per common share or Common Unit:
Continuing operations	$	0.88	$	0.53	$	0.51	$	0.80	$	0.84	$	0.53
Discontinued operations	$	—	$	1.24	$	0.09	$	3.76	$	0.04	$	1.24
Number of in-service consolidated properties at end of year	492		489		621		451		492		489
In-service consolidated square footage at end of year	119,493		115,588		127,029		128,396		119,493		115,588
Number of in-service joint venture properties at end of year	42		70		85		42		42		70
In-service joint venture square footage at end of year	10,736		19,145		19,841		11,183		10,736		19,145

Year in Review

Overall, the economy has ~~slightly underperformed~~performed consistently with economic forecasts, aswith estimated growth in the United States gross domestic product ~~was 1.5% and there have been periods~~ of ~~volatility caused by oil pricing, Brexit and the United States presidential election.~~2.3% for 2017. The ~~10 year~~10-year Treasury rate generally fluctuated between ~~1.5%~~2.2% and ~~2.0%~~2.4% for most of ~~the year but~~2017 and ended the year at ~~its high point of 2.3%~~2.4%. The continued growth inof e-commerce has been a significant positive for the bulk warehouse business, while its sometimes negative impact on traditional retail operators has not significantly impacted our business. Under these conditions we were able to execute our asset and capital strategies for the year and ~~believe that we~~ had a successful ~~2016 by all accounts.~~2017.

Net income attributable to the common shareholders of the General Partner for the year ended December 31, ~~2016,~~2017, was $~~312.1 million~~1.63 billion~~, or~~ ~~$0.88~~ ~~per share (diluted)~~, compared to net income of $~~615.3~~312.1 million~~, or~~ ~~$1.77~~ ~~per share (diluted)~~ for the year ended December 31, ~~2015.~~2016. Net income attributable to the common unitholders of the Partnership for the year ended December 31, ~~2016,~~2017, was ~~$315.2 million, or $0.88 per unit (diluted),~~$1.65 billion, compared to net income of ~~$621.7~~$315.2 million ~~or $1.77 per unit (diluted)~~ for the year ended December 31, ~~2015.~~2016. The ~~decrease~~increase in net income in ~~2016~~2017 for the General Partner and the Partnership, when compared to ~~2015,~~2016, was primarily the result of significant gains on property sales recognized during ~~2015.~~2017.

NAREITFFO attributable to common shareholders of the General Partner totaled ~~$428.4~~$455.7 million for the year ended December 31, ~~2016,~~2017, compared to ~~$300.8~~$428.4 million for ~~2015.~~2016. NAREIT FFO attributable to common unitholders of the Partnership totaled ~~$432.7~~$460.0 million for the year ended December 31, ~~2016,~~2017, compared to ~~$304.0~~$432.7 million for ~~2015.~~2016. The increase to NAREIT FFO infrom 2016 for the General Partner and the Partnership was the result of lower interest expense, as the result of significant debt ~~extinguishment costs~~repayments in 2017, as well as new industrial properties being placed in service and ~~promote income recognized~~improved operational performance in ~~2016.~~our existing industrial portfolio, with these factors partially offset by the impact of the Medical Office Portfolio Disposition in 2017.

The following table shows a reconciliation of net income attributable to common shareholders or common unitholders to the calculation of NAREIT FFO attributable to common shareholders or common unitholders for the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014,~~2015, respectively (in thousands):


	2016			2015			2014			2017			2016			2015
Net income attributable to common shareholders of the General Partner	$	312,143		$	615,310		$	204,893		$	1,634,431		$	312,143		$	615,310
Add back: Net income attributable to noncontrolling interests - common limited partnership interests in the Partnership	3,089			6,404			2,627			15,176			3,089			6,404
Net income attributable to common unitholders of the Partnership	315,232			621,714			207,520			1,649,607			315,232			621,714
Adjustments:
Depreciation and amortization	317,818			320,846			384,617			299,472			317,818			320,846
Impairment charges - depreciable property	3,719			3,406			15,406			859			3,719			3,406
Company share of joint venture depreciation and amortization	14,188			27,247			28,227			9,674			14,188			27,247
Gain on dissolution of unconsolidated company	(30,697		)	—			—
Earnings from depreciable property sales—wholly owned	(163,109		)	(654,594		)	(185,478		)
Income tax (benefit) expense triggered by depreciable property sales	(589		)	(753		)	2,125
Earnings from depreciable property sales—share of joint venture	(23,896		)	(13,911		)	(84,649		)
Funds From Operations attributable to common unitholders of the Partnership	$	432,666		$	303,955		$	367,768
Gain on dissolution of unconsolidated joint venture										—			(30,697		)	—
Partnership share of gains on depreciable property sales										(1,466,599		)	(163,109		)	(654,594		)
Income tax expense (benefit) triggered by depreciable property sales										17,660			(589		)	(753		)
Gains on depreciable property sales—share of unconsolidated joint ventures										(50,693		)	(23,896		)	(13,911		)
NAREIT FFO attributable to common unitholders of the Partnership										$	459,980		$	432,666		$	303,955
Additional General Partner Adjustments:
Net income attributable to noncontrolling interests - common limited partnership interests in the Partnership	(3,089		)	(6,404		)	(2,627		)	(15,176		)	(3,089		)	(6,404		)
Noncontrolling interest share of adjustments	(1,157		)	3,265			(2,030		)	10,939			(1,157		)	3,265
Funds From Operations attributable to common shareholders of the General Partner	$	428,420		$	300,816		$	363,111
NAREIT FFO attributable to common shareholders of the General Partner										$	455,743		$	428,420		$	300,816

In addition to net income (loss) computed in accordance with GAAP, we assess and measure the overall operating results of the General Partner and the Partnership based upon NAREIT FFO, which is a non-GAAP industry performance measure that management believes is a useful indicator of consolidated operating performance. NAREIT FFO is used by industry analysts and investors as a supplemental operating performance measure of a REIT. NAREIT created NAREIT FFO as a non-GAAP supplemental measure of REIT operating performance. NAREIT FFO ~~as defined by NAREIT,~~ represents GAAP net income (loss), attributable to common shareholders, excluding gains or losses from sales of previously depreciated real estate assets and impairment charges related to depreciable real estate assets, plus certain non-cash items such as real estate asset depreciation and amortization, and after similar adjustments for unconsolidated partnerships and joint ventures. Taxes associated with sales of previously depreciated real estate assets are also excluded from ~~FFO as defined by NAREIT.~~NAREIT FFO. The most comparable GAAP measure is net income

(loss) attributable to common shareholders or common unitholders. NAREIT FFO attributable to common shareholders or common unitholders should not be

considered as a substitute for net income (loss) attributable to common shareholders or common unitholders or any other measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. ~~FFO is calculated in accordance with the definition that was adopted by the Board of Governors of NAREIT.~~

Historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry analysts and investors have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Management believes that the use of NAREIT FFO attributable to common shareholders or common unitholders, combined with net income (which remains the primary measure of performance), improves the understanding of operating results of REITs among the investing public and makes comparisons of REIT operating results more meaningful. Management believes that the use of NAREIT FFO as a performance measure enables investors and analysts to readily identify the operating results of the long-term assets that form the core of a REIT's activity and assist them in comparing these operating results between periods or between different companies.

In accordance with our strategic plan in 2017, we ~~substantially completed~~executed the ~~disposition~~Medical Office Portfolio Disposition, disposed of most of our remaining suburban office properties and further reduced leverage ~~and continued~~while continuing to increase our investment in ~~high quality~~high-quality industrial ~~and medical office~~ properties. Additionally, we continued to experience improved operational metrics during ~~2016, which we~~2017, and believe ~~validate our strategy.~~that the fundamental drivers of industrial real estate performance remain strong. Highlights of our ~~2016~~2017 strategic and operational activities are as follows:

We generated ~~$538.6 million~~$2.52 billion of total net cash proceeds from the disposition of 3298 consolidated buildings and ~~448~~166 acres of ~~wholly-owned~~wholly owned undeveloped land.

We started new development projects with expected total costs of ~~$697.2~~$866.2 million, ~~during 2016,~~ which included ~~$54.0~~$124.6 million of expected total costs for ~~three~~six development projects started within unconsolidated joint ventures. The development projects started in ~~2016~~2017 were mostly comprised of new industrial projects and were, in aggregate, ~~67.0%~~60.0% pre-leased.

~~In the fourth quarter of 2016, pursuant to a pre-existing purchase option, we acquired 14 properties~~ Included in ~~the Washington D.C. area from an unconsolidated joint venture (the "Quantico Joint Venture"). These 14 properties were comprised of 11 industrial buildings and three~~these totals is one medical office ~~properties. These 14 properties were previously encumbered by a $131.3 million CMBS loan and, pursuant to the terms~~property which was sold as part of the purchase option, we repaid the loan as consideration for the acquisition of the underlying properties. One of the acquired office properties was sold immediately following the acquisition for $53.4 million, which was equal to the property's fair value.Medical Office Portfolio Disposition.

~~During 2016, we~~We placed 2123 newly completed ~~wholly-owned~~wholly owned development projects in service, ~~across all product types,~~ which totaled ~~6.0~~9.2 million square feet with total costs of ~~$507.6~~$638.7 million. These properties were ~~94.9%~~85.9% leased at December 31, ~~2016.~~2017.

The total estimated cost of our consolidated properties under construction at December 31, ~~2016~~2017 totaled ~~$713.1~~$642.1 million, with ~~$338.6~~$374.9 million of such costs already incurred. The total estimated cost for jointly controlled properties under construction was ~~$42.1~~$99.7 million at December 31, ~~2016,~~2017, with ~~$28.8~~$65.3 million of costs already incurred. The consolidated properties under construction are ~~74%~~56% pre-leased, while the jointly controlled properties under construction are ~~29%~~67% pre-leased.

Same-property net operating income, on a cash basis, as defined hereafter under "Supplemental Performance Measures" ~~grew~~, increased by ~~6.0%~~4.0% for the twelve months ended December 31, ~~2016,~~2017, as compared to the same period in ~~2015.~~2016.

~~The~~As the result of speculative developments that were placed in service during the year, the percentage of total square feet leased for our in-service portfolio of consolidated properties ~~increased~~decreased from ~~96.5% at December 31, 2015 to~~ 97.2% at December 31, ~~2016.~~2016 to 96.1% at December 31, 2017.

Total leasing activity for our consolidated properties totaled 21.4 million square feet in 2017 compared to 26.2 million square feet in ~~2016 compared to 19.4 million square feet in 2015.~~2016. The ~~increase~~decrease in total leasing activity in ~~2016~~2017 was largely the result of ~~leasing new development projects~~a lower number of leases up for renewal in 2017, compared to 2016, as well as ~~a higher volume~~the timing of ~~lease renewals.~~build-to-suit development projects.

Total leasing activity for our consolidated properties in ~~2016~~2017 included ~~12.3~~9.6 million square feet of renewals, which represented ~~a 75.6%~~an 82.5% retention rate on a square foot basis, and resulted in a ~~13.7%~~17.4% increase in net effective ~~rents.~~

rents, as defined hereafter under "Key Performance Indicators."

We utilized the capital generated from dispositions during the year to reduce debt and to fund our development activities. Highlights of our key financing activities are as follows:

~~Throughout 2016,~~

During 2017, we ~~issued 8.4~~repaid eight fixed rate secured loans, totaling $66.5 million, ~~shares~~which had a weighted average stated interest rate of ~~common stock pursuant to~~5.85%.

In June 2017, we repaid our $250.0 million variable rate term loan, which had a scheduled maturity date of January 2019 and bore interest at ~~the market ("ATM") equity program at an average price of $25.93 per share, generating gross proceeds of $218.2 million and, after deducting commissions and other costs, net proceeds of $215.6 million.~~LIBOR plus 1.00%.

In June ~~2016,~~2017, we also repaid $285.6 million of senior unsecured notes that had a stated interest rate of 6.50% and an effective interest rate of 6.08%, with a scheduled maturity date of January 2018. We recognized a loss of $9.0 million including a repayment premium and the write-off of unamortized deferred financing costs.

In July 2017, we repaid $128.7 million of senior unsecured notes that had both a stated and an effective interest rate of 6.75% with a scheduled maturity date of March 2020. We recognized a loss of $16.6 million including a repayment premium and the write-off of unamortized deferred financing costs.

In October 2017, we extended our $1.2 billion unsecured revolving credit facility from January 2019 to January 2022 at a variable rate (subject to adjustment) of LIBOR plus 0.875%.

In December 2017, we issued ~~$375.0~~$300.0 million of senior unsecured notes that bear interest at a stated interest rate of ~~3.25%~~3.38%, have an effective interest rate of ~~3.36%,~~3.39% and mature on ~~June 30, 2026.~~December 15, 2027.

During June and July 2016, we repaid $275.0 million of our 5.95% senior unsecured notes, which had a scheduled maturity of February 2017. Through a tender offer we repurchased $72.0 million of the notes and redeemed the remaining outstanding notes, for cash payments totaling $283.5 million. The repayment of these notes resulted in an $8.8 million loss on debt extinguishment, which included premiums paid to the holders of the notes as well as the write-off of unamortized deferred financing costs.

~~Throughout 2016, we repaid seven secured loans, totaling $346.7 million, which had a weighted average stated interest rate of 5.90%.~~

In October 2016, we redeemed $129.5 million of senior unsecured notes, which had a scheduled maturity in August of 2019, for a cash payment of $154.1 million. As the result of this redemption, we recognized a net loss on extinguishment totaling $25.2 million, which was comprised of premiums paid to the holders of the notes as well as the write-off of unamortized deferred financing costs.

Supplemental Performance Measures

In addition to NAREIT FFO we use (i) Property Level Net Operating Income - Cash Basis ("PNOI") and (ii) ~~Same Property~~Same-Property Net Operating Income - Cash Basis ("SPNOI") as supplemental non-GAAP performance measures. Management believes that the use of PNOI and SPNOI combined with net income (which remains the primary measure of performance), improves the understanding of operating results of REITs among the investing public and makes comparisons of REIT operating results more meaningful. The most comparable GAAP measure to PNOI and SPNOI is income from continuing operations before income taxes.

PNOI and SPNOI each exclude expenses that materially impact our overall results of operations and, therefore, should not be considered as a substitute for income from continuing operations before income taxes, or any other measures derived in accordance with GAAP. Furthermore, these metrics may not be comparable to other similarly titled measures of other companies.

Property Level Net Operating Income - Cash Basis

PNOI is comprised of rental revenues from continuing operations less rental expenses and real estate taxes from continuing operations, along with certain other adjusting items. As a performance metric that consists of only the cash-based revenues and expenses directly related to ongoing real estate rental operations, PNOI is narrower in scope than NAREIT FFO.

PNOI, as we calculate it, may not be directly comparable to similarly titled, but differently calculated, measures for other REITs. We believe that PNOI is another useful supplemental performance measure, as it is an input in many REIT valuation models and it provides a means by which to evaluate the performance of the properties within our Rental Operations segments.

The major factors influencing PNOI are occupancy levels, acquisitions and sales, development properties that achieve stabilized operations, rental rate increases or decreases, and the recoverability of operating expenses.

Note 8 to the consolidated financial statements included in Part IV, Item 15 of this Report shows a calculation of our PNOI for the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014~~2015 and provides a reconciliation of PNOI for our Rental Operations segments to income from continuing operations before income taxes.

~~Same Property~~

Same-Property Net Operating Income - Cash Basis

We also evaluate the performance of our properties, including our share of properties we jointly control, on a ~~"same property"~~"same-property" basis, using a metric referred to as SPNOI. We view SPNOI as a useful supplemental performance measure because it improves comparability between periods by eliminating the effects of changes in the composition of our portfolio.

On an individual property basis, SPNOI is computed in a consistent manner as PNOI.

We have defined our ~~same property~~same-property portfolio, for the three and twelve months ended December 31, ~~2016,~~2017, as those properties that have been owned and in operation throughout the twenty-four months ended December 31, ~~2016.~~2017. In addition to excluding properties that have not been owned and in operation for the twenty-four months ended December 31, ~~2016,~~2017, we have also excluded properties from our ~~same property~~same-property portfolio where revenues from individual lease buyouts in excess of $250,000 have been recognized. A reconciliation of income or loss from continuing operations before income taxes to SPNOI is presented as follows (in thousands):


	Three Months Ended December 31,						Percent		Twelve Months Ended December 31,						Percent		Three Months Ended December 31,						Percent		Twelve Months Ended December 31,						Percent
	2016			2015			Change		2016			2015			Change		2017			2016			Change		2017			2016			Change
Income from continuing operations before income taxes	$	46,983		$	17,275				$	312,682		$	185,277				$	54,422		$	40,504				$	290,235		$	297,832
Share of SPNOI from unconsolidated joint ventures	5,132			5,301					20,964			20,694					3,774			4,010					15,071			16,465
PNOI excluded from the same property population	(22,825		)	(11,582		)			(66,375		)	(43,808		)			(21,735		)	(10,767		)			(70,779		)	(31,404		)
Earnings from Service Operations	(127		)	(2,332		)			(8,343		)	(14,197		)			(847		)	(127		)			(4,963		)	(8,343		)
Rental Operations revenues and expenses excluded from PNOI	(6,633		)	(14,687		)			(41,386		)	(81,365		)			(6,432		)	(7,142		)			(28,902		)	(42,535		)
Non-Segment Items	105,634			128,611					286,984			409,505					80,622			79,927					230,686			182,904
SPNOI	$	128,164		$	122,586		4.5	%	$	504,526		$	476,106		6.0	%	$	109,804		$	106,405		3.2	%	$	431,348		$	414,919		4.0	%

The composition of the line items titled "Rental Operations revenues and expenses excluded from PNOI" and "Non-Segment Items" from the table above are shown in greater detail in Note 8 to the consolidated financial statements included in Part IV, Item 15 of this Report.

We believe the factors that impact SPNOI are generally the same as those that impact PNOI. The following table details the number of properties, square feet, average occupancy and cash rental rates for the properties included in SPNOI for the respective periods:


	Three Months Ended December 31,		Twelve Months Ended December 31,			Three Months Ended December 31,		Twelve Months Ended December 31,
	2016	2015	2016	2015		2017	2016	2017	2016
Number of properties	464	464	464	464		405	405	405	405
Square feet (in thousands) (1)	108,604	108,604	108,604	108,604		106,504	106,504	106,504	106,504
Average commencement occupancy percentage (2)	98.1%	97.0%	97.5%	96.3%		98.0%	98.2%	97.8%	97.4%
Average rental rate - cash basis (3)	$4.90	$4.82	$4.85	$4.78		$4.23	$4.11	$4.18	$4.07
(1) Includes the total square feet of the consolidated properties that are in the same property population as well as 4.4 million square feet of space for unconsolidated joint ventures, which represents our ratable share of the 9.3 million total square feet of space for buildings owned by unconsolidated joint ventures that are in the same property population.
(1) Includes the total square feet of the consolidated properties that are in the same-property population as well as 4.3 million square feet of space for unconsolidated joint ventures, which represents our ratable share of the 8.6 million total square feet of space for buildings owned by unconsolidated joint ventures that are in the same-property population.					(1) Includes the total square feet of the consolidated properties that are in the same-property population as well as 4.3 million square feet of space for unconsolidated joint ventures, which represents our ratable share of the 8.6 million total square feet of space for buildings owned by unconsolidated joint ventures that are in the same-property population.
(2) Commencement occupancy represents the percentage of total square feet where the leases have commenced.
(3) Represents the average annualized contractual rent per square foot for the three and twelve months ended December 31, 2016 and 2015 for tenants in occupancy in properties in the same property population. Cash rent does not include the tenant's obligation to pay property operating expenses and real estate taxes. If a tenant was within a free rent period at December 31, 2016 or 2015, its rent would equal zero for purposes of this metric.
(3) Represents the average annualized contractual rent per square foot for the three and twelve months ended December 31, 2017 and 2016 for tenants in occupancy in properties in the same-property population. Cash rent does not include the tenant's obligation to pay property operating expenses and real estate taxes. If a tenant was within a free rent period at December 31, 2017 or 2016 its rent would equal zero for purposes of this metric.					(3) Represents the average annualized contractual rent per square foot for the three and twelve months ended December 31, 2017 and 2016 for tenants in occupancy in properties in the same-property population. Cash rent does not include the tenant's obligation to pay property operating expenses and real estate taxes. If a tenant was within a free rent period at December 31, 2017 or 2016 its rent would equal zero for purposes of this metric.

Key Performance Indicators

Our operating results depend primarily upon rental income from our Rental Operations. The following discussion highlights the areas of Rental Operations that we consider critical drivers of future revenues.

Occupancy Analysis: As previously discussed, our ability to maintain high occupancy rates is a principal driver of maintaining and increasing rental ~~revenue from continuing operations.~~revenue. The following table sets forth percent leased and average net effective

~~and average net effective~~ rent information regarding our in-service portfolio of ~~consolidated~~ rental properties, including properties classified within both continuing and discontinued operations, at December 31, 2017 and 2016, ~~and 2015:~~respectively:


	Total Square Feet (in thousands)		Percent of Total Square Feet				Percent Leased*				Average Annual Net Effective Rent**		Total Square Feet (in thousands)		Percent of Total Square Feet				Percent Leased*				Average Annual Net Effective Rent**
Type	2016	2015	2016		2015		2016		2015		2016	2015	2017	2016	2017		2016		2017		2016		2017	2016
Industrial	112,368	106,828	94.0	%	92.4	%	97.6	%	96.9	%	$4.16	$4.06	127,507	112,368	99.3	%	94.0	%	96.2	%	97.6	%	$4.42	$4.16
Medical Office	5,672	5,209	4.8	%	4.5	%	95.1	%	95.3	%	$24.33	$23.36
Non-reportable Rental Operations	1,453	3,551	1.2	%	3.1	%	76.8	%	86.3	%	$13.98	$13.61
Non-Reportable Rental Operations													889	7,125	0.7	%	6.0	%	80.9	%	91.4	%	$15.78	$22.55
Total Consolidated	119,493	115,588	100.0	%	100.0	%	97.2	%	96.5	%	$5.19	$5.19	128,396	119,493	100.0	%	100.0	%	96.1	%	97.2	%	$4.49	$5.19

Unconsolidated Joint Ventures	10,736	19,145					96.0	%	93.2	%	$5.87	$5.83	11,183	10,736					89.1	%	96.0	%	$4.18	$5.87
Total Including Unconsolidated Joint Ventures	130,229	134,733					97.1	%	96.0	%			139,579	130,229					95.6	%	97.1	%

* Represents the percentage of total square feet leased based on executed leases and without regard to whether the leases have commenced.
** Represents average annual base rental payments per leased square foot, on a straight-line basis for the term of each lease, from space leased to tenants at the end of the most recent reporting period. This amount excludes additional amounts paid by tenants as reimbursement for operating expenses.	** Represents average annual base rental payments per leased square foot, on a straight-line basis for the term of each lease, from space leased to tenants at the end of the most recent reporting period. This amount excludes additional amounts paid by tenants as reimbursement for operating expenses.												** Represents average annual base rental payments per leased square foot, on a straight-line basis for the term of each lease, from space leased to tenants at the end of the most recent reporting period. This amount excludes additional amounts paid by tenants as reimbursement for operating expenses.

The ~~increase~~decrease in occupancy at December 31, ~~2016,~~2017 within our industrial portfolio, when compared to December 31, ~~2015, was driven by new leasing activity as well as through placing highly leased development projects~~2016, primarily resulted from speculative developments being placed in ~~service.~~service or acquired from third parties during 2017.

Vacancy Activity

The following table sets forth vacancy activity, shown in square feet, from our in-service rental properties included within both continuing and discontinued operations, for the year ended December 31, ~~2016~~2017 (in thousands):


	Consolidated Properties		Unconsolidated Joint Venture Properties		Total Including Unconsolidated Joint Venture Properties		Consolidated Properties		Unconsolidated Joint Venture Properties		Total Including Unconsolidated Joint Venture Properties
Vacant square feet at December 31, 2015	4,015		1,310		5,325
Vacant square feet at December 31, 2016							3,298		425		3,723
Acquisitions	227		—		227		2,490		—		2,490
Completed development	2,579		359		2,938
Vacant space in completed developments							2,519		708		3,227
Dispositions	(335	)	(1,165	)	(1,500	)	(650	)	(102	)	(752	)
Expirations	4,787		334		5,121		4,657		584		5,241
Early lease terminations	521		42		563		1,575		125		1,700
Property structural changes/other	8		—		8		14		(1	)	13
Leasing of previously vacant space	(8,504	)	(455	)	(8,959	)	(8,911	)	(520	)	(9,431	)
Vacant square feet at December 31, 2016	3,298		425		3,723
Vacant square feet at December 31, 2017							4,992		1,219		6,211

Total Leasing Activity

The initial leasing of development projects or vacant space in acquired properties is referred to as first generation lease activity. Our ability to maintain and improve occupancy rates and net effective rents primarily depends upon our continuing ability to re-lease expiring space. The leasing of such space that we have previously held under lease is referred to as second generation lease activity. The total leasing activity for our consolidated and unconsolidated rental properties included within both continuing and discontinued operations, expressed in square feet of leases signed during the period, is as follows for the years ended December 31, ~~2016~~2017 and ~~2015~~2016 (in thousands):


	2016	2015	2017	2016
New Leasing Activity - First Generation	9,681	5,201	6,840	9,681
New Leasing Activity - Second Generation	4,309	5,243	4,960	4,309
Renewal Leasing Activity	12,251	9,005	9,554	12,251
Total Consolidated Leasing Activity	26,241	19,449	21,354	26,241
Unconsolidated Joint Venture Leasing Activity	2,228	2,964	2,607	2,228
Total Including Unconsolidated Joint Venture Leasing Activity	28,469	22,413	23,961	28,469

New Second Generation Leases

The following table sets forth the estimated costs of tenant improvements and leasing commissions, on a per square foot basis, that we are obligated to fulfill under the new second generation leases signed for our rental properties included within both continuing and discontinued operations, during the years ended December 31, ~~2016~~2017 and ~~2015 (square feet data in thousands):~~2016:


	Square Feet of New Second Generation Leases Signed		Average Term in Years		Estimated Tenant Improvement Cost per Square Foot				Leasing Commissions per Square Foot				Square Feet of New Second Generation Leases Signed (in thousands)		Average Term in Years		Estimated Tenant Improvement Cost per Square Foot				Leasing Commissions per Square Foot
	2016	2015	2016	2015	2016		2015		2016		2015		2017	2016	2017	2016	2017		2016		2017		2016
Industrial	4,246	4,986	6.8	5.4	$	2.60	$	2.78	$	1.88	$	1.68	4,909	4,246	5.7	6.8	$	1.99	$	2.60	$	1.81	$	1.88
Medical Office	17	41	7.7	6.5	$	29.95	$	5.22	$	12.49	$	5.34
Non-reportable Rental Operations	46	216	6.9	6.1	$	11.25	$	14.21	$	9.70	$	6.59
Non-Reportable Rental Operations													51	63	9.2	7.2	$	15.63	$	16.32	$	4.74	$	10.46
Total Consolidated	4,309	5,243	6.8	5.5	$	2.80	$	3.27	$	2.01	$	1.91	4,960	4,309	5.7	6.8	$	2.13	$	2.80	$	1.84	$	2.01
Unconsolidated Joint Ventures	346	515	7.4	5.2	$	5.15	$	5.39	$	2.64	$	3.99	380	346	8.2	7.4	$	1.59	$	5.15	$	2.16	$	2.64
Total Including Unconsolidated Joint Ventures	4,655	5,758	6.9	5.5	$	2.98	$	3.46	$	2.05	$	2.09	5,340	4,655	5.9	6.9	$	2.09	$	2.98	$	1.86	$	2.05

Lease Renewals

The following table summarizes our lease renewal activity within our rental properties included within both continuing and discontinued operations for the years ended December 31, ~~2016~~2017 and ~~2015 (square feet data in thousands):~~2016:


	Square Feet of Leases Renewed		Percent of Expiring Leases Renewed				Average Term in Years		Growth (Decline) in Net Effective Rents*				Estimated Tenant Improvement Cost per Square Foot				Leasing Commissions per Square Foot				Square Feet of Leases Renewed (in thousands)		Percent of Expiring Leases Renewed				Average Term in Years		Growth (Decline) in Net Effective Rents*				Estimated Tenant Improvement Cost per Square Foot				Leasing Commissions per Square Foot
	2016	2015	2016		2015		2016	2015	2016		2015		2016		2015		2016		2015		2017	2016	2017		2016		2017	2016	2017		2016		2017		2016		2017		2016
Industrial	11,708	8,591	75.6	%	76.2	%	4.8	5.9	15.3	%	13.4	%	$	0.51	$	1.40	$	1.10	$	1.20	9,535	11,708	82.8	%	75.6	%	5.7	4.8	17.4	%	15.3	%	$	0.63	$	0.51	$	1.25	$	1.10
Medical Office	96	163	78.6	%	85.8	%	6.2	9.5	14.6	%	12.3	%	$	7.19	$	15.22	$	4.16	$	6.47
Non-reportable Rental Operations	447	251	74.8	%	57.3	%	10.1	4.5	2.8	%	6.8	%	$	2.42	$	5.73	$	2.41	$	3.44
Non-Reportable Rental Operations																					19	543	30.2	%	75.4	%	6.7	9.4	16.7	%	5.4	%	$	4.87	$	3.26	$	5.29	$	2.72
Total Consolidated	12,251	9,005	75.6	%	75.7	%	5.0	5.9	13.7	%	12.8	%	$	0.63	$	1.77	$	1.17	$	1.35	9,554	12,251	82.5	%	75.6	%	5.7	5.0	17.4	%	13.7	%	$	0.64	$	0.63	$	1.26	$	1.17
Unconsolidated Joint Ventures	1,419	728	83.1	%	87.6	%	5.1	2.9	(1.3	)%	2.1	%	$	0.74	$	1.12	$	2.02	$	0.97	444	1,419	49.7	%	83.1	%	4.0	5.1	23.1	%	(1.3	)%	$	0.31	$	0.74	$	1.33	$	2.02
Total Including Unconsolidated Joint Ventures	13,670	9,733	76.3	%	76.5	%	5.0	5.7	11.4	%	11.8	%	$	0.65	$	1.72	$	1.26	$	1.33	9,998	13,670	80.1	%	76.3	%	5.6	5.0	17.6	%	11.4	%	$	0.62	$	0.65	$	1.26	$	1.26
* Represents the percentage change in net effective rent between the original leases and the renewal leases. Net effective rents represent average annual base rental payments, on a straight-line basis for the term of each lease, excluding operating expense reimbursements.

Lease Expirations

~~Our ability to maintain and improve occupancy rates and net effective rents primarily depends upon our continuing ability to re-lease expiring space.~~ The table below reflects our consolidated in-service portfolio lease expiration

schedule, excluding the leases in properties designated as held-for-sale, at December 31, ~~2016~~2017 (in thousands, except percentage data and number of leases):


	Total Consolidated Portfolio					Industrial				Medical Office			Non-reportable				Total Consolidated Portfolio					Industrial				Non-Reportable
Year of Expiration	Square Feet		Ann. Rent Revenue*		Number of Leases	Square Feet		Ann. Rent Revenue*		Square Feet		Ann. Rent Revenue*	Square Feet		Ann. Rent Revenue*		Square Feet		Annual Rental Revenue*		Number of Leases	Square Feet		Annual Rental Revenue*		Square Feet		Annual Rental Revenue*
2017	8,215		$	32,966	146	8,028		$	29,835	171		2,975	16		$	156
2018	12,729		57,870		189	12,303		46,975		416		10,781	10		114		9,287		$	37,571	118	9,280		$	37,483	7		$	88
2019	13,858		61,293		210	13,525		53,543		319		7,581	14		169		12,163		49,446		154	12,151		49,297		12		149
2020	13,014		65,938		172	12,567		56,948		423		8,772	24		218		13,829		62,771		167	13,805		62,553		24		218
2021	13,358		61,520		186	13,042		55,293		257		5,732	59		495		12,193		54,744		135	12,134		54,249		59		495
2022	12,712		54,950		106	12,350		47,451		330		6,940	32		559		18,376		74,615		137	18,348		74,331		28		284
2023	3,557		23,923		62	3,134		16,111		415		7,725	8		87		8,597		41,893		92	8,579		41,666		18		227
2024	8,857		41,951		52	8,706		38,816		151		3,135	—		—		11,134		49,402		60	11,129		49,340		5		62
2025	8,000		35,392		37	7,788		31,508		212		3,884	—		—		9,193		39,849		45	9,193		39,849		—		—
2026	7,363		37,513		52	7,080		31,491		283		6,022	—		—		7,354		32,681		29	7,354		32,681		—		—
2027 and Thereafter	14,003		124,434		84	11,156		49,740		2,419		67,753	428		6,941
2027																	6,538		28,157		23	6,538		28,157		—		—
2028 and Thereafter																	14,511		80,976		56	13,945		71,151		566		9,825
Total Leased	115,666		$	597,750	1,296	109,679		$	457,711	5,396		131,300	591		$	8,739	123,175		$	552,105	1,016	122,456		$	540,757	719		$	11,348

Total Portfolio Square Feet	118,945					112,368				5,672			905				128,166					127,277				889
Percent Leased	97.2	%				97.6	%			95.1	%		65.3	%			96.1	%				96.2	%			80.9	%
* Annualized rental revenue represents average annual base rental payments, on a straight-line basis for the term of each lease, from space leased to tenants at the end of the most recent reporting period. Annualized rental revenue excludes additional amounts paid by tenants as reimbursement for operating expenses.

Information on current market rents can be difficult to obtain, is highly subjective and is often not directly comparable between properties. As a result, we believe the increase or decrease in net effective rent on lease renewals, as previously defined, is the most objective and meaningful relationship between rents on leases expiring in the near-term and current market rents.

~~Acquisition Activity~~Building Acquisitions

Our decision process in determining whether or not to acquire a target property or portfolio of properties involves several factors, including expected rent growth, multiple yield metrics, property locations and expected demographic growth in each location, current occupancy of the target properties, tenant profile and remaining terms of the in-place leases in the target properties. We pursue both brokered and non-brokered acquisitions, and it is difficult to predict which markets ~~and product types~~ may present acquisition opportunities that align with our strategy. Because of the numerous factors considered in our acquisition decisions, we do not establish specific target yields for future acquisitions. Due to increased market prices and lower acquisition yields for the class and quality of assets that meet our investment criteria, we have shifted our near term focus from acquisitions to new development activities.

~~In addition to the 14 properties~~We acquired ~~from the Quantico Joint Venture, we also acquired three other properties for a total of 17 properties~~28 buildings during the year ended December 31, ~~2016~~2017, one of which was sold as part of the Medical Office Portfolio Disposition and ~~two properties~~17 buildings during the year ended December 31, ~~2015.~~2016. The following table summarizes the acquisition price, percent leased at time of acquisition and in-place yields by product type for these acquisitions (in thousands, except percentage data):


	2016 Acquisitions						2015 Acquisitions						2017 Acquisitions						2016 Acquisitions
Type	Acquisition Price*		In-Place Yield**		Percent Leased at Acquisition Date***		Acquisition Price*		In-Place Yield**		Percent Leased at Acquisition Date***		Acquisition Price*		In-Place Yield**		Percent Leased at Acquisition Date***		Acquisition Price*		In-Place Yield**		Percent Leased at Acquisition Date***
Industrial	$	167,339	6.7	%	91.3	%	$	28,277	6.0	%	100.0	%	$	980,339	2.5	%	68.5	%	$	167,339	6.7	%	91.3	%
Medical Office	16,251		7.0	%	100.0	%	—		—	%	—	%
Non-reportable Rental Operations	56,593		7.6	%	93.0	%	—		—	%	—	%
Non-Reportable Rental Operations													10,829		6.1	%	100.0	%	72,844		7.4	%	94.5	%
Total	$	240,183	6.9	%	91.7	%	$	28,277	6.0	%	100.0	%	$	991,168	2.5	%	68.8	%	$	240,183	6.9	%	91.7	%

* Includes fair value of real estate assets and net acquired lease-related intangible assets, including above or below market leases, but excludes other acquired working capital assets and liabilities.																									** In-place yields of completed acquisitions are calculated as the current annualized net rental payments from space leased to tenants at the date of acquisition, divided by the acquisition price of the acquired real estate. Annualized net rental payments are comprised of base rental payments, excluding additional amounts payable by tenants as reimbursement for operating expenses, less current annualized operating expenses not recovered through tenant reimbursements.	*** Represents percentage of total square feet leased based on executed leases and without regard to whether the leases have commenced, at the date of acquisition.

Included in the acquisitions noted above iswas a $63.0 million property acquired during the year ended December 31, 2016 through a non-monetary distribution of its ownership interest from an unconsolidated joint venture, in connection with that joint venture's dissolution. Please see more details described in Note 3 to the consolidated financial statements included in Part IV, Item 15 of this ~~Report,~~Report.

~~Disposition Activity~~Building Dispositions

We regularly work to identify, consider and pursue opportunities to dispose of properties on an opportunistic basis and on a basis that is generally consistent with our strategic plans. We sold 3298 consolidated buildings during the year ended December 31, ~~2016~~2017, including 85 properties sold as part of the Medical Office Portfolio Disposition, and ~~153~~32 consolidated buildings during the year ended December 31, ~~2015.~~2016. The following table summarizes the sales prices, in-place yields and percent leased by product type of these buildings (in thousands, except percentage data):


	2016 Dispositions						2015 Dispositions						2017 Dispositions						2016 Dispositions
Type	Sales Price		In-Place Yield*		Percent Leased**		Sales Price		In-Place Yield*		Percent Leased**		Sales Price		In-Place Yield*		Percent Occupied**		Sales Price		In-Place Yield*		Percent Occupied**
Industrial	$	162,831	6.4	%	96.7	%	$	410,647	6.6	%	93.5	%	$	45,192	7.0	%	92.6	%	$	162,831	6.4	%	96.7	%
Medical Office	—		—	%	—	%	20,400		6.8	%	100.0	%
Non-reportable Rental Operations	353,734		8.1	%	88.2	%	1,350,788		7.3	%	85.3	%
Non-Reportable Rental Operations													2,938,572		4.8	%	93.9	%	353,734		8.1	%	88.2	%
Total	$	516,565	7.6	%	92.5	%	$	1,781,835	7.1	%	88.7	%	$	2,983,764	4.8	%	93.5	%	$	516,565	7.6	%	92.5	%

* In-place yields of dispositions are calculated as annualized net operating income from space leased to tenants at the date of sale on a lease-up basis, including full rent from all executed leases, even if currently in a free rent period, divided by the sales price. Annualized net operating income is comprised of base rental payments, excluding reimbursement of operating expenses, less current annualized operating expenses not recovered through tenant reimbursements.
* In-place yields of completed dispositions are calculated as annualized net operating income from space leased to tenants at the date of sale on a lease-up basis, including full rent from all executed leases, even if currently in a free rent period, divided by the sales price. Annualized net operating income is comprised of base rental payments, excluding reimbursement of operating expenses, less current annualized operating expenses not recovered through tenant reimbursements.													* In-place yields of completed dispositions are calculated as annualized net operating income from space leased to tenants at the date of sale on a lease-up basis, including full rent from all executed leases, even if currently in a free rent period, divided by the sales price. Annualized net operating income is comprised of base rental payments, excluding reimbursement of operating expenses, less current annualized operating expenses not recovered through tenant reimbursements.
** Represents percentage of total square feet leased based on executed leases and without regard to whether the leases have commenced, at the date of sale.

Development

Another source of our earnings growth is our ~~wholly-owned~~wholly owned and unconsolidated joint venture development activities. We expect to generate future earnings from Rental Operations as the development properties are placed in service and leased.

We had ~~9.4~~9.2 million square feet of ~~consolidated or jointly controlled~~ properties under development with total estimated costs upon completion of $~~755.2~~741.7 million at December 31, ~~2016~~2017 compared to ~~7.8~~9.4 million square feet of properties under development with total estimated costs of ~~$730.5~~$755.2 million at December 31, ~~2015~~2016. The square footage and estimated costs include both ~~wholly-owned~~consolidated properties and unconsolidated joint venture development activity at 100%. The following table summarizes our properties under development at December 31, ~~2016~~2017 (in thousands, except percentage data):


Ownership Type	Square Feet	Percent Leased		Total Estimated Project Costs		Total Incurred to Date		Amount Remaining to be Spent		Square Feet	Percent Leased		Total Estimated Project Costs		Total Incurred to Date		Amount Remaining to be Spent
Consolidated properties	8,418	74	%	$	713,139	$	338,625	$	374,514	7,178	56	%	$	642,086	$	374,910	$	267,176
Unconsolidated joint venture properties	992	29	%	42,089		28,826		13,263		2,033	67	%	99,655		65,269		34,386
Total	9,410	69	%	$	755,228	$	367,451	$	387,777	9,211	58	%	$	741,741	$	440,179	$	301,562

We directly own ~~1,475~~1,325 acres of undeveloped land, of which we currently intend to develop approximately ~~1,024~~1,040 acres. We believe that the land we intend to develop can support approximately ~~14.6~~17.6 million square feet of primarily industrial developments.

Comparison of Year Ended December 31, ~~2016~~2017 to Year Ended December 31, ~~2015~~2016

Rental and Related Revenue

The following table sets forth rental and related revenue from continuing ~~operations by reportable segment, as well as total rental~~ and ~~related revenue from~~ discontinued operations ~~for the years ended December 31, 2016 and 2015, respectively~~ (in thousands):


	2016		2015		2017		2016
Rental and related revenue:
Industrial	$	583,019	$	556,903	$	661,226	$	583,019
Medical Office	175,437		160,951
Non-reportable Rental Operations and non-segment revenues	54,978		98,211
Non-Reportable Rental Operations and non-segment revenues					25,288		58,682
Total rental and related revenue from continuing operations	$	813,434	$	816,065	$	686,514	$	641,701
Rental and related revenue from discontinued operations	983		32,549		87,185		172,716
Total rental and related revenue from continuing and discontinued operations	$	814,417	$	848,614	$	773,699	$	814,417

The primary ~~reason~~reasons for the ~~decrease~~increase in rental and related revenue from continuing operations ~~was:~~were:

The acquisition of 43 properties and placing of 38 developments in service from January 1, 2016 to December 31, 2017 provided combined incremental revenues of $66.0 million in the year ended December 31, 2017 when compared to 2016.

Rental and related revenue from continuing operations includes lease termination fees, which relate to specific tenants who pay a fee to terminate their lease obligation before the end of the contractual lease term. The overall increase in rental and related revenue from continuing operations included an increase of $9.3 million in termination fees during the year ended December 31, 2017 when compared to 2016.

Increases to average commencement occupancy and rental rates in our same-property portfolio.

The above items contributing to the increase to rental and related revenue from continuing operations were partially offset by the sale of ~~123~~45 in-service properties since January 1, ~~2015,~~2016, which did not meet the criteria for inclusion within discontinued operations, and resulted in a ~~$65.2~~$36.0 million decrease in rental and related revenue from continuing operations in the year ended December 31, ~~2016~~2017 when compared to ~~2015.~~2016.

~~This decrease was substantially offset by the following factors:~~

~~The acquisition of 19 properties~~Rental and ~~placing of 44 developments in service~~related revenue from ~~January 1, 2015 to December 31, 2016 provided combined incremental revenues of $44.8 million in~~discontinued operations for the year ended December 31, ~~2016 when~~2017 decreased compared to ~~2015.~~

~~Average commencement occupancy in~~ the same ~~property portfolio increased by 1.2%~~period in 2016 as the properties sold and classified within discontinued operations were not held for the entire year ended December 31, ~~2016 when compared to 2015.~~2017, with a majority of the properties being sold in the first six months of 2017.

Rental Expenses and Real Estate Taxes

The following table sets forth rental expenses and real estate taxes from continuing ~~operations by reportable segment, as well as total rental expenses~~ and ~~real estate taxes from~~ discontinued operations ~~for the years ended December 31, 2016 and 2015, respectively~~ (in thousands):


	2016			2015		2017		2016
Rental expenses:
Industrial	$	49,502		$	55,088	$	58,186	$	49,502
Medical Office	34,023			32,955
Non-reportable Rental Operations and non-segment expenses	23,885			37,623
Non-Reportable Rental Operations and non-segment expenses						6,396		24,821
Total rental expenses from continuing operations	$	107,410		$	125,666	$	64,582	$	74,323
Rental expenses from discontinued operations	(8		)	9,063		18,233		33,079
Total rental expenses from continuing and discontinued operations	$	107,402		$	134,729	$	82,815	$	107,402
Real estate taxes:
Industrial	$	90,789		$	83,806	$	105,068	$	90,789
Medical Office	20,251			17,663
Non-reportable Rental Operations and non-segment expenses	7,614			11,410
Non-Reportable Rental Operations and non-segment expenses						3,896		8,149
Total real estate tax expense from continuing operations	$	118,654		$	112,879	$	108,964	$	98,938
Real estate tax expense from discontinued operations	—			3,435		9,869		19,716
Total real estate tax expense from continuing and discontinued operations	$	118,654		$	116,314	$	118,833	$	118,654

Overall, rental expenses from continuing operations decreased by ~~$18.3~~$9.7 million in ~~2016~~2017 compared to ~~2015.~~2016. The decrease to rental expenses was primarily the result of ~~property~~ sales of office properties, which generally have higher operating expenses than do industrial properties, that did not meet the criteria to be classified within discontinued operations, partially offset by incremental expenses related to developments placed in service and acquisitions.

Real estate taxes from continuing operations increased by ~~$5.8~~$10.0 million in ~~2016~~2017 compared to ~~2015.~~2016. The increase to real estate taxes was primarily the result of increased real estate taxes for our existing base of properties, due to rate increases or re-assessments, as well as the impact of the properties acquired and developments placed in service from January 1, ~~2015~~2016 to December 31, ~~2016.~~2017, many of which are in jurisdictions with higher real estate taxes. These increases were partially offset by the impact of property sales that did not meet the criteria to be classified within discontinued operations.

The decreases in both rental expenses and real estate tax expense from discontinued operations are a result of the timing of the sales of properties classified within discontinued operations, with a majority of these properties being sold in the first six months of 2017.

Service Operations

The following table sets forth the components of net earnings from the Service Operations reportable segment for the years ended December 31, ~~2016~~2017 and ~~2015,~~2016, respectively (in thousands):


	2016			2015			2017			2016
Service Operations:
General contractor and service fee revenue	$	88,810		$	133,367		$	94,420		$	88,810
General contractor and other services expenses	(80,467		)	(119,170		)	(89,457		)	(80,467		)
Net earnings from Service Operations	$	8,343		$	14,197		$	4,963		$	8,343

Service Operations primarily consist of the leasing, property management, asset management, development, construction management and general contractor services for joint venture properties and properties owned by third parties. Service Operations are heavily influenced by the current state of the economy, as leasing and property management fees are dependent upon occupancy, while construction and development services rely on the expansion of business operations of third-party property owners and joint venture partners.

~~The decrease in our~~Net earnings from ~~Service Operations in 2016,~~service operations decreased as ~~compared to 2015, was driven by lower overall third-party construction activity due to focusing our resources on wholly-owned development projects.~~the result of the completion of higher margin projects that were underway during 2016.

Depreciation and Amortization ~~Expense~~

Depreciation and amortization expense ~~slightly~~ increased from ~~$317.3 million in 2015 to $317.8~~$242.6 million in 2016 to $273.6 million in 2017, as the result of the impact of properties acquired and developments placed in service from January 1, ~~2015~~2016 to

December 31, ~~2016~~2017. The impact of acquired properties and developments placed in service was partially offset by ~~asset~~property dispositions since January 1, ~~2015~~2016 that ~~were~~did not meet the criteria to be classified within discontinued operations.

Equity in Earnings ~~(Loss)~~of Unconsolidated Joint Ventures

Equity in earnings ~~(loss)~~from unconsolidated joint ventures represents our ownership share of net income ~~or loss~~ from investments in unconsolidated joint ventures that generally own and operate rental properties. Equity in earnings from unconsolidated joint ventures increased from ~~a loss of $3.3 million in 2015 to earnings of~~ $47.4 million in 2016 to $63.3 million in 2017.

In 2017, we recorded $53.9 million to equity in earnings from unconsolidated joint ventures as the result of ~~significant property sales within~~the gains on sale of our ownership interests in four unconsolidated joint ventures, ~~during 2016 and~~as well as our share of the ~~impairment~~gain on the sale of one property from an unconsolidated joint venture. These transactions included $47.5 million in gains from the sale of our ~~investments~~ownership interests in ~~certain~~two joint ventures ~~recognized during 2015.~~in connection with the Medical Office Portfolio Disposition.

In 2016, we recorded $31.6 million to equity in earnings related to our share of the gains on sale of unconsolidated joint venture buildings and undeveloped land.

~~In 2015, we determined that an other than temporary reduction in value had taken place for three~~Gain on Dissolution of ~~our investments in unconsolidated joint ventures, resulting in impairment charges totaling $30.0~~Unconsolidated Joint Venture

We recognized a $30.7 million ~~while our share~~gain related to the dissolution of ~~gains on sales of properties by unconsolidated joint ventures during 2015 totaled $13.9 million.~~

~~The most significant of the impairment charges recognized in 2015 pertained to our investment in~~ an unconsolidated joint venture ~~(the "Linden joint venture") whose sole asset is undeveloped retail land. The Linden joint venture has not been able to proceed with development of its land as~~during the ~~result of a series of zoning and use-related legal challenges. During the three months~~year ended December 31, ~~2015, we changed our strategy such that we now intend to monetize our investment in~~2016. No similar dissolutions took place during the joint venture rather than holding for development and continuing to attempt to resolve the legal challenges. As the result of this change in strategy, we determined that an other-than-temporary decline in the value of our investment in the joint venture had taken place. During the three monthsyear ended December 31, ~~2015, we~~2017.

Promote Income

We recognized ~~a $19.5~~$20.0 million ~~impairment charge~~of promote income from the sale of our interest in one of our unconsolidated joint ventures, as part of the Medical Office Portfolio Disposition, during the year ended December 31, 2017 compared to ~~write our investment in~~$26.3 million of promote income related to the ~~Linden~~dissolution of an unconsolidated joint venture ~~to its fair value.~~during the year ended December 31, 2016.

Gain on Sale of Properties - Continuing Operations

We sold 17 properties during 2017 that were classified in continuing operations, recognizing total gains on sale of $113.7 million. These properties did not meet the criteria for inclusion in discontinued operations.

We sold 32 properties during 2016 that were classified in continuing operations, recognizing total gains on sale of $162.1 million.

~~We sold 91~~ These properties ~~during 2015 that were classified~~did not meet the criteria for inclusion in ~~continuing operations, recognizing total gains on sale of $229.7 million.~~discontinued operations.

Gain on Sale of Land

Gain on sale of land decreased from ~~$35.1 million in 2015 to~~ $9.9 million in ~~2016.~~2016 to $9.2 million in 2017. We sold 166 acres of undeveloped land in 2017 compared to 448 acres of undeveloped land in ~~2016 compared to 502 acres of land in 2015.~~2016.

Impairment Charges

Impairment charges classified in continuing operations include the impairment of undeveloped land and buildings. In ~~2016,~~2017, we recognized impairment charges of ~~$18.0~~$4.5 million compared to ~~$22.9~~$18.0 million in ~~2015.~~2016.

We recognized impairment charges ~~in both 2016~~of $3.6 million related to 12 acres of land during 2017, and 2015 primarily as the result of changes in the intended use for certain of our investments in undeveloped land, where we determined it likely that a near term sale would be executed as opposed to holding the land for development. We recognized impairment charges of $14.3 million related to 244 acres of land during ~~2016 and $19.5 million, related to 139 acres of land, during 2015.~~2016.

We also recognized impairment charges of $859,000 related to one building in 2017, and $3.7 million related to one building in ~~2016 and $3.4 million related to two buildings in 2015.~~2016.

General and Administrative Expenses

General and administrative expenses consist of two components. The first component includes general corporate expenses, and the second component includes the indirect operating costs not allocated to, or absorbed by, the

development or Rental Operations of our ~~wholly-owned~~wholly owned properties or our Service Operations. The indirect operating costs that are either allocated to, or absorbed by, the development or Rental Operations of our wholly owned properties, or our Service Operations, are primarily comprised of employee compensation, including related

costs such as benefits and wage-related taxes, but also include other ancillary costs such as travel and information technology support. Total indirect operating costs, prior to any allocation or absorption, and general corporate expenses are collectively referred to as our overall pool of overhead costs.

Those indirect costs not allocated to or absorbed by these operations are charged to general and administrative expenses. We regularly review our total overhead cost structure relative to our leasing, development and construction volume and adjust the level of total overhead, generally through changes in our level of staffing in various functional departments, as necessary, in order to control overall general and administrative expense.

General and administrative expenses decreased from $~~58.6 million~~ ~~in 2015 to~~ $55.4 million in ~~2016.~~2016 to $54.9 million in 2017. The following table sets forth the factors that led to the decrease in general and administrative expenses from ~~2015~~2016 to ~~2016~~2017 (in millions):

General and administrative expenses - 2015 $ 58.6
Decrease to overall pool of overhead costs (1) (8.0 )
Increased absorption of costs by wholly-owned development and leasing activities (2) (4.4 )
Decreased allocation of costs to Service Operations and Rental Operations (3) 9.2
General and administrative expenses - 2016 $ 55.4



General and administrative expenses - 2016	$	55.4
Decrease to overall pool of overhead costs (1)	(9.1		)
Increased absorption of costs by wholly owned leasing and development activities (2)	(0.7		)
Decreased allocation of costs to Rental Operations and Service Operations (3)	9.3
General and administrative expenses - 2017	$	54.9

(1) Our total pool of overhead costs decreased between periods, largely due to ~~incurring $7.4 million of overhead restructuring charges in 2015, primarily~~lower salary and related ~~to severance~~ costs, as the result of workforce reductions executed primarily in connection with the ~~significant dispositions of office properties that year.~~

Medical Office Portfolio Disposition during 2017.

(2) We capitalized ~~$24.0~~$19.1 million and ~~$25.9~~$31.5 million of our total overhead costs to leasing and development, respectively, for consolidated properties during ~~2016,~~2017, compared to capitalizing ~~$21.7~~$24.0 million and ~~$23.8~~$25.9 million of such costs, respectively, for 2015. The higher level of overhead costs capitalized to leasing and development activities compared to 2015 was largely the result of increasing the size of our real estate portfolio through largely pre-leased development projects.2016. Combined overhead costs capitalized to leasing and development totaled ~~33.5%~~36.2% and ~~29.0%~~33.5% of our overall pool of overhead costs for ~~2016~~2017 and ~~2015,~~2016, respectively.

(3) The decrease in allocation of costs to Rental Operations and Service Operations ~~and Rental Operations~~ resulted primarily from a lower ~~volume~~allocation of ~~third-party construction projects during 2016 as well as a lower allocation of~~overhead costs to property management and maintenance expenses that resulted from the Medical Office Portfolio Disposition during 2017 and further shifting our focus to ~~Rental Operations due to disposing of substantially all of our investment in office~~industrial properties, ~~through 2015 and 2016 disposition activity.~~which are less management intensive.

Interest Expense

Interest expense allocable to continuing operations decreased from ~~$173.6~~$112.8 million in ~~2015~~2016 to ~~$141.6~~$87.0 million in ~~2016.~~2017. The decrease to interest expense from continuing operations was primarily due to interest savings from ~~the repayment or refinancing of $784.7 million of~~repaying outstanding debt ~~during 2016 as well as realizing a full year of interest savings on~~with the ~~repayment of $1.11 billion of outstanding debt during 2015. We issued $375.0 million of 3.25%~~proceeds from the Medical Office Portfolio Disposition, and refinancing higher rate senior unsecured notes, ~~during 2016 to refinance higher rate indebtedness.~~since December 31, 2016.

We capitalized ~~$16.1~~$18.9 million of interest costs during ~~2016~~2017 compared to ~~$16.8~~$16.1 million during ~~2015.~~2016.

Debt Extinguishment

During 2017, we repaid our $250.0 million variable rate term loan, which had a scheduled maturity date of January 2019 and bore interest at LIBOR plus 1.00%. We also repaid $285.6 million of senior unsecured notes with a scheduled maturity date of January 2018 and $128.7 million of senior unsecured notes with a scheduled maturity date of March 2020. We recognized a total loss on debt extinguishment of $26.1 million from these transactions during the year ended 2017, which included repayment premiums and the write-off of unamortized deferred financing costs.

In June and July 2016, we repaid $275.0 million of 5.95% senior unsecured notes, with a scheduled maturity in February ~~2017, for cash payments totaling $283.5 million.~~2017. In October 2016, we also redeemed $129.5 million in unsecured notes, which had a scheduled maturity in August of ~~2019, for a cash payment $154.1 million.~~2019. These transactions resulted in losses on debt extinguishment totaling $33.9 million during ~~2016.~~

~~In October 2015, we redeemed $150.0 million in unsecured notes that had a scheduled maturity in March of 2016. In April 2015, we completed a tender offer in~~2016, which we repurchased $424.9 million of our outstanding unsecured notes. We also repaid certain secured loans prior to their scheduled maturity dates during 2015. These transactions resulted in losses on debt extinguishment totaling $85.7 million during 2015.

~~Losses on debt extinguishment during both periods were primarily comprised of early~~included repayment premiums ~~as well as~~and the write-off of unamortized deferred financing costs.

Acquisition-Related Activity

The acquisition-related activity in our consolidated Statements of Operations and Comprehensive Income during 2016 consisted of ~~transaction costs for completed acquisitions, which are expensed as incurred, as well as~~ gains ~~or losses~~ related to acquisitions of businesses where we had a pre-existing non-controlling ownership interest ("step acquisitions")~~. For~~ as well as transaction costs for completed acquisitions, to the extent that the acquired properties met the definition of a business.

Effective January 1, 2017, we early adopted Accounting Standards Update ("ASU") No. 2017-01 ("ASU 2017-01"), which revised the definition of a business and resulted in fewer property acquisitions being accounted for as business combinations. No acquired properties have met the definition of a business since the adoption of ASU 2017-01 and, accordingly, we recognized no expense for transaction costs in acquisition-related activities for the year ended December 31, 2017.

Pursuant to the criteria applicable prior to the adoption of ASU 2017-01 on January 1, 2017, properties that were acquired generally met the definition of a business. During the year ended December 31, 2016, ~~acquisition-related activity~~the Acquisition-Related Activity line of the Consolidated Statements of Operations and Comprehensive Income included ~~a gain of~~ $7.3 million ~~related to~~in gains on step acquisitions (see Note 3 to the consolidated financial statements included in Part IV, Item 15 of this Report), which ~~included~~were comprised of a gain of $6.0 million on the acquisition of 14 properties in the ~~previously mentioned 14 Quantico~~Washington D.C. area from an unconsolidated joint venture (the "Quantico Joint ~~Venture properties and~~Venture"), as well as a gain of $1.7 million on the acquisition of ~~an additional~~a property from ananother unconsolidated joint venture.

We recognized expense of $8.5 million on acquisition related activities during the year ended December 31, 2015, which mostly related to an increase to the estimated fair value of contingent consideration from a previous period's real estate portfolio acquisition.

Discontinued Operations

Effective April 1, 2014, we early adopted Accounting Standards Update ("ASU") No. 2014-08 ("ASU 2014-08"), which has resulted in fewer real estate sales being classified within discontinued operations. With the exception of the 61 properties sold as part of the suburban office portfolio sale during 2015, all properties included in discontinued operations at December 31, 2016 were classified as such prior to the adoption of ASU 2014-08. Subject to the criteria that was applicable prior to our adoption of ASU 2014-08, the results of operations for most properties that were sold to unrelated parties, or classified as held-for-sale, were required to be classified as discontinued operations.

The property-specific components of earnings that ~~were~~are classified as discontinued operations include rental revenues, rental expenses, real estate taxes, allocated interest expense and depreciation expense, as well as the net gain or loss on the disposition of ~~those properties.~~the properties and related income tax expense.

The operations of 74143 buildings are currently classified as discontinued operations for the periods presented in the Consolidated Statements of Operations and Comprehensive Income. These 74143 buildings consist of 56 office, 165 industrial and ~~two~~82 medical office properties. As a result, we classified operating income before gain on sales of $~~991,000~~18.4 million, $~~10.9~~15.8 million and ~~$11.1~~$11.9 million in discontinued operations for the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014,~~2015, respectively.

Of these properties, 81 properties were sold during 2017, no properties were sold during 2016 ~~62 properties were sold during 2015~~ and 1262 properties were sold during ~~2014.~~2015. The gains on disposal of ~~these~~ properties ~~net of tax, totaling~~classified in discontinued operations totaled $1.36 billion, $1.0 million, ~~$421.7 million~~ and $~~19.8~~424.9 million for the years ended December 31, 2017, 2016 and 2015, respectively, and ~~2014,~~are reported in discontinued operations. The related income tax impact, totaling $12.5 million and $3.2 million for the years ended December 31, 2017 and 2015, respectively, ~~are~~is also reported in discontinued ~~operations.~~operations, which is further discussed in Note 6 to the consolidated financial statements included in Part IV, Item 15 of this Report. There were no properties classified as held-for-sale and included in discontinued operations at December 31, ~~2016.~~2017.

Comparison of Year Ended December 31, ~~2015~~2016 to Year Ended December 31, ~~2014~~2015

Rental and Related Revenue


	2015		2014		2016		2015
Rental and related revenue:
Industrial	$	556,903	$	529,144	$	583,019	$	556,903
Medical Office	160,951		146,530
Non-reportable Rental Operations and non-segment revenues	98,211		146,677
Non-Reportable Rental Operations and non-segment revenues					58,682		101,906
Total rental and related revenue from continuing operations	$	816,065	$	822,351	$	641,701	$	658,809
Rental and related revenue from discontinued operations	32,549		120,884		172,716		189,805
Total rental and related revenue from continuing and discontinued operations	$	848,614	$	943,235	$	814,417	$	848,614

The primary reason for the decrease in rental and related revenue from continuing operations was:

The sale of ~~108~~123 properties since January 1, ~~2014,~~2015, which did not meet the criteria for inclusion within discontinued operations, resulted in a ~~$77.1~~$65.2 million decrease in rental and related revenue from continuing operations in the year ended December 31, ~~2015~~2016 when compared to ~~2014.~~2015.

This decrease was substantially offset by the following factors:

~~We acquired seven~~The acquisition of 18 properties and placing of ~~which six were industrial and one was medical office, and placed 46~~34 developments in service from January 1, ~~2014~~2015 to December 31, ~~2015. These acquisitions and developments~~2016 provided combined incremental revenues from continuing operations of ~~$48.2~~$32.0 million in the year ended December 31, ~~2015~~2016 when compared to ~~2014.~~2015.

Average commencement occupancy in ~~our same property~~the same-property portfolio increased by ~~1.6%~~1.2% in the year ended December 31, ~~2015~~2016 when compared to ~~2014.~~2015.

Rental Expenses and Real Estate Taxes


	2015		2014		2016		2015
Rental expenses:
Industrial	$	55,088	$	55,710	$	49,502	$	55,088
Medical Office	32,955		31,649
Non-reportable Rental Operations and non-segment expenses	37,623		48,919
Non-Reportable Rental Operations and non-segment expenses					24,821		38,334
Total rental expenses from continuing operations	$	125,666	$	136,278	$	74,323	$	93,422
Rental expenses from discontinued operations	9,063		33,256		33,079		41,307
Total rental expenses from continuing and discontinued operations	$	134,729	$	169,534	$	107,402	$	134,729
Real estate taxes:
Industrial	$	83,806	$	80,062	$	90,789	$	83,806
Medical Office	17,663		15,772
Non-reportable Rental Operations and non-segment expenses	11,410		19,179
Non-Reportable Rental Operations and non-segment expenses					8,149		11,899
Total real estate tax expense from continuing operations	$	112,879	$	115,013	$	98,938	$	95,705
Real estate tax expense from discontinued operations	3,435		13,867		19,716		20,609
Total real estate tax expense from continuing and discontinued operations	$	116,314	$	128,880	$	118,654	$	116,314

~~Rental~~Overall, rental expenses from continuing operations decreased by ~~$10.6~~$19.1 million in ~~2015~~2016 compared to ~~2014.~~2015. The decrease to rental expenses was primarily the result of property sales that did not meet the criteria to be classified within discontinued operations, partially offset by incremental expenses related to ~~acquisitions,~~ developments placed in service and ~~the impact of increased occupancy.~~acquisitions that are included in continuing operations.

Real estate taxes from continuing operations ~~decreased~~increased by ~~$2.1~~$3.2 million in ~~2015~~2016 compared to ~~2014.~~2015. The ~~decrease~~increase to real estate taxes was primarily the result of increased real estate taxes for our existing base of properties as well as

the impact of the properties acquired and developments placed in service from January 1, 2015 to December 31, 2016 that are included in continuing operations. These increases were partially offset by the impact of property sales that did not meet the criteria to be classified within discontinued ~~operations, partially offset by incremental expenses related to acquisitions, developments placed in service and the impact of increased tax assessments among our existing base of properties.~~operations.

Service Operations

The following table sets forth the components of net earnings from the Service Operations reportable segment for the years ended December 31, ~~2015~~2016 and ~~2014,~~2015, respectively (in thousands):


	2015			2014			2016			2015
Service Operations:
General contractor and service fee revenue	$	133,367		$	224,500		$	88,810		$	133,367
General contractor and other services expenses	(119,170		)	(200,031		)	(80,467		)	(119,170		)
Net Earnings from Service Operations	$	14,197		$	24,469
Net earnings from Service Operations							$	8,343		$	14,197

The decrease in our net earnings from Service Operations in ~~2015,~~2016, as compared to ~~2014,~~2015, was driven by lower overall third-party construction ~~volume as well as two third-party construction projects with higher than normal profit margins during 2014.~~activity due to focusing our resources on wholly owned development projects.

Depreciation and Amortization ~~Expense~~

Depreciation and amortization expense decreased from ~~$346.3 million in 2014 to $317.3~~$245.8 million in 2015 ~~primarily~~to $242.6 million in 2016, as the result of asset dispositions since January 1, ~~2014~~2015 that ~~were~~did not ~~classified within~~meet the criteria to be included in discontinued operations. ~~The reduction to depreciation expense was also driven, to a lesser extent, by shorter-lived assets from previous periods' acquisitions becoming fully depreciated.~~

Equity in Earnings (Loss) of Unconsolidated Joint Ventures

Equity in earnings ~~decreased~~(loss) represents our ownership share of net income or loss from ~~$94.3 million~~investments in ~~2014 to~~unconsolidated joint ventures that generally own and operate rental properties. Equity in earnings (loss) increased from a loss of $3.3 million in 2015 to earnings of $47.4 million in 2016 as the result of significant property sales within our unconsolidated joint ventures during ~~2014~~2016 and the impairment of our investments in certain joint ventures recognized during 2015.

In 2016, we recorded $31.6 million to equity in earnings related to our share of the gains on sale of joint venture buildings and undeveloped land.

In 2015, we determined that an other than temporary reduction in value had taken place for three of our investments in unconsolidated joint ventures, resulting in impairment charges totaling $30.0 million, while our share of gains on sales of properties by unconsolidated joint ventures during 2015 totaled $13.9 million.

The most significant of the impairment charges recognized in 2015 pertained to our investment in an unconsolidated joint venture (the "Linden joint venture") whose sole asset was undeveloped retail land. As the result of zoning and use-related legal challenges leading to a change in strategy infor the ~~fourth quarter of 2015 to monetize our investment in the Linden~~ joint venture, ~~rather than holding for development. As the result of this change in strategy,~~ we determined that an other-than-temporary decline in the value of our investment in the joint venture had taken place. During the three months ended December 31, 2015, we recognized a $19.5 million impairment charge to ~~write~~adjust our investment in the Linden joint venture to its fair value.

~~Our share~~Gain on Dissolution of Unconsolidated Joint Venture

We recognized a $30.7 million gain related to the ~~gains on sale~~dissolution of ~~properties by~~an unconsolidated joint ~~ventures~~venture during ~~2014 totaled $84.6 million. The most significant sale by our~~the year ended December 31, 2016. We did not experience any similar dissolutions during the year ended December 31, 2015.

Promote Income

We recognized $26.3 million of promote income related to the dissolution of an unconsolidated joint ~~ventures~~venture during ~~2014 was of an office tower in Atlanta, Georgia, for which our share of~~ the ~~gain on sale totaled $58.6 million.~~year ended December 31, 2016. We did not recognize any promote income during the year ended December 31, 2015.

Gain on Sale of Properties - Continuing Operations

We sold 32 properties during 2016 that were classified in continuing operations, recognizing total gains on sale of $162.1 million.

We sold 91 properties during 2015 that were classified in continuing operations, recognizing total gains on sale of $229.7 million.

~~We sold 17 properties during 2014 that were classified in continuing operations, recognizing total gains on sale of $162.7 million.~~

Gain on Sale of Land

Gain on sale of land ~~increased~~decreased from ~~$10.4 million in 2014 to~~ $35.1 million in ~~2015.~~2015 to $9.9 million in 2016. We sold ~~502~~448 acres of undeveloped land in ~~2015~~2016 compared to ~~174~~502 acres of land in ~~2014.~~2015.

Impairment Charges

Impairment charges classified in continuing operations include the impairment of undeveloped land and buildings. In ~~2015,~~2016, we recognized impairment charges of ~~$22.9~~$18.0 million compared to ~~$49.1~~$22.9 million in ~~2014.~~2015.

We recognized impairment charges in both ~~2014~~2016 and 2015 primarily as the result of changes in the intended use for certain of our investments in undeveloped land, where we determined it likely that a near term sale would be executed as opposed to holding the land for development. We recognized impairment charges of $14.3 million related to 244 acres of land during 2016, and $19.5 million related to 139 acres of land during ~~2015 and $33.7 million, related to 442 acres of land, during 2014.~~2015.

~~As the result of changes in strategy, where we determined we would execute a sale within the relatively near future as opposed to holding for long-term investment, we~~We also recognized impairment charges of $3.7 million related to one building in 2016 and $3.4 million related to two buildings in ~~2015 and $15.4 million related to six buildings in 2014.~~2015.

General and Administrative Expenses

General and administrative expenses ~~increased~~decreased from ~~$49.4 million in 2014 to~~ $58.6 million in ~~2015.~~2015 to $55.4 million in 2016. The following table sets forth the factors that led to the ~~increase~~decrease in general and administrative expenses from ~~2014~~2015 to ~~2015~~2016 (in millions):

General and administrative expenses - 2014 $ 49.4
Decrease to overall pool of overhead costs (1)

(18.0 )
Overhead restructuring charges (2) 7.4
Decreased absorption of costs by wholly-owned development and leasing activities (3) 7.2
Decreased allocation of costs to Service Operations and Rental Operations (4) 12.6
General and administrative expenses - 2015 $ 58.6



General and administrative expenses - 2015	$	58.6
Decrease to overall pool of overhead costs (1)	(8.0		)
Increased absorption of costs by wholly owned development and leasing activities (2)	(4.4		)
Decreased allocation of costs to Service Operations and Rental Operations (3)	9.2
General and administrative expenses - 2016	$	55.4

(1) Our total pool of overhead costs decreased between periods, largely due to ~~lower salary and~~incurring $7.4 million of overhead restructuring charges in 2015, primarily related to severance costs, as the result of workforce reductions executed primarily in connection with the significant ~~decrease in our investment in office properties that occurred in connection with the significant~~ dispositions of office properties ~~in early April 2015.~~that year.

(2) We ~~recognized approximately $7.4 million of overhead restructuring charges, primarily related to severance costs, during 2015, related to the workforce reductions that took place during the year.~~

~~(3) We~~ capitalized ~~$21.7~~$24.0 million and ~~$23.8~~$25.9 million of our total overhead costs to leasing and development, respectively, for consolidated properties during ~~2015,~~2016, compared to capitalizing ~~$23.9~~$21.7 million and ~~$28.8~~$23.8 million of such costs, respectively, for ~~2014.~~2015. The ~~lower~~higher level of overhead costs capitalized to leasing and development activities compared to 2015 was largely the result of ~~owning fewer properties due to~~increasing the ~~significant property dispositions executed during 2015.~~size of our real estate portfolio through largely pre-leased development projects. Combined overhead costs capitalized to leasing and development totaled ~~29.0%~~33.5% and ~~31.4%~~29.0% of our overall pool of overhead costs for ~~2015~~2016 and ~~2014,~~2015, respectively.

~~(4)~~(3) The decrease in allocation of costs to Service Operations and Rental Operations resulted from a lower volume of third-party construction projects during ~~2015~~2016 as well as a lower allocation of property management and maintenance expenses to Rental Operations due to ~~significantly decreasing~~disposing of substantially all of our investment in office properties through 2015 and 2016 disposition activity.

Interest Expense

Interest expense allocable to continuing operations decreased from ~~$196.2~~$138.3 million in ~~2014~~2015 to ~~$173.6~~$112.8 million in ~~2015.~~2016. The decrease was primarily due to interest savings from the repayment or refinancing of $784.7 million of outstanding debt during 2016 as well as realizing a full year of interest savings on the repayment of $1.11 billion of outstanding debt during ~~2015 as well as due~~2015. We issued $375.0 million of 3.25% unsecured notes during 2016 to ~~a lower overall weighted average cost of borrowing compared to 2014.~~refinance higher rate indebtedness.

We capitalized ~~$16.8~~$16.1 million of interest costs during ~~2015~~2016 compared to ~~$17.6~~$16.8 million during ~~2014.~~

2015.

Debt Extinguishment

In June and July 2016, we repaid $275.0 million of 5.95% senior unsecured notes, with a scheduled maturity in February 2017. In October 2016, we also redeemed $129.5 million in unsecured notes, which had a scheduled maturity in August 2019. These transactions resulted in losses on debt extinguishment totaling $33.9 million during 2016.

In October 2015, we redeemed $150.0 million in unsecured notes that had a scheduled maturity in March of 2016. In April 2015, we completed a tender offer in which we repurchased $424.9 million of our outstanding unsecured notes. We also repaid certain secured loans prior to their scheduled maturity dates during 2015. ~~We recognized a total loss~~These transactions resulted in losses on debt extinguishment oftotaling $85.7 million ~~from these transactions~~ during ~~the year ended December 31, 2015, compared to $283,000~~2015.

Losses on debt extinguishment during ~~2014, which included make-whole payments, repurchase premiums, prepayment~~both periods were primarily comprised of early repayment premiums as well as the write-off of unamortized deferred financing costs.

Acquisition-Related Activity

~~Acquisition-related~~For the year ended December 31, 2016, acquisition-related activity ~~increased~~included $7.3 million in gains on step acquisitions (see Note 3 to the consolidated financial statements included in Part IV, Item 15 of this Report), which were comprised of a gain of $6.0 million on the acquisition of the previously mentioned 14 Quantico Joint Venture properties and a gain of $1.7 million on the acquisition of a property from ~~an expense~~another unconsolidated joint venture.

We recognized expenses of ~~$1.1~~$8.5 million on acquisition-related activities during the year ended December 31, ~~2014~~2015, which mostly related to ~~an expense of $8.5 million during the year ended December 31, 2015. Substantially all of the activity in 2015 was driven by~~ an increase to the estimated fair value of contingent consideration ~~that relates to~~from a previous period's real estate portfolio acquisition.

Critical Accounting Policies

The preparation of our consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Our estimates, judgments and assumptions are inherently subjective and based on the existing business and market conditions, and are therefore continually evaluated based upon available information and experience. Note 2 to the Consolidated Financial Statements includes further discussion of our significant accounting policies. Our management has assessed the accounting policies used in the preparation of our financial statements and discussed them with our Audit Committee and independent auditors. The following accounting policies are considered critical based upon materiality to the financial statements, degree of judgment involved in estimating reported amounts and sensitivity to changes in industry and economic conditions:

Accounting for Joint Ventures: We analyze our investments in joint ventures to determine if the joint venture is considered a variable interest entity ("VIE") and would require consolidation. We (i) evaluate the sufficiency of the total equity investment at risk, (ii) review the voting rights and decision-making authority of the equity investment holders as a group and whether there are limited partners (or similar owning entities) that lack substantive participating or kick out rights, guaranteed returns, protection against losses, or capping of residual returns within the group and (iii) establish whether activities within the venture are on behalf of an investor with disproportionately few voting rights in making this VIE determination. To the extent that we own interests in a VIE and we (i) ~~are the sole entity that has~~have the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) have the obligation or rights to absorb ~~the VIE's~~ losses or receive ~~its~~ benefits that could potentially be significant to the VIE, then we would be determined to be the primary beneficiary and would consolidate the VIE. To the extent we own interests in a VIE, then at each reporting period, we re-assess our conclusions as to which, if any, party within the VIE is considered the primary beneficiary. To the extent that our joint ventures do not qualify as VIEs, we further assess each partner's substantive participating rights to determine if the venture should be consolidated.

We have equity interests in unconsolidated joint ventures that own and operate rental properties and hold land for development. To the extent applicable, we consolidate those joint ventures that are considered to be VIEs where we

are the primary beneficiary. For non-variable interest entities, we consolidate those joint ventures that we control through majority ownership interests or where we are the managing entity and our partner does not have substantive participating rights. Control is further demonstrated by the ability of the general partner to manage day-to-day operations, refinance debt and sell the assets of the joint venture without the consent of the limited partner and inability of the limited partner to replace the general partner. We use the equity method of accounting for those joint ventures where we do not have control over operating and financial policies. Under the equity method of accounting, our investment in each joint venture is included on our balance sheet; however, the assets and liabilities of the joint ventures for which we use the equity method are not included on our balance sheet.

basis reflected at the joint venture level, the basis difference is amortized over the life of the related asset and included in our share of equity in earnings of the joint venture. We recognize gains on the contribution or sale of real estate to joint ventures, relating solely to the outside partner's interest, to the extent the economic substance of the transaction is a sale.

When circumstances indicate there may have been a reduction in the value of an equity investment, we evaluate whether the loss in value is other than temporary. If we conclude it is other than temporary, we recognize an impairment charge to reflect the equity investment at fair value.

Cost Capitalization: Direct and certain indirect costs, including interest, clearly associated with the development, construction, leasing or expansion of real estate investments are capitalized as a cost of the property.

We capitalize interest and direct and indirect project costs associated with the initial construction of a property up to the time the property is substantially complete and ready for its intended use. We ~~believe~~capitalize all such costs through the completion of the building ~~shell is the proper basis for determining substantial completion.~~shell. The interest rate used to capitalize interest is based upon our average borrowing rate on existing debt.

We also capitalize direct and indirect costs, including interest costs, on vacant space during extended lease-up periods, after construction of the building shell has been completed, if costs are being incurred to ready the vacant space for its intended use. If costs and activities incurred to ready the vacant space cease, then cost capitalization is also discontinued until such activities are resumed. Once necessary work has been completed on a vacant space, project costs are no longer capitalized. We cease capitalization of all project costs on extended lease-up periods after the shorter of a one-year period after the completion of the building shell or when the property attains 90% occupancy. In addition, all leasing commissions paid to third parties for new leases or lease renewals are capitalized.

In assessing the amount of indirect costs to be capitalized, we first allocate payroll costs, on a department-by-department basis, among activities for which capitalization is warranted (i.e., construction, development and leasing) and those for which capitalization is not warranted (i.e., property management, maintenance, acquisitions and dispositions and general corporate functions). To the extent the employees of a department split their time between capitalizable and non-capitalizable activities, the allocations are made based on estimates of the actual amount of time spent in each activity. Once the payroll costs are allocated, the non-payroll costs of each department are allocated among the capitalizable and non-capitalizable activities in the same proportion as payroll costs.

To ensure that an appropriate amount of costs are capitalized, the amount of capitalized costs that are allocated to a specific project are limited to amounts using standards we developed. These standards consist of a percentage of the total development costs of a project and a percentage of the total gross lease amount payable under a specific lease. These standards are derived after considering the amounts that would be allocated if the personnel in the departments were working at full capacity. The use of these standards ensures that overhead costs attributable to downtime or to unsuccessful projects or leasing activities are not capitalized.

Impairment of Real Estate Assets: We evaluate our real estate assets, with the exception of those that are classified as held-for-sale, for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. If such an evaluation is considered necessary, we compare the carrying amount of that real estate asset, or asset group, with the expected undiscounted cash flows that are directly associated with, and that are

expected to arise as a direct result of, the use and eventual disposition of that asset, or asset group. Our estimate of the expected future cash flows used in testing for impairment is based on, among other things, our estimates regarding future market conditions, rental rates, occupancy levels, costs of tenant improvements, leasing commissions and other tenant concessions, assumptions regarding the residual value of our properties at the end of our anticipated holding period and the length of our anticipated holding period and is, therefore, subjective by nature. These assumptions could differ materially from actual results. If our strategy changes or if market conditions otherwise dictate a reduction in the holding period and an earlier sale date, an impairment loss could be recognized and such loss could be material. To the extent the carrying amount of a real estate asset, or asset group, exceeds the associated estimate of undiscounted cash flows, an impairment loss is recorded to reduce the carrying value of the asset to its fair value.

The determination of the fair value of real estate assets is also highly subjective, especially in markets where there is a lack of recent comparable transactions. We primarily utilize the income approach to estimate the fair value of our income producing real estate assets. To the extent that the assumptions used in testing long-lived assets for impairment differ from those of a marketplace participant, the assumptions are modified in order to estimate the fair value of a real estate asset when an impairment charge is measured. In addition to determining future cash flows, which make the estimation of a real estate asset's undiscounted cash flows highly subjective, the selection of the discount rate and exit capitalization rate used in applying the income approach is also highly subjective.

To the extent applicable marketplace data is available, we generally use the market approach in estimating the fair value of undeveloped land that is determined to be impaired.

Real estate assets that are classified as held-for-sale are reported at the lower of their carrying value or their fair value, less estimated costs to sell.

Acquisition of Real Estate Property and Related Assets: We allocate the purchase price of acquired properties to tangible and identified intangible assets based on their respective fair values, using all pertinent information available at the date of acquisition. The allocation to tangible assets (buildings, tenant improvements and land) is based upon management's determination of the value of the property as if it were vacant. This “as-if vacant” value is estimated using an income, or discounted cash flow, approach that relies upon internally determined assumptions that we believe are consistent with current market conditions for similar properties. The most important assumptions in determining the allocation of the purchase price to tangible assets are the exit capitalization rate, ~~discount rate,~~ estimated market rents and ~~hypothetical expected lease-up periods.~~the fair value of the underlying land.

The purchase price of real estate assets is also allocated to intangible assets consisting of the above or below market component of in-place leases and the value of in-place leases.

The value allocable to the above or below market component of an acquired in-place lease is determined based upon the present value (using a discount rate which reflects the risks associated with the acquired leases) of the difference between (i) the contractual amounts to be received pursuant to the lease over its remaining term and (ii) management's estimate of the amounts that would be received using fair market rates over the remaining term of the lease. The amounts allocated to above market leases are included in deferred leasing and other costs in the balance sheet and below market leases are included in other liabilities in the balance sheet; both are amortized to rental income over the remaining terms of the respective leases.

Factors considered in determining the value allocable to in-place leases include estimates, during hypothetical lease up periods, related to space that is actually leased at the time of acquisition. These estimates include (i) lost rent at market rates, (ii) fixed operating costs that will be recovered from tenants and (iii) theoretical leasing commissions required to execute similar leases. These intangible assets are included in deferred leasing and other costs in the balance sheet and are amortized over the remaining term of the existing lease.

~~We record assets~~To the extent that we gain control of real estate properties that are accounted for as asset acquisitions, as opposed to business combinations, we accumulate the costs of pre-existing equity interest and the consideration paid for

additional interest acquired and do not remeasure our pre-existing equity interest. Generally contingencies arising from an asset acquisition are only recognized when the contingency is paid or becomes payable.

To the extent that we gain control of a property acquired that meets the definition of a business, we account for the acquisition in accordance with the guidance for step acquisitions at their full fair value and record a gain or loss for the difference between the fair value and the carrying value of our existing equity interest. Additionally, contingencies arising from a business combination are recorded at fair value if the acquisition date fair value can be determined during the measurement period.

~~Construction Contracts~~: We recognize income on construction contracts where we serve as a general contractor on the percentage of completion method. Using this method, profits are recorded on the basis of our estimates of the overall profit and percentage of completion of individual contracts. A portion of the estimated profits is recognized based upon our estimates of the percentage of completion of the construction contract. To the extent that a fixed-price contract is estimated to result in a loss, the loss is recorded immediately. Cumulative revenues recognized may be less or greater than cumulative costs and profits billed at any point in time during a contract's term. This revenue recognition method involves inherent risks relating to profit and cost estimates with those risks reduced through approval and monitoring processes.

~~With regard to critical accounting policies, management has discussed the following with the Audit Committee:~~

~~Criteria for identifying and selecting our critical accounting policies;~~

~~Methodology in applying our critical accounting policies; and~~

~~Impact of the critical accounting policies on our financial statements.~~

The Audit Committee has reviewed the critical accounting policies identified by management.

Liquidity and Capital Resources

Sources of Liquidity

We expect to meet our short-term liquidity requirements over the next 12 months, including maturities of indebtedness, payments of dividends and distributions and the capital expenditures needed to maintain our current real estate assets, primarily through working capital, net cash provided by operating activities and proceeds received from real estate dispositions. At December 31, ~~2016~~2017 we held $~~12.6~~67.6 million of cash, ~~and we~~ had ~~$48.0 million of~~no outstanding borrowings on the Partnership's ~~$1.20~~$1.20 billion unsecured line of ~~credit.~~credit and held $116.4 million of restricted cash for future like kind exchange transactions.

In addition to our existing sources of liquidity, we expect to meet long-term liquidity requirements, such as scheduled mortgage and unsecured debt maturities, property acquisitions, financing of development activities and other capital improvements, through multiple sources of capital including operating cash flow, proceeds from property dispositions and through accessing the public debt and equity markets. At December 31, 2017, we also held $400.0 million of notes receivable from the buyers of our medical office properties that are scheduled to mature at various points through January 2020.

Rental Operations

Cash flows from Rental Operations is our primary source of liquidity and provides a stable source of cash flow to fund operational expenses. We believe that this cash-based revenue stream is substantially aligned with revenue recognition (except for items such as periodic straight-line rental income accruals and amortization of above or below market rents) as cash receipts from the leasing of rental properties are generally received in advance of, or a short time following, the actual revenue recognition.

We are subject to a number of risks related to general economic conditions, including reduced occupancy, tenant defaults and bankruptcies and potential reduction in rental rates upon renewal or re-letting of properties, any of which would result in reduced cash flow from operations.

Unsecured Debt and Equity Securities

Our unsecured line of credit at December 31, ~~2016~~2017 is described as follows (in thousands):


Description	Borrowing Capacity		Maturity Date	Outstanding Balance at December 31, 2016		Borrowing Capacity		Maturity Date	Outstanding Balance at December 31, 2017
Unsecured Line of Credit – Partnership	$	1,200,000	January 2019	$	48,000	$	1,200,000	January 2022	$	—

The Partnership's unsecured line of credit has a borrowing capacity of $1.20 billion, with ~~the~~an interest rate on borrowings of LIBOR plus ~~0.93%~~0.875% ~~(equal to 1.70% for outstanding borrowings at December 31, 2016)~~, ~~which is a decrease from a rate of LIBOR plus 1.05% at December 31, 2015 due to an upgrade in our credit ratings with Moody's Investors Service from Baa2 to Baa1and Standard~~ and ~~Poor's Financial Services from BBB to BBB+. The Partnership's unsecured line of credit has~~ a maturity date of January ~~2019, but may be extended by one year~~2022, with two six-month extensions at our option. Subject to certain conditions, the terms also include an option to increase the facility by up to an additional ~~$400.0~~$800.0 million, for a total of up to ~~$1.60~~$2.00 billion. This line of credit provides us with an option to obtain borrowings from financial institutions that participate in the line at rates that may be lower than the stated interest rate, subject to certain restrictions.

asset value (with asset value being defined in the Partnership's unsecured line of credit agreement). At December 31, ~~2016,~~2017, we were in compliance with all covenants under this line of credit.

At December 31, ~~2016,~~2017, we had on file with the SEC an automatic shelf registration statement on Form S-3 relating to the offer and sale, from time to time, of an indeterminate amount of debt and equity securities (including guarantees of the Partnership's debt securities by the General Partner). Equity securities are offered and sold by the General Partner, and the net proceeds of such offerings are contributed to the Partnership in exchange for additional General Partner Units or Preferred Units. From time to time, we expect to issue additional securities under this automatic shelf registration statement to fund the repayment of long-term debt upon maturity and for other general corporate purposes.

The General ~~Partner's previous ATM equity program, which allowed it to issue new common shares from time to time, was fully utilized in July 2016. On August 9, 2016,~~Partner has an at the ~~General Partner entered into a new ATM~~market ("ATM") equity program that allows it to issue new common shares from time to time, with an aggregate offering price of up to $200.0 million. During ~~2016,~~2017, the General Partner ~~issued a total of 8.4 million~~did not issue any common shares pursuant to ~~both of~~ its ATM equity programs (including 5.1 million common shares under its old program and 3.3 million common shares under its new program) with an average issuance price of $25.93 per share, generating gross proceeds of approximately $218.2 million, and, after deducting commissions and other costs, net proceeds of approximately $215.6 million.program. As of December 31, ~~2016,~~2017, the ~~new~~ ATM equity program still had $108.1 million worth of ~~remaining capacity.~~new common shares available to issue.

In ~~June 2016,~~December 2017, we issued ~~$375.0~~$300.0 million of senior unsecured notes that bear interest at a stated interest rate of ~~3.25%~~3.38%, have an effective interest rate of ~~3.36%,~~3.39% and mature on ~~June 30, 2026.~~December 15, 2027.

The Partnership has issued debt securities pursuant to certain indentures and related supplemental indentures, which also require us to comply with financial ratios and other covenants regarding our operations. We were in compliance with all such covenants, as well as applicable covenants under our unsecured line of credit, at December 31, ~~2016.~~2017.

Sale of Real Estate Assets

We regularly work to identify, consider and pursue opportunities to dispose of non-strategic properties on an opportunistic basis and on a basis that is generally consistent with our strategic plans. Our ability to dispose of such properties on favorable terms, or at all, is dependent upon a number of factors including the availability of credit to potential buyers to purchase properties at prices that we consider acceptable. Although we believe that we have demonstrated our ability to generate significant liquidity through the disposition of non-strategic properties, potential future adverse changes to general market and economic conditions could negatively impact our further ability to dispose of such properties.

Sales of land and ~~depreciated property~~depreciable properties provided ~~$538.6 million~~$2.52 billion in net proceeds in ~~2016,~~2017, compared to $538.6 million in 2016 and $1.68 billion in ~~2015~~2015. We also held $400.0 million of notes receivable from certain of the buyers involved in the Medical Office Portfolio Disposition, which were comprised of $70.0 million of notes guaranteed by a buyer with an A+ rated health system and ~~$493.2~~$330.0 million of first mortgages, which are scheduled to mature in ~~2014.~~various tranches over the next three years with the last maturity date in January 2020.

Transactions with Unconsolidated Joint Ventures

Transactions with unconsolidated joint ventures also provide a source of liquidity. From time to time we will sell properties to unconsolidated joint ventures, while retaining a continuing interest in that entity and receive proceeds commensurate to those interests that we do not own. Additionally, unconsolidated joint ventures will from time to time obtain debt financing or sell properties and will then distribute to us, and our joint venture partners, all, or a portion of the proceeds from such transactions. During ~~2016,~~2017, our share of sale and ~~financing~~capital distributions from unconsolidated joint ventures totaled ~~$126.1~~$125.0 million.

Uses of Liquidity

Our principal uses of liquidity include the following:

property investment;

leasing/capital costs;

dividends and distributions to shareholders and unitholders;

long-term debt maturities;

opportunistic repurchases of outstanding debt; and

other contractual obligations.

Property Investment

Our overall strategy is to continue to increase our investment in quality industrial properties in both existing and select new ~~markets and to continue to increase our investment in on-campus or hospital affiliated medical office properties.~~markets. Pursuant to this strategy, we evaluate development and acquisition opportunities based upon our market outlook, including general economic conditions, supply and long-term growth potential. Our ability to make future property investments is dependent upon identifying suitable acquisition and development opportunities, and our continued access to our longer-term sources of liquidity, including issuances of debt or equity securities as well as generating cash flow by disposing of selected properties.

Leasing/Capital Costs

Tenant improvements and lease-related costs pertaining to our initial leasing of newly completed space, or vacant space in acquired properties, are referred to as first generation expenditures. Such first generation expenditures for tenant improvements are included within "development of real estate investments" in our Consolidated Statements of Cash Flows, while such expenditures for lease-related costs are included within "other deferred leasing costs."

Cash expenditures related to the construction of a building's shell, as well as the associated site improvements, are also included within "development of real estate investments" in our Consolidated Statements of Cash Flows.

Tenant improvements and leasing costs to re-let rental space that we previously leased to tenants are referred to as second generation expenditures. Building improvements that are not specific to any tenant, but serve to improve integral components of our real estate properties, are also second generation expenditures. One of the principal uses of our liquidity is to fund the second generation leasing/capital expenditures of our real estate investments.

The following table summarizes our second generation capital expenditures by type of expenditure, as well as capital expenditures for the development of real estate investments and for other deferred leasing costs (in thousands):


	2016		2015		2014		2017		2016		2015
Second generation tenant improvements	$	24,622	$	28,681	$	51,699	$	15,239	$	24,622	$	28,681
Second generation leasing costs	27,029		24,471		37,898		22,712		27,029		24,471
Building improvements	7,698		8,748		9,224		14,603		7,698		8,748
Total second generation capital expenditures	$	59,349	$	61,900	$	98,821	$	52,554	$	59,349	$	61,900
Development of real estate investments	$	401,442	$	370,466	$	446,722	$	549,563	$	401,442	$	370,466
Other deferred leasing costs	$	38,410	$	30,790	$	31,503	$	30,208	$	38,410	$	30,790

Second generation capital expenditures were ~~significantly~~ lower during ~~2016 and 2015, compared to 2014,~~2017 as the result of ~~significant dispositions of office properties, which were more~~fewer expiring leases, and correspondingly lower capital ~~intensive~~expenditure requirements for renewals, compared to ~~re-lease than industrial properties.~~2016.

We had wholly owned properties under development with an expected cost of ~~$713.1~~$642.1 million at December 31, ~~2016,~~2017, compared to projects with an expected cost of ~~$599.8~~$713.1 million and ~~$470.2~~$599.8 million at December 31, ~~2015~~2016 and ~~2014,~~2015, respectively.

The capital expenditures in the table above include the capitalization of internal overhead costs. We capitalized $19.1 million, $24.0 million ~~$21.7 million~~ and ~~$23.9~~$21.7 million of overhead costs related to leasing activities, including both first and second generation leases, during the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014,~~2015, respectively. We capitalized $31.5 million, $25.9 million ~~$23.8 million~~ and ~~$28.8~~$23.8 million of overhead costs related to development activities, including both development and tenant improvement projects on first and second generation space, during the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014,~~2015, respectively. Combined overhead costs capitalized to leasing and development totaled ~~33.5%~~36.2%, ~~29.0%~~33.5% and ~~31.4%~~29.0% of our overall pool of overhead costs at December 31, 2017, 2016 ~~2015~~

and ~~2014,~~2015, respectively. Further discussion of the capitalization of overhead costs can be found in the year-to-year comparisons of general and administrative expenses and Critical Accounting Policies sections of this Item 7.

In addition to the capitalization of overhead costs the totals for development of real estate assets in the table above include the capitalization of $18.9 million, $16.1 million ~~$16.8 million~~ and ~~$17.6~~$16.8 million of interest costs in the years ended December 31, 2017, 2016 and 2015, ~~and 2014,~~ respectively.

Dividend and Distribution Requirements

The General Partner is required to meet the distribution requirements of the Code, in order to maintain its REIT status. We paid regular dividends or distributions of $0.77, $0.73 ~~$0.69~~ and ~~$0.68~~$0.69 per common share or Common Unit for the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014,~~2015, respectively. We also paid ~~a one-time~~ special ~~dividend~~dividends of $0.85 and $0.20 ~~in December~~per common share or Common Unit during the fourth quarters of 2017 and 2015, respectively, as a result of the significant taxable gains on asset sales completed in ~~2015.~~those years.

We expect to continue to distribute at least an amount equal to our taxable earnings, to meet the requirements to maintain the General Partner's REIT status, and additional amounts as determined by the General Partner's board of directors. Distributions are declared at the discretion of the General Partner's board of directors and are subject to actual cash available for distribution, our financial condition, capital requirements and such other factors as the General Partner's board of directors deems relevant.

Debt Maturities

Debt outstanding at December 31, ~~2016~~2017 had a face value totaling ~~$2.93~~$2.44 billion with a weighted average interest rate of ~~4.47%~~4.33% and maturities at various dates through 2028. Of this total amount, we had ~~$2.50~~$2.13 billion of unsecured debt, ~~$384.4~~$311.7 million of secured debt and ~~$48.0 million~~no outstanding borrowings on our unsecured line of credit at December 31, ~~2016.~~2017. Scheduled principal amortization, maturities and early repayments of such debt totaled $~~784.7~~787.4 million for the year ended December 31, ~~2016.~~2017.

The following table is a summary of the scheduled future amortization and maturities of our indebtedness at December 31, ~~2016~~2017 (in thousands, except percentage data):


	Future Repayments						Weighted Average	Future Repayments						Weighted Average
Year	Scheduled Amortization		Maturities		Total		Interest Rate of Future Repayments	Scheduled Amortization		Maturities		Total		Interest Rate of Future Repayments
2017	$	9,135	$	66,035	$	75,170	5.88%
2018	7,768		285,611		293,379		6.08%	$	7,768	$	—	$	7,768	6.21%
2019	6,936		268,438		275,374		7.60%	6,935		268,438		275,373		7.61%
2020	5,381		426,660		432,041		3.21%	5,381		—		5,381		5.83%
2021	3,416		259,047		262,463		3.99%	3,416		259,047		262,463		3.99%
2022	3,611		600,000		603,611		4.20%	3,611		600,000		603,611		4.20%
2023	3,817		250,000		253,817		3.75%	3,817		250,000		253,817		3.75%
2024	4,036		300,000		304,036		3.92%	4,036		300,000		304,036		3.92%
2025	3,938		—		3,938		5.51%	3,938		—		3,938		5.62%
2026	2,029		375,000		377,029		3.37%	2,029		375,000		377,029		3.37%
2027	358		—		358		6.42%	358		300,000		300,358		3.40%
2028								—		50,000		50,000		7.29%
Thereafter	—		50,000		50,000		7.29%	—		—		—		N/A
	$	50,425	$	2,880,791	$	2,931,216	4.47%	$	41,289	$	2,402,485	$	2,443,774	4.33%

The Partnership's variable rate unsecured notes and unsecured line of credit are both reflected in the table above as maturing in January 2020, based on the ability to exercise a one-year extension option from their stated maturity dates of January 2019. We anticipate generating capital to fund our debt maturities by using undistributed cash generated from our Rental Operations and property dispositions and by raising additional capital from future debt or equity transactions.

~~Repurchases~~Repayments of Outstanding Debt

In June 2017, we repaid our $250.0 million variable rate term loan, which had a scheduled maturity date of January 2019 and bore interest at LIBOR plus 1.00%, and recognized a loss of $523,000 from the write-off of unamortized deferred financing costs. In June 2017, we also repaid $285.6 million of senior unsecured notes that had a stated interest rate of 6.50% and an effective interest rate of 6.08%, with a scheduled maturity date of January 2018, and

recognized a loss of $9.0 million, including a repayment premium and the write-off of unamortized deferred financing costs.

In July 2017, we repaid $128.7 million of senior unsecured notes that had both a stated and an effective interest rate of 6.75% with a scheduled maturity date of March 2020. We recognized a loss of $16.6 million, including a repayment premium and the write-off of unamortized deferred financing costs.

To the extent that it supports our overall capital strategy, we may purchase or redeem some of our outstanding unsecured notes prior to their stated maturities.

In June and July 2016, we repaid $275.0 million of 5.95% unsecured notes scheduled to mature in February 2017, for cash payments totaling $283.5 million, which resulted in an $8.8 million loss on debt extinguishment.

In October 2016, we redeemed $129.5 million of unsecured notes that had a scheduled maturity in August of 2019. We recognized a net loss on the extinguishment of these notes in the fourth quarter totaling $25.2 million.

Guarantee Obligations

We are subject to various guarantee obligations in the normal course of business and, in most cases, do not anticipate these obligations to result in significant cash payments.

Historical Cash Flows

Cash and cash equivalents were $~~12.6~~$67.6 million,~~, $22.5~~ $12.6 million and ~~$17.9~~$22.5 million at December 31, 2017, 2016,, ~~2015,~~ and ~~2014,~~2015, respectively. The following table highlights significant changes in net cash associated with our operating, investing and financing activities (in thousands):


	Years Ended December 31,									Years Ended December 31,
	2016			2015			2014			2017			2016			2015
General Partner
Net Cash Provided by Operating Activities	$	450,135		$	379,381		$	444,487		$	448,116		$	457,238		$	386,651
Net Cash Provided by (Used for) Investing Activities	24,904			1,121,299			(207,031		)
Net Cash Provided by Investing Activities										696,333			24,904			1,121,299
Net Cash Used for Financing Activities	(484,933		)	(1,496,069		)	(238,809		)	(1,089,526		)	(492,036		)	(1,503,339		)

Partnership
Net Cash Provided by Operating Activities	$	450,135		$	379,201		$	444,423		$	448,116		$	457,238		$	386,471
Net Cash Provided by (Used for) Investing Activities	24,904			1,121,299			(207,031		)
Net Cash Provided by Investing Activities										696,333			24,904			1,121,299
Net Cash Used for Financing Activities	(484,933		)	(1,495,889		)	(238,745		)	(1,089,526		)	(492,036		)	(1,503,159		)

Operating Activities

Cash flows from operating activities provide the cash necessary to meet normal operational requirements of our Rental Operations and Service Operations activities. The receipt of rental income from Rental Operations continues to be our primary source of operating cash flows. The decrease to cash flow provided by operating activities, compared to the year ended December 31, 2016, was due to lower cash flows from our Rental Operations as the result of owning fewer properties due to the Medical Office Portfolio Disposition. This reduction to operating cash flows from Rental Operations was partially offset by lower cash paid for interest, as the result of significant debt repayments or refinancing that took place throughout 2016 and 2017.

The increase to cash flow provided by operating activities, compared to 2015, was due to lower cash paid for interest, as the result of the significant debt repayments that took place during 2015 and 2016, newly developed properties being placed in service and improved operational performance.

The decrease in cash flows from operations between 2014 and 2015 was the result of owning fewer properties due to the major dispositions completed throughout 2015 and the latter part of 2014. This reduction to operating cash flows from Rental Operations was partially offset by lower interest costs that resulted from using the proceeds from property dispositions to pay down significant amounts of debt in 2015.

Investing Activities

Investing activities are one of the primary uses of our liquidity. Development and acquisition activities typically generate additional rental revenues and provide cash flows for operational requirements. Highlights of significant cash sources and uses are as follows:

Real estate development costs were $549.6 million, $401.4 million, and $370.5 million during 2017, 2016, and ~~$446.7 million during 2016,~~ 2015, ~~and 2014,~~ respectively. ~~During 2016, we placed 21 newly completed wholly-owned development projects in service and expect to continue with a robust level of new development.~~

We paid cash of $1.23 billion, $269.8 million ~~$68.7 million~~ and ~~$193.4~~$68.7 million, respectively, for real estate and undeveloped land acquisitions during 2017, 2016 ~~2015~~ and ~~2014,~~2015, respectively.

Sales of land and depreciated property generated net proceeds of $2.52 billion, $538.6 million and $1.68 billion during 2017, 2016 and ~~$493.2 million during 2016,~~ 2015, ~~and 2014,~~ respectively.

Second generation tenant improvements, leasing costs and building improvements totaled $52.6 million, $59.3 million and $61.9 million during 2017, 2016 and ~~$98.8 million during 2016,~~ 2015, ~~and 2014,~~ respectively. The second generation capital

expenditures continued to decrease in ~~2016~~2017 primarily due to the ~~disposition~~dispositions of ~~remaining~~ office properties that generally have higher re-leasing costs than industrial properties do.

~~During~~The cash outflow reflected in the Other Assets line of the Consolidated Statements of Cash Flows for 2017 was the result of a portion of the proceeds from the Medical Office Portfolio Disposition being immediately transferred into escrow, which did not meet the requirements for presentation as cash and cash equivalents, for use in completing future like kind exchange transactions. The cash outflows from such transfers totaled $73.8 million during 2017, compared to $8.6 million during 2016 ~~we also received a full~~and $31.5 million during 2015. A cash inflow of $200.0 million, related to the repayment of a ~~$200.0 million seller financed~~ mortgage note from the buyers of an office portfolio that we sold in ~~April 2015.~~2015, is reflected in Other Assets line of the Consolidated Statements of Cash Flows for 2016.

We received capital distributions from unconsolidated ~~companies~~joint ventures, either as athe result of selling our ownership interests in certain unconsolidated joint ventures or from our share of the ~~sale~~proceeds from property sales from unconsolidated joint ventures, of ~~properties or refinancing of~~$125.0 million, $126.1 million and $69.0 million during 2017, 2016 and ~~$91.8 million during 2016,~~ 2015, ~~and 2014,~~ respectively.

We made capital contributions and advances to unconsolidated ~~companies~~joint ventures in the amounts of $10.3 million, $57.9 million and $72.4 million during 2017, 2016 and ~~$11.6 million during 2016,~~ 2015, ~~and 2014,~~ respectively.

Financing Activities

The following items highlight significant capital transactions:

During ~~2016,~~2017, the General Partner ~~issued 8.4 million~~did not issue any shares of common stock pursuant to its ATM equity ~~programs~~program, compared to 8.4 million shares of common stock for net proceeds of $215.6 million ~~compared to~~in 2016 and 233,000 shares of common stock for net proceeds of $4.5 million in ~~2015~~2015.

In 2017, we issued $300.0 million of senior unsecured notes and ~~16.4 million shares of common stock for net proceeds of $289.1 million~~ in ~~2014.~~

In 2016 we issued $375.0 million of senior unsecured ~~notes and in 2014 we issued $300.0 million of unsecured~~ notes. We did not issue any senior unsecured notes in 2015.

During 2017, the Partnership paid cash of $689.6 million to execute the repayment of a $250.0 million variable rate term loan, which was prepayable without penalty, and the early redemption of $414.3 million of senior unsecured notes. During 2016, we repurchased or redeemed $404.5 million of unsecured notes, for cash payments totaling $437.6 million. During 2015, we repaid six unsecured notes, totaling $831.2 million, for cash payments totaling $910.9 million.

During 2017, the Partnership repaid eight secured loans for $66.5 million. During 2016, we repaid seven secured loans, totaling $346.7 million. During 2015, we repaid 17 secured loans for cash payments totaling $231.2 million, which included early repayment premiums of $4.2 million for certain of the loans that were repaid prior to their scheduled maturity dates. ~~During 2014, we repaid nine secured loans, totaling $99.3 million.~~

We decreased net borrowings on the Partnership's line of credit by $48.0 million in 2017, decreased net borrowings by $23.0 million in 2016 and decreased net borrowings by $35.0 million in ~~2015 and increased net borrowings by $18.0 million in 2014.~~2015.

We paid regular cash dividends or distributions of $0.77, $0.73 ~~$0.69~~ and ~~$0.68~~$0.69 per common share or per Common Unit in each of the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014,~~2015, respectively.

~~In December 2015, we~~We paid ~~a one-time~~ special ~~dividend~~dividends of $0.85 and $0.20 per common share or ~~per unit that was declared~~Common Unit during the fourth quarters of 2017 and 2015, respectively. These special dividends were paid in order to maintain our compliance with the requirements for ~~a REIT. The one-time special dividend was paid~~maintaining our status as a ~~result of the~~REIT and were triggered by significant taxable gains on asset sales completed in 2017 and 2015.

Changes in book ~~drafts~~overdrafts are classified as financing activities within our consolidated Statements of Cash Flows. Book overdrafts were $36.3 million, $13.4 million ~~$11.1 million~~ and ~~$7.8~~$11.1 million at December 31, 2017, 2016 ~~2015~~ and ~~2014,~~2015, respectively.

Impact of Changes in Credit Ratings on Our Liquidity

We are currently assigned investment grade corporate credit ratings on our senior unsecured notes from Moody's Investors Service and Standard & Poor's Ratings Group. Our senior unsecured notes have been assigned a rating of

Baa1 by Moody's Investors Service, upgraded in 2016 from Baa2. In addition, our senior unsecured notes have been assigned a rating of BBB+ by Standard & Poor's Ratings Group, upgraded in 2016 from BBB.

The ratings of our senior unsecured notes could change based upon, among other things, the impact that prevailing economic conditions may have on our results of operations and financial condition. If our credit ratings are downgraded or other negative action is taken, we could be required, among other things, to pay additional interest and fees on outstanding borrowings under our revolving credit agreement. Credit rating reductions by one or more rating agencies could also adversely affect our access to funding sources, the cost and other terms of obtaining funding, as well as our overall financial condition, operating results and cash flow.

Financial Instruments

We are exposed to capital market risk, such as changes in interest rates. In order to reduce the volatility relating to interest rate risk, we may enter into interest rate hedging arrangements from time to time. We do not utilize derivative financial instruments for trading or speculative purposes and none of our outstanding interest rate swaps were significant to any period presented in this report.

~~Off Balance~~Off-Balance Sheet Arrangements

Investments in Unconsolidated ~~Companies~~Joint Ventures

We have equity interests in unconsolidated partnerships and limited liability companies that primarily own and operate rental properties and hold land for development. These unconsolidated joint ventures are primarily engaged in the operations and development of industrial ~~and medical office~~ real estate properties. ~~These investments provide us with increased market share and tenant and property diversification.~~ The equity method of accounting (see Critical Accounting Policies) is used for these investments in which we have the ability to exercise significant influence, but not control, over operating and financial policies. As a result, the assets and liabilities of these entities are not included on our balance sheet.

Our investments in and advances to unconsolidated ~~subsidiaries~~joint ventures represents approximately 3%2% and 4%3% of our total assets for the years ended December 31, ~~2016~~2017 and December 31, ~~2015.~~2016, respectively. We believe that these investments provide several benefits to us, including increased market share, tenant and property diversification and an additional source of capital to fund real estate projects.

The following table presents summarized financial information for unconsolidated ~~companies~~joint ventures for the years ended December 31, ~~2016~~2017 and ~~2015,~~2016, respectively (in thousands, except percentage data):


	2016			2015			2017			2016
Land, buildings and tenant improvements, net	$	529,926		$	1,029,803		$	383,581		$	529,926
Construction in progress	31,838			64,646			65,715			31,838
Undeveloped land	90,560			115,773			30,170			90,560
Other assets	91,045			144,337			76,695			91,045
	$	743,369		$	1,354,559		$	556,161		$	743,369
Indebtedness	$	172,811		$	413,651		$	235,497		$	172,811
Other liabilities	32,633			91,836			39,497			32,633
	205,444			505,487			274,994			205,444
Owners' equity	537,925			849,072			281,167			537,925
	$	743,369		$	1,354,559		$	556,161		$	743,369
Rental revenue	$	122,019		$	160,543		$	71,424		$	122,019
Gain on sale of properties	$	100,806		$	23,696		$	4,986		$	100,806
Net income	$	122,727		$	60,772		$	20,673		$	122,727
Total square feet	11,729			21,094			13,216			11,729
Percent leased*	90.34		%	92.71		%	85.67		%	90.34		%
*Represents the percentage of total square feet leased based on executed leases and without regard to whether the leases have commenced.

We do not have any relationships with unconsolidated entities or financial partnerships that have been established solely for the purpose of facilitating off-balance sheet arrangements.

Contractual Obligations

At December 31, ~~2016,~~2017, we were subject to certain contractual payment obligations as described in the following table:


	Payments due by Period (in thousands)														Payments due by Period (in thousands)
Contractual Obligations	Total		2017		2018		2019		2020		2021		Thereafter		Total		2018		2019		2020		2021		2022		Thereafter
Long-term debt (1)	$	3,508,789	$	203,244	$	409,257	$	366,456	$	461,309	$	329,339	$	1,739,184	$	3,002,898	$	111,703	$	363,792	$	87,946	$	339,483	$	668,982	$	1,430,992
Line of credit (2)	56,127		2,650		2,650		2,650		48,177		—		—		9,275		1,825		1,825		1,825		1,825		1,825		150
Share of unconsolidated joint ventures' debt (3)	91,235		2,444		28,466		5,737		11,598		1,236		41,754		125,523		3,388		7,199		13,060		60,122		1,345		40,409
Ground leases	311,120		10,745		5,721		5,758		5,793		5,822		277,281		93,263		1,318		1,330		1,442		1,455		1,148		86,570
Development and construction backlog costs (4)	344,700		331,553		13,147		—		—		—		—		147,065		147,065		—		—		—		—		—
Other	43,357		7,502		7,342		5,801		4,326		3,906		14,480		34,389		7,081		5,990		4,379		4,023		3,324		9,592
Total Contractual Obligations	$	4,355,328	$	558,138	$	466,583	$	386,402	$	531,203	$	340,303	$	2,072,699	$	3,412,413	$	272,380	$	380,136	$	108,652	$	406,908	$	676,624	$	1,567,713


(1)	Our long-term debt consists of both secured and unsecured debt and includes both principal and interest. Interest ~~payments~~expense for variable rate debt ~~were~~was calculated using the interest ~~rates as of~~rate at December 31, ~~2016. Repayment~~2017.


(2)	Represents fees on our unsecured line of ~~our $250.0 million variable rate term note,~~credit, which has a contractual maturity date in January ~~2019, is reflected as a 2020 obligation in the table above based on the ability to exercise a one-year~~2022, with two six-month extension options, which we may exercise at our discretion.


~~(2)~~	Our unsecured line of credit has a contractual maturity date in January 2019, but is reflected as a 2020 obligation in the table above based on the ability to exercise a one-year extension, which we may exercise at our discretion. Interest payments for our unsecured line of credit were calculated using the most recent stated interest rate that was in effect.


(3)	Our share of unconsolidated joint venture debt includes both principal and interest. Interest expense for variable rate debt was calculated using the interest rate at December 31, ~~2016.~~2017.


(4)	Represents estimated remaining costs on the completion of owned development projects and third-party construction projects.

~~Related Party Transactions~~

We provide property and asset management, leasing, construction and other tenant-related services to unconsolidated companies in which we have equity interests. For the years ended December 31, 2016, 2015 and 2014 we earned management fees of ~~$4.5 million~~, ~~$6.8 million~~ ~~and~~ ~~$8.5 million, leasing fees of~~ ~~$2.4 million~~, ~~$3.0 million~~ ~~and~~ ~~$3.4 million~~ ~~and construction and development fees of~~ ~~$8.0 million~~, ~~$6.1 million~~ ~~and~~ ~~$5.8 million~~, respectively, from these companies, prior to elimination of our ownership percentage. We recorded these fees based on contractual terms that approximate market rates for these types of services and have eliminated our ownership percentages of these fees in the consolidated financial statements.

~~Commitments and Contingencies~~

The partnership has guaranteed the repayment of $32.9 million of economic development bonds issued by various municipalities in connection with certain commercial developments. We will be required to make payments under our guarantees to the extent that incremental taxes from specified developments are not sufficient to pay the bond debt service. Management does not believe that it is probable that we will be required to make any significant payments in satisfaction of these guarantees.

The Partnership also has guaranteed the repayment of an unsecured loan of one of our unconsolidated subsidiaries. At December 31, 2016, the maximum guarantee exposure for this loan was approximately $52.1 million.

We lease certain land positions with terms extending to March 2114, with a total future payment obligation of $311.1 million. The payments on these ground leases, which are classified as operating leases, are not material in any individual year.

In addition to ground leases, we are party to other operating leases as part of conducting our business, including leases of office space from third parties, with a total future payment obligation of $43.4 million at December 31, 2016. No future payments on these leases are material in any individual year.

We are subject to various legal proceedings and claims that arise in the ordinary course of business. In the opinion of management, the amount of any ultimate liability with respect to these actions is not expected to materially affect our consolidated financial statements or results of operations.

~~assessment is recorded as a liability. We have~~ ~~$10.2 million~~ ~~of such special assessment liabilities, which are included within other liabilities on our consolidated balance sheet, as of December 31, 2016.~~

Item 7A. Quantitative and Qualitative Disclosure About Market Risks

We are exposed to interest rate changes primarily as a result of our line of credit and long-term borrowings. Our interest rate risk management objective is to limit the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs. To achieve our objectives, we borrow primarily at fixed rates. We do not enter into derivative or interest rate transactions for speculative purposes. ~~We have one outstanding swap, which fixes the rates on one of our variable rate loans, and is not significant to our financial statements at December 31, 2016.~~

Our interest rate risk is monitored using a variety of techniques. The table below presents the principal amounts (in thousands) of the expected annual maturities, weighted average interest rates for the average debt outstanding in the specified period, fair values (in thousands) and other terms required to evaluate the expected cash flows and sensitivity to interest rate changes.

2017
2018
2019
2020
2021
Thereafter
Total
Fair Value
Fixed rate secured debt $ 72,347
$ 4,783
$ 272,215
$ 3,583
$ 12,163
$ 16,489
$ 381,580
$ 415,231
Weighted average interest rate 5.88 % 6.46 % 7.63 % 5.98 % 5.73 % 6.07 % 7.14 %
Variable rate secured debt $ 300
$ 300
$ 300
$ 300
$ 300
$ 1,300
$ 2,800
$ 2,800
Weighted average interest rate 0.79 % 0.79 % 0.79 % 0.79 % 0.79 % 0.79 % 0.79 %
Fixed rate unsecured debt $ 2,523
$ 288,296
$ 2,859
$ 130,158
$ 250,000
$ 1,575,000
$ 2,248,836
$ 2,318,034
Weighted average interest rate 6.26 % 6.08 % 6.26 % 6.74 % 3.91 % 3.96 % 4.40 %
Variable rate unsecured notes $ —
$ —
$ —
$ 250,000
$ —
$ —
$ 250,000
$ 250,000
Rate at December 31, 2016 N/A
N/A
N/A
1.63%
N/A
N/A
1.63 %
Unsecured line of credit $ —
$ —
$ —
$ 48,000
$ —
$ —
$ 48,000
$ 48,000
Rate at December 31, 2016 N/A
N/A
N/A
1.70%
N/A
N/A
1.70 %



	2018			2019			2020			2021			2022			Thereafter			Total			Fair Value
Fixed rate secured debt	$	4,783		$	272,215		$	3,583		$	12,163		$	3,311		$	13,178		$	309,233		$	325,753
Weighted average interest rate	6.46		%	7.63		%	5.98		%	5.73		%	6.06		%	6.07		%	7.43		%
Variable rate secured debt	$	300		$	300		$	300		$	300		$	300		$	1,000		$	2,500		$	2,500
Weighted average interest rate	1.85		%	1.85		%	1.85		%	1.85		%	1.85		%	1.85		%	1.85		%
Fixed rate unsecured debt	$	2,685		$	2,858		$	1,498		$	250,000		$	600,000		$	1,275,000		$	2,132,041		$	2,190,548
Weighted average interest rate	6.26		%	6.26		%	6.26		%	3.91		%	4.20		%	3.72		%	3.88		%

As the above table incorporates only those exposures that existed at December 31, ~~2016,~~2017, it does not consider those exposures or positions that could arise after that date. As a result, the ultimate impact of interest rate fluctuations will depend on future exposures that arise, our hedging strategies at that time, to the extent we are party to interest rate derivatives, and interest rates. Interest expense on our unsecured line of credit, to the extent we have outstanding borrowings, and our variable rate unsecured notes will be affected by fluctuations in the LIBOR indices as well as changes in our credit rating. The interest rate at such point in the future as we may renew, extend or replace our unsecured line of credit will be heavily dependent upon the state of the credit environment.

At December 31, 2017, the face value of our unsecured debt was $2.13 billion and we estimated the fair value of that unsecured debt to be $2.19 billion. At December 31, 2016, the face value of our unsecured debt was $2.50 billion and ~~we estimated the fair value of that unsecured debt to be $2.57 billion. At December 31, 2015, the face value of our unsecured debt was $2.53 billion and~~ our estimate of the fair value of that debt was ~~$2.62~~$2.57 billion.

Item 8. Financial Statements and Supplementary Data

The financial statements and supplementary data are included under Item 15 of this Report.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

There was no change or disagreement with our accountants related to our accounting and financial disclosures.

Item 9A. Controls and Procedures

Controls and Procedures (General Partner)

We conducted an evaluation of the effectiveness of the design and operation of our "disclosure controls and procedures" as of the end of the period covered by this Report. The controls evaluation was done under the supervision and with the participation of management, including the Chief Executive Officer and the Chief Financial Officer.

Attached as exhibits to this Report are certifications of our Chief Executive Officer and Chief Financial Officer, which are required in accordance with Rule 13a-14 of the Securities Exchange Act of 1934. This Controls and Procedures section includes the information concerning the controls evaluation referred to in the certifications and it should be read in conjunction with the certifications for a more complete understanding of the topics presented.

Disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act") are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act, such as this Report, is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures are also designed to ensure that such information is accumulated and communicated to our management, including our principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.

Based on the disclosure controls and procedures evaluation referenced above, our Chief Executive Officer and Chief Financial Officer have concluded that as of the end of the period covered by this Report, our disclosure controls and procedures were effective.

Management's annual report on internal control over financial reporting and the audit report of our independent registered public accounting firm are included in Item 15 of Part IV under the headings "Management's Report on Internal Control" and "Report of Independent Registered Public Accounting Firm," respectively, and are incorporated herein by reference.

There were no changes in our internal controls over financial reporting during the quarter ended December 31, ~~2016,~~2017, that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

Controls and Procedures (Partnership)

We conducted an evaluation of the effectiveness of the design and operation of our "disclosure controls and procedures" as of the end of the period covered by this Report. The controls evaluation was done under the supervision and with the participation of management, including the General Partner's Chief Executive Officer and Chief Financial Officer.

Attached as exhibits to this Report are certifications of the General Partner's Chief Executive Officer and Chief Financial Officer, which are required in accordance with Rule 13a-14 of the Securities Exchange Act of 1934. This Controls and Procedures section includes the information concerning the controls evaluation referred to in the certifications and it should be read in conjunction with the certifications for a more complete understanding of the topics presented.

Disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) are controls and other procedures that are designed to ensure that information required to be disclosed in our reports

filed under the Exchange Act, such as this Report, is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures are also designed to ensure that such information is accumulated and communicated to management, including the General Partner's principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.

Based on the disclosure controls and procedures evaluation referenced above, the General Partner's Chief Executive Officer and Chief Financial Officer have concluded that as of the end of the period covered by this Report, our disclosure controls and procedures were effective.

Item 9B. Other Information

There was no information required to be disclosed in a report on Form 8-K during the fourth quarter of ~~2016~~2017 for which no Form 8-K was filed.

Following the end of the period covered by this report, the transfer agent for shares of the General Partner's common stock changed due to the sale of Wells Fargo Shareowner Services to Equiniti Trust Company. A revised specimen certificate for shares of the General Partner's common stock reflecting this change is attached hereto as Exhibit 4.1.

Our discussion of federal income tax considerations in Exhibit 99.1 attached hereto, which is incorporated herein by reference, supersedes and replaces, in its entirety, (i) the disclosure under the heading “Federal Income Tax Considerations” in the prospectus dated July 28, 2016, which is a part of our Registration Statement on Form S-3 (File No. 333-212715), as amended or supplemented, (ii) the disclosure under the heading “Federal Income Tax Considerations” in the prospectus dated April 30, 2015, which is a part of our Registration Statement on Form S-3 (File No. 333-203744), as amended or supplemented, and (iii) similarly titled sections in the prospectuses contained in our other Registration Statements on Form S-3 (File Nos. 333-85009, 333-59138, 333-50081, 333-39498, 333-35008, 333-24289, 333-26833, 033-64659, 333-128132, 333-66919, 333-82063, 333-51344, 333-108556 and 333-70678), as amended or supplemented. Our updated discussion addresses recently enacted tax law changes.

PART III

Item 10. Directors and Executive Officers of the Registrant

The following is a summary of the executive officers of the General Partner:

James B. Connor, age 5859. Mr. Connor was named the ~~Company's President~~General Partner's Chairman and Chief Executive Officer, commencing ~~January 1, 2016,~~April 26, 2017, and joined the ~~Company's~~General Partner's Board of Directors in 2015. Prior to being named ~~President~~Chairman and Chief Executive Officer, Mr. Connor held various senior management positions with the ~~Company,~~General Partner, including President and Chief Executive Office from January 1, 2016 through April 25, 2017, Senior Executive Vice President and Chief Operating Officer of the ~~Company~~General Partner from 2013 to 2015, Senior Regional Executive Vice President of the ~~Company~~General Partner from 2011 to 2013, and Executive Vice President of the ~~Company~~General Partner Midwest region from 2003 to 2010. Prior to joining the General Partner in 1998, Mr. Connor held numerous executive and brokerage positions with Cushman & Wakefield, most recently serving as Senior Managing Director for the Midwest area. Mr. Connor serves on the Advisory Board of the Marshall Bennett Institute of Real Estate at Roosevelt University in Chicago. Mr. Conner is also a member of the Board of Governors of the National Association of Real Estate Investment Trusts and the Real Estate Round Table and serves as a director of the Central Indiana Corporate Partnership.

Mark A. Denien, age ~~49.~~50. Mr. Denien was appointed Executive Vice President and Chief Financial Officer of the General Partner inon May 17, 2013. Prior to being named Executive Vice President and Chief Financial Officer, Mr. Denien was Senior Vice President and Chief Accounting Officer of the General Partner from 2009 to 2013, and prior to that, served as Senior Vice President, Corporate Controller with the General Partner. Prior to joining the General Partner in 2005, Mr. Denien spent 16 years with KPMG LLP. Mr. Denien serves as a director and Treasurer of Goodwill Industries of Central Indiana, Inc.

Ann C. Dee, age 5758. Ms. Dee was appointed Executive Vice President, General Counsel and Corporate Secretary on June 17, 2013. Prior to being named Executive Vice President, General Counsel and Corporate Secretary, Ms. Dee held the position of Senior Vice President, General Counsel and Corporate Secretary from January 1, 2013 until June 17, 2013 and the position of Deputy General Counsel and Senior Vice President from June 23, 2008 until January 1, 2013. Ms. Dee joined the General Partner in 1996 as a Corporate Attorney. Prior to joining the General Partner, Ms. Dee practiced law with law firms in Indianapolis, Indiana and Columbus, Ohio. Ms. Dee serves as a member of the Board of the ~~Indianapolis~~Indiana Repertory Theatre and as President of the Board of the Indianapolis Chamber Orchestra.

Nicholas C. Anthony, age 5152. Mr. Anthony was appointed Executive Vice President and Chief Investment Officer on June 17, 2013. His responsibilities include overseeing the ~~Company's~~General Partner's acquisition and disposition activity, as well as the overall management of its joint venture business. Prior to being named Executive Vice President and Chief Investment Officer, Mr. Anthony held various senior management positions with the General Partner including Senior Vice President, Capital Transactions and Joint Ventures from 2010 until 2013. Mr. Anthony began his career with the General Partner in 1989 as a staff accountant.

Peter D. Harrington, age 5354. Mr. Harrington was named the General Partner's Executive Vice President, Construction on July 1, 2016. Prior to being named Executive Vice President, Construction, Mr. Harrington held various senior management positions with the General Partner including Senior Vice President, Construction from 2003 to June 30, 2016; Vice President of Construction from 1998 until 2003; and Manager of Preconstruction Services from 1993 to 1998. Prior to joining the General Partner in 1993, Mr. Harrington was employed with Miller-Valentine Group in Dayton, Ohio from 1987 through 1993 as a Project Coordinator and Project Manager. Mr. Harrington serves as a board member for the Indiana council for Economics Education, an academic outreach center within the Department of Agricultural Economics at Purdue University.

Steven W. Schnur, age44. Mr. Steven W. Schnur was appointed Senior Regional Executive Vice President on May 29, 2017. Mr. Schnur has oversight responsibilities for all three of the General Partner's regions - Central, East, and West, as well as leading and managing all development, leasing, asset management, and real estate operations in the Central Region. Prior to being named Senior Regional Executive Vice President, Mr. Schnur held various senior management positions with the General Partner, including Executive Vice President Regional from 2015 until 2017; Senior Regional Senior Vice President from 2014 until 2015; Senior Vice President, Regional from 2013 until 2014; and Senior Vice President from 2004 until 2013. Mr. Schnur began his career with the General Partner as a Vice President, Leasing in 2003. Prior to that, Mr. Schnur was Director of Real Estate for Opus North Corporation.

All other information required by this item will be included in the General Partner's ~~2017~~2018 proxy statement (the ~~"2017~~"2018 Proxy Statement") for the General Partner's Annual Meeting of Shareholders to be held on April ~~26, 2017,~~25, 2018, and is incorporated herein by reference. In addition, the General Partner's Code of Conduct (which applies to each of our associates, officers and directors) and the General Partner's Corporate Governance Guidelines are available in the investor information/corporate governance section of our website at www.dukerealty.com. A copy of these documents may also be obtained without charge by writing to Duke Realty Corporation, 600 East 96^th Street, Suite 100, Indianapolis, Indiana 46240, Attention: Investor Relations.

Item 11. Executive Compensation

The information required by Item 11 of this Report will be included in our ~~2017~~2018 Proxy Statement, which information is incorporated herein by this reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information required by Item 12 of this Report will be included in our ~~2017~~2018 Proxy Statement, which information is incorporated herein by this reference.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information required to be furnished pursuant to Item 13 of this Report will be included in our ~~2017~~2018 Proxy Statement, which information is incorporated herein by this reference.

Item 14. Principal Accountant Fees and Services

The information required to be furnished pursuant to Item 14 of this Report will be included in our ~~2017~~2018 Proxy Statement, which information is incorporated herein by this reference.

PART IV

Item 15. Exhibits and Financial Statement Schedules


(a)	The following documents are filed as part of this Annual Report:

1. Consolidated Financial Statements

The following Consolidated Financial Statements, together with the Management's Report on Internal Control and the Report of Independent Registered Public Accounting Firm are listed below:



	Duke Realty Corporation:
	Management's Report on Internal Control
	Report of Independent Registered Public Accounting Firm
	Duke Realty Limited Partnership:
	Management's Report on Internal Control
	Report of Independent Registered Public Accounting Firm
	Duke Realty Corporation:
	Consolidated Balance Sheets, December 31, ~~2016~~2017 and ~~201~~20165
	Consolidated Statements of Operations and Comprehensive Income, Years Ended December 31, 2017, 2016 ~~2015~~ and 20145
	Consolidated Statements of Cash Flows, Years Ended December 31, 2017, 2016 ~~2015~~ and 20145
	Consolidated Statements of Changes in Equity, Years Ended December 31, 2017, 2016 ~~2015~~ and 20145
	Duke Realty Limited Partnership:
	Consolidated Balance Sheets, December 31, ~~2016~~2017 and ~~201~~20165
	Consolidated Statements of Operations and Comprehensive Income, Years Ended December 31, 2017, 2016 ~~2015~~ and ~~201~~20154
	Consolidated Statements of Cash Flows, Years Ended December 31, 2017, 2016 ~~2015~~ and ~~201~~20154
	Consolidated Statements of Changes in Equity, Years Ended December 31, 2017, 2016 ~~2015~~ and ~~201~~20154
	Duke Realty Corporation and Duke Realty Limited Partnership:
	Notes to Consolidated Financial Statements

2. Consolidated Financial Statement Schedules

Duke Realty Corporation and Duke Realty Limited Partnership:

Schedule III – Real Estate and Accumulated Depreciation

3. Exhibits

The following exhibits are filed with this Form 10-K or incorporated herein by reference to the listed document previously filed with the SEC. Previously unfiled documents are noted with an asterisk (*).



Number		Description

3.1		Sixth Amended and Restated Articles of Incorporation of the General Partner (filed as Exhibit 3.1 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on January 5, 2015, and incorporated herein by this reference).

3.2		~~Fourth~~ Fifth Amended and Restated Bylaws of the General Partner (filed as Exhibit ~~3.2~~3.1 to the General Partner's Current Report on Form 8-K as filed with the SEC on ~~July 30, 2009,~~October 26, 2017, and incorporated herein by this reference) ~~(File No.001-09044)~~.

3.3		Certificate of Limited Partnership of the Partnership, dated September 17, 1993 (filed as Exhibit 3.1(i) to the Partnership's Annual Report on Form 10-K for the year ended December 31, 2006 as filed with the SEC on March 13, 2007, and incorporated herein by this reference) (File No. 000-20625).

3.4(i)		Fifth Amended and Restated Agreement of Limited Partnership of the Partnership (filed as Exhibit 3.2 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on May 5, 2014, and incorporated herein by this reference).

3.4(ii)		First Amendment to Fifth Amended and Restated Agreement of Limited Partnership of the Partnership (filed as Exhibit 3.2 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on August 6, 2014, and incorporated herein by this reference).

3.4(iii)		Second Amendment to Fifth Amended and Restated Agreement of Limited Partnership of the Partnership (filed as Exhibit 3.2 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on December 16, 2014, and incorporated herein by this reference).

3.4(iv)		Third Amendment to Fifth Amended and Restated Agreement of Limited Partnership of the Partnership (filed as Exhibit 3.2 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on January 5, 2015, and incorporated herein by this reference).

3.4(v)		Fourth Amendment to Fifth Amended and Restated Agreement of Limited Partnership of the Partnership (filed as Exhibit 3.1 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on January 29, 2015, and incorporated herein by this reference).

4.1		Specimen certificate for shares of common stock, $.01 par ~~value (filed as Exhibit 4.1 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on July 28, 2016, and incorporated herein by this reference).~~ value.*

4.2(i)		Indenture, dated September 19, 1995, between the Partnership and The First National Bank of Chicago, Trustee (filed as Exhibit 4.1 to the General Partner's Current Report on Form 8-K as filed with the SEC on September 22, 1995, and incorporated herein by this reference) (File No. 001-09044).




4.2(ii)		Twentieth Supplemental Indenture, dated as of July 24, 2006, by and between the Partnership and J.P. Morgan Trust Company, National Association (successor in interest to The First National Bank of Chicago), modifying certain financial covenants contained in Sections 1004 and 1005 of the Indenture, dated September 19, 1995, between the Partnership and The First National Bank of Chicago, Trustee (filed as Exhibit 4.1 to the Partnership's Current Report on Form 8-K as filed with the SEC on July 28, 2006, and incorporated herein by this reference) (File No. 000-20625).



4.3(i)		Indenture, dated as of July 28, 2006, by and between the Partnership and J.P. Morgan Trust Company, National Association (filed as Exhibit 4.1 to the General Partner's automatic shelf registration statement on Form S-3 as filed with the SEC on July 31, 2006, and incorporated herein by this reference) (File No. 333-136173).

~~4.3(ii)~~		Third Supplemental Indenture, dated as of September 11, 2007, by and between the Partnership and The Bank of New York Trust Company, N.A. (as successor to J.P. Morgan Trust Company, National Association), including the form of global note evidencing the 6.50% Senior Notes Due 2018 (incorporated by reference to Exhibit 4.1 to the Partnership's Current Report on Form 8-K as filed with the SEC on September 12, 2007, and incorporated herein by this reference) (File No. 000-20625).

~~4.3(iii)~~4.3(ii)		Seventh Supplemental Indenture, dated as of April 1, 2010, by and between the Partnership and The Bank of New York Mellon Trust Company, N.A. (as successor to J.P. Morgan Trust Company, National Association), including the form of global note evidencing the 6.75% Senior Notes due 2020 (filed as Exhibit 4.1 to the Partnership's Current Report on Form 8-K as filed with the SEC on April 1, 2010, and incorporated herein by this reference) (File No. 000-20625).



~~4.3(iv)~~		Eighth Supplemental Indenture, dated June 11, 2012, by and between the Partnership and The Bank of New York Mellon Trust Company, N.A. (as successor to J.P. Morgan Trust Company, National Association), including the form of global note evidencing the 4.375% Senior Notes Due 2022 (filed as Exhibit 4.1 to the General Partner's Current Report on Form 8-K as filed with the SEC on June 11, 2012, and incorporated herein by this reference).

~~4.3(v)~~4.3(iii)		Ninth Supplemental Indenture, dated September 19, 2012, by and between the Partnership and The Bank of New York Mellon Trust Company, N.A. (as successor to J.P. Morgan Trust Company, National Association), including the form of global note evidencing the 3.875% Senior Notes Due 2022 (filed as Exhibit 4.1 to the General Partner's Current Report on Form 8-K as filed with the SEC on September 19, 2012, and incorporated herein by this reference).

~~4.3(vi)~~

4.3(iv)		Tenth Supplemental Indenture, dated March 15, 2013, by and between the Partnership and The Bank of New York Mellon Trust Company, N.A. (as successor to J.P. Morgan Trust Company, National Association), including the form of global note evidencing the 3.625% Senior Notes Due 2023 (filed as Exhibit 4.1 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on March 15, 2013, and incorporated herein by this reference).

~~4.3(vii)~~4.3(v)		Eleventh Supplemental Indenture, dated December 3, 2013, by and between the Partnership and The Bank of New York Mellon Trust Company, N.A. (as successor to J.P. Morgan Trust Company, National Association), including the form of global note evidencing the 3.875% Senior Notes Due 2021 (filed as Exhibit 4.1 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on December 3, 2013, and incorporated herein by this reference).

~~4.3(viii)~~4.3(vi)		Twelfth Supplemental Indenture, dated as of November 17, 2014, by and between the Partnership and The Bank of New York Mellon Trust Company, N.A. (as successor to J.P. Morgan Trust Company, National Association), including the form of global note evidencing the 3.75% Senior Notes Due 2024 (filed as Exhibit 4.1 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on November 17, 2014, and incorporated herein by this reference).

~~4.3(ix)~~4.3(vii)		Thirteenth Supplemental Indenture, dated as of June 23, 2016, by and between the Partnership and the Bank of New York Mellon Trust Company, N.A. (as successor to J.P. Morgan Trust Company, National Association), as trustee, including the form of global note evidencing the 3.250% Senior Notes Due 2026 (filed as Exhibit 4.1 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on June 23, 2016, and incorporated herein by this reference).

4.3(viii)		Fourteenth Supplemental Indenture, dated as of December 12, 2017, by and between the Partnership and the Bank of New York Mellon Trust Company, N.A. (as successor to J.P. Morgan Trust Company, National Association), including the form of global note evidencing the 3.75% Senior Notes Due 2027 (filed as Exhibit 4.1 to the combined current report on Form 8-K of the General Partner and the Partnership as filed with the SEC on December 12, 2017, and incorporated herein by this reference).

10.1(i)		The General Partner's 2015 Long-Term Incentive Plan (filed as Exhibit 10.1 to the General Partner’s Current Report on Form 8-K as filed with the SEC on May 4, 2015, and incorporated herein by this reference).#

10.1(ii)		Form of Restricted Stock Unit Award Certificate under the General Partner's 2015 Long-Term Incentive Plan (filed as Exhibit ~~10.1(ii)~~10.1 to the combined Annual Report on Form 10-K of the General Partner and the Partnership as filed with the SEC on February 19, 2016 and incorporated herein by this reference). #

10.1(iii)		Form of LTIP Unit Award Agreement (filed as Exhibit 10.2 to the General Partner’s Current Report on Form 8-K as filed with the SEC on January 29, 2015, and incorporated herein by this reference).#

10.2(i)		The General Partner's 2000 Performance Share Plan, Amended and Restated as of January 30, 2008, a sub-plan of the 2015 Long-Term Incentive Plan (filed as Exhibit 10.4(i) to the combined Annual Report on Form 10-K of the General Partner and the Partnership as filed with the SEC on February 22, 2013, and incorporated herein by this reference).#

10.2(ii)		Amendment to the 2004 Award Agreement under the General Partner's 2000 Performance Share Plan (filed as Exhibit 10.4(ii) to the combined Annual Report on Form 10-K of the General Partner and the Partnership as filed with the SEC on February 22, 2013, and incorporated herein by this reference).#

10.3(i)		The General Partner's 2010 Performance Share Plan, a sub-plan of the 2015 Long-Term Incentive Plan (filed as Exhibit 10.5(i) to the combined Annual Report on Form 10-K of the General Partner and the Partnership as filed with the SEC on February 22, 2013, and incorporated herein by this reference).#



10.3(ii)		First Amendment to the General Partner's 2010 Performance Share Plan, a sub-plan of the 2015 Long-Term Incentive Plan (filed as Exhibit 10.1 to the General Partner’s Current Report on Form 8-K as filed with the SEC on January 29, 2015, and incorporated herein by this reference).#

10.3(iii)		Form of Award Certificate under the General Partner's 2010 Performance Share Plan, a sub-plan of the 2015 Long-Term Incentive Plan (filed as Exhibit 10.1 to the combined Quarterly Report on 10-Q of the General Partner and the Partnership as filed with the SEC on ~~May 2, 2014,~~April 28, 2017, and incorporated herein by this reference).#

10.3(iv)		Form of 2010 Performance Share Plan LTIP Unit Award Agreement (filed as Exhibit ~~10.3~~10.2 to the combined Quarterly Report on10-Q of the General ~~Partner’s Current Report on Form 8-K~~Partner and the Partnership as filed with the SEC on ~~January 29, 2015,~~April 28, 2017, and incorporated herein by this reference).#

10.4		Form of Forfeiture Agreement/Performance Unit Award Certificate (filed as Exhibit 99.2 to the General Partner's Current Report on Form 8-K as filed with the SEC on December 9, 2005, and incorporated herein by this reference) (File No. 001-09044).#



10.5(i)		Executives' Deferred Compensation Plan of Duke Realty Services Limited Partnership, Amended and Restated as of December 5, 2007 (filed as Exhibit 10.13(i) to the combined Annual Report on Form 10-K of the General Partner and the Partnership as filed with the SEC on February 22, 2013, and incorporated herein by this reference).#

10.5(ii)		Amendment Number One to the Executives' Deferred Compensation Plan of Duke Realty Services Limited Partnership, Amended and Restated as of December 5, 2007 (filed as Exhibit 10.13(ii) to the combined Annual Report on Form 10-K of the General Partner and the Partnership as filed with the SEC on February 22, 2013, and incorporated herein by this reference).#

10.6		The General Partner's Directors' Deferred Compensation Plan, Amended and Restated as of January 30, 2008 (filed as Exhibit 10.14 to the combined Annual Report on Form 10-K of the General Partner and the Partnership as filed with the SEC on February 22, 2013, and incorporated herein by this reference).#

10.7		The General Partner’s 2015 Non-Employee Directors Compensation Plan, a sub-plan of the 2015 Long-Term Incentive Plan (filed as Exhibit 10.4 to the combined Quarterly Report on Form 10-Q of the General Partner and the Partnership, as filed with the SEC on May 1, 2015, and incorporated herein by this reference).#

10.8(i)		Letter ~~Agreements~~Agreement Regarding Executive Severance, dated December 13, 2007, between the General Partner ~~and Dennis D. Oklak~~ and James B. Connor (filed as Exhibit 10.23 to the General Partner's Annual Report on Form 10-K for the year ended December 31, 2007, filed with the SEC on February 29, 2008, and incorporated herein by this reference) (File No. 001-09044).#



10.8(ii)		First ~~Amendments~~Amendment to Executive Severance Agreement, dated February 24, 2009, between the General Partner ~~and Dennis D. Oklak~~ and James B. Connor (filed as Exhibit 10.15(ii) to the combined Annual Report on Form 10-K of the General Partner and the Partnership as filed with the SEC on February 22, 2013, and incorporated herein by this reference).#

10.8(iii)		Second ~~Amendments~~Amendment to Executive Severance Agreement, dated December 21, 2011, between the General Partner ~~and Dennis D. Oklak~~ and James B. Connor (filed as Exhibit 10.15(iii) to the combined Annual Report on Form 10-K of the General Partner and the Partnership as filed with the SEC on February 22, 2013, and incorporated herein by this reference).#

10.8(iv)		Third ~~Amendments~~Amendment to Executive Severance ~~Letter,~~Agreement, dated December 19, 2012, between the General Partner ~~and Dennis D. Oklak~~ and James B. Connor (filed as Exhibit 10.15(iv) to the combined Annual Report on Form 10-K of the General Partner and the Partnership as filed with the SEC on February 22, 2013, and incorporated herein by this reference).#

10.9		Form of Letter Agreement Regarding Executive Severance between the General Partner and the following executive officers: Mark A. Denien, Ann C. Dee, Nicholas C. Anthony, ~~and~~ Peter D. Harrington and Steven W. Schnur (filed as Exhibit 10.13 to the combined Annual Report on Form 10-K of the General Partner and the Partnership, as filed with the SEC on February 19, 2016, and incorporated herein by this reference). #



10.10		Amended and Restated Revolving Credit ~~and Term Loan~~ Agreement, dated October ~~9, 2014,~~11, 2017, by and among the Partnership, the General Partner, J.P. Morgan ~~Securities LLC, Wells Fargo Securities, LLC, JPMorgan~~ Chase Bank, N.A., Wells Fargo Securities, LLC, the Bank ~~National Association~~of Nova Scotia, Regions Capital Markets, Division of Regions bank and the several banks, financial institutions and other entities from time to time parties thereto as lenders (filed as Exhibit 10.1 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on October ~~10, 2014,~~12, 2017, and incorporated herein by this reference).



10.11		Amended and Restated Guaranty, dated October 11, 2017 by the General Partner (filed as Exhibit 10.2 to the Combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on October 12, 2017, and incorporated herein by this reference).

10.12		Equity Distribution Agreement, dated August 9, 2016, by and among the General Partner, the Partnership, Barclays Capital Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, Citigroup Global Markets Inc., J P Morgan Securities LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., and Wells Fargo Securities, LLC. (filed as Exhibit 1.1 to the Combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on August 9, 2016, and incorporated herein by this reference).

10.13		Agreement of Purchase and Sale (Pool I) among the Partnership, the other entities affiliated or controlled by the Partnership and HTA Acquisition Sub, LLC dated April 29, 2017 (filed as Exhibit 10.1 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on May 1, 2017, and incorporated herein by this reference).

10.13 (i)		First Amendment to Agreement of Purchase and Sale (Pool I) among the Partnership, the other entities affiliated or controlled by the Partnership and HTA Acquisition Sub, LLC dated April 29, 2017 (filed as Exhibit 10.1(i) to the combined Quarterly Report on Form 10-Q of the General Partner and the Partnership, as filed with the SEC on August 2, 2017, and incorporated herein by this reference).

10.13 (ii)		Second Amendment to Agreement of Purchase and Sale (Pool I) among the Partnership, the other entities affiliated or controlled by the Partnership and HTA Acquisition Sub, LLC dated April 29, 2017 (filed as Exhibit 10.1(ii) to the combined Quarterly Report on Form 10-Q of the General Partner and the Partnership, as filed with the SEC on August 2, 2017, and incorporated herein by this reference).

10.14		Agreement of Purchase and Sale (Pool II) among the Partnership, the other entities affiliated or controlled by the Partnership and HTA Acquisition Sub, LLC dated April 29, 2017 (filed as Exhibit 10.2 to the combined Quarterly Report on Form 10-Q of the General Partner and the Partnership, as filed with the SEC on August 2, 2017, and incorporated herein by this reference).

10.15		Agreement of Purchase and Sale (Pool III) among the Partnership, the other entities affiliated or controlled by the Partnership and HTA Acquisition Sub, LLC dated April 29, 2017 (filed as Exhibit 10.3 to the combined Quarterly Report on Form 10-Q of the General Partner and the Partnership, as filed with the SEC on August 2, 2017, and incorporated herein by this reference).

10.16		Agreement of Purchase and Sale (Pool IV) among the Partnership, the other entities affiliated or controlled by the Partnership and HTA Acquisition Sub, LLC dated April 29, 2017 (filed as Exhibit 10.4 to the combined Quarterly Report on Form 10-Q of the General Partner and the Partnership, as filed with the SEC on August 2, 2017, and incorporated herein by this reference).

10.17		Agreement of Purchase and Sale (Pool V) among the Partnership, the other entities affiliated or controlled by the Partnership and HTA Acquisition Sub, LLC dated April 29, 2017 (filed as Exhibit 10.5 to the combined Quarterly Report on Form 10-Q of the General Partner and the Partnership, as filed with the SEC on August 2, 2017, and incorporated herein by this reference).

10.18		Agreement of Purchase and Sale (Pool VI) among the Partnership, the other entities affiliated or controlled by the Partnership and HTA Acquisition Sub, LLC dated April 29, 2017 (filed as Exhibit 10.6 to the combined Quarterly Report on Form 10-Q of the General Partner and the Partnership, as filed with the SEC on August 2, 2017, and incorporated herein by this reference).

10.19		Agreement of Purchase and Sale (Pool VII) among the Partnership, the other entities affiliated or controlled by the Partnership and HTA Acquisition Sub, LLC dated April 29, 2017 (filed as Exhibit 10.7 to the combined Quarterly Report on Form 10-Q of the General Partner and the Partnership, as filed with the SEC on August 2, 2017, and incorporated herein by this reference).

10.20		Agreement of Purchase and Sale (Pool VIII) among the Partnership, the other entities affiliated or controlled by the Partnership and HTA Acquisition Sub, LLC dated April 29, 2017 (filed as Exhibit 10.8 to the combined Quarterly Report on Form 10-Q of the General Partner and the Partnership, as filed with the SEC on August 2, 2017, and incorporated herein by this reference).

10.21		Agreement of Purchase and Sale (Pool IX) among the Partnership, the other entities affiliated or controlled by the Partnership and HTA Acquisition Sub, LLC dated April 29, 2017 (filed as Exhibit 10.9 to the combined Quarterly Report on Form 10-Q of the General Partner and the Partnership, as filed with the SEC on August 2, 2017, and incorporated herein by this reference).

10.22		Agreement of Purchase and Sale (Pool X) among the Partnership, the other entities affiliated or controlled by the Partnership and HTA Acquisition Sub, LLC dated April 29, 2017 (filed as Exhibit 10.10 to the combined Quarterly Report on Form 10-Q of the General Partner and the Partnership, as filed with the SEC on August 2, 2017, and incorporated herein by this reference).



10.23		Agreement of Purchase and Sale (Pool XI) among the Partnership, the other entities affiliated or controlled by the Partnership and HTA Acquisition Sub, LLC dated April 29, 2017 (filed as Exhibit 10.11 to the combined Quarterly Report on Form 10-Q of the General Partner and the Partnership, as filed with the SEC on August 2, 2017, and incorporated herein by this reference).

10.24		Agreement of Purchase and Sale (Pool XII) among the Partnership, the other entities affiliated or controlled by the Partnership and HTA Acquisition Sub, LLC dated April 29, 2017 (filed as Exhibit 10.12 to the combined Quarterly Report on Form 10-Q of the General Partner and the Partnership, as filed with the SEC on August 2, 2017, and incorporated herein by this reference).

10.25		Agreement of Purchase and Sale (Pool XIII) among the Partnership, the other entities affiliated or controlled by the Partnership and HTA Acquisition Sub, LLC dated April 29, 2017 (filed as Exhibit 10.13 to the combined Quarterly Report on Form 10-Q of the General Partner and the Partnership, as filed with the SEC on August 2, 2017, and incorporated herein by this reference).

10.25 (i)		First Amendment to Agreement of Purchase and Sale (Pool XIII) among the Partnership, the other entities affiliated or controlled by the Partnership and HTA Acquisition Sub, LLC dated April 29, 2017 (filed as Exhibit 10.13(i) to the combined Quarterly Report on Form 10-Q of the General Partner and the Partnership, as filed with the SEC on August 2, 2017, and incorporated herein by this reference).

10.26		Agreement of Purchase and Sale (Pool XIV) among the Partnership, the other entities affiliated or controlled by the Partnership and HTA Acquisition Sub, LLC dated April 29, 2017 (filed as Exhibit 10.14 to the combined Quarterly Report on Form 10-Q of the General Partner and the Partnership, as filed with the SEC on August 2, 2017, and incorporated herein by this reference).

10.27		Agreement of Purchase and Sale (Pool XV) among the Partnership, the other entities affiliated or controlled by the Partnership and HTA Acquisition Sub, LLC dated April 29, 2017 (filed as Exhibit 10.15 to the combined Quarterly Report on Form 10-Q of the General Partner and the Partnership, as filed with the SEC on August 2, 2017, and incorporated herein by this reference).

10.28		Agreement of Purchase and Sale (Pool XVI) among the Partnership, the other entities affiliated or controlled by the Partnership and HTA Acquisition Sub, LLC dated April 29, 2017 (filed as Exhibit 10.16 to the combined Quarterly Report on Form 10-Q of the General Partner and the Partnership, as filed with the SEC on August 2, 2017, and incorporated herein by this reference).

11.1		Statement Regarding Computation of Earnings.***



12.1		Statement of Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Dividends of the General Partner.*

12.2		Statement of Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Distributions of the Partnership.*

21.1		List of the Company's Subsidiaries.*

23.1		Consent of KPMG LLP relating to the General Partner.*

23.2		Consent of KPMG LLP relating to the Partnership.*

24.1		Executed Powers of Attorney of certain directors.*

31.1		Rule 13a-14(a) Certification of the Chief Executive Officer of the General Partner.*

31.2		Rule 13a-14(a) Certification of the Chief Financial Officer of the General Partner.*

31.3		Rule 13a-14(a) Certification of the Chief Executive Officer for the Partnership.*

31.4		Rule 13a-14(a) Certification of the Chief Financial Officer for the Partnership.*

32.1		Section 1350 Certification of the Chief Executive Officer of the General Partner. * **

32.2		Section 1350 Certification of the Chief Financial Officer of the General Partner. * **

32.3		Section 1350 Certification of the Chief Executive Officer for the Partnership. * **

32.4		Section 1350 Certification of the Chief Financial Officer for the Partnership. * **



99.1		Federal Income Tax Considerations.*

101		The following materials from the General Partner's and the Partnership's Annual Report on Form 10-K for the year ended December 31, ~~2016~~2017 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations and Comprehensive Income, (iii) the Consolidated Statements of Cash Flows, (iv) the Consolidated Statements of Changes in Equity, and (v) the Notes to Consolidated Financial Statements.

# Represents management contract or compensatory plan or arrangement.

* Filed herewith.

** The certifications attached as Exhibits 32.1, 32.2, 32.3 and 32.4 accompany this Report and are "furnished" to the Securities and Exchange Commission pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed "filed" by the General Partner or the Partnership, respectively, for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

*** Data required by Financial Accounting Standards Board Auditing Standards Codification No. 260 is provided in Note 2 to the Consolidated Financial Statements included in this report.

We will furnish to any security holder, upon written request, copies of any exhibit incorporated by reference, for a fee of 15 cents per page, to cover the costs of furnishing the exhibits. Written requests should include a

representation that the person making the request was the beneficial owner of securities entitled to vote at the Annual Meeting of Shareholders.


(b)	Exhibits

The exhibits required to be filed with this Report pursuant to Item 601 of Regulation S-K are listed under "Exhibits" in Part IV, Item 15(a)(3) of this Report and are incorporated herein by reference.


(c)	Financial Statement Schedule

The Financial Statement Schedule required to be filed with this Report is listed under "Consolidated Financial Statement Schedules" in Part IV, Item 15(a)(2) of this Report, and is incorporated herein by reference.

Management's Report on Internal Control

We, as management of Duke Realty Corporation and its subsidiaries (the "General Partner"), are responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended). Pursuant to the rules and regulations of the Securities and Exchange Commission, internal control over financial reporting is a process designed by, or under the supervision of, the company's principal executive and principal financial officers, or persons performing similar functions, and effected by the company's board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America and includes those policies and procedures that:

Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of assets of the company;

Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements.

Management has evaluated the effectiveness of its internal control over financial reporting as of December 31, ~~2016~~2017 based on the control criteria established in a report entitled Internal Control – Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on such evaluation, we have concluded that, as of December 31, ~~2016,~~2017, our internal control over financial reporting is effective based on these criteria.

The independent registered public accounting firm of KPMG LLP, as auditors of the General Partner's consolidated financial statements, has also issued an audit report on the General Partner's internal control over financial reporting.

/s/ James B. Connor

James B. Connor

~~President~~Chairman and Chief Executive Officer

/s/ Mark A. Denien

Mark A. Denien

Executive Vice President and Chief Financial Officer

Report of Independent Registered Public Accounting Firm

~~The~~To the Shareholders and Board of Directors of

Duke Realty Corporation:

Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting

We have audited the accompanying consolidated balance sheets of Duke Realty Corporation and ~~Subsidiaries~~subsidiaries (the "Company") as of December 31, ~~2016~~2017 and ~~2015, and~~2016, the related consolidated statements of operations and comprehensive income, cash flows, and changes in equity for each of the years in the three-year period ended December 31, ~~2016. In connection with our audits of~~2017, and the ~~consolidated financial statements, we also have audited the~~related notes and financial statement schedule ~~III.~~III - Real Estate and Accumulated Depreciation (collectively, the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2017 and 2016, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2017, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway ~~Commission (COSO).~~ Commission.

Basis for Opinion

The ~~Company's~~Company’s management is responsible for these consolidated financial statements, ~~and the financial statement schedule,~~ for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying ~~management's report~~Management’s Report on ~~internal control.~~Internal Control. Our responsibility is to express an opinion on ~~these~~the Company’s consolidated financial statements ~~and the financial statement schedule~~ and an opinion on the ~~Company's~~Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the ~~Public Company Accounting Oversight Board (United States).~~PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence ~~supporting~~regarding the amounts and disclosures in the consolidated financial ~~statements, assessing~~statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, ~~and~~as well as evaluating the overall presentation of the consolidated financial ~~statement presentation.~~statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control Over Financial Reporting

A ~~company's~~company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A ~~company's~~company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the ~~company's~~company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Duke Realty Corporation and Subsidiaries as of December 31, 2016 and 2015, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2016, in conformity with U.S generally accepted accounting principles. Also in our opinion, the related financial statement schedule III, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein. Also, in our opinion, Duke Realty Corporation and Subsidiaries maintained, in all material respects, effective internal control over financial reporting as of December 31, 2016, based on criteria established in ~~Internal Control - Integrated Framework (2013)~~ ~~issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).~~

~~As discussed in Note 2 to the financial statements, the Company has changed its method of accounting for Discontinued Operations in 2014 due to the adoption of FASB ASU No. 2014-08,~~ ~~Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity~~.

/s/ KPMG LLP

We have served as the Company’s auditor since 1986.

Indianapolis, Indiana

February ~~17, 2017~~16, 2018

Management's Report on Internal Control

We, as management of Duke Realty Limited Partnership and its subsidiaries (the "Partnership"), are responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended). Pursuant to the rules and regulations of the Securities and Exchange Commission, internal control over financial reporting is a process designed by, or under the supervision of the principal executive and principal financial officers, or persons performing similar functions, of Duke Realty Corporation (the "General Partner"), and effected by the General Partner's board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America and includes those policies and procedures that:

Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of assets of the Partnership;

Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Partnership's assets that could have a material effect on the financial statements.

The independent registered public accounting firm of KPMG LLP, as auditors of the Partnership's consolidated financial statements, has also issued an audit report on the Partnership's internal control over financial reporting.

/s/ James B. Connor

James B. Connor

~~President~~Chairman and Chief Executive Officer

of the General Partner

/s/ Mark A. Denien

Mark A. Denien

Executive Vice President and Chief Financial Officer

of the General Partner

Report of Independent Registered Public Accounting Firm

~~The~~To the Partners of

Duke Realty Limited Partnership:

Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting

We have audited the accompanying consolidated balance sheets of Duke Realty Limited Partnership and ~~Subsidiaries~~subsidiaries (the "Partnership") as of December 31, ~~2016~~2017 and ~~2015, and~~2016, the related consolidated statements of operations and comprehensive income, cash flows, and changes in equity for each of the years in the three-year period ended December 31, ~~2016. In connection with our audits of~~2017, and the ~~consolidated financial statements, we also have audited the~~related notes and financial statement schedule ~~III.~~III - Real Estate and Accumulated Depreciation (collectively, the “consolidated financial statements”). We also have audited the Partnership's internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Partnership as of December 31, 2017 and 2016, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2017, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway ~~Commission (COSO).~~ Commission.

Basis for Opinion

The ~~Partnership's~~Partnership’s management is responsible for these consolidated financial statements, ~~and the financial statement schedule,~~ for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying ~~management's report~~Management’s Report on ~~internal control.~~Internal Control. Our responsibility is to express an opinion on ~~these~~the Partnership’s consolidated financial statements ~~and the financial statement schedule~~ and an opinion on the ~~Partnership's~~Partnership’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

Definition and Limitations of Internal Control Over Financial Reporting

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Duke Realty Limited Partnership and Subsidiaries as of December 31, 2016 and 2015, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2016, in conformity with U.S generally accepted accounting principles. Also in our opinion, the related financial statement schedule III, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein. Also, in our opinion, Duke Realty Limited Partnership and Subsidiaries maintained, in all material respects, effective internal control over financial reporting as of December 31, 2016, based on criteria established in ~~Internal Control - Integrated Framework (2013)~~ ~~issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).~~

~~As discussed in Note 2 to the financial statements, the Partnership has changed its method of accounting for Discontinued Operations in 2014 due to the adoption of FASB ASU No. 2014-08,~~ ~~Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity~~.

/s/ KPMG LLP

We have served as the Partnership’s auditor since 1994.

Indianapolis, Indiana

February ~~17, 2017~~16, 2018

DUKE REALTY CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

As of December 31,

(in thousands, except per share amounts)


	2016			2015			2017			2016
ASSETS
Real estate investments:
Land and improvements	$	1,511,264		$	1,391,763
Buildings and tenant improvements	4,970,891			4,740,837
Real estate assets							$	6,593,567		$	5,144,805
Construction in progress	347,193			321,062			401,407			303,644
Investments in and advances to unconsolidated companies	197,807			268,390
Investments in and advances to unconsolidated joint ventures							126,487			197,807
Undeveloped land	237,436			383,045			226,987			237,436
	7,264,591			7,105,097			7,348,448			5,883,692
Accumulated depreciation	(1,283,629		)	(1,192,425		)	(1,193,905		)	(1,042,944		)
Net real estate investments	5,980,962			5,912,672			6,154,543			4,840,748

Real estate investments and other assets held-for-sale	51,627			45,801			17,550			1,324,258

Cash and cash equivalents	12,639			22,533			67,562			12,639
Accounts receivable, net of allowance of $1,972 and $1,113	20,373			18,846
Straight-line rent receivable, net of allowance of $5,337 and $6,155	115,922			116,781
Accounts receivable, net of allowance of $1,709 and $1,391							19,427			15,838
Straight-line rent receivable, net of allowance of $5,254 and $5,268							93,005			82,554
Receivables on construction contracts, including retentions	10,441			16,459			13,480			6,159
Deferred leasing and other costs, net of accumulated amortization of $250,249 and $245,426	342,263			346,374
Escrow deposits and other assets	237,775			416,049
Deferred leasing and other costs, net of accumulated amortization of $209,451 and $186,798							292,682			258,741
Restricted cash held in escrow for like-kind exchange							116,405			40,102
Notes receivable from property sales							426,657			25,460
Other escrow deposits and other assets							186,885			165,503
	$	6,772,002		$	6,895,515		$	7,388,196		$	6,772,002
LIABILITIES AND EQUITY
Indebtedness:
Secured debt, net of deferred financing costs of $969 and $1,552	$	383,725		$	738,444
Unsecured debt, net of deferred financing costs of $22,083 and $20,046	2,476,752			2,510,697
Secured debt, net of deferred financing costs of $614 and $969							$	311,349		$	383,725
Unsecured debt, net of deferred financing costs of $20,500 and $22,083							2,111,542			2,476,752
Unsecured line of credit	48,000			71,000			—			48,000
	2,908,477			3,320,141			2,422,891			2,908,477

Liabilities related to real estate investments held-for-sale	1,661			972			1,163			56,291

Construction payables and amounts due subcontractors, including retentions	53,742			54,921			54,545			44,250
Accrued real estate taxes	73,190			71,617			67,374			59,112
Accrued interest	23,633			34,447			17,911			23,633
Other accrued expenses	63,617			61,827
Other liabilities	114,569			106,283			210,825			153,846
Tenant security deposits and prepaid rents	39,820			40,506			39,109			33,100
Total liabilities	3,278,709			3,690,714			2,813,818			3,278,709
Shareholders' equity:
Common shares ($0.01 par value); 600,000 shares authorized; 354,756 and 345,285 shares issued and outstanding, respectively	3,548			3,453
Common shares ($0.01 par value); 600,000 shares authorized; 356,361 and 354,756 shares issued and outstanding, respectively							3,564			3,548
Additional paid-in capital	5,192,011			4,961,923			5,205,316			5,192,011
Accumulated other comprehensive income	682			1,806			—			682
Distributions in excess of net income	(1,730,423		)	(1,785,250		)	(676,036		)	(1,730,423		)
Total shareholders' equity	3,465,818			3,181,932			4,532,844			3,465,818
Noncontrolling interests	27,475			22,869			41,534			27,475
Total equity	3,493,293			3,204,801			4,574,378			3,493,293
	$	6,772,002		$	6,895,515		$	7,388,196		$	6,772,002

See accompanying Notes to Consolidated Financial Statements.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations and Comprehensive Income

For the Years Ended December 31,

(in thousands, except per share amounts)


	2016			2015			2014			2017			2016			2015
Revenues:
Rental and related revenue	$	813,434		$	816,065		$	822,351		$	686,514		$	641,701		$	658,809
General contractor and service fee revenue	88,810			133,367			224,500			94,420			88,810			133,367
	902,244			949,432			1,046,851			780,934			730,511			792,176
Expenses:
Rental expenses	107,410			125,666			136,278			64,582			74,323			93,422
Real estate taxes	118,654			112,879			115,013			108,964			98,938			95,705
General contractor and other services expenses	80,467			119,170			200,031			89,457			80,467			119,170
Depreciation and amortization	317,818			317,329			346,275			273,561			242,557			245,764
	624,349			675,044			797,597			536,564			496,285			554,061
Other operating activities:
Equity in earnings (loss) of unconsolidated companies	47,403			(3,304		)	94,317
Gain on dissolution of unconsolidated company	30,697			—			—
Equity in earnings (loss) of unconsolidated joint ventures										63,310			47,403			(3,304		)
Gain on dissolution of unconsolidated joint venture										—			30,697			—
Promote income	26,299			—			—			20,007			26,299			—
Gain on sale of properties	162,093			229,702			162,715			113,669			162,093			229,702
Gain on land sales	9,865			35,054			10,441			9,244			9,865			35,054
Other operating expenses	(3,864		)	(5,947		)	(7,191		)	(2,554		)	(3,864		)	(5,947		)
Impairment charges	(18,018		)	(22,932		)	(49,106		)	(4,481		)	(18,018		)	(22,932		)
General and administrative expenses	(55,389		)	(58,565		)	(49,362		)	(54,944		)	(55,389		)	(58,565		)
	199,086			174,008			161,814			144,251			199,086			174,008
Operating income	476,981			448,396			411,068			388,621			433,312			412,123
Other income (expenses):
Interest and other income, net	4,035			4,667			1,246			14,721			4,035			4,667
Interest expense	(141,576		)	(173,574		)	(196,186		)	(87,003		)	(112,757		)	(138,258		)
Loss on debt extinguishment	(33,934		)	(85,713		)	(283		)	(26,104		)	(33,934		)	(85,713		)
Acquisition-related activity	7,176			(8,499		)	(1,099		)	—			7,176			(8,499		)
Income from continuing operations before income taxes	312,682			185,277			214,746			290,235			297,832			184,320
Income tax benefit	589			3,928			844			357			589			3,928
Income from continuing operations	313,271			189,205			215,590			290,592			298,421			188,248
Discontinued operations:
Income before gain on sales	991			10,939			11,071
Gain on sale of depreciable properties, net of tax	1,016			421,717			19,794
Income before gain on sales and income taxes										18,436			15,841			11,896
Gain on sale of depreciable properties										1,357,778			1,016			424,892
Income tax expense										(12,465		)	—			(3,175		)
Income from discontinued operations	2,007			432,656			30,865			1,363,749			16,857			433,613
Net income	315,278			621,861			246,455			1,654,341			315,278			621,861
Dividends on preferred shares	—			—			(24,943		)
Adjustments for redemption/repurchase of preferred shares	—			—			(13,752		)
Net income attributable to noncontrolling interests	(3,135		)	(6,551		)	(2,867		)	(19,910		)	(3,135		)	(6,551		)
Net income attributable to common shareholders	$	312,143		$	615,310		$	204,893		$	1,634,431		$	312,143		$	615,310
Basic net income per common share:
Continuing operations attributable to common shareholders	$	0.88		$	0.53		$	0.51		$	0.80		$	0.84		$	0.53
Discontinued operations attributable to common shareholders	0.01			1.24			0.09			3.78			0.05			1.24
Total	$	0.89		$	1.77		$	0.60		$	4.58		$	0.89		$	1.77
Diluted net income per common share:
Continuing operations attributable to common shareholders	$	0.88		$	0.53		$	0.51		$	0.80		$	0.84		$	0.53
Discontinued operations attributable to common shareholders	—			1.24			0.09			3.76			0.04			1.24
Total	$	0.88		$	1.77		$	0.60		$	4.56		$	0.88		$	1.77
Weighted average number of common shares outstanding	349,942			345,057			335,777			355,762			349,942			345,057
Weighted average number of common shares and potential dilutive securities	357,076			352,197			340,446			362,011			357,076			352,197
Comprehensive income:
Net income	$	315,278		$	621,861		$	246,455		$	1,654,341		$	315,278		$	621,861
Other comprehensive income (loss):
Other comprehensive loss:
Amortization of interest contracts	(1,101		)	(1,125		)	(1,148		)	(682		)	(1,101		)	(1,125		)
Other	(23		)	(95		)	55			—			(23		)	(95		)
Total other comprehensive loss	(1,124		)	(1,220		)	(1,093		)	(682		)	(1,124		)	(1,220		)
Comprehensive income	$	314,154		$	620,641		$	245,362		$	1,653,659		$	314,154		$	620,641

See accompanying Notes to Consolidated Financial Statements.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Years Ended December 31,

(in thousands)


	2016			2015			2014			2017			2016			2015
Cash flows from operating activities:
Net income	$	315,278		$	621,861		$	246,455		$	1,654,341		$	315,278		$	621,861
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of buildings and tenant improvements	255,419			253,683			290,279			242,606			255,419			253,683
Amortization of deferred leasing and other costs	62,399			67,163			94,338			56,866			62,399			67,163
Amortization of deferred financing costs	5,327			6,997			9,786			5,402			5,327			6,997
Straight-line rental income and expense, net	(13,743		)	(22,396		)	(19,965		)	(16,051		)	(13,743		)	(22,396		)
Impairment charges	18,018			22,932			49,106			4,481			18,018			22,932
Loss on debt extinguishment	33,934			85,713			283			26,104			33,934			85,713
Gain on dissolution of unconsolidated company	(30,697		)	—			—
Gain on dissolution of unconsolidated joint venture										—			(30,697		)	—
Gain on acquisitions	(7,272		)	—			—			—			(7,272		)	—
Gains on land and depreciated property sales	(172,974		)	(689,647		)	(195,920		)	(1,480,691		)	(172,974		)	(689,647		)
Third-party construction contracts, net	5,273			4,033			(17,231		)	1,000			5,273			4,033
Other accrued revenues and expenses, net	9,800			3,755			47,718			1,016			16,903			11,025
Operating distributions received (less than) in excess of equity in earnings from unconsolidated companies	(30,627		)	25,287			(60,362		)
Equity in earnings (in excess of ) less than operating distributions from unconsolidated joint ventures										(46,958		)	(30,627		)	25,287
Net cash provided by operating activities	450,135			379,381			444,487			448,116			457,238			386,651
Cash flows from investing activities:
Development of real estate investments	(401,442		)	(370,466		)	(446,722		)	(549,563		)	(401,442		)	(370,466		)
Acquisition of real estate investments and related intangible assets	(170,635		)	(28,849		)	(125,227		)	(982,598		)	(170,635		)	(28,849		)
Acquisition of undeveloped land	(99,168		)	(39,881		)	(68,156		)	(243,846		)	(99,168		)	(39,881		)
Second generation tenant improvements, leasing costs and building improvements	(59,349		)	(61,900		)	(98,821		)	(52,554		)	(59,349		)	(61,900		)
Other deferred leasing costs	(38,410		)	(30,790		)	(31,503		)	(30,208		)	(38,410		)	(30,790		)
Other assets	187,129			(19,083		)	(9,996		)	(80,609		)	187,129			(19,083		)
Proceeds from land and depreciated property sales, net	538,642			1,675,690			493,217			2,521,078			538,642			1,675,690
Capital distributions from unconsolidated companies	126,051			68,985			91,750
Capital contributions and advances to unconsolidated companies	(57,914		)	(72,407		)	(11,573		)
Net cash provided by (used for) investing activities	24,904			1,121,299			(207,031		)
Capital distributions from unconsolidated joint ventures										124,956			126,051			68,985
Capital contributions and advances to unconsolidated joint ventures										(10,323		)	(57,914		)	(72,407		)
Net cash provided by investing activities										696,333			24,904			1,121,299
Cash flows from financing activities:
Proceeds from issuance of common shares, net	220,258			4,530			289,122			13,383			220,258			4,530
Payments for redemption/repurchase of preferred shares	—			—			(446,592		)
Proceeds from unsecured debt	375,000			—			300,000			300,000			375,000			—
Payments on unsecured debt	(440,040		)	(913,143		)	(2,092		)	(692,137		)	(440,040		)	(913,143		)
Payments on secured indebtedness including principal amortization	(354,832		)	(245,665		)	(112,877		)	(72,648		)	(354,832		)	(245,665		)
Borrowings (payments) on line of credit, net	(23,000		)	(35,000		)	18,000
Distributions to common shareholders	(255,279		)	(238,114		)	(228,227		)
Distributions to common shareholders - special dividends	—			(69,055		)	—
Distributions to preferred shareholders	—			—			(27,395		)
Repayments on line of credit, net										(48,000		)	(23,000		)	(35,000		)
Distributions to common shareholders - regular										(273,999		)	(255,279		)	(238,114		)
Distributions to common shareholders - special										(302,833		)	—			(69,055		)
Distributions to noncontrolling interests, net	(2,640		)	(2,754		)	(2,791		)	(11,882		)	(2,640		)	(2,754		)
Buyout of noncontrolling interests	—			—			(7,803		)
Tax payments on stock-based compensation awards										(14,946		)	(7,103		)	(7,270		)
Change in book overdrafts	2,324			3,392			(4,696		)	22,924			2,324			3,392
Deferred financing costs	(6,724		)	(260		)	(13,458		)	(8,931		)	(6,724		)	(260		)
Redemption of Limited Partner Units										(457		)	—			—
Net cash used for financing activities	(484,933		)	(1,496,069		)	(238,809		)	(1,089,526		)	(492,036		)	(1,503,339		)
Net increase (decrease) in cash and cash equivalents	(9,894		)	4,611			(1,353		)	54,923			(9,894		)	4,611
Cash and cash equivalents at beginning of year	22,533			17,922			19,275			12,639			22,533			17,922
Cash and cash equivalents at end of year	$	12,639		$	22,533		$	17,922		$	67,562		$	12,639		$	22,533
Non-cash investing and financing activities:
Assumption of indebtedness and other liabilities in real estate acquisitions	$	—		$	—		$	355
Mortgage notes receivable from buyers in property sales	$	23,360		$	204,336		$	—
Notes receivable from buyers in property sales										$	404,846		$	23,360		$	204,336
Conversion of Limited Partner Units to common shares	$	967		$	2,483		$	6,741		$	1,847		$	967		$	2,483

See accompanying Notes to Consolidated Financial Statements.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

(in thousands, except per share data)


	Common Shareholders																			Common Shareholders
	Preferred Stock			Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)			Distributions in Excess of Net Income			Non- Controlling Interests			Total			Common Stock		Additional Paid-in Capital			Accumulated Other Comprehensive Income (Loss)			Distributions in Excess of Net Income			Non- Controlling Interests			Total
Balance at December 31, 2013	$	447,683		$	3,264	$	4,620,964	$	4,119		$	(2,062,787	)	$	31,386		$	3,044,629
Net income	—			—		—		—			243,588			2,867			246,455
Other comprehensive loss	—			—		—		(1,093		)	—			—			(1,093		)
Issuance of common shares	—			164		288,958		—			—			—			289,122
Stock-based compensation plan activity	—			7		13,300		—			(2,184		)	—			11,123
Conversion of Limited Partner Units	—			6		6,735		—			—			(6,741		)	—
Distributions to preferred shareholders	—			—		—		—			(24,943		)	—			(24,943		)
Redemption of preferred shares	(447,683		)	—		14,843		—			(13,752		)	—			(446,592		)
Distributions to common shareholders ($0.68 per share)	—			—		—		—			(228,227		)	—			(228,227		)
Distributions to noncontrolling interests, net	—			—		—		—			—			(2,791		)	(2,791		)
Buyout of noncontrolling interests	—			—		—		—			(2,637		)	(5,166		)	(7,803		)
Balance at December 31, 2014	$	—		$	3,441	$	4,944,800	$	3,026		$	(2,090,942	)	$	19,555		$	2,879,880		$	3,441	$	4,944,800		$	3,026		$	(2,090,942	)	$	19,555		$	2,879,880
Net income	—			—		—		—			615,310			6,551			621,861			—		—			—			615,310			6,551			621,861
Other comprehensive loss	—			—		—		(1,220		)	—			—			(1,220		)	—		—			(1,220		)	—			—			(1,220		)
Issuance of common shares	—			2		4,528		—			—			—			4,530			2		4,528			—			—			—			4,530
Stock-based compensation plan activity	—			8		10,114		—			(2,449		)	2,000			9,673			8		10,114			—			(2,449		)	2,000			9,673
Conversion of Limited Partner Units	—			2		2,481		—			—			(2,483		)	—			2		2,481			—			—			(2,483		)	—
Distributions to common shareholders ($0.69 per share)	—			—		—		—			(238,114		)	—			(238,114		)
Distributions to common shareholders - regular ($0.69 per share)																				—		—			—			(238,114		)	—			(238,114		)
Distributions to common shareholders - special ($0.20 per share)	—			—		—		—			(69,055		)	—			(69,055		)	—		—			—			(69,055		)	—			(69,055		)
Distributions to noncontrolling interests, net	—			—		—		—			—			(2,754		)	(2,754		)	—		—			—			—			(2,754		)	(2,754		)
Balance at December 31, 2015	$	—		$	3,453	$	4,961,923	$	1,806		$	(1,785,250	)	$	22,869		$	3,204,801		$	3,453	$	4,961,923		$	1,806		$	(1,785,250	)	$	22,869		$	3,204,801
Net income	—					—		—			312,143			3,135			315,278			—		—			—			312,143			3,135			315,278
Other comprehensive loss	—			—		—		(1,124		)	—			—			(1,124		)	—		—			(1,124		)	—			—			(1,124		)
Issuance of common shares	—			86		220,172		—			—			—			220,258			86		220,172			—			—			—			220,258
Stock-based compensation plan activity	—			8		8,950		—			(2,037		)	5,078			11,999			8		8,950			—			(2,037		)	5,078			11,999
Conversion of Limited Partner Units	—			1		966		—			—			(967		)	—			1		966			—			—			(967		)	—
Distributions to common shareholders ($0.73 per share)	—			—		—		—			(255,279		)	—			(255,279		)
Distributions to common shareholders - regular ($0.73 per share)																				—		—			—			(255,279		)	—			(255,279		)
Distributions to noncontrolling interests, net	—			—		—		—			—			(2,640		)	(2,640		)	—		—			—			—			(2,640		)	(2,640		)
Balance at December 31, 2016	$	—		$	3,548	$	5,192,011	$	682		$	(1,730,423	)	$	27,475		$	3,493,293		$	3,548	$	5,192,011		$	682		$	(1,730,423	)	$	27,475		$	3,493,293
Net income																				—		—			—			1,634,431			19,910			1,654,341
Other comprehensive loss																				—		—			(682		)	—			—			(682		)
Issuance of common shares																				5		13,378			—			—			—			13,383
Stock-based compensation plan activity																				10		(1,555		)	—			(3,212		)	7,971			3,214
Conversion of Limited Partner Units																				1		1,846			—			—			(1,847		)	—
Redemption of Limited Partner Units																				—		(364		)	—			—			(93		)	(457		)
Distributions to common shareholders - regular ($0.77 per share)																				—		—			—			(273,999		)	—			(273,999		)
Distributions to common shareholders - special ($0.85 per share)																				—		—			—			(302,833		)	—			(302,833		)
Distributions to noncontrolling interests, net																				—		—			—			—			(11,882		)	(11,882		)
Balance at December 31, 2017																				$	3,564	$	5,205,316		$	—		$	(676,036	)	$	41,534		$	4,574,378

See accompanying Notes to Consolidated Financial Statements.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Consolidated Balance Sheets

As of December 31,

(in thousands)


	2016			2015			2017			2016
ASSETS
Real estate investments:
Land and improvements	$	1,511,264		$	1,391,763
Buildings and tenant improvements	4,970,891			4,740,837
Real estate assets							$	6,593,567		$	5,144,805
Construction in progress	347,193			321,062			401,407			303,644
Investments in and advances to unconsolidated companies	197,807			268,390
Investments in and advances to unconsolidated joint ventures							126,487			197,807
Undeveloped land	237,436			383,045			226,987			237,436
	7,264,591			7,105,097			7,348,448			5,883,692
Accumulated depreciation	(1,283,629		)	(1,192,425		)	(1,193,905		)	(1,042,944		)
Net real estate investments	5,980,962			5,912,672			6,154,543			4,840,748

Real estate investments and other assets held-for-sale	51,627			45,801			17,550			1,324,258

Cash and cash equivalents	12,639			22,533			67,562			12,639
Accounts receivable, net of allowance of $1,972 and $1,113	20,373			18,846
Straight-line rent receivable, net of allowance of $5,337 and $6,155	115,922			116,781
Accounts receivable, net of allowance of $1,709 and $1,391							19,427			15,838
Straight-line rent receivable, net of allowance of $5,254 and $5,268							93,005			82,554
Receivables on construction contracts, including retentions	10,441			16,459			13,480			6,159
Deferred leasing and other costs, net of accumulated amortization of $250,249 and $245,426	342,263			346,374
Escrow deposits and other assets	237,775			416,049
Deferred leasing and other costs, net of accumulated amortization of $209,451 and $186,798							292,682			258,741
Restricted cash held in escrow for like-kind exchange							116,405			40,102
Notes receivable from property sales							426,657			25,460
Other escrow deposits and other assets							186,885			165,503
	$	6,772,002		$	6,895,515		$	7,388,196		$	6,772,002
LIABILITIES AND EQUITY
Indebtedness:
Secured debt, net of deferred financing costs of $969 and $1,552	$	383,725		$	738,444
Unsecured debt, net of deferred financing costs of $22,083 and $20,046	2,476,752			2,510,697
Secured debt, net of deferred financing costs of $614 and $969							$	311,349		$	383,725
Unsecured debt, net of deferred financing costs of $20,500 and $22,083							2,111,542			2,476,752
Unsecured line of credit	48,000			71,000			—			48,000
	2,908,477			3,320,141			2,422,891			2,908,477

Liabilities related to real estate investments held-for-sale	1,661			972			1,163			56,291

Construction payables and amounts due subcontractors, including retentions	53,742			54,921			54,545			44,250
Accrued real estate taxes	73,190			71,617			67,374			59,112
Accrued interest	23,633			34,447			17,911			23,633
Other accrued expenses	63,617			61,827
Other liabilities	114,569			106,283			210,825			153,846
Tenant security deposits and prepaid rents	39,820			40,506			39,109			33,100
Total liabilities	3,278,709			3,690,714			2,813,818			3,278,709
Partners’ equity:
General Partner:
Common equity (354,756 and 345,285 General Partner Units issued and outstanding, respectively)	3,465,136			3,180,126
	3,465,136			3,180,126
Limited Partners' common equity (3,408 and 3,487 Limited Partner Units issued and outstanding, respectively)	24,691			20,032
Common equity (356,361 and 354,756 General Partner Units issued and outstanding, respectively)							4,532,844			3,465,136
Limited Partners' common equity (3,283 and 3,408 Limited Partner Units issued and outstanding, respectively)							40,563			24,691
Accumulated other comprehensive income	682			1,806			—			682
Total partners' equity	3,490,509			3,201,964			4,573,407			3,490,509
Noncontrolling interests	2,784			2,837			971			2,784
Total equity	3,493,293			3,204,801			4,574,378			3,493,293
	$	6,772,002		$	6,895,515		$	7,388,196		$	6,772,002

See accompanying Notes to Consolidated Financial Statements.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Consolidated Statements of Operations and Comprehensive Income

For the Years Ended December 31,

(in thousands, except per unit amounts)


	2016			2015			2014			2017			2016			2015
Revenues:
Rental and related revenue	$	813,434		$	816,065		$	822,351		$	686,514		$	641,701		$	658,809
General contractor and service fee revenue	88,810			133,367			224,500			94,420			88,810			133,367
	902,244			949,432			1,046,851			780,934			730,511			792,176
Expenses:
Rental expenses	107,410			125,666			136,278			64,582			74,323			93,422
Real estate taxes	118,654			112,879			115,013			108,964			98,938			95,705
General contractor and other services expenses	80,467			119,170			200,031			89,457			80,467			119,170
Depreciation and amortization	317,818			317,329			346,275			273,561			242,557			245,764
	624,349			675,044			797,597			536,564			496,285			554,061
Other operating activities:
Equity in earnings (loss) of unconsolidated companies	47,403			(3,304		)	94,317
Gain on dissolution of unconsolidated company	30,697			—			—
Equity in earnings (loss) of unconsolidated joint ventures										63,310			47,403			(3,304		)
Gain on dissolution of unconsolidated joint venture										—			30,697			—
Promote income	26,299			—			—			20,007			26,299			—
Gain on sale of properties	162,093			229,702			162,715			113,669			162,093			229,702
Gain on land sales	9,865			35,054			10,441			9,244			9,865			35,054
Other operating expenses	(3,864		)	(5,947		)	(7,191		)	(2,554		)	(3,864		)	(5,947		)
Impairment charges	(18,018		)	(22,932		)	(49,106		)	(4,481		)	(18,018		)	(22,932		)
General and administrative expenses	(55,389		)	(58,565		)	(49,362		)	(54,944		)	(55,389		)	(58,565		)
	199,086			174,008			161,814			144,251			199,086			174,008
Operating income	476,981			448,396			411,068			388,621			433,312			412,123
Other income (expenses):
Interest and other income, net	4,035			4,667			1,246			14,721			4,035			4,667
Interest expense	(141,576		)	(173,574		)	(196,186		)	(87,003		)	(112,757		)	(138,258		)
Loss on debt extinguishment	(33,934		)	(85,713		)	(283		)	(26,104		)	(33,934		)	(85,713		)
Acquisition-related activity	7,176			(8,499		)	(1,099		)	—			7,176			(8,499		)
Income from continuing operations before income taxes	312,682			185,277			214,746			290,235			297,832			184,320
Income tax benefit	589			3,928			844			357			589			3,928
Income from continuing operations	313,271			189,205			215,590			290,592			298,421			188,248
Discontinued operations:
Income before gain on sales	991			10,939			11,071
Gain on sale of depreciable properties, net of tax	1,016			421,717			19,794
Income before gain on sales and income taxes										18,436			15,841			11,896
Gain on sale of depreciable properties										1,357,778			1,016			424,892
Income tax expense										(12,465		)	—			(3,175		)
Income from discontinued operations	2,007			432,656			30,865			1,363,749			16,857			433,613
Net income	315,278			621,861			246,455			1,654,341			315,278			621,861
Distributions on Preferred Units	—			—			(24,943		)
Adjustments for redemption/repurchase of Preferred Units	—			—			(13,752		)
Net income attributable to noncontrolling interests	(46		)	(147		)	(240		)	(4,734		)	(46		)	(147		)
Net income attributable to common unitholders	$	315,232		$	621,714		$	207,520		$	1,649,607		$	315,232		$	621,714
Basic net income per Common Unit:
Continuing operations attributable to common unitholders	$	0.88		$	0.53		$	0.51		$	0.80		$	0.84		$	0.53
Discontinued operations attributable to common unitholders	0.01			1.24			0.09			3.78			0.05			1.24
Total	$	0.89		$	1.77		$	0.60		$	4.58		$	0.89		$	1.77
Diluted net income per Common Unit:
Continuing operations attributable to common unitholders	$	0.88		$	0.53		$	0.51		$	0.80		$	0.84		$	0.53
Discontinued operations attributable to common unitholders	—			1.24			0.09			3.76			0.04			1.24
Total	$	0.88		$	1.77		$	0.60		$	4.56		$	0.88		$	1.77
Weighted average number of Common Units outstanding	353,423			348,639			340,085			359,065			353,423			348,639
Weighted average number of Common Units and potential dilutive securities	357,076			352,197			340,446			362,011			357,076			352,197
Comprehensive income:
Net income	$	315,278		$	621,861		$	246,455		$	1,654,341		$	315,278		$	621,861
Other comprehensive income (loss):
Other comprehensive loss:
Amortization of interest contracts	(1,101		)	(1,125		)	(1,148		)	(682		)	(1,101		)	(1,125		)
Other	(23		)	(95		)	55			—			(23		)	(95		)
Total other comprehensive loss	(1,124		)	(1,220		)	(1,093		)	(682		)	(1,124		)	(1,220		)
Comprehensive income	$	314,154		$	620,641		$	245,362		$	1,653,659		$	314,154		$	620,641

See accompanying Notes to Consolidated Financial Statements.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Years Ended December 31,

(in thousands)


	2016			2015			2014			2017			2016			2015
Cash flows from operating activities:
Net income	$	315,278		$	621,861		$	246,455		$	1,654,341		$	315,278		$	621,861
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of buildings and tenant improvements	255,419			253,683			290,279			242,606			255,419			253,683
Amortization of deferred leasing and other costs	62,399			67,163			94,338			56,866			62,399			67,163
Amortization of deferred financing costs	5,327			6,997			9,786			5,402			5,327			6,997
Straight-line rental income and expense, net	(13,743		)	(22,396		)	(19,965		)	(16,051		)	(13,743		)	(22,396		)
Impairment charges	18,018			22,932			49,106			4,481			18,018			22,932
Loss on debt extinguishment	33,934			85,713			283			26,104			33,934			85,713
Gain on dissolution of unconsolidated company	(30,697		)	—			—
Gain on dissolution of unconsolidated joint venture										—			(30,697		)	—
Gain on acquisitions	(7,272		)	—			—			—			(7,272		)	—
Gains on land and depreciated property sales	(172,974		)	(689,647		)	(195,920		)	(1,480,691		)	(172,974		)	(689,647		)
Third-party construction contracts, net	5,273			4,033			(17,231		)	1,000			5,273			4,033
Other accrued revenues and expenses, net	9,800			3,575			47,654			1,016			16,903			10,845
Operating distributions received (less than) in excess of equity in earnings from unconsolidated companies	(30,627		)	25,287			(60,362		)
Equity in earnings (in excess of) less than operating distributions from unconsolidated joint ventures										(46,958		)	(30,627		)	25,287
Net cash provided by operating activities	450,135			379,201			444,423			448,116			457,238			386,471
Cash flows from investing activities:
Development of real estate investments	(401,442		)	(370,466		)	(446,722		)	(549,563		)	(401,442		)	(370,466		)
Acquisition of real estate investments and related intangible assets	(170,635		)	(28,849		)	(125,227		)	(982,598		)	(170,635		)	(28,849		)
Acquisition of undeveloped land	(99,168		)	(39,881		)	(68,156		)	(243,846		)	(99,168		)	(39,881		)
Second generation tenant improvements, leasing costs and building improvements	(59,349		)	(61,900		)	(98,821		)	(52,554		)	(59,349		)	(61,900		)
Other deferred leasing costs	(38,410		)	(30,790		)	(31,503		)	(30,208		)	(38,410		)	(30,790		)
Other assets	187,129			(19,083		)	(9,996		)	(80,609		)	187,129			(19,083		)
Proceeds from land and depreciated property sales, net	538,642			1,675,690			493,217			2,521,078			538,642			1,675,690
Capital distributions from unconsolidated companies	126,051			68,985			91,750
Capital contributions and advances to unconsolidated companies	(57,914		)	(72,407		)	(11,573		)
Net cash provided by (used for) investing activities	24,904			1,121,299			(207,031		)
Capital distributions from unconsolidated joint ventures										124,956			126,051			68,985
Capital contributions and advances to unconsolidated joint ventures										(10,323		)	(57,914		)	(72,407		)
Net cash provided by investing activities										696,333			24,904			1,121,299
Cash flows from financing activities:
Contributions from the General Partner	220,258			4,710			289,122			13,383			220,258			4,710
Payments for redemption/repurchase of Preferred Units	—			—			(446,592		)
Proceeds from unsecured debt	375,000			—			300,000			300,000			375,000			—
Payments on unsecured debt	(440,040		)	(913,143		)	(2,092		)	(692,137		)	(440,040		)	(913,143		)
Payments on secured indebtedness including principal amortization	(354,832		)	(245,665		)	(112,877		)	(72,648		)	(354,832		)	(245,665		)
Borrowings (payments) on line of credit, net	(23,000		)	(35,000		)	18,000
Distributions to common unitholders	(257,820		)	(241,292		)	(231,112		)
Distributions to common unitholders - special dividends	—			(69,055		)	—
Distributions to preferred unitholders	—			—			(27,395		)
Contributions from (distributions to) noncontrolling interests, net	(99		)	424			158
Buyout of noncontrolling interests	—			—			(7,803		)
Repayments on line of credit, net										(48,000		)	(23,000		)	(35,000		)
Distributions to common unitholders - regular										(276,539		)	(257,820		)	(241,292		)
Distributions to common unitholders - special										(305,628		)	—			(69,055		)
(Distributions to) contributions from noncontrolling interests, net										(6,547		)	(99		)	424
Tax payments on stock-based compensation awards										(14,946		)	(7,103		)	(7,270		)
Change in book overdrafts	2,324			3,392			(4,696		)	22,924			2,324			3,392
Deferred financing costs	(6,724		)	(260		)	(13,458		)	(8,931		)	(6,724		)	(260		)
Redemption of Limited Partner Units										(457		)	—			—
Net cash used for financing activities	(484,933		)	(1,495,889		)	(238,745		)	(1,089,526		)	(492,036		)	(1,503,159		)
Net increase (decrease) in cash and cash equivalents	(9,894		)	4,611			(1,353		)	54,923			(9,894		)	4,611
Cash and cash equivalents at beginning of year	22,533			17,922			19,275			12,639			22,533			17,922
Cash and cash equivalents at end of year	$	12,639		$	22,533		$	17,922		$	67,562		$	12,639		$	22,533
Non-cash investing and financing activities:
Assumption of indebtedness and other liabilities for real estate acquisitions	$	—		$	—		$	355
Mortgage notes receivable from buyers in property sales	$	23,360		$	204,336		$	—
Notes receivable from buyers in property sales										$	404,846		$	23,360		$	204,336
Conversion of Limited Partner Units to common shares of the General Partner	$	967		$	2,483		$	6,741		$	1,847		$	967		$	2,483

See accompanying Notes to Consolidated Financial Statements.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

(in thousands, except per unit data)


	Common Unitholders																					Common Unitholders
							Limited			Accumulated												General			Limited			Accumulated
	General Partner						Partners'			Other			Total									Partner			Partners'			Other			Total
	Common			Preferred			Common			Comprehensive			Partners'			Noncontrolling			Total			Common			Common			Comprehensive			Partners'			Noncontrolling			Total
	Equity			Equity			Equity			Income (Loss)			Equity			Interests			Equity			Equity			Equity			Income (Loss)			Equity			Interests			Equity
Balance at December 31, 2013	$	2,565,370		$	447,683		$	20,158		$	4,119		$	3,037,330		$	7,055		$	3,044,385
Net income	218,645			24,943			2,627			—			246,215			240			246,455
Other comprehensive loss	—			—			—			(1,093		)	(1,093		)	—			(1,093		)
Capital Contribution from the General Partner	289,122			—			—			—			289,122			—			289,122
Stock-based compensation plan activity	11,123			—			—			—			11,123			—			11,123
Conversion of Limited Partner Units to common shares of the General Partner	2,566			—			(2,566		)	—			—			—			—
Distributions to Preferred Unitholders	—			(24,943		)	—			—			(24,943		)	—			(24,943		)
Redemption of Preferred Units	1,091			(447,683		)	—			—			(446,592		)	—			(446,592		)
Distributions to Partners ($0.68 per Common Unit)	(228,161		)	—			(2,951		)	—			(231,112		)	—			(231,112		)
Contributions from noncontrolling interests, net	—			—			—			—			—			158			158
Buyout of noncontrolling interests	(2,637		)	—			21			—			(2,616		)	(5,187		)	(7,803		)
Balance at December 31, 2014	$	2,857,119		$	—		$	17,289		$	3,026		$	2,877,434		$	2,266		$	2,879,700		$	2,857,119		$	17,289		$	3,026		$	2,877,434		$	2,266		$	2,879,700
Net income	615,310			—			6,404			—			621,714			147			621,861			615,310			6,404			—			621,714			147			621,861
Other comprehensive loss	—			—			—			(1,220		)	(1,220		)	—			(1,220		)	—			—			(1,220		)	(1,220		)	—			(1,220		)
Capital Contribution from the General Partner	4,710			—			—			—			4,710			—			4,710			4,710			—			—			4,710			—			4,710
Stock-based compensation plan activity	7,673			—			2,000			—			9,673			—			9,673			7,673			2,000			—			9,673			—			9,673
Conversion of Limited Partner Units to common shares of the General Partner	2,483			—			(2,483		)	—			—			—			—
Distributions to Partners ($0.69 per Common Unit)	(238,114		)	—			(3,178		)	—			(241,292		)	—			(241,292		)
Conversion of Limited Partner Units																						2,483			(2,483		)	—			—			—			—
Distributions to Partners - regular ($0.69 per Common Unit)																						(238,114		)	(3,178		)	—			(241,292		)	—			(241,292		)
Distributions to Partners - special ($0.20 per Common Unit)	(69,055		)	—			—			—			(69,055		)	—			(69,055		)	(69,055		)	—			—			(69,055		)	—			(69,055		)
Contributions from noncontrolling interests, net	—			—			—			—			—			424			424			—			—			—			—			424			424
Balance at December 31, 2015	$	3,180,126		$	—		$	20,032		$	1,806		$	3,201,964		$	2,837		$	3,204,801		$	3,180,126		$	20,032		$	1,806		$	3,201,964		$	2,837		$	3,204,801
Net income	312,143			—			3,089			—			315,232			46			315,278			312,143			3,089			—			315,232			46			315,278
Other comprehensive loss	—			—			—			(1,124		)	(1,124		)	—			(1,124		)	—			—			(1,124		)	(1,124		)	—			(1,124		)
Capital Contribution from the General Partner	220,258			—			—			—			220,258			—			220,258			220,258			—			—			220,258			—			220,258
Stock-based compensation plan activity	6,921			—			5,078			—			11,999			—			11,999			6,921			5,078			—			11,999			—			11,999
Conversion of Limited Partner Units to common shares of the General Partner	967			—			(967		)	—			—			—			—
Distributions to Partners ($0.73 per Common Unit)	(255,279		)	—			(2,541		)	—			(257,820		)	—			(257,820		)
Contributions from noncontrolling interests, net	—			—			—			—			—			(99		)	(99		)
Conversion of Limited Partner Units																						967			(967		)	—			—			—			—
Distributions to Partners - regular ($0.73 per Common Unit)																						(255,279		)	(2,541		)	—			(257,820		)	—			(257,820		)
Distributions to noncontrolling interests, net																						—			—			—			—			(99		)	(99		)
Balance at December 31, 2016	$	3,465,136		$	—		$	24,691		$	682		$	3,490,509		$	2,784		$	3,493,293		$	3,465,136		$	24,691		$	682		$	3,490,509		$	2,784		$	3,493,293
Net income																						1,634,431			15,176			—			1,649,607			4,734			1,654,341
Other comprehensive loss																						—			—			(682		)	(682		)	—			(682		)
Capital Contribution from the General Partner																						13,383			—			—			13,383			—			13,383
Stock-based compensation plan activity																						(4,757		)	7,971			—			3,214			—			3,214
Conversion of Limited Partner Units																						1,847			(1,847		)	—			—			—			—
Redemption of Limited Partner Units																						(364		)	(93		)	—			(457		)	—			(457		)
Distributions to Partners - regular ($0.77 per Common Unit)																						(273,999		)	(2,540		)	—			(276,539		)	—			(276,539		)
Distributions to Partners - special ($0.85 per Common Unit)																						(302,833		)	(2,795		)	—			(305,628		)	—			(305,628		)
Distributions to noncontrolling interests, net																						—			—			—			—			(6,547		)	(6,547		)
Balance at December 31, 2017																						$	4,532,844		$	40,563		$	—		$	4,573,407		$	971		$	4,574,378

See accompanying Notes to Consolidated Financial Statements.

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(1)	The Company

The General Partner was formed in 1985, and we believe that it qualifies as a REIT under the provisions of the Code. The Partnership was formed on October 4, 1993, when the General Partner contributed all of its properties and related assets and liabilities, together with the net proceeds from an offering of additional shares of its common stock, to the Partnership. Simultaneously, the Partnership completed the acquisition of Duke Associates, a full-service commercial real estate firm operating in the Midwest, whose operations began in 1972.

The General Partner is the sole general partner of the Partnership, owning approximately ~~99.0%~~99.1% of the Common Units at December 31, ~~2016.~~2017. The remaining ~~1.0%~~0.9% of the Common Units are owned by limited partners. As the sole general partner of the Partnership, the General Partner has full, exclusive and complete responsibility and discretion in the day-to-day management and control of the Partnership. The General Partner and the Partnership are operated as one enterprise. The management of the General Partner consists of the same members as the management of the Partnership. As the sole general partner with control of the Partnership, the General Partner consolidates the Partnership for financial reporting purposes, and the General Partner does not have any significant assets other than its investment in the Partnership. Therefore, the assets and liabilities of the General Partner and the Partnership are substantially the same.

Limited ~~Partners~~partners have the right to redeem their Limited Partner Units, subject to certain restrictions. Pursuant to the Partnership Agreement, the General Partner is obligated to redeem the Limited Partner Units in shares of its common stock, unless it determines in its reasonable discretion that the issuance of shares of its common stock could cause it to fail to qualify as a REIT. Each Limited Partner Unit shall be redeemed for one share of the General Partner's common stock, or, in the event that the issuance of shares could cause the General Partner to fail to qualify as a REIT, cash equal to the fair market value of one share of the General Partner's common stock at the time of redemption, in each case, subject to certain adjustments described in the Partnership Agreement. The Limited Partner Units are not required, per the terms of the Partnership Agreement, to be redeemed in registered shares of the General Partner.

~~We own~~During 2017, we substantially completed the Medical Office Portfolio Disposition, (see Note 3) and ~~operate~~exited from the medical office product segment. As of December 31, 2017, we owned and operated a portfolio primarily consisting of industrial ~~and medical office~~ properties and ~~provide~~provided real estate services to third-party owners.

Substantially all of our Rental Operations (see Note 8) are conducted through the Partnership. We conduct our Service Operations (see Note 8) through Duke Realty Services, LLC, Duke Realty Services Limited Partnership and Duke Construction Limited Partnership ("DCLP"), which are consolidated entities that are 100% owned by a combination of the General Partner and the Partnership. DCLP is owned through a taxable REIT subsidiary.


(2)	Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include our accounts and the accounts of our majority-owned or controlled subsidiaries. The equity interests in these controlled subsidiaries not owned by us are reflected as noncontrolling interests in the consolidated financial statements. All significant intercompany balances and transactions have been eliminated in the consolidated financial statements. Investments in entities that we do not control, and VIEs in which we are not the primary beneficiary (to the extent applicable), are not consolidated and are reflected as investments in unconsolidated ~~companies~~joint ventures under the equity method of reporting.

In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis ("ASU 2015-02"). ASU 2015-02 makes targeted amendments to the current consolidation guidance and ends the deferral granted to investment companies from applying the existing variable interest entity guidance. We have adopted ASU 2015-02 ~~during the three months ended March 31,~~as of January 1, 2016, ~~and it~~which has not had a significant impact on our consolidated financial statements.

As the result of the adoption of ASU 2015-02, which stipulates that limited partnerships (and similar entities) where the limited partners do not have substantive participating or kick-out rights are VIEs, we determined that the

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Partnership is a VIE. Prior to the adoption of ASU 2015-02, the General Partner consolidated the Partnership pursuant to the voting interest model. We concluded that, because it holds majority ownership and exercises control over every aspect of the Partnership's operations, the General Partner is the primary beneficiary of the Partnership and, as such, will continue to consolidate the Partnership.

The assets and liabilities of the General Partner and the Partnership are substantially the same, as the General Partner does not have any significant assets other than its investment in the Partnership.

Reclassifications

Certain amounts in the accompanying consolidated financial statements that have been reclassified to conform to the ~~2016~~2017 consolidated financial statement presentation include changes in presentation for the medical office properties determined to be discontinued operations (see Note 6), tax payments on stock-based compensation awards in the Consolidated Statements of Cash Flows (pursuant to ASU 2016-09, as described below) as well as the ~~result~~separate presentation on the Consolidated Balance Sheets of ~~recently effective accounting pronouncements.~~the line items "Notes Receivable from Property Sales" and "Restricted Cash held in Escrow for Like-Kind Exchanges" (which were both previously presented within "Other Escrow Deposits and Other Assets" in the 2016 Form 10-K).

Real Estate Investments

Rental real property, including land, land improvements, buildings and tenant improvements, are included in real estate investments and are generally stated at cost. Construction in process and undeveloped land are included in real estate investments and are stated at cost. Real estate investments also include our equity interests in unconsolidated joint ventures that own and operate rental properties and hold land for development.

Depreciation

Buildings and land improvements are depreciated on the straight-line method over their estimated lives not to exceed 40 and 15 years, respectively, for properties that we develop, and not to exceed 30 and 10 years, respectively, for acquired properties. Tenant improvement costs are depreciated using the straight-line method over the shorter of the useful life of the asset or term of the related lease.

Cost Capitalization

Direct and certain indirect costs, including interest, clearly associated with the development, construction, leasing or expansion of real estate investments are capitalized as a cost of the property. In addition, all leasing commissions paid to third parties for new leases or lease renewals are capitalized. We capitalize a portion of our indirect costs associated with our construction, development and leasing efforts. In assessing the amount of direct and indirect costs to be capitalized, allocations are made based on estimates of the actual amount of time spent in each activity. We do not capitalize any costs attributable to downtime or to unsuccessful projects.

We capitalize interest and direct and indirect project costs associated with the initial construction of a property up to the time the property is substantially complete and ready for its intended use. In addition, we capitalize costs, including real estate taxes, insurance and utilities, that have been allocated to vacant space based on the square footage of the portion of the building not held available for immediate occupancy during the extended lease-up periods after construction of the building shell has been completed if costs are being incurred to ready the vacant space for its intended use. If costs and activities incurred to ready the vacant space cease, then cost capitalization is also discontinued until such activities are resumed. Once necessary work has been completed on a vacant space, project costs are no longer capitalized.

We cease capitalization of all project costs on extended lease-up periods when significant activities have ceased, which does not exceed the shorter of a one-year period after the completion of the building shell or when the property attains 90% occupancy.

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Impairment

We evaluate our real estate assets, with the exception of those that are classified as held-for-sale, for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. If such an evaluation is considered necessary, we compare the carrying amount of that real estate asset, or asset group, with the expected undiscounted cash flows that are directly associated with, and that are expected to arise as a direct result of, the use and eventual disposition of that asset, or asset group. Our estimate of the expected future cash flows used in testing for impairment is based on, among other things, our estimates regarding future market

~~DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

conditions, rental rates, occupancy levels, costs of tenant improvements, leasing commissions and other tenant concessions, assumptions regarding the residual value of our properties at the end of our anticipated holding period and the length of our anticipated holding period and is, therefore, subjective by nature. These assumptions could differ materially from actual results. If our strategy changes or if market conditions otherwise dictate a reduction in the holding period and an earlier sale date, an impairment loss could be recognized and such loss could be material. To the extent the carrying amount of a real estate asset, or asset group, exceeds the associated estimate of undiscounted cash flows, an impairment loss is recorded to reduce the carrying value of the asset to its fair value.

The determination of the fair value of real estate assets is also highly subjective, especially in markets where there is a lack of recent comparable transactions. We primarily utilize the income approach to estimate the fair value of our income producing real estate assets. We utilize marketplace participant assumptions to estimate the fair value of a real estate asset when an impairment charge is required to be measured. The estimation of future cash flows, as well as the selection of the discount rate and exit capitalization rate used in applying the income approach, are highly subjective measures in estimating fair value.

Real estate assets classified as held-for-sale are reported at the lower of their carrying value or their fair value, less estimated costs to sell. Once a property is designated as held-for-sale, no further depreciation expense is recorded.

Purchase Accounting

~~Generally, our~~In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business. ASU 2017-01 provides revised guidance to determine when an acquisition meets the definition of a business or should be accounted for as an asset acquisition, likely resulting in more acquisitions being accounted for as asset acquisitions as opposed to business combinations. Transaction costs are capitalized for asset acquisitions while they are expensed as incurred for business combinations. ASU 2017-01 requires that when substantially all of ~~operating properties that~~the fair value of an acquisition is concentrated in a single identifiable asset or a group of similar identifiable assets it does not meet the definition of a business. ASU 2017-01 also revises the definition of a business to include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output. ASU 2017-01 will be effective, on a prospective basis, for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted.

We early adopted ASU 2017-01 prospectively as of January 1, 2017 as permitted under the standard, which has not had a material impact to the consolidated financial statements.

As a result of adoption of ASU 2017-01, our acquisitions of properties are generally asset acquisitions as they no longer meet the definition of a business. Transaction costs related to asset acquisitions are capitalized. To the extent that an acquired property meets the definition of a business, ~~then~~ we expense acquisition related costs immediately as period costs.

To the extent that we gain control of real estate properties that are accounted for as asset acquisitions, as opposed to business combinations, we accumulate the costs of pre-existing equity interest and consideration paid for additional interest acquired and we do not remeasure our pre-existing equity interest. Generally contingencies arising from an asset ~~through~~acquisition are only recognized when the contingency is paid or becomes payable.

To the extent that we gain control of a ~~step acquisition, which~~property acquired that meets the definition of a business, we ~~record~~account for the ~~acquired asset~~acquisition in accordance with the guidance for step acquisitions at its full fair value and record a gain or loss, within acquisition-related activity in our Consolidated Statements of Operations, for the difference between the fair

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

value and the carrying value of our pre-existing equity interest.

Contingencies arising from a business combination are recorded at fair value if the acquisition date fair value can be determined during the measurement period.

We allocate the purchase price of asset acquisitions and acquired properties that meet the definition of a business to tangible and identified intangible assets based on their respective fair values, using all pertinent information available at the date of acquisition. Capitalized acquisition costs are also included in the total cost basis of acquired properties that are asset acquisitions. The allocation to tangible assets (buildings, tenant improvements and land) is based upon management's determination of the value of the property as if it were vacant. This “as-if vacant” value is estimated using an income, or discounted cash flow, approach that relies upon internally determined assumptions that we believe are consistent with current market conditions for similar properties. The most important assumptions in determining the allocation of the purchase price to tangible assets are the exit capitalization rate, ~~discount rate,~~ estimated market rents and ~~hypothetical expected lease-up periods.~~the fair value of the underlying land. The purchase price of real estate assets is also allocated to intangible assets consisting of the above or below market component of in-place leases, the value of in-place leases as well as, to the extent applicable, acquired in-place leases that may have a customer relationship intangible value. There have been no customer relationship intangible assets related to any of our acquisitions to date.

Factors considered in determining the value allocable to in-place leases include estimates, during hypothetical expected lease-up periods, of space that is actually leased at the time of acquisition, of lost rent at market rates, fixed operating costs that will be recovered from tenants and theoretical leasing commissions required to execute

~~DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

similar leases. These intangible assets are included in deferred leasing and other costs in the balance sheet and are amortized over the remaining term of the existing lease.

In September 2015, the FASB issued ~~Accounting Standards Update~~ASU 2015-16, Business Combinations - Simplifying the Accounting for Measurement-Period Adjustments ("ASU 2015-16"), which amends the retroactive requirement to apply adjustments made to provisional amounts recognized in a business combination. ASU 2015-16 requires that an acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. ASU 2015-16 was effective for annual and interim periods beginning after December 15, 2015. We adopted ASU 2015-16 ~~during the three months ended March 31,~~as of January 1, 2016 and it has not had a significant impact on our consolidated financial statements.

Joint Ventures

We have equity interests in unconsolidated joint ventures that primarily own and operate rental properties or hold land for development. We consolidate those joint ventures that are considered to be VIEs where we are the primary beneficiary. We analyze our investments in joint ventures to determine if the joint venture is considered a VIE and would require consolidation. We (i) evaluate the sufficiency of the total equity investment at risk, (ii) review the voting rights and decision-making authority of the equity investment holders as a group and whether there are limited partners (or similar owning entities) that lack substantive participating or kick out rights, guaranteed returns, protection against losses, or capping of residual returns within the group and (iii) establish whether activities within the venture are on behalf of an investor with disproportionately few voting rights in making this VIE determination.

To the extent that we own interests in a VIE and we (i) ~~are the sole entity that has~~have the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) have the obligation or rights to absorb ~~the VIE's~~ losses or receive ~~its~~ benefits that could potentially be significant to the VIE, then we would be determined to be the primary beneficiary

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

and would consolidate the VIE. To the extent that we own interests in a VIE, then at each reporting period, we re-assess our conclusions as to which, if any, party within the VIE is considered the primary beneficiary.

To the extent that our joint ventures do not qualify as VIEs, they are consolidated if we control them through majority ownership interests or if we are the managing entity (general partner or managing member) and our partner does not have substantive participating rights. Control is further demonstrated by our ability to unilaterally make significant operating decisions, refinance debt and sell the assets of the joint venture without the consent of the non-managing entity and the inability of the non-managing entity to remove us from our role as the managing entity. Consolidated joint ventures that are not VIEs are not significant in any period presented in these consolidated financial statements.

We use the equity method of accounting for those joint ventures where we exercise significant influence but do not have control. Under the equity method of accounting, our investment in each joint venture is included on our balance sheet; however, the assets and liabilities of the joint ventures for which we use the equity method are not included on our balance sheet.

To the extent that we contribute assets to a joint venture, our investment in the joint venture is recorded at our cost basis in the assets that were contributed to the joint venture. To the extent that our cost basis is different than the basis reflected at the joint venture level, the basis difference is amortized over the life of the related asset and included in our share of equity in net income of the joint venture. We recognize gains on the contribution or sale of real estate to joint ventures, relating solely to the outside partner's interest, to the extent the economic substance of the transaction is a sale.

~~DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

There were no unconsolidated joint ventures, in which we have any recognized assets or liabilities or have retained any economic exposure to loss at December 31, ~~2016~~2017 that met the criteria to be considered VIEs.

Cash Equivalents

Investments with an original maturity of three months or less are classified as cash equivalents.

Valuation of Receivables

We reserve the entire receivable balance, including straight-line rent, of any tenant with an amount outstanding over 90 days. Additional reserves are recorded for more current amounts, as applicable, where we have determined collectability to be doubtful. Straight-line rent receivables for any tenant with long-term risk, regardless of the status of current rent receivables, are reviewed and reserved as necessary.

Deferred Costs

Deferred Financing Costs

Costs incurred in connection with obtaining financing are deferred and are amortized to interest expense over the term of the related loan. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). The standard requires the costs for issuing debt, other than lines of credit, to appear on a balance sheet as a direct deduction from the debt's value. ASU 2015-03 was effective for the Company beginning January 1, 2016 and was applied retrospectively. We adopted ASU 2015-03 ~~during the three months ended March 31,~~as of January 1, 2016 and it has not had a significant impact on our consolidated financial statements. Debt issuance costs related to the Partnership's unsecured line of credit continue to be presented as assets in the

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

consolidated balance sheets, as part of escrow deposits and other assets, pursuant to ASU 2015-15,, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.

Lease Related Costs and Acquired Lease-Related Intangible Assets

All direct and indirect costs, including estimated internal costs, associated with the leasing of real estate investments owned by us are capitalized and amortized over the term of the related lease. We include lease incentive costs, which are payments made on behalf of a tenant to sign a lease, in deferred leasing costs and amortize them on a straight-line basis over the respective lease terms as a reduction of rental revenues. We include as lease incentives amounts funded to construct tenant improvements owned by the tenant. Unamortized costs are charged to expense upon the early termination of the lease or upon early payment of the financing.

Acquired lease-related intangible assets consist of above market lease assets and the value allocable to in-place leases. Above market lease assets are amortized as a reduction to rental income over the remaining terms of the respective leases. In-place lease intangible assets are amortized on a straight-line basis and included within depreciation and amortization in the consolidated statements of operations and comprehensive income.

Deferred leasing costs and acquired lease-related intangible assets at December 31, ~~2016~~2017 and ~~2015,~~2016, excluding amounts classified as held-for-sale, were as follows (in thousands):

2016 2015
Deferred leasing costs $ 323,534
$ 302,282
Acquired lease-related intangible assets 268,978
289,518
$ 592,512
$ 591,800

Accumulated amortization - deferred leasing costs $ (108,227 ) $ (106,912 )
Accumulated amortization - acquired lease-related intangible assets (142,022 ) (138,514 )
Total $ 342,263
$ 346,374

~~DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~



	2017			2016
Deferred leasing costs	$	312,206		$	275,491
Acquired lease-related intangible assets	189,927			170,048
	$	502,133		$	445,539

Accumulated amortization - deferred leasing costs	$	(108,177	)	$	(95,343	)
Accumulated amortization - acquired lease-related intangible assets	(101,274		)	(91,455		)
Total	$	292,682		$	258,741

Amounts recorded related to amortization expense for in-place leases for the years ended December 31, ~~2016~~2017, 2016 and 2015 ~~and 2014~~ totaled $27.2 million, $33.7 million ~~$38.7 million~~ and ~~$55.4~~$38.7 million, respectively. Charges to rental income related to the amortization of above market lease assets for the years ended December 31, ~~2016~~2017, 2016 and 2015 ~~and 2014~~ totaled $913,000, $1.0 million ~~$1.6 million~~ and ~~$2.2~~$1.6 million, respectively.

The expected future amortization, or charge to rental income, of acquired lease-related intangible assets is summarized in the table below (in thousands):


Year	Amortization Expense		Charge to Rental Income		Amortization Expense		Charge to Rental Income
2017	$	32,381	$	987
2018	24,532		755		$	21,904	$	777
2019	18,452		718		16,455		703
2020	12,977		640		12,700		639
2021	8,210		368		9,563		367
2022					7,080		353
Thereafter	26,148		788		17,701		411
	$	122,700	$	4,256	$	85,403	$	3,250

Noncontrolling Interests

Noncontrolling interests relate to the minority ownership interests in the Partnership and interests in consolidated property partnerships that are not ~~wholly-owned~~wholly owned by the General Partner or the Partnership. Noncontrolling interests are subsequently adjusted for additional contributions, distributions to noncontrolling holders and the noncontrolling holders' proportionate share of the net earnings or losses of each respective entity. We report noncontrolling interests as a component of total equity.

When a Common Unit of the Partnership is redeemed (Note 1), the change in ownership is treated as an equity transaction by the General Partner and there is no effect on its earnings or net assets.

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Revenue Recognition

Rental and Related Revenue

The timing of revenue recognition under an operating lease is determined based upon ownership of the tenant improvements. If we are the owner of the tenant improvements, revenue recognition commences after the improvements are completed and the tenant takes possession or control of the space. If we determine that the tenant allowances or improvements we are funding are lease incentives, then we commence revenue recognition when possession or control of the space is turned over to the tenant. Rental income from leases is recognized on a straight-line basis.

We record lease termination fees when a tenant has executed a definitive termination agreement with us and the payment of the termination fee is not subject to any material conditions that must be met or waived before the fee is due to us.

General Contractor and Service Fee Revenue

Management fees are based on a percentage of rental receipts of properties managed and are recognized as the rental receipts are collected. Maintenance fees are based upon established hourly rates and are recognized as the services are performed. Construction management and development fees represent fee-based third-party contracts and are recognized as earned based on the percentage of completion method.

~~DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

estimated profitability may result in revisions to costs and income and are recognized in the period in which the revisions are determined. To the extent that a fixed-price contract is estimated to result in a loss, the loss is recorded immediately.

Under billed and over billed receivables on construction contracts totaled $8.3 million and $276,000, respectively, at December 31, 2017 and $4.8 million and $1.1 million, respectively, at ~~December~~ December��31, ~~2016 and~~ ~~$5.5 million~~ ~~and~~ ~~$1.1 million, respectively, at December 31, 2015.~~2016. Over billed receivables are included in other liabilities in the Consolidated Balance Sheets.

Property Sales

~~Under ASU 2014-08, only~~Only disposals representing a strategic shift in operations (for example, a disposal of a major geographic area or a major line of business) should be presented as discontinued operations ~~while~~in accordance with FASB Accounting Standards Codification ("ASC") 205-20 ("ASC 205-20"), without consideration of significant continuing ~~involvement with such dispositions no longer preclude~~involvement. The Medical Office Portfolio Disposition during 2017 has met the criteria under ASC 205-20 for all of the consolidated in-service properties within the portfolio to be classified within discontinued operations classification. ASU 2014-08 was effective for fiscal years beginning on or after December 15, 2014, with early adoption permitted only for disposals or classifications as held-for-sale that have not been reported in financial statements previously issued or available for issuance. We adopted ASU 2014-08 early and have applied it since April 1, 2014.(see Note 6).

Gains on sales of all properties are recognized in accordance with FASB ~~Accounting Standards Codification ("ASC") 360-20 ("~~ASC ~~360-20").~~360-20. The specific timing of the sale of a building is measured against various criteria in ASC 360-20 related to the terms of the transactions and any continuing involvement in the form of management or financial assistance from the seller associated with the properties. We make judgments based on the specific terms of each transaction as to the amount of the total profit from the transaction that we recognize considering factors such as continuing ownership interest we may have with the buyer ("partial sales") and our level of future involvement with the property or the buyer that acquires the assets. If the full accrual sales criteria are not met, we defer gain recognition and account for the continued operations of the property by applying the finance, installment or cost recovery methods, as appropriate, until the full accrual sales criteria are met. Estimated future costs to be incurred after completion of each sale are included in the determination of the gain on sales.

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Net Income Per Common Share or Common Unit

Basic net income per common share or Common Unit is computed by dividing net income attributable to common shareholders or common unitholders, less dividends or distributions on share-based awards expected to vest (referred to as "participating securities" and primarily composed of unvested restricted stock units), by the weighted average number of common shares or Common Units outstanding for the period.

Diluted net income per common share is computed by dividing the sum of net income attributable to common shareholders and the noncontrolling interest in earnings allocable to Limited Partner Units (to the extent the Limited Partner Units are dilutive), less dividends or distributions on participating securities that are anti-dilutive, by the sum of the weighted average number of common shares outstanding and, to the extent they are dilutive, weighted average number of Limited Partner Units outstanding and any potential dilutive securities for the period. Diluted net income per Common Unit is computed by dividing the net income attributable to common unitholders, less dividends or distributions on participating securities that are anti-dilutive, by the sum of the weighted average number of Common Units outstanding and any potential dilutive securities for the period.

The following table reconciles the components of basic and diluted net income per common share or Common Unit (in thousands):

~~DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~


	2016			2015			2014			2017			2016			2015
General Partner
Net income attributable to common shareholders	$	312,143		$	615,310		$	204,893		$	1,634,431		$	312,143		$	615,310
Less: Dividends on participating securities	(2,356		)	(3,081		)	(2,588		)	(3,981		)	(2,356		)	(3,081		)
Basic net income attributable to common shareholders	309,787			612,229			202,305			1,630,450			309,787			612,229
Add back dividends on dilutive participating securities	2,356			3,081			—			3,981			2,356			3,081
Noncontrolling interest in earnings of common unitholders	3,089			6,404			2,627			15,176			3,089			6,404
Diluted net income attributable to common shareholders	$	315,232		$	621,714		$	204,932		$	1,649,607		$	315,232		$	621,714
Weighted average number of common shares outstanding	349,942			345,057			335,777			355,762			349,942			345,057
Weighted average Limited Partner Units outstanding	3,481			3,582			4,308			3,303			3,481			3,582
Other potential dilutive shares	3,653			3,558			361			2,946			3,653			3,558
Weighted average number of common shares and potential dilutive securities	357,076			352,197			340,446			362,011			357,076			352,197

Partnership
Net income attributable to common unitholders	$	315,232		$	621,714		$	207,520		$	1,649,607		$	315,232		$	621,714
Less: Distributions on participating securities	(2,356		)	(3,081		)	(2,588		)	(3,981		)	(2,356		)	(3,081		)
Basic net income attributable to common unitholders	$	312,876		$	618,633		$	204,932		$	1,645,626		$	312,876		$	618,633
Add back distributions on dilutive participating securities	2,356			3,081			—			3,981			2,356			3,081
Diluted net income attributable to common unitholders	$	315,232		$	621,714		$	204,932		$	1,649,607		$	315,232		$	621,714
Weighted average number of Common Units outstanding	353,423			348,639			340,085			359,065			353,423			348,639
Other potential dilutive units	3,653			3,558			361			2,946			3,653			3,558
Weighted average number of Common Units and potential dilutive securities	357,076			352,197			340,446			362,011			357,076			352,197

The following table summarizes the data that is excluded from the computation of net income per common share or Common Unit as a result of being anti-dilutive (in thousands):


	2016	2015	2014	2017	2016	2015
General Partner and Partnership
Other potential dilutive shares or units:
Anti-dilutive outstanding potential shares or units under fixed stock option and other stock-based compensation plans	175	997	1,210	—	175	997
Anti-dilutive outstanding participating securities	—	—	3,844	—	—	—

Federal Income Taxes

General Partner

The General Partner has elected to be taxed as a REIT under the Code, as amended. To qualify as a REIT, the General Partner must meet a number of organizational and operational requirements, including a requirement to

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

distribute at least 90% of its REIT taxable income to its shareholders. Management intends to continue to adhere to these requirements and to maintain the General Partner's REIT status. As a REIT, the General Partner is entitled to a tax deduction for the dividends it pays to shareholders. Accordingly, the General Partner generally will not be subject to federal income taxes as long as it currently distributes to shareholders an amount equal to or in excess of its taxable income. The General Partner is, however, generally subject to federal income taxes on any taxable income that is not currently distributed to its shareholders. If the General Partner fails to qualify as a REIT in any taxable year, it will be subject to federal income taxes and may not be able to qualify as a REIT for four subsequent taxable years.

REIT qualification reduces, but does not eliminate, the amount of state and local taxes we pay. In addition, our financial statements include the operations of taxable corporate subsidiaries that are not entitled to a dividends paid deduction and are subject to federal, state and local income taxes. As a REIT, the General Partner may also be subject to certain federal excise taxes if it engages in certain types of transactions.

The following table reconciles the General Partner's net income to taxable income before the dividends paid deduction, and subject to the 90% distribution requirement, for the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014~~2015 (in thousands):

~~DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~


	2016			2015			2014			2017			2016			2015
Net income	$	315,278		$	621,861		$	246,455		$	1,654,341		$	315,278		$	621,861
Book/tax differences	(61,138		)	(316,097		)	738			(1,076,060		)	(61,133		)	(316,097		)
Taxable income before the dividends paid deduction	254,140			305,764			247,193			578,281			254,145			305,764
Less: capital gains	(63,196		)	(294,901		)	(95,797		)	(441,836		)	(63,550		)	(294,901		)
Adjusted taxable income subject to the 90% distribution requirement	$	190,944		$	10,863		$	151,396		$	136,445		$	190,595		$	10,863

The General Partner's dividends paid deduction is summarized below (in thousands):


	2016			2015			2014			2017			2016			2015
Total Cash dividends paid	$	255,279		$	307,169		$	255,622
Cash dividends paid										$	576,832		$	255,279		$	307,169
Cash dividends declared and paid in subsequent year that apply to current year										2,500			—			—
Less: Return of capital	(6,703		)	—			(5,479		)	—			(6,717		)	—
Plus: Deemed REIT distribution	6,703			—			—			—			6,717			—
Dividends paid deduction	255,279			307,169			250,143			579,332			255,279			307,169
Less: Capital gain distributions	(63,196		)	(294,901		)	(95,797		)	(441,836		)	(63,550		)	(294,901		)
Dividends paid deduction attributable to adjusted taxable income subject to the 90% distribution requirement	$	192,083		$	12,268		$	154,346		$	137,496		$	191,729		$	12,268

Our tax return for the year ended December 31, ~~2016~~2017 has not been filed. The taxability information presented for our dividends paid in ~~2016~~2017 is based upon management’s estimate. Consequently, the taxability of dividends is subject to change. A summary of the tax characterization of the dividends paid by the General Partner for the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014~~2015 is as follows:


	2016		2015		2014		2017		2016		2015
Common Shares
Ordinary income	72.6	%	4.2	%	59.2	%	23.7	%	72.6	%	4.2	%
Return of capital	2.6	%	—	%	2.5	%	—	%	2.6	%	—	%
Capital gains	24.8	%	95.8	%	38.3	%	76.3	%	24.8	%	95.8	%
	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Preferred Shares
Ordinary income					60.7	%
Capital gains					39.3	%
					100.0	%

The 2017 Tax Act, since its enactment date of December 22, 2017, did not have a material impact on our consolidated financial statements.

Partnership

For the Partnership, the allocated share of income and loss other than the operations of its taxable REIT subsidiary is included in the income tax returns of its partners; accordingly the only federal income taxes included in the

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

accompanying consolidated financial statements of the Partnership are in connection with its taxable REIT subsidiary.

Deferred Tax Assets

A full valuation allowance for the deferred tax assets of the taxable REIT subsidiary was maintained for 2017, 2016 ~~2015~~ and ~~2014.~~2015. Based primarily on the ~~level of historical taxable income and~~ projections of taxable income ~~under~~pursuant to our current operating strategy, management believes that it is more likely than not that the taxable REIT subsidiary will not generate sufficient taxable income to realize any of its deferred tax assets. Income taxes are not material to our operating results or financial position. Our taxable REIT subsidiary has no significant net deferred income tax positions or unrecognized tax benefit items.

~~Cash Paid for Income Taxes~~Revenue Recognition

Rental and Related Revenue

We ~~paid federal, state~~record lease termination fees when a tenant has executed a definitive termination agreement with us and ~~local~~the payment of the termination fee is not subject to any material conditions that must be met or waived before the fee is due to us.

General Contractor and Service Fee Revenue

We recognize income ~~taxes, net~~on construction contracts where we serve as a general contractor on the percentage of completion method. Using this method, profits are recorded based on our estimates of the percentage of completion of individual contracts, commencing when the work performed under the contracts reaches a point where the final costs can be estimated with reasonable accuracy. The percentage of completion estimates are based on a comparison of the contract expenditures incurred to the estimated final costs. Changes in job performance, job conditions and estimated profitability may result in revisions to costs and income ~~tax refunds,~~and are recognized in the period in which the revisions are determined. To the extent that a fixed-price contract is estimated to result in a loss, the loss is recorded immediately.

Under billed and over billed receivables on construction contracts totaled $8.3 million and $276,000, respectively, at December 31, 2017 and $4.8 million and $1.1 million, respectively, at December��31, 2016. Over billed receivables are included in other liabilities in the Consolidated Balance Sheets.

Property Sales

Only disposals representing a strategic shift in operations (for example, a disposal of ~~$600,000~~a major geographic area or a major line of business) should be presented as discontinued operations in accordance with FASB Accounting Standards Codification ("ASC") 205-20 ("ASC 205-20"), without consideration of significant continuing involvement. The Medical Office Portfolio Disposition during 2017 has met the criteria under ASC 205-20 for all of the consolidated in-service properties within the portfolio to be classified within discontinued operations (see Note 6).

Gains on sales of all properties are recognized in accordance with FASB ASC 360-20. The specific timing of the sale of a building is measured against various criteria in ASC 360-20 related to the terms of the transactions and ~~$7.0 million~~any continuing involvement in ~~2016~~the form of management or financial assistance from the seller associated with the properties. We make judgments based on the specific terms of each transaction as to the amount of the total profit from the transaction that we recognize considering factors such as continuing ownership interest we may have with the buyer ("partial sales") and ~~2014, respectively. We received income tax refunds, net~~our level of ~~federal, state~~future involvement with the property or the buyer that acquires the assets. If the full accrual sales criteria are not met, we defer gain recognition and ~~local income tax payments,~~account for the continued operations of ~~$830,000~~the property by applying the finance, installment or cost recovery methods, as appropriate, until the full accrual sales criteria are met. Estimated future costs to be incurred after completion of each sale are included in ~~2015.~~the determination of the gain on sales.

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~Fair Value Measurements~~Net Income Per Common Share or Common Unit

~~We follow~~Basic net income per common share or Common Unit is computed by dividing net income attributable to common shareholders or common unitholders, less dividends or distributions on share-based awards expected to vest (referred to as "participating securities" and primarily composed of unvested restricted stock units), by the ~~framework established under accounting standard FASB ASC 820~~weighted average number of common shares or Common Units outstanding for ~~measuring fair value~~the period.

Diluted net income per common share is computed by dividing the sum of ~~non-financial assets~~net income attributable to common shareholders and ~~liabilities~~the noncontrolling interest in earnings allocable to Limited Partner Units (to the extent the Limited Partner Units are dilutive), less dividends or distributions on participating securities that are ~~not required or permitted to be measured at fair value on a recurring basis but only in certain circumstances, such as a business combination.~~

~~Assets~~anti-dilutive, by the sum of the weighted average number of common shares outstanding and, ~~liabilities recorded at fair value on the consolidated balance sheets are categorized based on the inputs~~ to the ~~valuation techniques as follows:~~

~~Level 1 inputs utilize quoted prices (unadjusted) in active markets~~extent they are dilutive, weighted average number of Limited Partner Units outstanding and any potential dilutive securities for ~~identical assets~~the period. Diluted net income per Common Unit is computed by dividing the net income attributable to common unitholders, less dividends or ~~liabilities to which we have access.~~

~~Level 2 inputs are inputs other than quoted prices included in Level 1~~distributions on participating securities that are ~~observable~~anti-dilutive, by the sum of the weighted average number of Common Units outstanding and any potential dilutive securities for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals.

~~Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity's own assumptions, as there is little, if any, related market activity.~~

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

In addition to the acquired properties discussed in Note 3, assets measured at fair value on a non-recurring basis in the Consolidated Financial Statements consisted of real estate assets, both buildings and undeveloped land, that were determined to be impaired and recorded at fair value as discussed in Note 6. The table below aggregates the total fair value of these impaired assets as determined during the years ended December 31, 2016, 2015 and 2014, respectively, by the levels in the fair value hierarchy (in thousands):

2016 2015 2014
Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
Real estate assets —
—
$ 34,744
—
—
$ 31,100
—
—
$ 146,767
Investment in land joint ventures —
—
$ —
—
—
$ 19,500
—
—
$ —

~~Use of Estimates~~period.

The ~~preparation~~following table reconciles the components of basic and diluted net income per common share or Common Unit (in thousands):



	2017			2016			2015
General Partner
Net income attributable to common shareholders	$	1,634,431		$	312,143		$	615,310
Less: Dividends on participating securities	(3,981		)	(2,356		)	(3,081		)
Basic net income attributable to common shareholders	1,630,450			309,787			612,229
Add back dividends on dilutive participating securities	3,981			2,356			3,081
Noncontrolling interest in earnings of common unitholders	15,176			3,089			6,404
Diluted net income attributable to common shareholders	$	1,649,607		$	315,232		$	621,714
Weighted average number of common shares outstanding	355,762			349,942			345,057
Weighted average Limited Partner Units outstanding	3,303			3,481			3,582
Other potential dilutive shares	2,946			3,653			3,558
Weighted average number of common shares and potential dilutive securities	362,011			357,076			352,197

Partnership
Net income attributable to common unitholders	$	1,649,607		$	315,232		$	621,714
Less: Distributions on participating securities	(3,981		)	(2,356		)	(3,081		)
Basic net income attributable to common unitholders	$	1,645,626		$	312,876		$	618,633
Add back distributions on dilutive participating securities	3,981			2,356			3,081
Diluted net income attributable to common unitholders	$	1,649,607		$	315,232		$	621,714
Weighted average number of Common Units outstanding	359,065			353,423			348,639
Other potential dilutive units	2,946			3,653			3,558
Weighted average number of Common Units and potential dilutive securities	362,011			357,076			352,197

The following table summarizes the ~~financial statements requires management~~data that is excluded from the computation of net income per common share or Common Unit as a result of being anti-dilutive (in thousands):



	2017	2016	2015
General Partner and Partnership
Other potential dilutive shares or units:
Anti-dilutive outstanding potential shares or units under fixed stock option and other stock-based compensation plans	—	175	997
Anti-dilutive outstanding participating securities	—	—	—

Federal Income Taxes

General Partner

The General Partner has elected to ~~make~~be taxed as a REIT under the Code, as amended. To qualify as a REIT, the General Partner must meet a number of ~~estimates~~organizational and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

~~New Accounting Pronouncements~~

~~Business Combinations~~

~~In January 2017, the FASB issued ASU 2017-01,~~ ~~Business Combinations: Clarifying the Definition of~~operational requirements, including a ~~Business~~ ~~("ASU 2017-01"). ASU 2017-01 provides revised guidance~~requirement to determine when an acquisition meets the definition of a business or should be accounted for as an asset acquisition. ASU 2017-01 requires that when substantially all of the fair value of an acquisition is concentrated in a single identifiable asset or a group of similar identifiable assets it does not meet the definition of a business. ASU 2017-01 also revises the definition of a business to include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output. ASU 2017-01 will be effective, on a prospective basis, for annual and interim reporting periods beginning after

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table reconciles the General Partner's net income to taxable income before the dividends paid deduction, and subject to the 90% distribution requirement, for the years ended December ~~15,~~31, 2017, ~~with early adoption permitted~~2016 and 2015 (in thousands):



	2017			2016			2015
Net income	$	1,654,341		$	315,278		$	621,861
Book/tax differences	(1,076,060		)	(61,133		)	(316,097		)
Taxable income before the dividends paid deduction	578,281			254,145			305,764
Less: capital gains	(441,836		)	(63,550		)	(294,901		)
Adjusted taxable income subject to the 90% distribution requirement	$	136,445		$	190,595		$	10,863

The General Partner's dividends paid deduction is summarized below (in thousands):



	2017			2016			2015
Cash dividends paid	$	576,832		$	255,279		$	307,169
Cash dividends declared and paid in subsequent year that apply to current year	2,500			—			—
Less: Return of capital	—			(6,717		)	—
Plus: Deemed REIT distribution	—			6,717			—
Dividends paid deduction	579,332			255,279			307,169
Less: Capital gain distributions	(441,836		)	(63,550		)	(294,901		)
Dividends paid deduction attributable to adjusted taxable income subject to the 90% distribution requirement	$	137,496		$	191,729		$	12,268

Our tax return for ~~acquisition transactions that have~~the year ended December 31, 2017 has not been ~~reported~~filed. The taxability information presented for our dividends paid in ~~financial statements previously issued or available for issuance. We believe that, after~~2017 is based upon management’s estimate. Consequently, the ~~adoption~~taxability of ~~ASU 2017-01, most~~dividends is subject to change. A summary of ~~our building acquisitions will not meet~~ the ~~definition~~tax characterization of ~~a business, and that third-party transaction costs associated with asset acquisitions will be capitalized. We plan to adopt ASU 2017-01 early, prospectively~~the dividends paid by the General Partner for the ~~three months~~years ended ~~March~~December 31, ~~2017. We do~~2017, 2016 and 2015 is as follows:



	2017		2016		2015
Common Shares
Ordinary income	23.7	%	72.6	%	4.2	%
Return of capital	—	%	2.6	%	—	%
Capital gains	76.3	%	24.8	%	95.8	%
	100.0	%	100.0	%	100.0	%

The 2017 Tax Act, since its enactment date of December 22, 2017, did not ~~believe that the adoption of ASU 2017-01 will~~ have a material impact on our consolidated financial statements.

~~Restricted Cash~~Partnership

~~In November 2016,~~For the ~~FASB issued ASU 2016-18,~~ ~~Statement~~Partnership, the allocated share of ~~Cash Flows: Restricted Cash~~ ~~("ASU 2016-18"). ASU 2016-18 requires entities to show~~income and loss other than the ~~changes~~operations of its taxable REIT subsidiary is included in the total of cash and restricted cash in the statement of cash flows. As a result, entities will no longer present transfers between cash and restricted cash in the statement of cash flows. ASU 2016-18 will be effective for us retrospectively for annual and interim reporting periods beginning after December 15, 2017 with early adoption permitted. We do not believe ASU 2016-18 will have a material impact on our consolidated financial statements.

~~Statement of Cash Flows~~

~~In August 2016, the FASB issued ASU 2016-15,~~ ~~Statement of Cash Flow~~s ("ASU 2016-15"). ASU 2016-15 clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows and how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. ASU 2016-15 will be effective for us retrospectively for annual and interim reporting periods beginning after December 15, 2017 with early adoption permitted. We do not believe ASU 2016-15 will have a material impact on our consolidated financial statements.

~~Stock Compensation~~

~~In March 2016, the FASB issued ASU 2016-09,~~ ~~Stock Compensation: Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"~~), ~~which simplifies certain aspects of accounting for share-based payment transactions, including~~ income tax ~~consequences, forfeitures and~~returns of its partners; accordingly the classification of shares withheld to cover employee tax payments in the statements of cash flows. ASU 2016-09 will be effective for us for annual and interim reporting periods beginning after December 15, 2016, with early adoption permitted. We do not believe the implementation of ASU 2016-09 will have a material impact on our consolidated financial statements.

~~Leases~~

~~In February 2016, the FASB issued ASU 2016-02,~~ ~~Leases~~ ("ASU 2016-02"), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). ASU 2016-02 supersedes existing leasing standards.

ASU 2016-02 requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASU 2016-02 also requires that lessors expense certain initial direct costs, which are capitalizable under existing leasing standards, as incurred.

~~ASU 2016-02 also specifies that payments for certain lease-related services, which are often~~only federal income taxes included in ~~lease agreements, represent "non-lease" components that will become subject to~~ the ~~guidance in ASU 2014-09,~~ ~~Revenue from Contracts with Customers~~ ~~when ASU 2016-02 becomes effective.~~

ASU 2016-02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. ASU 2016-02 will impact the accounting and disclosure requirements for the ground leases, and other operating leases, where we are the lessee.

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

ASU 2016-02 will be effective for us under a modified retrospective approach for annual and interim reporting periods beginning after December 15, 2018, with early adoption permitted. A set of practical expedients for implementation, which must be elected as a package and for all leases, may also be elected. These practical expedients include relief from re-assessing lease classification at the adoption date for expired or existing leases, although a right-of-use asset and lease liability would still be recorded for such leases. We are currently assessing the method of adoption and the impact that ASU 2016-02 will have on ouraccompanying consolidated financial ~~statements.~~statements of the Partnership are in connection with its taxable REIT subsidiary.

Deferred Tax Assets

A full valuation allowance for the deferred tax assets of the taxable REIT subsidiary was maintained for 2017, 2016 and 2015. Based primarily on the projections of taxable income pursuant to our current operating strategy, management believes that it is more likely than not that the taxable REIT subsidiary will not generate sufficient taxable income to realize any of its deferred tax assets. Income taxes are not material to our operating results or financial position. Our taxable REIT subsidiary has no significant net deferred income tax positions or unrecognized tax benefit items.

Revenue Recognition

Rental and Related Revenue

General Contractor and Service Fee Revenue

We recognize income on construction contracts where we serve as a general contractor on the percentage of completion method. Using this method, profits are recorded based on our estimates of the percentage of completion of individual contracts, commencing when the work performed under the contracts reaches a point where the final costs can be estimated with reasonable accuracy. The percentage of completion estimates are based on a comparison of the contract expenditures incurred to the estimated final costs. Changes in job performance, job conditions and estimated profitability may result in revisions to costs and income and are recognized in the period in which the revisions are determined. To the extent that a fixed-price contract is estimated to result in a loss, the loss is recorded immediately.

Under billed and over billed receivables on construction contracts totaled $8.3 million and $276,000, respectively, at December 31, 2017 and $4.8 million and $1.1 million, respectively, at December��31, 2016. Over billed receivables are included in other liabilities in the Consolidated Balance Sheets.

Property Sales

Only disposals representing a strategic shift in operations (for example, a disposal of a major geographic area or a major line of business) should be presented as discontinued operations in accordance with FASB Accounting Standards Codification ("ASC") 205-20 ("ASC 205-20"), without consideration of significant continuing involvement. The Medical Office Portfolio Disposition during 2017 has met the criteria under ASC 205-20 for all of the consolidated in-service properties within the portfolio to be classified within discontinued operations (see Note 6).

Gains on sales of all properties are recognized in accordance with FASB ASC 360-20. The specific timing of the sale of a building is measured against various criteria in ASC 360-20 related to the terms of the transactions and any continuing involvement in the form of management or financial assistance from the seller associated with the properties. We make judgments based on the specific terms of each transaction as to the amount of the total profit from the transaction that we recognize considering factors such as continuing ownership interest we may have with the buyer ("partial sales") and our level of future involvement with the property or the buyer that acquires the assets. If the full accrual sales criteria are not met, we defer gain recognition and account for the continued operations of the property by applying the finance, installment or cost recovery methods, as appropriate, until the full accrual sales criteria are met. Estimated future costs to be incurred after completion of each sale are included in the determination of the gain on sales.

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Net Income Per Common Share or Common Unit

The following table reconciles the components of basic and diluted net income per common share or Common Unit (in thousands):



	2017			2016			2015
General Partner
Net income attributable to common shareholders	$	1,634,431		$	312,143		$	615,310
Less: Dividends on participating securities	(3,981		)	(2,356		)	(3,081		)
Basic net income attributable to common shareholders	1,630,450			309,787			612,229
Add back dividends on dilutive participating securities	3,981			2,356			3,081
Noncontrolling interest in earnings of common unitholders	15,176			3,089			6,404
Diluted net income attributable to common shareholders	$	1,649,607		$	315,232		$	621,714
Weighted average number of common shares outstanding	355,762			349,942			345,057
Weighted average Limited Partner Units outstanding	3,303			3,481			3,582
Other potential dilutive shares	2,946			3,653			3,558
Weighted average number of common shares and potential dilutive securities	362,011			357,076			352,197

Partnership
Net income attributable to common unitholders	$	1,649,607		$	315,232		$	621,714
Less: Distributions on participating securities	(3,981		)	(2,356		)	(3,081		)
Basic net income attributable to common unitholders	$	1,645,626		$	312,876		$	618,633
Add back distributions on dilutive participating securities	3,981			2,356			3,081
Diluted net income attributable to common unitholders	$	1,649,607		$	315,232		$	621,714
Weighted average number of Common Units outstanding	359,065			353,423			348,639
Other potential dilutive units	2,946			3,653			3,558
Weighted average number of Common Units and potential dilutive securities	362,011			357,076			352,197

The following table summarizes the data that is excluded from the computation of net income per common share or Common Unit as a result of being anti-dilutive (in thousands):



	2017	2016	2015
General Partner and Partnership
Other potential dilutive shares or units:
Anti-dilutive outstanding potential shares or units under fixed stock option and other stock-based compensation plans	—	175	997
Anti-dilutive outstanding participating securities	—	—	—

Federal Income Taxes

General Partner

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



	2017			2016			2015
Net income	$	1,654,341		$	315,278		$	621,861
Book/tax differences	(1,076,060		)	(61,133		)	(316,097		)
Taxable income before the dividends paid deduction	578,281			254,145			305,764
Less: capital gains	(441,836		)	(63,550		)	(294,901		)
Adjusted taxable income subject to the 90% distribution requirement	$	136,445		$	190,595		$	10,863

The General Partner's dividends paid deduction is summarized below (in thousands):



	2017			2016			2015
Cash dividends paid	$	576,832		$	255,279		$	307,169
Cash dividends declared and paid in subsequent year that apply to current year	2,500			—			—
Less: Return of capital	—			(6,717		)	—
Plus: Deemed REIT distribution	—			6,717			—
Dividends paid deduction	579,332			255,279			307,169
Less: Capital gain distributions	(441,836		)	(63,550		)	(294,901		)
Dividends paid deduction attributable to adjusted taxable income subject to the 90% distribution requirement	$	137,496		$	191,729		$	12,268

Our tax return for the year ended December 31, 2017 has not been filed. The taxability information presented for our dividends paid in 2017 is based upon management’s estimate. Consequently, the taxability of dividends is subject to change. A summary of the tax characterization of the dividends paid by the General Partner for the years ended December 31, 2017, 2016 and 2015 is as follows:



	2017		2016		2015
Common Shares
Ordinary income	23.7	%	72.6	%	4.2	%
Return of capital	—	%	2.6	%	—	%
Capital gains	76.3	%	24.8	%	95.8	%
	100.0	%	100.0	%	100.0	%

The 2017 Tax Act, since its enactment date of December 22, 2017, did not have a material impact on our consolidated financial statements.

Partnership

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

accompanying consolidated financial statements of the Partnership are in connection with its taxable REIT subsidiary.

Deferred Tax Assets

Cash Paid for Income Taxes

We paid federal, state and local income taxes, net of income tax refunds, of $21.0 million and $600,000 in 2017 and 2016, respectively. We received income tax refunds, net of federal, state and local income tax payments, of $830,000 in 2015.

Fair Value Measurements

We follow the framework established under accounting standard FASB ASC 820 for measuring fair value of non-financial assets and liabilities that are not required or permitted to be measured at fair value on a recurring basis but only in certain circumstances, such as a business combination.

Assets and liabilities recorded at fair value on the consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:

Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities to which we have access.

Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals.

Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity's own assumptions, as there is little, if any, related market activity.

In addition to the acquired properties discussed in Note 3, assets measured at fair value on a non-recurring basis in the Consolidated Financial Statements consisted of real estate assets, both buildings and undeveloped land, which were determined to be impaired and recorded at fair value as discussed in Note 6. The table below aggregates the total fair value of these impaired assets as determined during the years ended December 31, 2017, 2016 and 2015, respectively, by the levels in the fair value hierarchy (in thousands):



	2017				2016				2015
	Level 1	Level 2	Level 3		Level 1	Level 2	Level 3		Level 1	Level 2	Level 3
Real estate assets	—	—	$	14,299	—	—	$	34,744	—	—	$	31,100
Investment in land joint ventures	—	—	—		—	—	—		—	—	$	19,500

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Use of Estimates

The preparation of the financial statements requires management to make a number of estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

New Accounting Pronouncements

Restricted Cash

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash ("ASU 2016-18"). ASU 2016-18 requires entities to show the changes in the total of cash and restricted cash in the statement of cash flows. As a result, entities will no longer present transfers between cash and restricted cash in the statement of cash flows. ASU 2016-18 will be effective for us retrospectively for annual and interim reporting periods beginning after December 15, 2017 with early adoption permitted. We do not believe ASU 2016-18 will have a material impact on our consolidated financial statements.

Statement of Cash Flows

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows ("ASU 2016-15"). ASU 2016-15 clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows and how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. ASU 2016-15 will be effective for us retrospectively for annual and interim reporting periods beginning after December 15, 2017 with early adoption permitted. We do not believe ASU 2016-15 will have a material impact on our consolidated financial statements.

Stock Compensation

In March 2016, the FASB issued ASU 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which simplifies certain aspects of accounting for share-based payment transactions, including income tax consequences, forfeitures and the classification of amounts paid to taxing authorities when shares are withheld to cover employee tax withholdings for certain stock based compensation plans in the statements of cash flows. ASU 2016-09 was effective for us as of January 1, 2017 and did not have a material impact on our consolidated financial statements.

Leases

In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). ASU 2016-02 supersedes existing leasing standards.

ASU 2016-02 also specifies that payments for certain lease-related services, which are often included in lease agreements, represent "non-lease" components that will become subject to the guidance in ASU 2014-09, Revenue from Contracts with Customers, when ASU 2016-02 becomes effective. The FASB recently clarified that only new or modified leases subsequent to adoption of ASU 2016-02 will require different accounting for "non-lease" components under the guidance in ASU 2014-09. On January 5, 2018 the FASB issued a proposed update to ASU 2016-02 (the "Proposed Update"). This Proposed Update includes a practical expedient which would allow lessors not to separate "non-lease" components from the related lease components if both the timing and pattern of the

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

revenue recognition are the same for the "non-lease" components and inclusion of the "non-lease" components into a combined single lease component would not change the lease classification.

ASU 2016-02 will be effective for us under a modified retrospective approach for annual and interim reporting periods beginning after December 15, 2018, with early adoption permitted. The Proposed Update also includes a practical expedient which allows the lessors to use the effective date of ASU 2016-02 as the date of initial application, without restating comparative periods, and to recognize a cumulative effect adjustment as of the effective date.

A set of practical expedients for implementation, which must be elected as a package and for all leases, may also be elected. These practical expedients include relief from re-assessing lease classification at the adoption date for expired or existing leases, although a right-of-use asset and lease liability would still be recorded for such leases. We are currently assessing the method of adoption and the impact that ASU 2016-02 will have on our consolidated financial statements but have tentatively concluded that we will apply the practical expedients.

Revenue Recognition

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"). ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing GAAP revenue recognition guidance as well as impact the existing GAAP guidance governing the sale of non-financial assets. The standard’s core principle is that a company will recognize revenue when it satisfies performance obligations, by transferring promised goods or services to customers, in an amount that reflects the consideration to which the company expects to be entitled in exchange for fulfilling those performance obligations. In doing so, companies will need to exercise more judgment and make more estimates than under existing GAAP guidance.

ASU 2014-09 also created guidance governing the sale of non-financial assets with customers and non-customers with the only difference in the treatment of these transactions being presentation in the statement of operations ~~(i.e., revenue~~(revenue and expense is reported when the sale is to a customer and net gain or loss is reported when the sale is to a non-customer). Based on the nature of our business, we ~~believe~~have concluded that our property sales represent transactions with non-customers.

In February 2017, the FASB issued ASU ~~2014-09 may also impact~~2017-05, Other Income: Gains and Losses from the ~~timing~~Derecognition of ~~recognizing~~Non-financial Assets (“ASU 2017-05”). ASU 2017-05 provides guidance on how entities recognize sales, including partial sales, of non-financial assets ~~as compared~~(and in-substance non-financial assets) to ~~existing GAAP guidance.~~non-customers. ASU 2017-05 requires the seller to recognize a full gain or loss in a partial sale of non-financial assets, to the extent control is not retained. Any noncontrolling interest retained by the seller would, accordingly, be measured at fair value.

Both ASU 2014-09 and ASU 2017-05 will be effective for public entities for annual and interim reporting periods beginning after December 15, ~~2017 and early adoption is permitted in periods ending after December 15, 2016.~~2017. ASU 2014-09 ~~allows~~and ASU 2017-05 allow for either full or modified retrospective ("cumulative effect") adoption. Both standards must be adopted concurrently. We have ~~tentatively~~ concluded that we will adopt both ASU 2014-09 and ASU 2017-05 using the cumulative effect method.

We have ~~begun to evaluate~~evaluated each of our revenue streams under ASU 2014-09 and determined that our revenues that will be impacted by this standard primarily include construction and development fees charged to third parties, fees for services performed for unconsolidated joint ventures and sales of real estate. We expect that the ~~new standard~~amount and timing of revenue recognition from these revenue streams referenced above will be generally consistent with our current measurement and pattern of recognition. In addition, the pattern of recognition for sales of real estate is not

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

expected to change significantly. ~~Additionally, we~~We have primarily disposed of property and land in all cash transactions with no contingencies and no future involvement in the operations, and therefore, do not expect ~~the new standard~~ASU 2017-05 to significantly impact the recognition of property and land sales.

We do not believe that the cumulative adjustment recognized upon adoption of ASU 2014-09 will be material.


(3)	Acquisitions and Dispositions

Acquisitions and dispositions for the periods presented were completed in accordance with our strategy to reposition our investment concentration among the product types and markets in which we ~~operate.~~operate and to increase our overall investments in quality industrial projects. With the exception of certain properties that have subsequently been sold, ~~or classified as held for sale,~~ the results of operations for all acquired properties have been included in continuing operations within our consolidated financial statements since their respective dates of acquisition.

~~Quantico Joint Venture Properties~~ Transaction costs related to asset acquisitions are capitalized and transaction costs related to business combinations and dispositions are expensed.

In the fourth quarter of 2016, pursuant to a pre-existing purchase option, we acquired 14 properties in the Washington D.C. area from the Quantico Joint Venture in which we had a pre-existing equity ownership interest. These 14 properties were comprised of 11 industrial properties and three office properties. These 14 properties were previously encumbered by a $131.3 million CMBS loan and, pursuant to the terms of the purchase option, we repaid the loan as consideration for the acquisition of the underlying properties.2017 Acquisitions

We ~~recognized a gain on this step-acquisition equal to the excess of the fair value of our pre-existing equity ownership interest in the~~ acquired ~~assets over the carrying value of our investment in those assets. The carrying value of our investment was zero as the result of accumulated operating losses at the joint venture level.~~

~~DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

The fair value of the 14 properties acquired was internally determined, primarily using an income approach, and based upon Level 3 inputs, as previously defined. The inputs used in determining the fair value of the acquired properties, as well as allocating that fair value to the individual components of the real estate assets acquired, are disclosed hereafter in the Fair Value Measurements section of this note. The following table summarizes the fair value of the amounts recognized for each major class of assets for this acquisition as well as the computation of the gain on acquisition (in thousands):

Real estate assets $ 120,608
Lease-related intangible assets 16,724
Net working capital liabilities (126 )
Fair value of acquired net assets $ 137,206
Less consideration transferred (CMBS loan payoff) (131,250 )
Fair value of pre-existing equity interest $ 5,956
Less carrying value of investment in acquired properties —
Gain on acquisition $ 5,956

We had previously accounted for our interest in these 14 properties using the equity method. No goodwill or gain on bargain purchase was recognized in connection with this transaction. We sold one of the acquired properties, a 241,000 square foot office property, immediately following the acquisition for net proceeds of $53.4 million, which we also used as the determination of that property's fair value.

~~Distribution of Joint Venture Properties~~

Included in our property acquisitions for the year ended December 31, 2016 was an industrial property that we received as part of a non-cash distribution of properties from Duke/Hulfish LLC ("Duke/Hulfish"), a 20% owned unconsolidated joint venture. On June 30, 2016, as part of a plan of dissolution, Duke/Hulfish distributed its ownership in seven properties to our partner in the joint venture while distributing its ownership interest in one property to us. We also received $2.8 million in cash from the joint venture in order to balance the value of the distributions received in accordance with the applicable ownership percentages. As the result of this dissolution transaction, we recognized a gain equal to the excess of the fair value of the one property distributed to us, plus the cash that we received, over the carrying value of our 20% investment in the eight properties that were distributed from Duke/Hulfish (both to us and our partner). The computation of this gain is shown as follows (in thousands):

Fair value of one property received in non-cash distribution $ 63,000
Cash received at dissolution 2,760
Carrying value of investment in properties distributed to partners (35,063 )
Gain on dissolution of unconsolidated company $ 30,697

In connection with the dissolution of Duke/Hulfish, and the sale of its final property to a third party in July 2016, we recognized promote income (additional incentive-based cash distributions from the joint venture, in excess of our 20% ownership interest), totaling $26.3 million, during the year ended December 31, 2016.

~~Other 2016 Acquisitions~~

~~In addition to the properties acquired from the Quantico Joint Venture, we acquired three~~28 properties during the year ended December 31, ~~2016, which included~~2017. We determined that these 28 properties did not meet the ~~industrial property received as part~~revised definition of a ~~non-cash distribution in connection with~~business as the ~~dissolution~~result of ~~Duke/Hulfish.~~ adopting ASU 2017-01 and, accordingly, they were treated as asset acquisitions as opposed to business combinations.

The following table summarizes ~~the fair value of~~ amounts recognized for each major class of asset and liability (in thousands) for these acquisitions during ~~2016:~~

Real estate assets $ 94,783
Lease-related intangible assets 8,068
Fair value of acquired net assets $ 102,851

~~DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~The leases in the acquired properties, including the Quantico Joint Venture properties, had a weighted average remaining life at acquisition of approximately 7.1 years.~~

We have included $5.1 million in rental revenues and $1.1 million in earnings from continuing operations during 2016 for properties acquired during 2016, including the Quantico Joint Venture properties, since their respective dates of acquisition.

~~2015 Acquisitions~~

~~We acquired two industrial properties during~~ the year ended December 31, 2015, one of which was treated as a business combination and one as an asset acquisition. The following table summarizes the fair value of amounts recognized for each major class of asset (in thousands) for these acquisitions:2017:


Real estate assets	$	26,276	$	945,844
Lease-related intangible assets	2,001
Lease related intangible assets			46,807
Total acquired assets			992,651
Below market lease liability			1,483
Fair value of acquired net assets	$	28,277	$	991,168

During 2017 we acquired a portfolio of real estate assets from the Bridge Development Partners LLC (the "Bridge Portfolio") located in Northern New Jersey, Southern California and South Florida, for a total purchase price of $578.4 million. The Bridge Portfolio includes ten industrial buildings (included in the table above) totaling 3.4 million square feet, which were 68.9% leased, as well as 43 acres of undeveloped land.

The leases in the acquired properties had a weighted average remaining life at acquisition of approximately ~~9.2~~8.7 years.

~~Fair Value Measurements~~

The fair value estimates used in allocating the aggregate fair value of an acquisition, to the extent accounted for as a business combination, among the individual components of real estate assets and liabilities were determined primarily through calculating the "as-if vacant" value of a building, using the income approach, and relied significantly upon internally determined assumptions. We have determined that these estimates primarily rely on Level 3 inputs, which are unobservable inputs based on our own assumptions. The range of the most significant assumptions utilized in making the lease-up and future disposition estimates used in calculating the "as-if vacant" value for acquisition activities during 2016 ~~and 2015, respectively, are as follows:~~Acquisitions

Quantico Joint Venture Properties

2016
Low High
Discount rate 8.00% 10.50%
Exit capitalization rate 6.50% 9.00%
Lease-up period (months) 12 36
Net rental rate per square foot - Industrial $8.20 $8.50
Net rental rate per square foot - Office $9.34 $18.54
In the fourth quarter of 2016, pursuant to a pre-existing purchase option, we acquired 14 properties in the Washington D.C. area from the Quantico Joint Venture in which we had a pre-existing equity ownership interest. These 14 properties were comprised of 11 industrial properties and three office properties. These 14 properties were previously encumbered by a $131.3 million CMBS loan and, pursuant to the terms of the purchase option, we repaid the loan as consideration for the acquisition of the underlying properties.

~~Other 2016 and 2015 Acquisitions~~

2016 2015
Low High Low High
Discount rate 7.46% 8.10% 7.07% 7.07%
Exit capitalization rate 6.25% 6.96% 5.57% 5.57%
Lease-up period (months) 12 12 12 12
Net rental rate per square foot - Industrial $3.35 $3.39 $4.85 $4.85
Net rental rate per square foot - Medical Office $15.40 $15.40 $— $—

~~Acquisition-Related Activity~~

We recognized a gain on this step-acquisition equal to the excess of the fair value of our pre-existing equity ownership interest in the acquired assets over the carrying value of our investment in those assets pursuant to the criteria that were applicable prior to our adoption of ASU 2017-01 as of January 1, 2017. The ~~acquisition-related activity in~~carrying value of our ~~consolidated Statements~~investment was zero as the result of ~~Operations and Comprehensive Income consisted of transaction costs for completed acquisitions, which are expensed as incurred, as well as gains or~~accumulated operating losses ~~related to~~at the joint venture level.

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



Real estate assets	$	120,608
Lease-related intangible assets	16,724
Net working capital liabilities	(126		)
Fair value of acquired net assets	$	137,206
Less consideration transferred (CMBS loan payoff)	(131,250		)
Fair value of pre-existing equity interest	$	5,956
Less carrying value of investment in acquired properties	—
Gain on step acquisition	$	5,956

During 2017, we sold our remaining interest in the Quantico Joint Venture.

Distribution of Joint Venture Properties

Included in our property acquisitions ~~where~~for the year ended December 31, 2016 was an industrial property that we received as part of a non-cash distribution of properties from Duke/Hulfish LLC ("Duke/Hulfish"), a former 20% owned unconsolidated joint venture. On June 30, 2016, as part of a plan of dissolution, Duke/Hulfish distributed its ownership in seven properties to our partner in the joint venture while distributing its ownership interest in one property to us. We also received $2.8 million in cash from the joint venture in order to balance the value of the distributions received in accordance with the applicable ownership percentages. As the result of this dissolution transaction, we recognized a gain equal to the excess of the fair value of the one property distributed to us, plus the cash that we received, over the carrying value of our 20% investment in the eight properties that were distributed from Duke/Hulfish (both to us and our partner). The computation of this gain is shown as follows (in thousands):



Fair value of one property received in non-cash distribution	$	63,000
Cash received at dissolution	2,760
Carrying value of investment in properties distributed to partners	(35,063		)
Gain on dissolution of unconsolidated joint venture	$	30,697

Other 2016 Acquisitions

In addition to the properties acquired from the Quantico Joint Venture, we acquired three properties during the year ended December 31, 2016, which included the industrial property received as part of a non-cash distribution in connection with the dissolution of Duke/Hulfish. The following table summarizes the fair value of amounts recognized for each major class of asset (in thousands) for these acquisitions during 2016:

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



Real estate assets	$	94,783
Lease-related intangible assets	8,068
Fair value of acquired net assets	$	102,851

The leases in the acquired properties, including the Quantico Joint Venture properties, had a ~~pre-existing non-controlling ownership interest.~~weighted average remaining life at acquisition of approximately 7.1 years.

We included $5.1 million in rental revenues and $1.1 million in earnings from continuing operations during 2016 for properties acquired during 2016, including the Quantico Joint Venture properties, since their respective dates of acquisition.

2015 Acquisitions

During 2015, we acquired two industrial buildings for approximately $28.8 million.

Fair Value Measurements

The fair value estimates used in allocating the aggregate fair value of an acquisition among the individual components of real estate assets and liabilities were determined primarily through calculating the "as-if vacant" value of a building, using the income approach, and relied significantly upon internally determined assumptions. We have determined that these estimates primarily rely on Level 3 inputs, which are unobservable inputs based on our own assumptions. The range of the most significant assumptions utilized in making the lease-up and future disposition estimates used in calculating the "as-if vacant" value for acquisition activities during 2017 and 2016, respectively, are as follows:

Quantico Joint Venture Properties



	2016
	Low	High
Exit capitalization rate	6.50%	9.00%
Net rental rate per square foot - Industrial	$8.20	$8.50
Net rental rate per square foot - Office	$9.34	$18.54

2017 and other 2016 Acquisitions



	2017		2016
	Low	High	Low	High
Exit capitalization rate	4.03%	5.65%	6.25%	6.96%
Net rental rate per square foot - Industrial	$3.50	$10.00	$3.35	$3.39
Net rental rate per square foot - Medical Office	N/A	N/A	$15.40	$15.40

An acquisition during the year ended December 31, 2017 is located in a high performing industrial market in Northern New Jersey which is at the high end of our range of assumptions for net rental rate per square foot.

Capitalized acquisition costs were insignificant and the fair value of the 28 properties acquired during the year ended December 31, 2017 was substantially the same as the cost of acquisition.

Acquisition-Related Activity

The acquisition-related activity in our consolidated Statements of Operations and Comprehensive Income consisted of the following, for the years ended December 31, 2017, 2016 and 2015, respectively (in thousands):

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



	2017		2016			2015
Acquisition costs	$	—	$	(96	)	$	(499	)
Gains on step acquisitions	—		7,272			—
Contingent consideration	—		—			(8,000		)
Acquisition-related activity	$	—	$	7,176		$	(8,499	)

Acquisition-related activity during 2016 was primarily driven by the gain on the step acquisition of the 14 Quantico Joint Venture properties mentioned above, as well as the gain on the step acquisition of an additional property from another unconsolidated joint venture. Acquisition-related activity in 2015 was primarily driven by the change in the fair value, and ultimate settlement of, contingent consideration related to a previous period's real estate portfolio acquisition that was treated as a business combination.

Effective January 1, 2017, we early adopted ASU 2017-01, which revised the definition of a business and resulted in fewer property acquisitions being accounted for as business combinations. We recognized ~~$7.2 million of~~no income or expense from acquisition-related activities for the year ended December 31, ~~2016 and $8.5 million and $1.1 million of expense for the years ended 2015 and 2014, respectively.~~2017.

Acquisition-related activity during 2016 was primarily driven by a gain of $6.0 million on the step-acquisition of the 14 Quantico Joint Venture properties and a gain of $1.7 million on the step-acquisition of an additional property from another unconsolidated joint venture, which was unrelatedPrior to the ~~previously mentioned Quantico~~adoption of ASU 2017-01, most properties that were acquired met the definition of a business and ~~Duke/Hulfish~~transaction costs were expensed as incurred. Gains or losses were recognized from step acquisitions. Substantially all of the expense activity in 2015 was driven by an increase to the estimated fair value, and ultimate settlement, of contingent consideration that related to a previous period's real estate portfolio acquisition.

Dispositions

We disposed of buildings (see Note 6 for the number of buildings sold in each year, as well as for their classification between continuing and discontinued operations) and undeveloped land, which generated net cash proceeds of $2.52 billion, $538.6 million and $1.68 billion in 2017, 2016 and 2015, respectively.

Significant 2017 Dispositions

Dispositions during the year ended December 31, 2017 included 85 consolidated properties sold as part of the Medical Office Portfolio Disposition to a subsidiary of Healthcare Trust of America, Inc. ("HTA"), as well as certain other buyers, for a total sales price of $2.78 billion and a gain on sale of $1.39 billion. One of these consolidated properties was sold during the three months ended December 31, 2017, for a total sales price of $178.5 million and a gain on sale of $128.0 million. The Medical Office Portfolio Disposition was executed in connection with our strategy to focus solely on the industrial real estate product type.

A portion of the sale price for the Medical Office Portfolio Disposition was financed through either unsecured notes, or first mortgage interests in a portion of the sold properties, that we provided to HTA and other buyers, totaling $400.0 million, which is reflected within notes receivable from property sales in the Consolidated Balance Sheets. These instruments mature at various points through January 2020 and all bear interest at 4.0%. We concluded that the value, and the rate of interest, for these financial instruments would approximate fair value as computed using an income approach and that this determination of fair value was primarily based upon Level 3 inputs. We have reviewed the creditworthiness of the borrowers and have concluded it is probable that we will collect all amounts due according to their contractual terms.

~~$538.6~~In connection with the Medical Office Portfolio Disposition, during the year ended December 31, 2017 we received $105.3 million for the sale of our interest in two unconsolidated joint ventures whose underlying assets were comprised of medical office properties, which is reflected within Capital Distributions from Unconsolidated Joint Ventures within the Consolidated Statements of Cash Flows. We recorded $47.5 million of income related to the sale of our interests in these unconsolidated joint ventures within equity in earnings of unconsolidated joint ventures in the Consolidated Statements of Operations and Comprehensive Income. In connection with the sale of our interest in one of these unconsolidated joint ventures, we also recorded promote income (additional incentive-based cash distributions from the joint venture, in excess of our ownership interest) of $20.0 million from the sale of our interest, which is reflected as a separate line item in the Consolidated Statements of Operations and Comprehensive Income and reflected within net cash provided by operating activities within the Consolidated Statements of Cash Flows. In connection with the sale, we recorded income tax expense totaling $17.7 million including $12.5 million, ~~$1.68 billion~~

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

classified within discontinued operations and ~~$493.2~~$5.2 million classified within continuing operations in ~~2016,~~the Consolidated Statements of Operations and Comprehensive Income.

Significant 2015 ~~and 2014, respectively.~~Dispositions

On April 1, 2015, we completed the previously announced suburban office portfolio sale to a joint venture with affiliates of Starwood Capital Group, Vanderbilt Partners and Trinity Capital Advisors for approximately $1.07 billion in proceeds and recorded a gain on sale of $406.1 million. The suburban office portfolio sale included all of our ~~wholly-owned,~~wholly owned, in-service suburban office properties located in Nashville, Raleigh, South Florida and St. Louis. The portfolio included approximately 6.7 million square feet across 61 buildings and 57 acres of undeveloped land. Additionally, an office asset in Raleigh, which was under construction at the time of the suburban office portfolio sale, was completed in late 2015 and sold to the same buyers in January 2016.

A portion of the purchase price for the suburban office portfolio sale was financed through a $200.0 million first mortgage on certain of the properties in the ~~Suburban Office Portfolio~~suburban office portfolio that we provided to the buyer. The first mortgage ~~matured on December 31, 2016, was prepayable after January 1, 2016, and~~ bore interest at LIBOR plus 1.5%~~. This first mortgage~~ and was repaid in full during 2016.

On April 8, 2015, we completed the sale of 51 non-strategic industrial properties for $270.0 million in proceeds and recorded a gain on sale of $107.4 million. These properties totaled 5.2 million square feet and were located in primarily Midwest markets.

Included in the building dispositions in 2014 was the sale of six office properties in Cincinnati, Ohio, which totaled 1.0 million square feet and were sold for $150.5 million, as well as the sale of two office properties in South Florida, which totaled 466,000 square feet and were sold for $128.0 million.

The income tax benefit from continuing operations in 2014 was triggered by sales of properties owned, or partially owned, by our taxable REIT subsidiary. Income tax expense included in discontinued operations in 2014 was also the result of the sale of a property, prior to the adoption of ASU 2014-08, which was partially owned by our taxable REIT subsidiary where we have no continuing involvement.

During the year ended December 31, 2014, eleven office properties, eleven industrial properties and one retail property were sold by six of our unconsolidated joint ventures, for which our capital distributions totaled $91.8 million and our share of gains, which are included in equity in earnings, totaled $84.6 million. These sales included a 436,000 square foot office tower in Atlanta, Georgia and a 382,000 square foot retail property in Minneapolis, Minnesota.

All other dispositions were not individually material.


(4)	Related Party Transactions

We provide property management, asset management, leasing, construction and other tenant-related services to unconsolidated ~~companies~~joint ventures in which we have equity interests. We recorded the corresponding fees based on contractual terms that approximate market rates for these types of services and have eliminated our ownership percentage of these fees in the consolidated financial statements. The following table summarizes the fees earned

~~DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

from these ~~companies,~~joint ventures, prior to elimination, for the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014,~~2015, respectively (in thousands):


	2016		2015		2014		2017		2016		2015
Management fees	$	4,467	$	6,831	$	8,530	$	2,422	$	4,467	$	6,831
Leasing fees	2,438		3,048		3,410		1,158		2,438		3,048
Construction and development fees	7,993		6,126		5,846		6,940		7,993		6,126


(5)	Investments in Unconsolidated ~~Companies~~Joint Ventures

Summarized Financial Information

As of December 31, ~~2016,~~2017, we had equity interests in 13nine unconsolidated joint ventures that primarily own and operate rental properties and hold land for development.

Combined summarized financial information for the unconsolidated ~~companies~~joint ventures at December 31, ~~2016~~2017 and ~~2015,~~2016, and for the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014,~~2015, are as follows (in thousands):

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


	2016		2015			2014		2017		2016		2015
Rental revenue	$	122,019	$	160,543		$	230,093	$	71,424	$	122,019	$	160,543
Gain on sale of properties	$	100,806	$	23,696		$	121,713	$	4,986	$	100,806	$	23,696
Net income	$	122,727	$	60,772		$	143,857	$	20,673	$	122,727	$	60,772

Equity in earnings (loss) of unconsolidated companies	$	47,403	$	(3,304	)	$	94,317
Equity in earnings (loss) of unconsolidated joint ventures (1)								$	63,310	$	47,403	$	(3,304	)

Land, buildings and tenant improvements, net	$	529,926	$	1,029,803				$	383,581	$	529,926
Construction in progress	31,838		64,646					65,715		31,838
Undeveloped land	90,560		115,773					30,170		90,560
Other assets	91,045		144,337					76,695		91,045
	$	743,369	$	1,354,559				$	556,161	$	743,369

Indebtedness	$	172,811	$	413,651				$	235,497	$	172,811
Other liabilities	32,633		91,836					39,497		32,633
	205,444		505,487					274,994		205,444
Owners' equity	537,925		849,072					281,167		537,925
	$	743,369	$	1,354,559				$	556,161	$	743,369

Investments in and advances to unconsolidated companies (1)	$	197,807	$	268,390
Investments in and advances to unconsolidated joint ventures (2)								$	126,487	$	197,807

(1) During 2017, we sold our interests in certain joint ventures, including the interests in the joint ventures sold in connection with the Medical Office Portfolio Disposition (see Note 3) for which we recognized a gain of $47.5 million. The gains recognized in connection with our sales of these ownership interests, which are classified within equity in earnings of unconsolidated joint ventures on the Consolidated Statements of Operations and Comprehensive Income, are not reflected in the summarized financial information for the underlying unconsolidated joint ventures.

(2) Differences between the net investment in our unconsolidated joint ventures and our underlying equity in the net assets of the ventures are primarily a result of previous impairments related to our investment in the unconsolidated joint ventures, basis differences associated with the sales of properties to joint ventures in which we retained an ownership interest and loans we have made to the joint ventures. These adjustments have resulted in an aggregate difference reducing our investments in unconsolidated joint ventures by ~~$22.2~~$6.4 million and ~~$33.7~~$22.2 million as of December 31, 2017 and 2016, ~~and 2015,~~ respectively. ~~The substantial majority of the basis differences are related to other than temporary impairments on joint venture investments recognized during 2015, as described hereafter.~~ Differences between historical cost basis and the basis reflected at the joint venture level (other than loans and impairments) are typically depreciated over the life of the related asset.

The scheduled principal payments of long term debt for the unconsolidated joint ventures, at our ratable ownership percentage, for each of the next five years and thereafter as of December 31, ~~2016~~2017 are as follows (in thousands):

~~DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~


Year	Future Repayments		Future Repayments
2017	$	129
2018	26,184		$	136
2019	4,118		4,118
2020	9,533		9,533
2021	10		57,629
2022			122
Thereafter	37,115		36,993
	$	77,089	$	108,531

Other Than Temporary Impairment of Investments in Unconsolidated Joint Ventures

During 2015, we recognized $30.0 million of charges through equity in earnings related to investments in three of our unconsolidated joint ventures that we determined had experienced declines in fair value that were other than temporary.

The most significant of these impairment charges pertain to our investment in the Linden joint venture, whose sole asset is undeveloped retail land. The Linden joint venture has not been able to proceed with development of its land as the result of a series of zoning and use-related legal challenges. During the three months ended December 31,

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2015, we changed our strategy such that we now intend to monetize our investment in the joint venture rather than holding for development and continuing to attempt to resolve the legal challenges. As the result of this change in strategy, we determined that an other-than-temporary decline in the value of our investment in the joint venture had taken place. During the three months ended December 31, 2015, we recognized a $19.5 million impairment charge to write our investment in the Linden joint venture to its fair value. The fair value of our investment in the joint venture was primarily based on offers received for the site. The joint venture had no outstanding debt as of December 31, 2015.

We believe that all of the fair value estimates used in recording the above-mentioned charges were based on ~~level~~Level 3 inputs, as previously defined.


(6)	Real Estate Assets, Discontinued Operations, Assets ~~Held-for-Sale~~Held for Sale and Impairments

Real Estate Assets

Real estate assets, excluding assets held for sale, consisted of the following (in thousands):



	December 31, 2017		December 31, 2016
Buildings and tenant improvements	$	4,642,832	$	3,752,423
Land and improvements	1,950,735		1,392,382
Real estate assets	$	6,593,567	$	5,144,805

Discontinued Operations

All of the properties sold during the year ended December 31, 2017 and included in discontinued operations are medical office properties. Because of the size of the Medical Office Portfolio Disposition, and the fact that it represented our exit from the medical office product type, we determined that the disposition represented a strategic shift that would have a major effect on our operations and financial results. As such, the consolidated in-service properties in this portfolio met the criteria to be classified within discontinued operations. As the result of its classification within discontinued operations, the in-service assets and liabilities of this portfolio are required to be presented as held for sale for all prior periods presented in our Consolidated Balance Sheets. Operating results pertaining to the properties classified within discontinued operations were reclassified to discontinued operations for all prior periods presented in our Consolidated Statements of Operations and Comprehensive Income.

The following table illustrates the number of sold or held-for-sale properties included in, or excluded from, discontinued operations:


	Held-for-Sale at December 31, 2016	Sold in 2016	Sold in 2015	Sold in 2014	Total	Held-for-Sale at December 31, 2017	Sold in 2017	Sold in 2016	Sold in 2015	Total
Industrial	0	0	5	11	16	—	—	—	5	5
Medical Office	0	0	1	1	2
Non-reportable Rental Operations	0	0	56	0	56
Non-Reportable Rental Operations						—	81	—	57	138
Total properties included in discontinued operations	0	0	62	12	74	—	81	—	62	143
Properties excluded from discontinued operations	5	32	91	17	145	1	17	32	91	141
Total properties sold or classified as held-for-sale	5	32	153	29	219	1	98	32	153	284

Properties sold in 2017 but excluded from discontinued operations included four properties under development, which were disposed as part of the Medical Office Portfolio Disposition, as these properties did not meet the criteria to be included in discontinued operations.

For the properties that were classified in discontinued operations, we allocated interest expense to discontinued operations and have included such interest expense in computing income from discontinued operations. Interest expense allocable to discontinued operations includes interest on any secured debt for properties included in discontinued operations and an allocable share of our consolidated unsecured interest expense for unencumbered

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

properties. The allocation of unsecured interest expense to discontinued operations was based upon the gross book value of the unencumbered real estate assets included in discontinued operations as it related to the total gross book value of our unencumbered real estate assets. ~~There were no additional properties classified as discontinued operations during 2016 and, as such, no interest expense was allocated to discontinued operations during that year.~~

~~DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

The following table illustrates the operational results of the buildings reflected in discontinued operations for the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014,~~2015, respectively (in thousands):


	2016		2015			2014			2017			2016			2015
Revenues	$	983	$	32,549		$	120,884		$	87,185		$	172,716		$	189,805
Operating expenses	8		(12,498		)	(47,123		)	(28,102		)	(52,795		)	(61,916		)
Depreciation and amortization	—		(3,517		)	(38,342		)	(25,911		)	(75,261		)	(75,082		)
Operating income	991		16,534			35,419			33,172			44,660			52,807
Interest expense	—		(5,595		)	(24,348		)	(14,736		)	(28,819		)	(40,911		)
Income before gain on sales	991		10,939			11,071			18,436			15,841			11,896
Gain on sale of depreciable properties	1,016		424,892			22,763			1,357,778			1,016			424,892
Income from discontinued operations before income taxes	2,007		435,831			33,834			1,376,214			16,857			436,788
Income tax expense	—		(3,175		)	(2,969		)	(12,465		)	—			(3,175		)
Income from discontinued operations	$	2,007	$	432,656		$	30,865		$	1,363,749		$	16,857		$	433,613

Income tax expense included in discontinued operations ~~was the result of~~relates to the sale of ~~a property, prior to the adoption of ASU 2014-08, which was partially~~certain properties owned by our taxable REIT ~~subsidiary where we have no continuing involvement.~~subsidiary.

Capital expenditures on a cash basis for the years ended December 31, 2017, 2016 and 2015 ~~and 2014~~ were ~~$7.4~~$20.9 million $33.7 million and ~~$32.5~~$131.3 million, respectively, related to properties classified within discontinued operations. ~~We had no capital expenditures during 2016 related to properties classified within discontinued operations.~~

Dividends or distributions on preferred shares or Preferred Units and adjustments for the redemption or repurchase of preferred shares or Preferred Units are allocated entirely to continuing operations for both the General Partner and the Partnership.

Allocation of Noncontrolling Interests - General Partner

The following table illustrates the General Partner's share of the income attributable to common shareholders from continuing operations and discontinued operations, reduced by the allocation of income between continuing and discontinued operations to noncontrolling interests, for the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014,~~2015, respectively (in thousands):


	2016		2015		2014		2017		2016		2015
Income from continuing operations attributable to common shareholders	$	310,156	$	187,099	$	174,419	$	288,075	$	295,452	$	186,152
Income from discontinued operations attributable to common shareholders	1,987		428,211		30,474		1,346,356		16,691		429,158
Net income attributable to common shareholders	$	312,143	$	615,310	$	204,893	$	1,634,431	$	312,143	$	615,310

Allocation of Noncontrolling Interests - Partnership

Substantially all of the income from discontinued operations for all periods presented in the Partnership's Consolidated Statements of Operations and Comprehensive Income is attributable to the common unitholders.

~~Properties~~Assets Held-for-Sale

At December 31, ~~2016, five~~2017, one in-service ~~properties and 39 acres of undeveloped land were~~property was classified as held-for-sale but did not meet the criteria to be classified within discontinued operations. The following table illustrates aggregate balance sheet information for all held-for-sale properties (in thousands):

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


							Held-for-Sale Properties
	Held-for-Sale Properties Included in Continuing Operations						December 31, 2017				December 31, 2016
	December 31, 2016			December 31, 2015				Total			Included in Continuing Operations			Included in Discontinued Operations			Total
Land and improvements	$	3,631		$	9,797			$	8,157		$	3,631		$	118,882		$	122,513
Buildings and tenant improvements	37,495			39,480				10,505			37,495			1,218,468			1,255,963
Undeveloped land	22,657			—				—			22,657			—			22,657
Accumulated depreciation	(18,581		)	(7,183		)		(2,553		)	(18,581		)	(240,685		)	(259,266		)
Deferred leasing and other costs, net	3,091			3,293				862			3,091			83,522			86,613
Other assets	3,334			414				579			3,334			92,444			95,778
Total assets held-for-sale	$	51,627		$	45,801			$	17,550		$	51,627		$	1,272,631		$	1,324,258

Accrued expenses	$	1,363		$	322
Other liabilities	298			650
Total liabilities held-for-sale	$	1,661		$	972			$	1,163		$	1,661		$	54,630		$	56,291

Impairment Charges

The following table illustrates impairment charges recognized during the years ended December 31, 2017, 2016 and 2015, respectively (in thousands):


	2016		2015		2014		2017		2016		2015
Impairment charges - land	$	14,299	$	19,526	$	33,700	$	3,622	$	14,299	$	19,526
Impairment charges - building	3,719		3,406		15,406		859		3,719		3,406
Impairment charges	$	18,018	$	22,932	$	49,106	$	4,481	$	18,018	$	22,932

Primarily as the result of changes in our intended use for certain of our undeveloped land holdings, we recognized impairment charges of $3.6 million, $14.3 million ~~$19.5 million~~ and ~~$33.7~~$19.5 million for the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014,~~2015, respectively. The various land holdings written down to fair value totaled 12, 244 ~~139~~ and ~~442~~139 acres for the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014,~~2015, respectively. The fair value of the land upon which we recognized impairment charges was estimated based on asset-specific offers to purchase, comparable transactions and, in certain cases, estimates made by national and local independent real estate brokers who were familiar with the land parcels subject to evaluation as well as with conditions in the specific markets where the various land parcels are located. In all cases when estimates from brokers were utilized, members of our senior management who were responsible for the individual markets where the land parcels are located, and members of the Company’s accounting and financial management team, reviewed the broker’s estimates for factual accuracy and reasonableness. In all cases, we were ultimately responsible for all valuation estimates made in determining the extent of the impairment. Our valuation estimates primarily relied upon Level 3 inputs.

During the fourth quarter of 2014, we completed a review of our existing portfolio of buildings and determined that certain buildings, which had previously not been actively marketed for disposal, were not strategic and would not be held as long-term investments. We determined that, as the result of this change to management's strategy, six properties were impaired during the year ended December 31, 2014. Impairment charges of $15.4 million were recognized for the year ended December 31, 2014. Our estimates of fair value for these buildings were based primarily upon asset-specific purchase and sales contracts as well as using the income approach for a single property. For the property for which the income approach was utilized in determining fair value, which was an office property in Washington D.C., the most significant assumptions utilized were the exit capitalization rate of 8.50% and the net rental rate of $12.50 per square foot. We have concluded that our valuation estimates for the building impairments recognized during 2014 were primarily based on Level 3 inputs.


(7)	Indebtedness

All debt is held directly or indirectly by the Partnership. The General Partner does not have any indebtedness, but does guarantee some of the unsecured debt of the Partnership.

Indebtedness at December 31, 2017 and 2016 consists of the following (in thousands):

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~Indebtedness at December 31, 2016 and 2015 consists of the following (in thousands):~~


	Maturity Date	Weighted Average Interest Rate		Weighted Average Interest Rate						Maturity Date	Weighted Average Interest Rate		Weighted Average Interest Rate
	Maturity Date	2016		2015		2016		2015		Maturity Date	2017		2016		2017		2016
Fixed rate secured debt	2017 to 2027	7.13	%	6.55	%	$	381,894	$	736,896	2018 to 2027	7.43	%	7.13	%	$	309,463	$	381,894
Variable rate secured debt	2025	0.79	%	0.03	%	2,800		3,100		2025	1.85	%	0.79	%	2,500		2,800
Unsecured debt	2017 to 2028	4.12	%	4.63	%	2,498,835		2,530,743		2018 to 2028	3.89	%	4.12	%	2,132,042		2,498,835
Unsecured line of credit	2019	1.70	%	1.41	%	48,000		71,000		2022	N/A		1.70	%	—		48,000
						$	2,931,529	$	3,341,739						$	2,444,005	$	2,931,529
Less: Deferred financing costs						23,052		21,598							21,114		23,052
Total indebtedness as reported on consolidated balance sheets						$	2,908,477	$	3,320,141						$	2,422,891	$	2,908,477

Secured Debt

At December 31, ~~2016,~~2017, our secured debt was collateralized by rental properties with a carrying value of ~~$848.5~~$752.1 million and by a letter of credit in the amount of ~~$2.9~~$2.6 million.

The fair value of our fixed rate secured debt at December 31, ~~2016~~2017 was ~~$415.2~~$325.8 million. Because our fixed rate secured debt is not actively traded in any marketplace, we utilized a discounted cash flow methodology to determine its fair value. Accordingly, we calculated fair value by applying an estimate of the current market rate to discount the debt's remaining contractual cash flows. Our estimate of a current market rate, which is the most significant input in the discounted cash flow calculation, is intended to replicate debt of similar maturity and loan-to-value relationship. The estimated rates ranged from ~~2.80%~~3.60% to ~~4.00%~~3.90%, depending on the attributes of the specific loans. The current market rates we utilized were internally estimated; therefore, we have concluded that our determination of fair value for our fixed rate secured debt was primarily based upon Level 3 inputs.

During 2017, we repaid eight fixed rate secured loans, totaling $66.5 million, which had a weighted average stated interest rate of 5.85%.

During 2016, we repaid seven loans, totaling $346.7 million, which had a weighted average stated rate of 5.90%.

During 2015, we repaid 17 secured loans, totaling $231.2 million. These loans had a weighted average stated interest rate of 5.41%. Certain of these secured loans were repaid prior to their scheduled maturity date, which resulted in a $3.7 million loss on extinguishment, which included both prepayment penalties as well as the write-off of unamortized deferred loan and mark to market costs.

Unsecured Debt

At December 31, ~~2016, with the exception of the $250.0 million variable rate term note described below,~~2017, all of our unsecured debt bore interest at fixed rates and primarily consisted of unsecured notes that are publicly traded. We utilized broker estimates in estimating the fair value of our fixed rate unsecured debt. Our unsecured notes are thinly traded and, in certain cases, the broker estimates were not based upon comparable transactions. The broker estimates took into account any recent trades within the same series of our fixed rate unsecured debt, comparisons to recent trades of other series of our fixed rate unsecured debt, trades of fixed rate unsecured debt from companies with profiles similar to ours, as well as overall economic conditions. We reviewed these broker estimates for reasonableness and accuracy, considering whether the estimates were based upon market participant assumptions within the principal and most advantageous market and whether any other observable inputs would be more accurate indicators of fair value than the broker estimates. We concluded that the broker estimates were representative of fair value. We have determined that our estimation of the fair value of our fixed rate unsecured debt was primarily based upon Level 3 ~~inputs, as defined.~~inputs. The estimated trading values of our fixed rate unsecured debt, depending on the maturity and coupon rates, ranged from ~~96.00%~~99.00% to ~~127.00%~~130.00% of face value.

The indentures (and related supplemental indentures) governing our outstanding series of notes also require us to comply with financial ratios and other covenants regarding our operations. We were in compliance with all such financial covenants at December 31, 2017.

We ~~utilize a discounted cash flow methodology in order~~took the following actions during 2017 and 2016 as it pertains to ~~estimate the fair value of~~ our ~~$250.0 million variable rate term loan. Our estimate of the current market rate for our variable rate term loan was 1.63% and was based~~unsecured indebtedness:

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~primarily upon level 3 inputs. To the extent that credit spreads have changed since the origination of this~~

In June 2017, we repaid our $250.0 million variable rate term loan, which had a scheduled maturity date of January 2019 and bore interest at LIBOR plus 1.00%, and recognized a loss of $523,000 from the ~~net present value~~write-off of ~~the difference between future contractual~~unamortized deferred financing costs.

In June 2017, we also repaid $285.6 million of senior unsecured notes that had a stated interest ~~payments~~rate of 6.50% and ~~future~~an effective interest ~~payments based on our estimate~~rate of 6.08%, with a ~~current market rate would represent the difference between the book value~~scheduled maturity date of January 2018. We recognized a loss of $9.0 million including a repayment premium and the ~~fair value. Our estimate~~write-off of unamortized deferred financing costs.

In July 2017, we repaid $128.7 million of senior unsecured notes that had both a ~~current market rate is based upon the rate, considering current market conditions~~stated and ~~our specific credit profile, at which we estimate we could obtain similar borrowings. As our credit spreads have not changed appreciably, we believe that the contractual~~an effective interest rate of 6.75% with a scheduled maturity date of March 2020. We recognized a loss of $16.6 million including a repayment premium and the ~~current market~~write-off of unamortized deferred financing costs.

In December 2017, we issued $300.0 million senior unsecured notes that bear interest at a stated interest rate of 3.38%, have an effective interest rate of 3.39% and mature on ~~the term loan are the same.~~December 15, 2027.

~~We took the following actions during 2016 and 2015 as it pertains to our unsecured indebtedness:~~

In June 2016, we issued $375.0 million of unsecured notes that bear interest at a stated interest rate of 3.25%, have an effective interest rate of 3.36%, and mature on June 30, 2026.

During June and July 2016 we repaid $275.0 million of our 5.95% senior unsecured notes, which had a scheduled maturity of February 2017, through the combination of a tender offer and the subsequent redemption of the remaining notes that were not tendered, for cash payments totaling $283.5 million. Together, the tender offer and the redemption resulted in an $8.8 million loss on debt extinguishment, which primarily consisted of premiums paid to the noteholders and the write-off of unamortized deferred financing costs.

In October 2016, we redeemed $129.5 million of unsecured notes, which had a scheduled maturity in August 2019, for a cash payment of $154.1 million. These notes had a stated rate of 8.25% and an effective rate of 8.38%. We recognized a net loss on the extinguishment of these notes in the fourth quarter totaling $25.2 million, which was comprised of a make-whole payment to the noteholders as well as the write-off of unamortized deferred financing costs.

~~In February 2015, we repaid a $250.0 million senior unsecured note at its maturity date. This loan had a stated interest rate of 7.38% and an effective rate of 7.50%.~~

In April 2015, the Partnership completed a tender offer to purchase, for a combined aggregate purchase price (exclusive of accrued and unpaid interest) of up to $500.0 million, certain of its outstanding series of unsecured notes. A portion of the proceeds from the suburban office portfolio sale were used to fund the Tender Offer, which resulted in the repurchase of notes having a face value of $424.9 million, for a cash payment of $500.0 million. The repurchased notes had contractual maturity dates ranging between February 2017 and March 2020 and bore interest at stated rates ranging between 5.95% and 8.25%.

~~In May 2015, we repurchased unsecured notes with a face value of $6.3 million, for a cash payment of $7.1 million. These notes had a stated interest rate of 6.50% and an effective rate of 6.08%.~~

In October 2015, we redeemed $150.0 million in unsecured notes that had a scheduled maturity in March 2016, for a cash payment of $152.6 million. These notes had a stated interest rate of 5.50% and an effective rate of 6.72%.

During 2015, the early repayment of unsecured notes, either through the tender offer or repurchase, resulted in an aggregate loss on extinguishment of $82.0 million, which included applicable repurchase premiums as well as the write-off of unamortized deferred loan costs.

Unsecured Line of Credit

Our unsecured line of credit at December 31, ~~2016~~2017 is described as follows (in thousands):


				Outstanding Balance at					Outstanding Balance at
Description	Borrowing Capacity		Maturity Date	December 31, 2016		Borrowing Capacity		Maturity Date	December 31, 2017
Unsecured Line of Credit – Partnership	$	1,200,000	January 2019	$	48,000	$	1,200,000	January 30, 2022	$	—

The Partnership's unsecured line of credit has an interest rate on borrowings of LIBOR plus 0.93% (equal to 1.70% for outstanding borrowings at December 31, 2016), which is a decrease from a rate of LIBOR plus 1.05% as of December 31, 2015 due to an upgrade in our credit ratings with Moody's Investors Service from Baa2 to Baa1and

~~DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~Standard~~0.875% and ~~Poor's Financial Services from BBB to BBB+. The Partnership's unsecured line of credit has~~ a maturity date of January ~~2019, but may be extended by one year at our option.~~30, 2022, with options to extend until January 30, 2023. Subject to certain conditions, the terms also include an option to increase the facility by up to an additional ~~$400.0~~$800.0 million, for a total of up to ~~$1.60~~$2.00 billion. This line of credit provides us with an option to obtain borrowings from financial institutions that participate in the line at rates that may be lower than the stated interest rate, subject to certain restrictions.

This line of credit contains financial covenants that require us to meet certain financial ratios and defined levels of performance, including those related to fixed charge coverage, unsecured interest expense coverage and debt-to-asset value (with asset value being defined in the Partnership's unsecured line of credit agreement). At December 31, ~~2016,~~2017, we were in compliance with all financial covenants under this line of credit.

To the extent that there are outstanding borrowings, we utilize a discounted cash flow methodology in order to estimate the fair value of our unsecured line of credit. To the extent that credit spreads have changed since the origination of the line of credit, the net present value of the difference between future contractual interest payments and future interest payments based on our estimate of a current market rate would represent the difference between the book value and the fair value. Our estimate of a current market rate is based upon the rate, considering current market conditions and our specific credit profile, at which we estimate we could obtain similar borrowings. As our credit spreads have not changed appreciably, we believe that the contractual interest rate and the current market rate on the line of credit are the same. To the extent there are outstanding borrowings, this current market rate is internally estimated and therefore would be primarily based upon a ~~level~~Level 3 input.

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Changes in Fair Value

As all of our fair value debt disclosures relied primarily on Level 3 inputs, the following table summarizes the book value and changes in the fair value of our debt for the year ended December 31, ~~2016~~2017 (in thousands):


	Book Value at 12/31/2015		Book Value at 12/31/2016		Fair Value at 12/31/2015		Issuances and Assumptions		Payments/Payoffs			Adjustments to Fair Value			Fair Value at 12/31/2016		Book Value at 12/31/2016		Book Value at 12/31/2017		Fair Value at 12/31/2016		Issuances and Assumptions		Payments/Payoffs			Adjustments to Fair Value			Fair Value at 12/31/2017
Fixed rate secured debt	$	736,896	$	381,894	$	789,095	$	—	$	(354,492	)	$	(19,372	)	$	415,231	$	381,894	$	309,463	$	415,231	$	—	$	(72,348	)	$	(17,130	)	$	325,753
Variable rate secured debt	3,100		2,800		3,100		—		(300		)	—			2,800		2,800		2,500		2,800		—		(300		)	—			2,500
Unsecured debt	2,530,743		2,498,835		2,624,795		375,000		(406,908		)	(24,853		)	2,568,034		2,498,835		2,132,042		2,568,034		300,000		(666,794		)	(10,692		)	2,190,548
Unsecured line of credit	71,000		48,000		70,852		—		(23,000		)	148			48,000		48,000		—		48,000		—		(48,000		)	—			—
Total	$	3,341,739	$	2,931,529	$	3,487,842	$	375,000	$	(784,700	)	$	(44,077	)	$	3,034,065	$	2,931,529	$	2,444,005	$	3,034,065	$	300,000	$	(787,442	)	$	(27,822	)	$	2,518,801
Less: Deferred financing costs	21,598		23,052														23,052		21,114
Total indebtedness as reported on the consolidated balance sheets	$	3,320,141	$	2,908,477													$	2,908,477	$	2,422,891

Scheduled Maturities and Interest Paid

At December 31, ~~2016,~~2017, the scheduled amortization and maturities of all indebtedness, excluding fair value ~~and other accounting adjustments,~~adjustment, for the next five years and thereafter were as follows (in thousands):

Year Amount
2017 $ 75,170
2018 293,379
2019 275,374
2020 432,041
2021 262,463
Thereafter 1,592,789
$ 2,931,216

~~DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~



Year	Amount
2018	$	7,768
2019	275,373
2020	5,381
2021	262,463
2022	603,611
Thereafter	1,289,178
	$	2,443,774

The amount of interest paid in 2017, 2016 and 2015 ~~and 2014~~ was $121.0 million, $163.4 million ~~$211.8 million~~ and ~~$229.0~~$211.8 million, respectively. The amount of interest capitalized in 2017, 2016 and 2015 ~~and 2014~~ was $18.9 million, $16.1 million ~~$16.8 million~~ and ~~$17.6~~$16.8 million, respectively.


(8)	Segment Reporting

~~We had three reportable operating segments~~Reportable Segments

During the year ended December 31, 2017, we substantially completed the Medical Office Portfolio Disposition, which resulted in all of our in-service medical office properties being classified within discontinued operations with the exception of a property that did not meet the criteria for classification as held for sale at December 31, ~~2016, the first two~~2017 (see Note 6). As a result of ~~which consist of the ownership and rental of (i) industrial and (ii)~~this transaction, our medical office ~~real estate investments.~~properties are no longer presented as a separate reportable segment at December 31, 2017, with substantially all current and prior period operating results being classified within discontinued operations. The remaining medical office property included in continuing operations no longer meets the quantitative thresholds for separate presentation, and is classified as part of our Non-Reportable Rental Operations. Properties that are not included in our reportable segments, ~~which~~because they do not by themselves meet the quantitative thresholds for separate presentation as a reportable segment, are generally referred to as ~~non-reportable~~Non-Reportable Rental Operations. Our ~~non-reportable~~Non-Reportable Rental Operations primarily include our remaining office ~~properties.~~properties and medical office property at December 31, 2017.

As of December 31, 2017, after consideration of the Medical Office Portfolio Disposition, we had two reportable operating segments, the first consisting of the ownership and rental of industrial real estate investments. Our ongoing investments in new real estate investments are determined largely upon anticipated geographic trends in supply and demand for industrial buildings, as well as the real estate needs of our major tenants that operate on a

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

national level. Our strategic initiatives and our allocation of resources have been historically based upon allocation among product types, which was consistent with our designation of reportable segments, and after having sold nearly all of our office and medical office properties we intend to increase our investment in industrial properties and treat them as a single operating and reportable segment. The operations of our industrial ~~and medical office~~ properties, as well as our ~~non-reportable~~few properties that are not of the industrial product type (“Non-Reportable Rental ~~Operations,~~Operations”), are collectively referred to as "Rental Operations."

Our ~~third~~second reportable operating segment consists of various real estate services such as property management, asset management, maintenance, leasing, development, general contracting and construction management to third-party property owners and joint ventures, and is collectively referred to as "Service Operations." ~~Our~~The Service Operations segment is identified as one single operating segment because the lowest level of financial results reviewed by our chief operating decision maker are the result for the Service Operations segment in total. Further, our reportable segments ~~offer different products or services and~~ are managed separately because each segment requires different operating strategies and management expertise.

Revenues by Reportable Segment

The following table shows the revenues for each of the reportable segments, as well as a reconciliation to consolidated revenues, for the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014~~2015 (in thousands):


	2016		2015		2014		2017		2016		2015
Revenues
Rental Operations:
Industrial	$	583,019	$	556,903	$	529,144	$	661,226	$	583,019	$	556,903
Medical Office	175,437		160,951		146,530
Non-reportable Rental Operations	46,980		90,722		140,536
Non-Reportable Rental Operations							24,101		50,684		94,417
Service Operations	88,810		133,367		224,500		94,420		88,810		133,367
Total segment revenues	894,246		941,943		1,040,710		779,747		722,513		784,687
Other revenue	7,998		7,489		6,141		1,187		7,998		7,489
Consolidated revenue from continuing operations	902,244		949,432		1,046,851		780,934		730,511		792,176
Discontinued operations	983		32,549		120,884		87,185		172,716		189,805
Consolidated revenue	$	903,227	$	981,981	$	1,167,735	$	868,119	$	903,227	$	981,981

Supplemental Performance Measure

PNOI is the non-GAAP supplemental performance measure that we use to evaluate the performance of, and to allocate resources among, the real estate investments in the reportable and operating segments that comprise our Rental Operations. PNOI for our Rental Operations segments is comprised of rental revenues from continuing operations less rental expenses and real estate taxes from continuing operations, along with certain other adjusting items (collectively referred to as "Rental Operations revenues and expenses excluded from PNOI," as shown in the following table). Additionally, we do not allocate interest expense, depreciation expense and certain other non-property specific revenues and expenses (collectively referred to as "Non-Segment Items," as shown in the following table) to our individual operating segments.

We evaluate the performance of our Service Operations reportable segment using net income or loss, as allocated to that segment ("Earnings from Service Operations").

The following table shows a reconciliation of our segment-level measures of profitability to consolidated income from continuing operations before income taxes, for the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014~~2015 (in thousands and excluding discontinued operations):

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


	2016			2015			2014			2017			2016			2015
PNOI
Industrial	$	429,239		$	386,153		$	347,672		$	482,025		$	423,924		$	380,213
Medical Office	114,641			103,540			100,846
Non-reportable Rental Operations	6,057			9,527			4,506
Non-Reportable Rental Operations										5,031			5,934			9,282
PNOI, excluding all sold/held for sale properties	549,937			499,220			453,024			487,056			429,858			389,495
PNOI from sold/held-for-sale properties included in continuing operations	27,562			64,431			102,807			6,537			37,679			77,150
PNOI, continuing operations	577,499			563,651			555,831			493,593			467,537			466,645

Earnings from Service Operations	8,343			14,197			24,469			4,963			8,343			14,197

Rental Operations revenues and expenses excluded from PNOI:
Straight-line rental income and expense, net	13,744			20,669			19,412			13,585			7,897			14,595
Revenues related to lease buyouts	1,725			1,567			5,246			10,816			1,725			1,567
Amortization of lease concessions and above and below market rents	(1,526		)	(3,258		)	(4,789		)	(1,732		)	(2,126		)	(6,113		)
Intercompany rents and other adjusting items	(119		)	(2,044		)	(4,219		)	(304		)	(2,640		)	(3,947		)
Non-Segment Items:
Equity in earnings (loss) of unconsolidated companies	47,403			(3,304		)	94,317
Gain on dissolution of unconsolidated company	30,697			—			—
Equity in earnings (loss) of unconsolidated joint ventures										63,310			47,403			(3,304		)
Gain on dissolution of unconsolidated joint venture										—			30,697			—
Promote income	26,299			—			—			20,007			26,299			—
Interest expense	(141,576		)	(173,574		)	(196,186		)	(87,003		)	(112,757		)	(138,258		)
Depreciation and amortization expense	(317,818		)	(317,329		)	(346,275		)	(273,561		)	(242,557		)	(245,764		)
Gain on sale of properties	162,093			229,702			162,715			113,669			162,093			229,702
Impairment charges on non-depreciable properties	(18,018		)	(22,932		)	(49,106		)
Impairment charges										(4,481		)	(18,018		)	(22,932		)
Interest and other income, net	4,035			4,667			1,246			14,721			4,035			4,667
General and administrative expenses	(55,389		)	(58,565		)	(49,362		)	(54,944		)	(55,389		)	(58,565		)
Gain on land sales	9,865			35,054			10,441			9,244			9,865			35,054
Other operating expenses	(3,864		)	(5,947		)	(7,191		)	(2,554		)	(3,864		)	(5,947		)
Loss on extinguishment of debt	(33,934		)	(85,713		)	(283		)	(26,104		)	(33,934		)	(85,713		)
Acquisition-related activity	7,176			(8,499		)	(1,099		)	—			7,176			(8,499		)
Other non-segment revenues and expenses, net	(3,953		)	(3,065		)	(421		)	(2,990		)	(3,953		)	(3,065		)
Income from continuing operations before income taxes	$	312,682		$	185,277		$	214,746		$	290,235		$	297,832		$	184,320

The most comparable GAAP measure to PNOI is income from continuing operations before income taxes. PNOI excludes expenses that materially impact our overall results of operations and, therefore, should not be considered as a substitute for income from continuing operations before income taxes or any other measures derived in accordance with GAAP. Furthermore, PNOI may not be comparable to other similarly titled measures of other companies.

Assets by Reportable Segment

The assets for each of the reportable segments at December 31, ~~2016~~2017 and ~~2015~~2016 were as follows (in thousands):


	December 31, 2016		December 31, 2015		December 31, 2017		December 31, 2016
Assets
Rental Operations:
Industrial	$	4,828,984	$	4,552,107	$	6,312,777	$	4,828,984
Medical Office	1,338,844		1,269,546
Non-reportable Rental Operations	162,893		367,469
Non-Reportable Rental Operations					136,927		1,501,737
Service Operations	127,154		137,257		142,603		127,154
Total segment assets	6,457,875		6,326,379		6,592,307		6,457,875
Non-segment assets	314,127		569,136		795,889		314,127
Consolidated assets	$	6,772,002	$	6,895,515	$	7,388,196	$	6,772,002

Tenant improvements and leasing costs to re-let rental space that we previously leased to tenants are referred to as second generation expenditures. Building improvements that are not specific to any tenant but serve to improve integral components of our real estate properties are also second generation expenditures. In addition to revenues and PNOI, we also review our second generation capital expenditures in measuring the performance of our individual Rental Operations segments. We review these expenditures to determine the costs associated with ~~re-~~

~~DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~leasing~~re-leasing vacant space and maintaining the condition of our properties. Our second generation capital expenditures by segment are summarized as follows for the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014~~2015 (in thousands):

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2016 2015 2014
Second Generation Capital Expenditures
Industrial $ 51,785
$ 45,716
$ 53,840
Medical Office 2,515
4,711
3,131
Non-reportable Rental Operations 5,049
11,473
41,850
Total $ 59,349
$ 61,900
$ 98,821



	2017		2016		2015
Second Generation Capital Expenditures
Industrial	$	50,721	$	51,785	$	45,716
Non-Reportable Rental Operations	1,833		7,564		16,184
Total	$	52,554	$	59,349	$	61,900

Both our first and second generation expenditures vary significantly between leases on a per square foot basis, dependent upon several factors including the product type, the nature of a tenant's operations, the specific physical characteristics of each individual property as well as the market in which the property is located.


(9)	Leasing Activity

Future minimum rents due to us under non-cancelable operating leases at December 31, ~~2016~~2017 are as follows (in thousands):


Year	Amount		Amount
2017	$	617,690
2018	602,815		$	545,532
2019	549,298		528,645
2020	487,831		480,951
2021	421,855		423,331
2022			358,223
Thereafter	1,898,411		1,267,045
	$	4,577,900	$	3,603,727

In addition to minimum rents, certain leases require reimbursements of specified operating expenses that amounted to $188.6 million, $193.7 million ~~$193.4 million~~ and ~~$201.8~~$193.4 million for the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014,~~2015, respectively.


(10)	Employee Benefit Plans

We maintain a 401(k) plan for our eligible employees. We make matching contributions of 50% of the employee salary deferral contributions up to ~~six percent~~6% of eligible compensation and may also make annual discretionary contributions. A discretionary contribution was declared at the end of 2017, 2016 ~~2015~~ and ~~2014.~~2015. The total expense recognized for this plan was $~~2.2~~2.0 million, $~~2.5~~2.2 million and $~~2.9~~2.5 million for the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014,~~2015, respectively.

We make contributions to a contributory health and welfare plan as necessary to fund claims not covered by employee contributions. The total expense we recognized related to this plan was $~~4.7~~3.4 million, $~~6.0~~4.7 million and $~~7.0~~6.0 million for 2017, 2016 ~~2015~~ and ~~2014,~~2015, respectively. These expense amounts include estimates based upon the historical experience of claims incurred but not reported as of year-end.


(11)	Shareholders' Equity of the General Partner and Partners' Capital of the Partnership

General Partner

The General Partner periodically uses the public equity markets to fund the development and acquisition of additional rental properties or to pay down debt. The proceeds of these offerings are contributed to the Partnership in exchange for an additional interest in the Partnership.

During 2017, the General Partner did not issue any common shares pursuant to its ATM equity programs.

During 2016, the General Partner issued 8.4 million common shares pursuant to its ATM equity programs, generating gross proceeds of approximately $218.2 million and, after deducting commissions and other costs, net proceeds of approximately $215.6 million. The proceeds from these offerings were contributed to the Partnership and used to fund development activities and loan repayments.

~~DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

During 2015, the General Partner issued 233,000 common shares pursuant to its ATM equity program, generating gross proceeds of approximately $5.0 million and, after deducting commissions and other costs, net proceeds of

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

approximately $4.5 million. The proceeds from these offerings were contributed to the Partnership and used for general corporate purposes.

During 2014, pursuant to the share repurchase plan approved by our board of directors, the General Partner repurchased 750,243 preferred shares from among our remaining outstanding series. The preferred shares repurchased had a total redemption value of approximately $18.8 million and were repurchased for $17.7 million. In conjunction with the repurchases, approximately $618,000 of initial issuance costs, the ratable portion of such costs associated with the repurchased shares, were charged against income attributable to common shareholders. As the result of these repurchases, an adjustment of approximately $483,000 was included as an increase to net income attributable to common shareholders.

In August 2014, the General Partner redeemed all 384,530 shares of its outstanding 6.625% Series J Cumulative Redeemable Preferred Shares ("Series J Shares"). The cash redemption price for the Series J Shares was $96.1 million, or $250 per share, plus dividends accrued through the date of redemption. Original offering costs of $3.2 million were included as a reduction to net income attributable to common shareholders in conjunction with the redemption of these shares.

In December 2014, the General Partner redeemed all 597,579 shares of its outstanding 6.5% Series K Cumulative Redeemable Preferred Shares ("Series K Shares") and all 733,597 shares of its outstanding 6.6% Series L Cumulative Redeemable Preferred Shares ("Series L Shares"). The cash redemption price for the Series K Shares and the Series L Shares was $149.4 million and $183.4 million respectively, or $250 per share, plus dividends accrued through the date of redemption. Original offering costs of $5.0 million and $6.0 million were included as a reduction to net income attributable to common shareholders for the Series K Shares and Series L Shares respectively, in conjunction with the redemption of these shares.

During 2014, the General Partner issued 16.4 million common shares pursuant to its ATM equity program, generating gross proceeds of approximately $292.3 million and, after deducting commissions and other costs, net proceeds of approximately $289.1 million. The proceeds from these offerings were used for share redemptions and general corporate purposes, which include the funding of development costs.

~~In April 2014, the General Partner's shareholders approved an increase in the number of authorized shares of the General Partner's common stock from 400 million to 600 million.~~

Partnership

For each common share or preferred share that the General Partner issues, the Partnership issues a corresponding Common Unit or Preferred Unit, as applicable, to the General Partner in exchange for the contribution of the proceeds from the stock issuance. Similarly, when the General Partner redeems or repurchases common shares or preferred shares, the Partnership redeems the corresponding Common Units or Preferred Units held by the General Partner at the same price.


(12)	Stock Based Compensation

We are authorized to issue up to ~~13.0~~12.1 million shares of the General Partner's common stock under our stock-based employee and non-employee compensation plans.

Restricted Stock Units ("RSUs")

Under our 2015 Long-Term Incentive Plan, which was approved by the General Partner's shareholders in April 2015, and our 2015 Non-Employee Directors Compensation Plan (collectively, the "Compensation Plans"), RSUs may be granted to non-employee directors, executive officers and selected management employees. A RSU is economically equivalent to a share of the General Partner's common ~~stock.~~stock and RSUs are valued based on the market price of the General Partner's common stock on the date of the award.

RSUs granted to employees infrom 2015 ~~and 2016~~to 2017 vest ratably over a three-year period and are payable in shares of our common stock with a new share of such common stock issued upon each RSU's vesting. RSUs granted to

~~DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

employees prior to 2015 vest ratably over a five-year period and are payable in the same manner. RSUs granted to existing non-employee directors vest 100% over one year and have contractual lives of one year.

To the extent that a recipient of a RSU grant is not determined to be retirement eligible, as defined by the Compensation Plans, we recognize expense on a straight-line basis over the vesting period. Expense is recognized immediately at the date of grant to the extent a recipient is retirement eligible and expense is accelerated to the extent that a participant will become retirement eligible prior to the end of the contractual life of granted RSUs.

The following table summarizes transactions for our RSUs, excluding dividend equivalents, for ~~2016:~~2017:


Restricted Stock Units	Number of RSUs		Weighted Average Grant-Date Fair Value	Number of RSUs		Weighted Average Grant-Date Fair Value
RSUs at December 31, 2015	1,815,122		$17.26
RSUs at December 31, 2016				1,626,831		$18.16
Granted	575,586		$19.31	459,315		$25.42
Vested	(707,822	)	$16.79	(764,730	)	$17.91
Forfeited	(56,055	)	$18.13	(91,751	)	$21.39
RSUs at December 31, 2016	1,626,831		$18.16
RSUs at December 31, 2017				1,229,665		$20.79

Compensation cost recognized for RSUs totaled $11.2 million, $11.8 million ~~$11.7 million~~ and ~~$12.3~~$11.7 million for the years ended December 31, 2017, 2016 ~~2015~~ and ~~2014,~~2015, respectively.

As of December 31, ~~2016,~~2017, there was ~~$6.4~~$6.0 million of total unrecognized compensation expense related to nonvested RSUs granted under the Plan, which is expected to be recognized over a weighted average period of 1.6 years.

The total intrinsic value (which is equal to the value of a share of the General Partner's common stock on the date of vesting) of RSUs vested during the years ended December 31, 2017, 2016 and 2015 ~~and 2014~~ was $19.3 million, $13.9 million and $16.1 million, ~~and $14.3 million,~~ respectively.

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The weighted average grant-date fair value of RSUs granted during 2016 and 2015 was $19.31 and ~~2014 was~~ $21.15, ~~and $16.15,~~ respectively.

The weighted average grant-date fair value of nonvested RSUs as of December 31, ~~2014~~2015 was ~~$15.03.~~$17.26.


(13)	Financial Instruments

We are exposed to capital market risk, such as changes in interest rates. In an effort to manage interest rate risk, we may enter into interest rate hedging arrangements from time to time. We do not utilize derivative financial instruments for trading or speculative purposes.

The effectiveness of our hedges is evaluated throughout their lives using the hypothetical derivative method under which the change in fair value of the actual swap designated as the hedging instrument is compared to the change in fair value of a hypothetical swap. We had no material interest rate derivatives, when considering the fair value of the hedging instruments, in any period presented.


(14)	Commitments and Contingencies

The Partnership has guaranteed the repayment of $~~32.9~~30.0 million of economic development bonds issued by various municipalities in connection with certain commercial developments. We ~~will~~may be required to make payments under our guarantees to the extent that incremental taxes from specified developments are not sufficient to pay the bond debt service. Management does not believe that it is probable that we will be required to make any significant payments in satisfaction of these guarantees.

~~DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

The Partnership also has guaranteed the repayment of ~~an unsecured loan of one~~loans associated with two of our unconsolidated ~~subsidiaries.~~joint ventures. At December 31, ~~2016,~~2017, the maximum guarantee exposure for ~~this loan~~these loans was approximately ~~$52.1~~$108.5 million.

We lease certain land positions with terms extending to ~~March 2114,~~December 31, 2065, with a total future payment obligation of ~~$311.1~~$93.3 million at December 31, ~~2016.~~2017. No payments on these ground leases, which are classified as operating leases, are material in any individual year.

In addition to ground leases, we are party to other operating leases as part of conducting our business, including leases of office space from third parties, with a total future payment obligation of ~~$43.4~~$34.4 million at December 31, ~~2016.~~2017. No future payments on these leases are material in any individual year.

We own certain parcels of land that are subject to special property tax assessments levied by quasi municipal entities. To the extent that such special assessments are fixed and determinable, the discounted value of the full assessment is recorded as a liability. We have ~~$10.2~~$10.7 million of such special assessment liabilities, which are included within other liabilities on our ~~consolidated balance sheet~~Consolidated Balance Sheets as of December 31, ~~2016.~~2017.


(15)	Selected Interim Financial Information (unaudited)

The tables below are the Company's selected quarterly information for the years ended December 31, ~~2016~~2017 and ~~2015~~2016 (in thousands, except number of properties and per common share or per Common Unit data):

Quarter Ended
2016 December 31 September 30 June 30 March 31

Rental and related revenue $204,263 $206,848 $200,520 $201,803
General contractor and service fee revenue $20,264 $19,351 $26,044 $23,151

General Partner
Net income attributable to common shareholders $47,755 $112,014 $109,067 $43,307
Basic income per common share $0.13 $0.32 $0.31 $0.12
Diluted income per common share $0.13 $0.32 $0.31 $0.12
Weighted average common shares 354,711 351,856 347,464 345,665
Weighted average common shares and potential dilutive securities 359,024 358,981 354,433 349,674

Partnership
Net income attributable to common unitholders $48,174 $113,145 $110,168 $43,745
Basic income per Common Unit $0.13 $0.32 $0.31 $0.12
Diluted income per Common Unit $0.13 $0.32 $0.31 $0.12
Weighted average Common Units 358,135 355,351 350,968 349,163
Weighted average Common Units and potential dilutive securities 359,024 358,981 354,433 349,674

2015 December 31 September 30 June 30 March 31

Rental and related revenue $198,516 $200,938 $201,996 $214,615
General contractor and service fee revenue $23,047 $33,599 $23,901 $52,820

General Partner
Net income attributable to common shareholders $24,252 $76,434 $449,380 $65,244
Basic income per common share $0.07 $0.22 $1.30 $0.19
Diluted income per common share $0.07 $0.22 $1.30 $0.19
Weighted average common shares 345,267 345,256 345,098 344,597
Weighted average common shares and potential dilutive securities 349,532 352,150 349,161 348,653

Partnership
Net income attributable to common unitholders $24,444 $77,185 $454,142 $65,943
Basic income per Common Unit $0.07 $0.22 $1.30 $0.19
Diluted income per Common Unit $0.07 $0.22 $1.30 $0.19
Weighted average Common Units 348,769 348,760 348,728 348,292
Weighted average Common Units and potential dilutive securities 349,532 352,150 349,161 348,653

DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



	Quarter Ended
2017	December 31	September 30	June 30	March 31

Rental and related revenue	$179,391	$169,611	$165,836	$171,676
General contractor and service fee revenue	$36,228	$25,217	$23,576	$9,399

General Partner
Net income attributable to common shareholders	$188,419	$165,269	$1,210,543	$70,200
Basic income per common share	$0.52	$0.46	$3.40	$0.20
Diluted income per common share	$0.52	$0.46	$3.38	$0.20
Weighted average common shares	356,204	355,905	355,647	355,282
Weighted average common shares and potential dilutive securities	360,244	362,102	361,981	360,700

Partnership
Net income attributable to common unitholders	$190,168	$166,804	$1,221,783	$70,852
Basic income per Common Unit	$0.52	$0.46	$3.40	$0.20
Diluted income per Common Unit	$0.52	$0.46	$3.38	$0.20
Weighted average Common Units	359,491	359,206	358,952	358,598
Weighted average Common Units and potential dilutive securities	360,244	362,102	361,981	360,700

2016	December 31	September 30	June 30	March 31

Rental and related revenue	$160,882	$162,322	$157,910	$160,587
General contractor and service fee revenue	$20,264	$19,351	$26,044	$23,151

General Partner
Net income attributable to common shareholders	$47,755	$112,014	$109,067	$43,307
Basic income per common share	$0.13	$0.32	$0.31	$0.12
Diluted income per common share	$0.13	$0.32	$0.31	$0.12
Weighted average common shares	354,711	351,856	347,464	345,665
Weighted average common shares and potential dilutive securities	359,024	358,981	354,433	349,674

Partnership
Net income attributable to common unitholders	$48,174	$113,145	$110,168	$43,745
Basic income per Common Unit	$0.13	$0.32	$0.31	$0.12
Diluted income per Common Unit	$0.13	$0.32	$0.31	$0.12
Weighted average Common Units	358,135	355,351	350,968	349,163
Weighted average Common Units and potential dilutive securities	359,024	358,981	354,433	349,674


(16)	Subsequent Events

Declaration of Dividends/Distributions

The General Partner's board of directors declared the following dividends/distributions at its regularly scheduled board meeting held on January ~~25, 2017:~~31, 2018:

Class of stock/units

Quarterly

Amount per Share or Unit

Record Date

Payment Date

Quarterly

Amount per Share or Unit

Record Date

Payment Date

Common

0.19

February 16, 2017

February 28, 2017

0.20

February 15, 2018

February 28, 2018


Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2016 (in thousands)						Schedule III
Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)																			Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)								Schedule III
				Initial Cost		Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/16															Initial Cost			Cost Capitalized Subsequent to Development or Acquisition		Gross Book Value 12/31/2017
	Name	Building Type	Encumbrances	Land	Buildings			Land/Land Imp		Bldgs/TI		Total (1)		Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired	Name		Building Type	Encumbrances		Land		Buildings		Cost Capitalized Subsequent to Development or Acquisition	Land/Land Imp		Bldgs/TI		Total (1)		Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired
Atlanta, Georgia	Atlanta, Georgia					Cost Capitalized Subsequent to Development or Acquisition														Atlanta, Georgia
	Airport Distribution 3781	Industrial	—	4,064	11,990	199			4,064		12,189		16,253		1,786		2002	2014

Aurora, Colorado
	SCL Emerus Aurora Hosp	Medical Office	—	4,042	17,464	—			4,042		17,464		21,506		159		2016		Airport Distribution 3781		Industrial	—		4,064		11,464	331		4,064		11,795		15,859		1,860		2002	2014

Aurora, Illinois	Aurora, Illinois																		Aurora, Illinois
	Meridian Business 880	Industrial	5,100	964	4,703	1,223			963		5,927		6,890		2,439		2000		Meridian Business 880		Industrial	5,100		964		4,694	1,354		963		6,049		7,012		2,629		2000
	4220 Meridian Parkway	Industrial	4,500	1,957	3,538	26			1,957		3,564		5,521		1,911		2004		4220 Meridian Parkway		Industrial	4,500		1,957		3,512	26		1,957		3,538		5,495		2,044		2004
	Butterfield 2805	Industrial	6,250	9,185	10,795	6,121			9,272		16,829		26,101		6,983		2008		Butterfield 2805		Industrial	6,250		9,185		10,795	6,121		9,272		16,829		26,101		8,002		2008
	Meridian Business 940	Industrial	—	2,674	6,949	1,180			2,674		8,129		10,803		1,498		1998	2012	Meridian Business 940		Industrial	—		2,674		6,923	1,200		2,674		8,123		10,797		1,823		1998	2012
	Butterfield 4000	Industrial	—	3,132	12,639	—			3,132		12,639		15,771		450		2016		Butterfield 4000		Industrial	—		3,132		12,639	70		3,132		12,709		15,841		1,134		2016
	Butterfield 2850	Industrial	—	11,317	18,305	—			11,317		18,305		29,622		767		2016		Butterfield 2850		Industrial	—		11,317		18,305	130		11,317		18,435		29,752		1,924		2016
	Butterfield 4200	Industrial	—	5,777	13,108	—			5,777		13,108		18,885		356		2016		Butterfield 4200		Industrial	—		5,777		13,108	2,797		5,967		15,715		21,682		1,210		2016
																			Butterfield 2865		Industrial	—		28,386		41,882	—		28,386		41,882		70,268		1,261		2017

Austell, Georgia	Austell, Georgia																		Austell, Georgia
	Hartman Business 7545	Industrial	—	2,640	21,471	23			2,640		21,494		24,134		4,173		2008	2012

Avon, Ohio
	Centerre University Avon Hosp	Medical Office	—	4,166	17,322	—			4,166		17,322		21,488		896		2016		Hartman Business 7545		Industrial	—		2,640		21,471	29		2,640		21,500		24,140		5,088		2008	2012

Baltimore, Maryland	Baltimore, Maryland																		Baltimore, Maryland
	Chesapeake Commerce 5901	Industrial	—	3,345	3,957	3,855			3,345		7,812		11,157		4,468		2008		Chesapeake Commerce 5901		Industrial	—		3,345		3,957	3,875		3,365		7,812		11,177		5,060		2008
	Chesapeake Commerce 5003	Industrial	—	6,488	8,854	1,961			6,488		10,815		17,303		4,529		2008		Chesapeake Commerce 5003		Industrial	—		6,488		8,854	2,019		6,546		10,815		17,361		5,065		2008
	Chesapeake Commerce 2010	Industrial	—	37,557	38,061	(131	)		37,557		37,930		75,487		7,344		2014		Chesapeake Commerce 2010		Industrial	—		37,557		38,061	36		37,727		37,927		75,654		10,563		2014
	Chesapeake Commerce 5501	Industrial	—	13,724	10,526	—			13,724		10,526		24,250		2,332		2014		Chesapeake Commerce 5501		Industrial	—		13,724		10,526	58		13,782		10,526		24,308		3,349		2014
	Chesapeake Commerce 1500	Industrial	—	8,289	10,268	—			8,289		10,268		18,557		505		2016		Chesapeake Commerce 1500		Industrial	—		8,289		10,268	96		8,333		10,320		18,653		1,297		2016
																			Chesapeake Commerce 5900		Industrial	—		5,567		6,100	—		5,567		6,100		11,667		271		2017

Baytown, Texas	Baytown, Texas																		Baytown, Texas
																			4570 E. Greenwood		Industrial	—		9,323		5,934	—		9,323		5,934		15,257		4,114		2005	2007

Bloomingdale, Georgia																			Bloomingdale, Georgia
	4570 E. Greenwood	Industrial	—	9,323	5,934	—			9,323		5,934		15,257		3,703		2005	2007	Morgan Business Center 400		Industrial	—		18,385		44,455	—		18,385		44,455		62,840		—		2017

Bolingbrook, Illinois	Bolingbrook, Illinois																		Bolingbrook, Illinois
	250 East Old Chicago Road	Industrial	—	3,050	4,164	142			3,050		4,306		7,356		2,685		2005		250 East Old Chicago Road		Industrial	—		3,050		4,164	142		3,050		4,306		7,356		2,934		2005
	Crossroads Parkway 515	Industrial	2,825	917	3,992	786			917		4,778		5,695		1,789		1999	2002	Crossroads Parkway 515		Industrial	2,825		917		3,992	767		898		4,778		5,676		1,914		1999	2002
	Crossroads 2	Industrial	4,461	1,418	5,574	728			1,418		6,302		7,720		1,736		1998	2010	Crossroads 2		Industrial	4,337		1,418		5,574	902		1,418		6,476		7,894		2,047		1998	2010
	Crossroads 375	Industrial	4,643	1,330	4,389	422			1,330		4,811		6,141		1,231		2000	2010	Crossroads 375		Industrial	4,514		1,330		4,389	522		1,330		4,911		6,241		1,477		2000	2010
	Crossroads Parkway 370	Industrial	—	2,409	4,561	840			2,409		5,401		7,810		1,338		1989	2011	Crossroads Parkway 370		Industrial	—		2,409		4,458	882		2,409		5,340		7,749		1,558		1989	2011
	Crossroads Parkway 605	Industrial	—	3,656	7,832	257			3,656		8,089		11,745		1,861		1998	2011	Crossroads Parkway 605		Industrial	—		3,656		7,661	530		3,656		8,191		11,847		2,055		1998	2011
	Crossroads Parkway 335	Industrial	—	2,574	8,379	437			2,574		8,816		11,390		1,557		1997	2012	Crossroads Parkway 335		Industrial	—		2,574		8,379	437		2,574		8,816		11,390		1,946		1997	2012

Boynton Beach, Florida	Boynton Beach, Florida																		Boynton Beach, Florida
	Gateway Center 1103	Industrial	—	4,271	5,508	1,543			4,271		7,051		11,322		1,925		2002	2010	Gateway Center 1103		Industrial	—		4,271		5,352	1,558		4,271		6,910		11,181		2,211		2002	2010


Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2016 (in thousands)						Schedule III
Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)																						Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)											Schedule III
				Initial Cost		Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/16																			Initial Cost					Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/2017
	Name	Building Type	Encumbrances	Land	Buildings			Land/Land Imp			Bldgs/TI			Total (1)			Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired	Name		Building Type	Encumbrances			Land			Buildings			Cost Capitalized Subsequent to Development or Acquisition		Land/Land Imp			Bldgs/TI			Total (1)			Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired
	Gateway Center 3602	Industrial	—	2,006	4,698	Cost Capitalized Subsequent to Development or Acquisition	141			2,006			4,839			6,845			1,178		2002	2010	Gateway Center 3602		Industrial	—			2,006			4,698		149			2,006			4,847			6,853			1,386		2002	2010
	Gateway Center 3402	Industrial	—	2,381	3,242	80			2,381			3,322			5,703			873		2002	2010	Gateway Center 3402		Industrial	—			2,381			3,242		95			2,381			3,337			5,718			1,030		2002	2010
	Gateway Center 2055	Industrial	—	1,800	2,668	131			1,800			2,799			4,599			752		2000	2010	Gateway Center 2055		Industrial	—			1,800			2,644		139			1,800			2,783			4,583			864		2000	2010
	Gateway Center 2045	Industrial	—	1,238	2,022	1,025			1,238			3,047			4,285			1,151		2000	2010	Gateway Center 2045		Industrial	—			1,238			2,022		1,025			1,238			3,047			4,285			1,391		2000	2010
	Gateway Center 2035	Industrial	—	1,238	1,916	688			1,238			2,604			3,842			931		2000	2010	Gateway Center 2035		Industrial	—			1,238			1,810		688			1,238			2,498			3,736			999		2000	2010
	Gateway Center 2025	Industrial	—	1,800	2,719	146			1,800			2,865			4,665			720		2000	2010	Gateway Center 2025		Industrial	—			1,800			2,719		146			1,800			2,865			4,665			860		2000	2010
	Gateway Center 1926	Industrial	—	4,781	9,940	1,862			4,781			11,802			16,583			2,935		2004	2010	Gateway Center 1926		Industrial	—			4,781			9,940		2,009			4,781			11,949			16,730			3,575		2004	2010

Braselton, Georgia	Braselton, Georgia																					Braselton, Georgia
	Braselton Business 920	Industrial	—	1,365	7,728	5,004			1,529			12,568			14,097			4,251		2001		Braselton Business 920		Industrial	—			1,365			7,713		5,003			1,529			12,552			14,081			4,810		2001
	625 Braselton Pkwy	Industrial	13,850	9,855	21,056	5,842			11,062			25,691			36,753			11,359		2006	2005	625 Braselton Pkwy		Industrial	13,850			9,855			21,056		5,842			11,062			25,691			36,753			12,615		2006	2005
	1350 Braselton Parkway	Industrial	—	8,227	8,874	5,329			8,227			14,203			22,430			7,574		2008		1350 Braselton Parkway		Industrial	—			8,227			8,856		5,329			8,227			14,185			22,412			8,515		2008

Brentwood, Tennessee	Brentwood, Tennessee																					Brentwood, Tennessee
	Brentwood South Business 7104	Industrial	—	1,065	4,734	1,786			1,065			6,520			7,585			2,917		1987	1999	Brentwood South Business 7104		Industrial	—			1,065			4,722		1,786			1,065			6,508			7,573			3,144		1987	1999
	Brentwood South Business 7106	Industrial	—	1,065	2,273	1,881			1,065			4,154			5,219			1,901		1987	1999	Brentwood South Business 7106		Industrial	—			1,065			2,142		1,942			1,065			4,084			5,149			1,972		1987	1999
	Brentwood South Business 7108	Industrial	—	848	3,318	1,439			848			4,757			5,605			2,044		1989	1999	Brentwood South Business 7108		Industrial	—			848			3,304		1,455			848			4,759			5,607			2,220		1989	1999

Bridgeton, Missouri	Bridgeton, Missouri																					Bridgeton, Missouri
	DukePort 13870	Industrial	—	2,124	5,374	474			2,124			5,848			7,972			1,871		1996	2010	DukePort 13870		Industrial	—			2,124			5,316		474			2,124			5,790			7,914			2,126		1996	2010
	DukePort 13890	Industrial	—	1,470	2,880	124			1,470			3,004			4,474			1,075		1997	2010	DukePort 13890		Industrial	—			1,470			2,701		131			1,470			2,832			4,302			1,059		1997	2010
	DukePort 4730	Industrial	—	600	2,864	323			600			3,187			3,787			802		1998	2010	DukePort 4730		Industrial	—			600			2,825		324			600			3,149			3,749			922		1998	2010
	DukePort 13269	Industrial	—	1,664	5,804	330			1,664			6,134			7,798			1,801		1999	2010	DukePort 13269		Industrial	—			1,664			5,792		330			1,664			6,122			7,786			2,118		1999	2010
	DukePort 4745	Industrial	—	834	3,842	263			834			4,105			4,939			974		1999	2010	DukePort 4745		Industrial	—			834			3,842		302			834			4,144			4,978			1,187		1999	2010
	DukePort 13201	Industrial	—	2,475	5,597	2,062			2,475			7,659			10,134			2,008		2001	2010	DukePort 13201		Industrial	—			2,475			5,459		2,062			2,475			7,521			9,996			2,292		2001	2010

Brooklyn Park, Minnesota	Brooklyn Park, Minnesota																					Brooklyn Park, Minnesota
	7300 Northland Drive	Industrial	—	700	5,284	428			703			5,709			6,412			2,562		1999	1998	7300 Northland Drive		Industrial	—			700			5,291		678			703			5,966			6,669			2,733		1999	1998
	Crosstown North 9201	Industrial	3,332	835	4,494	1,468			1,121			5,676			6,797			2,465		1998	1999	Crosstown North 9201		Industrial	3,332			835			4,494		1,468			1,121			5,676			6,797			2,658		1998	1999
	Crosstown North 8400	Industrial	4,094	2,079	5,675	1,810			2,233			7,331			9,564			3,399		1999		Crosstown North 8400		Industrial	4,094			2,079			5,011		1,951			2,233			6,808			9,041			3,091		1999
	Crosstown North 9100	Industrial	2,676	1,079	3,885	792			1,166			4,590			5,756			1,946		2000		Crosstown North 9100		Industrial	2,676			1,079			3,880		939			1,166			4,732			5,898			2,095		2000
	Crosstown North 9200	Industrial	2,844	2,757	2,813	1,471			2,723			4,318			7,041			2,436		2005		Crosstown North 9200		Industrial	2,844			2,757			2,813		1,305			2,723			4,152			6,875			2,675		2005
	Crosstown North 7601	Industrial	5,654	4,564	7,759	1,154			4,564			8,913			13,477			3,953		2005		Crosstown North 7601		Industrial	5,654			4,564			7,759		1,162			4,564			8,921			13,485			4,380		2005

Burleson, Texas
Buena Park, California																						Buena Park, California
	Baylor Emerus Burleson Hosp	Medical Office	—	3,425	9,902	639			3,425			10,541			13,966			1,486		2014		6280 Artesia Boulevard		Industrial	—			28,582			5,206		453			28,582			5,659			34,241			179		2005	2017

Burr Ridge, Illinois
Carol Stream, Illinois																						Carol Stream, Illinois
	Trinity Loyola Burr Ridge MOB	Medical Office	—	5,392	31,506	2,087			5,392			33,593			38,985			6,474		2010	2012	Carol Stream 815		Industrial	7,600			3,204			11,356		2,019			3,204			13,375			16,579			4,916		2004	2003
																						Carol Stream 640		Industrial	—			1,095			3,200		454			1,095			3,654			4,749			1,055		1998	2010
Carmel, Indiana
	Hamilton Crossing I	Office	—	833	1,623	3,587			845			5,198			6,043			2,846		2000	1993	Carol Stream 370		Industrial	—			1,556			6,225		689			1,569			6,901			8,470			2,021		2002	2010
	Hamilton Crossing II	Office	—	313	143	2,148			313			2,291			2,604			1,086		1997		250 Kehoe Boulevard		Industrial	—			1,715			7,560		249			1,715			7,809			9,524			1,843		2008	2011

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2016
(in thousands)
Schedule III
Initial Cost
Cost Capitalized
Subsequent to
Development or Acquisition
Gross Book Value 12/31/16
Name Building Type Encumbrances Land Buildings Land/Land Imp Bldgs/TI Total (1) Accum. Depr. (2) Year Constructed/Renovated Year Acquired
Hamilton Crossing III Office —
890
5,616
5,351
890
10,967
11,857
4,025
2000 2000
Hamilton Crossing IV Office —
515
4,291
798
515
5,089
5,604
2,308
1999 1999
Hamilton Crossing VI Office —
1,044
12,591
1,383
1,068
13,950
15,018
6,384
2004 2004
Ascension St V's Carmel MOB Medical Office —
20
17,569
222
20
17,791
17,811
1,706
2015 2015

Carol Stream, Illinois
Carol Stream 815 Industrial 7,600
3,204
11,824
1,729
3,204
13,553
16,757
4,908
2004 2003
Carol Stream 640 Industrial —
1,095
3,200
201
1,095
3,401
4,496
880
1998 2010
Carol Stream 370 Industrial —
1,556
6,225
469
1,569
6,681
8,250
1,696
2002 2010
250 Kehoe Boulevard Industrial —
1,715
7,560
249
1,715
7,809
9,524
1,537
2008 2011
Carol Stream 720 Industrial —
4,031
20,735
1,018
4,751
21,033
25,784
6,348
1999 2011

Cedar Park, Texas
CHS Cedar Park 1 MOB Medical Office —
576
15,666
1,024
576
16,690
17,266
5,245
2007 2011

Cedartown, Georgia
Harbin Clinic Cedartown MOB Medical Office —
755
3,121
—
755
3,121
3,876
663
2007 2012

Celebration, Florida
Adventist FH Celebration MOB Medical Office —
558
17,335
820
558
18,155
18,713
4,886
2006 2012

Charlotte, North Carolina
Carolinas Morehead MOB Medical Office —
191
39,047
206
191
39,253
39,444
10,222
2006 2010

Chino, California
13799 Monte Vista Industrial —
14,046
8,236
2,230
14,046
10,466
24,512
2,902
2013 2013

Cincinnati, Ohio
311 Elm Street Office —
339
4,936
1,558
—
6,833
6,833
5,848
1986 1993
Kenwood Commons 8230 Office 1,759
638
3,489
1,536
638
5,025
5,663
3,959
1986 1993
Kenwood Commons 8280 Office 1,041
638
2,090
1,087
638
3,177
3,815
2,091
1986 1993
CHP Jewish MOB Medical Office —
—
7,566
500
—
8,066
8,066
3,604
1999 1999
World Park 5389 Industrial —
1,133
5,550
262
1,133
5,812
6,945
1,359
1994 2010
World Park 5232 Industrial —
1,268
5,104
120
1,268
5,224
6,492
1,271
1997 2010
World Park 5399 Industrial —
870
5,251
772
870
6,023
6,893
1,414
1998 2010
World Park 9655 Industrial —
1,605
10,220
185
1,605
10,405
12,010
2,466
1998 2010
World Park 5265 Industrial —
2,492
11,964
4,630
2,492
16,594
19,086
3,606
1999 2010
World Park 9955 Industrial —
533
2,531
354
533
2,885
3,418
786
1998 2010
CHI Good Sam Western Ridge ED Medical Office —
1,894
8,028
811
1,915
8,818
10,733
2,633
2010 2010
CHI Good Sam West Ridge 2 MOB Medical Office —
1,020
3,544
176
1,020
3,720
4,740
964
2011 2011
CHI Good Sam Clifton MOB Medical Office —
50
8,438
112
50
8,550
8,600
1,702
1992 2012
CHI Good Sam Anderson MOB Medical Office —
1,095
3,852
538
1,095
4,390
5,485
733
2013 2013
CHI Bethesda West Chester MOB Medical Office —
1,818
9,544
192
1,818
9,736
11,554
1,059
2014 2014


Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2016 (in thousands)						Schedule III
Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)																						Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)											Schedule III
				Initial Cost		Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/16																			Initial Cost					Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/2017
	Name	Building Type	Encumbrances	Land	Buildings			Land/Land Imp			Bldgs/TI			Total (1)			Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired	Name		Building Type	Encumbrances			Land			Buildings			Cost Capitalized Subsequent to Development or Acquisition		Land/Land Imp			Bldgs/TI			Total (1)			Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired
																						Carol Stream 720		Industrial	—			4,031			17,759		1,019			4,751			18,058			22,809			4,331		1999	2011

Carteret, New Jersey																						Carteret, New Jersey
																						900 Federal Blvd.		Industrial	—			2,088			24,712		—			2,088			24,712			26,800			265		2017

Chino, California																						Chino, California
																						13799 Monte Vista		Industrial	—			14,046			8,236		2,230			14,046			10,466			24,512			3,718		2013

Cincinnati, Ohio																						Cincinnati, Ohio
																						311 Elm Street		Office	—			339			4,840		1,604			—			6,783			6,783			6,041		1986	1993
																						Kenwood Commons 8230		Office	600			638			42		1,549			638			1,591			2,229			710		1986	1993
																						Kenwood Commons 8280		Office	1,900			638			2,066		1,529			638			3,595			4,233			2,266		1986	1993
																						World Park 5389		Industrial	—			1,133			5,550		1,055			1,133			6,605			7,738			1,592		1994	2010
																						World Park 5232		Industrial	—			1,268			5,104		120			1,268			5,224			6,492			1,467		1997	2010
																						World Park 5399		Industrial	—			870			5,251		772			870			6,023			6,893			1,681		1998	2010
																						World Park 9655		Industrial	—			1,605			10,220		185			1,605			10,405			12,010			2,863		1998	2010
																						World Park 5265		Industrial	—			2,492			11,964		4,632			2,492			16,596			19,088			4,347		1999	2010
																						World Park 9955		Industrial	—			533			2,531		354			533			2,885			3,418			915		1998	2010

City of Industry, California																						City of Industry, California
	Select Good Sam Rehab Hosp	Medical Office	—	840	23,338	Cost Capitalized Subsequent to Development or Acquisition	—			840			23,338			24,178			727		2016		825 Ajax Ave		Industrial	—			38,930			27,627		—			38,930			27,627			66,557			343		2017

College Station, Texas	College Station, Texas																					College Station, Texas
	Baylor College Station MOB	Medical Office	—	5,551	33,770	2,366			5,551			36,136			41,687			6,936		2013		Baylor College Station MOB		Medical Office	—			5,551			33,770		4,146			5,551			37,916			43,467			9,097		2013

Colleyville, Texas
	Baylor Emerus Colleyville Hosp	Medical Office	—	2,853	6,404	23			2,853			6,427			9,280			888		2014

Columbus, Ohio	Columbus, Ohio																					Columbus, Ohio
	RGLP Intermodal North 9224	Industrial	—	1,550	20,408	—			1,550			20,408			21,958			—		2016		RGLP Intermodal North 9224		Industrial	—			1,550			20,408		536			1,550			20,944			22,494			1,287		2016


Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2016 (in thousands)						Schedule III
Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)																			Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)								Schedule III
				Initial Cost		Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/16															Initial Cost			Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/2017
	Name	Building Type	Encumbrances	Land	Buildings			Land/Land Imp		Bldgs/TI		Total (1)		Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired	Name		Building Type	Encumbrances		Land		Buildings		Cost Capitalized Subsequent to Development or Acquisition		Land/Land Imp		Bldgs/TI		Total (1)		Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired
Coppell, Texas	Coppell, Texas					Cost Capitalized Subsequent to Development or Acquisition														Coppell, Texas
	Freeport X	Industrial	18,375	8,198	13,195	3,583			8,198		16,778		24,976		10,512		2004		Freeport X		Industrial	18,375		8,198		13,184	3,596			8,198		16,780		24,978		11,462		2004
	Point West 400	Industrial	15,600	10,181	14,488	8,603			10,470		22,802		33,272		9,256		2008		Point West 400		Industrial	15,600		10,181		14,488	8,939			10,475		23,133		33,608		10,679		2008
	Point West 240	Industrial	10,900	6,785	13,654	6,734			7,201		19,972		27,173		10,535		2008		Point West 240		Industrial	10,900		6,785		13,134	7,962			7,402		20,479		27,881		11,313		2008
	Samsung Pkg Lot-PWT7	Grounds	—	306	—	(189	)		117		—		117		—		n/a	2009	Samsung Pkg Lot-PWT7		Grounds	—		306		—	(189	)		117		—		117		—		n/a	2009
	Point West 120	Industrial	—	3,267	8,695	511			3,267		9,206		12,473		1,093		2015		Point West 120		Industrial	—		3,267		8,695	1,011			3,267		9,706		12,973		1,874		2015

Corona, California	Corona, California																		Corona, California
	1283 Sherborn Street	Industrial	—	8,677	16,778	47			8,677		16,825		25,502		5,022		2005	2011	1283 Sherborn Street		Industrial	—		8,677		16,778	57			8,677		16,835		25,512		5,981		2005	2011

Cranbury, New Jersey	Cranbury, New Jersey																		Cranbury, New Jersey
	311 Half Acre Road	Industrial	—	6,600	14,636	—			6,600		14,636		21,236		2,354		2004	2013	311 Half Acre Road		Industrial	—		6,600		14,636	—			6,600		14,636		21,236		2,983		2004	2013
	315 Half Acre Road	Industrial	—	14,100	30,084	—			14,100		30,084		44,184		4,776		2004	2013

Dallas, Texas
	Baylor Administration MOB	Medical Office	—	50	14,435	100			150		14,435		14,585		3,893		2009		315 Half Acre Road		Industrial	—		14,100		30,084	—			14,100		30,084		44,184		6,052		2004	2013

Davenport, Florida	Davenport, Florida																		Davenport, Florida
	Park 27 Distribution 210	Industrial	—	2,449	5,224	236			2,504		5,405		7,909		3,164		2003		Park 27 Distribution 210		Industrial	—		2,449		5,213	489			2,504		5,647		8,151		3,417		2003
	Park 27 Distribution 220	Industrial	—	4,374	6,041	5,143			4,502		11,056		15,558		4,727		2007		Park 27 Distribution 220		Industrial	—		4,374		5,079	5,555			4,502		10,506		15,008		4,424		2007

Davie, Florida	Davie, Florida																		Davie, Florida
	Westport Business Park 2555	Industrial	—	1,200	1,276	81			1,200		1,357		2,557		482		1991	2011	Westport Business Park 2555		Industrial	—		1,200		1,276	81			1,200		1,357		2,557		569		1991	2011
	Westport Business Park 2501	Industrial	—	1,088	779	245			1,088		1,024		2,112		370		1991	2011	Westport Business Park 2501		Industrial	—		1,088		779	245			1,088		1,024		2,112		444		1991	2011
	Westport Business Park 2525	Industrial	—	2,363	5,949	898			2,363		6,847		9,210		1,604		1991	2011	Westport Business Park 2525		Industrial	—		2,363		5,935	898			2,363		6,833		9,196		1,904		1991	2011

Deer Park, Texas	Deer Park, Texas																		Deer Park, Texas
	801 Seaco Court	Industrial	—	2,331	4,673	238			2,331		4,911		7,242		909		2006	2012	801 Seaco Court		Industrial	—		2,331		4,673	632			2,331		5,305		7,636		1,173		2006	2012

Duluth, Georgia	Duluth, Georgia																		Duluth, Georgia
	Sugarloaf 2775	Industrial	—	560	4,376	670			560		5,046		5,606		2,194		1997	1999	Sugarloaf 2775		Industrial	—		560		4,358	803			560		5,161		5,721		2,352		1997	1999
	Sugarloaf 3079	Industrial	—	776	4,536	3,085			776		7,621		8,397		3,138		1998	1999	Sugarloaf 3079		Industrial	—		776		4,536	3,213			776		7,749		8,525		3,408		1998	1999
	Sugarloaf 2855	Industrial	—	765	3,028	1,475			765		4,503		5,268		1,949		1999		Sugarloaf 2855		Industrial	—		765		3,028	1,832			765		4,860		5,625		2,195		1999
	Sugarloaf 6655	Industrial	—	1,651	6,838	1,079			1,651		7,917		9,568		3,264		1998	2001	Sugarloaf 6655		Industrial	—		1,651		6,825	1,079			1,651		7,904		9,555		3,518		1998	2001
	2450 Meadowbrook Parkway	Industrial	—	383	1,579	658			383		2,237		2,620		712		1989	2010	2625 Pinemeadow Court		Industrial	—		861		3,122	248			861		3,370		4,231		960		1994	2010
	2625 Pinemeadow Court	Industrial	—	861	3,122	222			861		3,344		4,205		828		1994	2010	2660 Pinemeadow Court		Industrial	—		540		2,261	302			540		2,563		3,103		1,019		1996	2010
	2660 Pinemeadow Court	Industrial	—	540	2,261	302			540		2,563		3,103		849		1996	2010	2450 Satellite Boulevard		Industrial	—		556		1,897	445			556		2,342		2,898		706		1994	2010
	2450 Satellite Boulevard	Industrial	—	556	2,408	200			556		2,608		3,164		1,050		1994	2010

DuPont, WA	DuPont, WA																		DuPont, WA
	2700 Center Drive	Industrial	—	34,634	39,342	(1,167	)		34,515		38,294		72,809		7,118		2013		2700 Center Drive		Industrial	—		34,634		39,342	(1,100	)		34,582		38,294		72,876		9,236		2013

Durham, North Carolina	Durham, North Carolina																		Durham, North Carolina
	Centerpoint Raleigh 1805	Industrial	—	4,110	10,497	3,846			4,110		14,343		18,453		2,321		2000	2011	Centerpoint Raleigh 1805		Industrial	—		4,110		10,497	5,095			4,110		15,592		19,702		3,290		2000	2011
																			Centerpoint Raleigh 1757		Industrial	—		2,998		8,722	—			2,998		8,722		11,720		2,069		2007	2011

Eagan, Minnesota																			Eagan, Minnesota
																			Apollo 920		Industrial	4,575		866		3,234	2,044			895		5,249		6,144		2,600		1997
																			Apollo 940		Industrial	1,900		474		2,114	783			474		2,897		3,371		1,167		2000


Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2016 (in thousands)						Schedule III
				Initial Cost		Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/16
	Name	Building Type	Encumbrances	Land	Buildings			Land/Land Imp			Bldgs/TI			Total (1)			Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired
	Centerpoint Raleigh 1757	Industrial	8,131	2,998	9,095	Cost Capitalized Subsequent to Development or Acquisition	—			2,998			9,095			12,093			2,075		2007	2011

Eagan, Minnesota
Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)																						Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)					Schedule III
	Apollo 920	Industrial	4,575	866	3,601	1,913			895			5,485			6,380			2,805		1997					Initial Cost		Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/2017
	Apollo 940	Industrial	1,900	474	2,135	560			474			2,695			3,169			1,077		2000		Name	Building Type	Encumbrances	Land	Buildings			Land/Land Imp			Bldgs/TI			Total (1)			Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired
	Apollo 950	Industrial	6,525	1,432	5,997	33			1,432			6,030			7,462			2,538		2000		Apollo 950	Industrial	6,525	1,432	5,997	Cost Capitalized Subsequent to Development or Acquisition	130			1,432			6,127			7,559			2,694		2000
	2015 Silver Bell Road	Industrial	—	1,807	4,644	2,516			1,740			7,227			8,967			3,335		1999		2015 Silver Bell Road	Industrial	—	1,807	4,517	2,734			1,740			7,318			9,058			3,517		1999
	Trapp 1279	Industrial	2,428	671	3,495	620			691			4,095			4,786			1,880		1996	1998	Trapp 1279	Industrial	2,360	671	3,487	651			691			4,118			4,809			1,993		1996	1998
	Trapp 1245	Industrial	4,336	1,250	5,678	1,515			1,250			7,193			8,443			3,352		1998		Trapp 1245	Industrial	4,215	1,250	5,548	1,602			1,250			7,150			8,400			3,460		1998

Earth City, Missouri	Earth City, Missouri																					Earth City, Missouri
	Corporate Trail 3655	Industrial	—	2,850	4,597	2,394			2,875			6,966			9,841			3,228		2006		Corporate Trail 3655	Industrial	—	2,850	4,597	2,526			2,875			7,098			9,973			3,584		2006

East Point, Georgia	East Point, Georgia																					East Point, Georgia
	Camp Creek 1400	Industrial	—	561	2,052	1,997			561			4,049			4,610			1,784		1988	2001	Camp Creek 1400	Industrial	—	561	1,883	2,090			565			3,969			4,534			1,845		1988	2001
	Camp Creek 1800	Industrial	—	462	2,034	989			462			3,023			3,485			1,255		1989	2001	Camp Creek 1800	Industrial	—	462	2,024	1,046			465			3,067			3,532			1,370		1989	2001
	Camp Creek 2000	Industrial	—	395	2,169	1,124			395			3,293			3,688			1,597		1989	2001	Camp Creek 2000	Industrial	—	395	2,160	1,142			398			3,299			3,697			1,758		1989	2001
	Camp Creek 2400	Industrial	—	296	1,113	2,164			296			3,277			3,573			1,164		1988	2001	Camp Creek 2400	Industrial	—	296	1,090	2,289			300			3,375			3,675			1,374		1988	2001
	Camp Creek 2600	Industrial	—	364	1,882	1,657			364			3,539			3,903			1,713		1990	2001	Camp Creek 2600	Industrial	—	364	878	1,664			368			2,538			2,906			1,111		1990	2001
	Camp Creek 3201	Industrial	—	4,406	9,438	5,649			6,075			13,418			19,493			8,029		2004		Camp Creek 3201	Industrial	—	4,406	7,499	5,692			6,119			11,478			17,597			7,405		2004
	Camp Creek 1200	Industrial	—	1,334	599	1,371			1,400			1,904			3,304			1,230		2005		Camp Creek 1200	Industrial	—	1,334	599	1,375			1,404			1,904			3,308			1,376		2005
	Camp Creek 3900	Industrial	—	1,059	2,952	2,353			1,210			5,154			6,364			1,863		2005		Camp Creek 3900	Industrial	—	1,059	2,952	2,363			1,220			5,154			6,374			2,216		2005
	Camp Creek 3909	Industrial	—	5,687	10,165	26,453			15,102			27,203			42,305			16,990		2014	2006	Camp Creek 3909	Industrial	—	5,687	10,165	26,522			15,168			27,206			42,374			19,676		2014	2006
	Camp Creek 4200	Industrial	—	2,065	7,044	3,625			2,416			10,318			12,734			3,986		2006		Camp Creek 4200	Industrial	—	2,065	7,044	3,647			2,438			10,318			12,756			4,725		2006
	Camp Creek 1000	Industrial	—	1,537	528	1,304			1,606			1,763			3,369			1,264		2006		Camp Creek 1000	Industrial	—	1,537	435	1,308			1,610			1,670			3,280			1,321		2006
	Camp Creek 3000	Industrial	—	1,163	1,072	1,278			1,252			2,261			3,513			1,207		2007		Camp Creek 3000	Industrial	—	1,163	1,072	1,403			1,258			2,380			3,638			1,354		2007
	Camp Creek 1500	Office	—	1,683	3,113	3,465			1,814			6,447			8,261			2,226		2008		Camp Creek 1500	Office	—	1,683	3,113	3,491			1,821			6,466			8,287			2,497		2008
	Camp Creek 1100	Industrial	—	1,309	4,881	530			1,382			5,338			6,720			1,937		2008		Camp Creek 1100	Industrial	—	1,309	4,881	534			1,386			5,338			6,724			2,165		2008
	Camp Creek 4800	Industrial	—	2,476	3,906	2,198			2,724			5,856			8,580			2,320		2008		Camp Creek 4800	Industrial	—	2,476	3,906	2,242			2,740			5,884			8,624			2,668		2008
	Camp Creek 4100	Industrial	—	3,130	9,115	527			3,312			9,460			12,772			1,781		2013		Camp Creek 4100	Industrial	—	3,130	9,115	542			3,327			9,460			12,787			2,281		2013
	Camp Creek 3700	Industrial	—	1,878	3,842	95			1,878			3,937			5,815			734		2014		Camp Creek 3700	Industrial	—	1,878	3,842	100			1,883			3,937			5,820			1,062		2014
	Camp Creek 4909	Industrial	—	7,807	14,321	—			7,807			14,321			22,128			554		2016		Camp Creek 4909	Industrial	—	7,807	14,321	3,753			7,851			18,030			25,881			1,720		2016
																						Camp Creek 3707	Industrial	—	7,282	20,548	—			7,282			20,548			27,830			724		2017
																						Camp Creek 4505	Industrial	—	4,505	9,697	—			4,505			9,697			14,202			—		2017

Easton, Pennsylvania	Easton, Pennsylvania																					Easton, Pennsylvania
																						33 Logistics Park 1610	Industrial	—	24,752	55,500	2,028			25,262			57,018			82,280			6,227		2016
	33 Logistics Park 1610	Industrial	—	24,752	55,500	—			24,752			55,500			80,252			2,389		2016		33 Logistics Park 1611	Industrial	—	17,979	20,882	—			17,979			20,882			38,861			611		2017

Edwardsville, Illinois	Edwardsville, Illinois																					Edwardsville, Illinois
	Lakeview Commerce 3965	Industrial	—	4,561	18,604	42			4,561			18,646			23,207			3,874		2006	2013	Lakeview Commerce 3965	Industrial	—	4,561	18,604	42			4,561			18,646			23,207			4,963		2006	2013

Elk Grove Village, Illinois	Elk Grove Village, Illinois																					Elk Grove Village, Illinois
	1717 Busse Road	Industrial	11,834	3,602	19,016	—			3,602			19,016			22,618			3,939		2004	2011	1717 Busse Road	Industrial	11,199	3,602	19,016	—			3,602			19,016			22,618			4,681		2004	2011
																						1300 Estes Avenue	Industrial	—	8,152	9,948	562			8,157			10,505			18,662			2,553		2013

Ellenwood, Georgia																						Ellenwood, Georgia

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2016
(in thousands)
Schedule III
Initial Cost
Cost Capitalized
Subsequent to
Development or Acquisition
Gross Book Value 12/31/16
Name Building Type Encumbrances Land Buildings Land/Land Imp Bldgs/TI Total (1) Accum. Depr. (2) Year Constructed/Renovated Year Acquired
1300 Estes Avenue Industrial —
8,152
9,948
542
8,157
10,485
18,642
2,232
2013 2013

Ellenwood, Georgia
2529 Old Anvil Block Industrial —
4,664
9,265
21
4,664
9,286
13,950
1,241
2014 2014

Fairfax, Virginia
INOVA Fair Oaks MOB Medical Office —
808
28,558
327
808
28,885
29,693
7,132
2009 2012

Fairfield, Ohio
Union Centre Industrial 6019 Industrial —
5,635
8,709
2,357
5,635
11,066
16,701
5,538
2008 2008
Union Centre Industrial 5855 Industrial —
3,009
15,387
—
3,009
15,387
18,396
126
2016 2016

Fishers, Indiana
Exit 5 9998 Industrial —
822
2,561
791
581
3,593
4,174
1,482
1999 1999
Exit 5 9888 Industrial —
749
2,498
1,190
555
3,882
4,437
1,651
2000 2000
Ascension St V's Fishers MOB Medical Office —
—
22,956
6,127
4,235
24,848
29,083
13,857
2008 2008

Flower Mound, Texas
Lakeside Ranch 550 Industrial —
9,861
19,628
358
9,861
19,986
29,847
6,303
2007 2011

Fontana, California
14970 Jurupa Ave Grounds —
17,306
—
—
17,306
—
17,306
179
n/a 2016

Fort Worth, Texas
Riverpark 3300 Industrial —
3,975
10,766
311
3,975
11,077
15,052
3,785
2007 2011

Franklin, Tennessee
Aspen Grove Business 277 Industrial —
936
3,529
3,963
936
7,492
8,428
3,439
1996 1999
Aspen Grove Business 320 Industrial —
1,151
5,899
1,538
1,151
7,437
8,588
3,120
1996 1999
Aspen Grove Business 305 Industrial —
970
5,021
878
970
5,899
6,869
2,703
1998 1999
Aspen Grove Business 400 Industrial —
492
2,207
597
492
2,804
3,296
1,140
2002 2002
Aspen Grove Business 416 Industrial —
943
4,408
3,002
943
7,410
8,353
3,553
1996 1999
Brentwood South Business 119 Industrial —
569
1,331
1,432
569
2,763
3,332
1,268
1990 1999
Brentwood South Business 121 Industrial —
445
1,720
395
445
2,115
2,560
969
1990 1999
Brentwood South Business 123 Industrial 1,474
489
992
1,205
489
2,197
2,686
899
1990 1999

Franklin Park, Illinois
11501 West Irving Park Road Industrial —
3,900
2,702
1,558
3,900
4,260
8,160
1,393
2007 2007

Frisco, Texas
Tenet Conifer Admin Bldg Medical Office —
3,842
28,926
51
3,842
28,977
32,819
3,918
2014 2014


Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2016 (in thousands)						Schedule III
Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)																		Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)						Schedule III
																						Initial Cost		Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/2017
																		Name		Building Type	Encumbrances	Land	Buildings			Land/Land Imp			Bldgs/TI			Total (1)			Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired
																		2529 Old Anvil Block		Industrial	—	4,664	9,265	Cost Capitalized Subsequent to Development or Acquisition	49			4,664			9,314			13,978			1,755		2014

Fairfield, Ohio																		Fairfield, Ohio
																		Union Centre Industrial 6019		Industrial	—	5,635	8,709	2,357			5,635			11,066			16,701			6,291		2008
																		Union Centre Industrial 5855		Industrial	—	3,009	15,387	273			3,009			15,660			18,669			821		2016

Fishers, Indiana																		Fishers, Indiana
																		Exit 5 9998		Industrial	—	822	2,561	791			581			3,593			4,174			1,633		1999
																		Exit 5 9888		Industrial	—	749	2,498	1,190			555			3,882			4,437			1,818		2000

Flower Mound, Texas																		Flower Mound, Texas
																		Lakeside Ranch 550		Industrial	—	9,861	19,307	491			9,861			19,798			29,659			7,189		2007	2011

Fontana, California																		Fontana, California
																		14970 Jurupa Ave		Grounds	—	17,306	—	—			17,306			—			17,306			375		n/a	2016
																		7953 Cherry Ave		Industrial	—	6,704	12,521	—			6,704			12,521			19,225			518		2017
																		9988 Redwood Ave		Industrial	—	7,755	16,326	349			7,755			16,675			24,430			770		2016	2017
																		11250 Poplar Ave		Industrial	—	18,138	33,586	—			18,138			33,586			51,724			631		2016	2017

Fort Lauderdale, Florida																		Fort Lauderdale, Florida
																		Interstate 95 2200		Industrial	—	9,332	13,401	—			9,332			13,401			22,733			189		2017
																		Interstate 95 2100		Industrial	—	10,948	18,706	—			10,948			18,706			29,654			301		2017

Fort Worth, Texas																		Fort Worth, Texas
																		Riverpark 3300		Industrial	—	3,975	10,754	468			3,975			11,222			15,197			4,514		2007	2011

Franklin, Tennessee																		Franklin, Tennessee
																		Aspen Grove Business 277		Industrial	—	936	3,369	4,013			936			7,382			8,318			3,594		1996	1999
																		Aspen Grove Business 320		Industrial	—	1,151	5,899	1,554			1,151			7,453			8,604			3,399		1996	1999
																		Aspen Grove Business 305		Industrial	—	970	4,984	935			970			5,919			6,889			2,870		1998	1999
																		Aspen Grove Business 400		Industrial	—	492	1,686	597			492			2,283			2,775			897		2002
																		Aspen Grove Business 416		Industrial	—	943	4,324	3,020			943			7,344			8,287			3,870		1996	1999
																		Brentwood South Business 119		Industrial	—	569	1,289	1,480			569			2,769			3,338			1,343		1990	1999
																		Brentwood South Business 121		Industrial	—	445	1,692	395			445			2,087			2,532			1,029		1990	1999
																		Brentwood South Business 123		Industrial	1,433	489	962	1,315			489			2,277			2,766			968		1990	1999

Franklin Park, Illinois																		Franklin Park, Illinois
				Initial Cost		Cost Capitalized Subsequent to Development or Acquisition		Gross Book Value 12/31/16										11501 West Irving Park Road		Industrial	—	3,900	2,702	1,563			3,900			4,265			8,165			1,569		2007
	Name	Building Type	Encumbrances	Land	Buildings		Land/Land Imp		Bldgs/TI		Total (1)		Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired
Garden City, Georgia	Garden City, Georgia					Cost Capitalized Subsequent to Development or Acquisition													Garden City, Georgia
	Aviation Court Land	Grounds	—	1,509	—	—		1,509		—		1,509		208		n/a	2006	Aviation Court Land		Grounds	—	1,509	—	—			1,509			—			1,509			227		n/a	2006

Garner, North Carolina	Garner, North Carolina																	Garner, North Carolina
	Greenfield North 600	Industrial	—	597	2,456	525		598		2,980		3,578		581		2006	2011	Greenfield North 600		Industrial	—	597	2,456	536			598			2,991			3,589			728		2006	2011


Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2016 (in thousands)						Schedule III
Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)																						Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)												Schedule III
																												Initial Cost						Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/2017
				Initial Cost		Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/16													Name		Building Type	Encumbrances			Land			Buildings					Land/Land Imp			Bldgs/TI			Total (1)			Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired
	Name	Building Type	Encumbrances	Land	Buildings			Land/Land Imp			Bldgs/TI			Total (1)			Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired	Greenfield North 700		Industrial	—			468			2,054			261	Cost Capitalized Subsequent to Development or Acquisition			469			2,314			2,783			548		2007	2011
	Greenfield North 700	Industrial	—	468	2,664	Cost Capitalized Subsequent to Development or Acquisition	180			469			2,843			3,312			1,010		2007	2011	Greenfield North 800		Industrial	—			438			5,772			223			440			5,993			6,433			1,331		2004	2011
	Greenfield North 800	Industrial	—	438	5,772	215			440			5,985			6,425			1,099		2004	2011	Greenfield North 900		Industrial	—			422			6,249			1,054			425			7,300			7,725			1,794		2007	2011
	Greenfield North 900	Industrial	—	422	6,249	977			425			7,223			7,648			1,413		2007	2011	Greenfield North 1000		Industrial	—			1,970			6,026			(19	)		1,937			6,040			7,977			744		2016
	Greenfield North 1000	Industrial	—	1,970	6,026	—			1,970			6,026			7,996			350		2016		Greenfield North 1001		Industrial	—			2,517			5,494			—			2,517			5,494			8,011			186		2017
	N. Greenfield Pkwy Ground DCLP	Grounds	—	214	222	—			214			222			436			61		n/a	2015	N. Greenfield Pkwy Ground DCLP		Grounds	—			189			222			10			189			232			421			100		n/a	2015

Geneva, Illinois	Geneva, Illinois																					Geneva, Illinois
	1800 Averill Road	Industrial	—	3,189	11,582	7,640			4,778			17,633			22,411			3,069		2013	2011	1800 Averill Road		Industrial	—			3,189			11,582			7,640			4,778			17,633			22,411			3,719		2013	2011

Germantown, Tennessee
Gibsonton, Florida																						Gibsonton, Florida
	Centerre Baptist Memphis Hosp	Medical Office	—	1,032	16,045	199			1,256			16,020			17,276			1,897		2014		Tampa Regional Ind Park 13111		Industrial	—			10,547			8,662			—			10,547			8,662			19,209			384		2017

Gouldsboro, Pennsylvania	Gouldsboro, Pennsylvania																					Gouldsboro, Pennsylvania
	400 First Avenue	Industrial	—	9,500	51,645	270			9,500			51,915			61,415			6,890		2007	2013	400 First Avenue		Industrial	—			9,500			51,645			270			9,500			51,915			61,415			8,826		2007	2013

Grand Prairie, Texas	Grand Prairie, Texas																					Grand Prairie, Texas
	Grand Lakes 4003	Industrial	—	8,106	10,011	2,820			8,040			12,897			20,937			7,176		2006		Grand Lakes 4003		Industrial	—			8,106			10,011			14,428			9,595			22,950			32,545			8,264		2006
	Grand Lakes 3953	Industrial	—	11,853	11,864	12,471			11,853			24,335			36,188			9,322		2008		Grand Lakes 3953		Industrial	—			11,853			11,864			12,897			11,853			24,761			36,614			10,718		2008
	1803 W. Pioneer Parkway	Industrial	—	7,381	17,628	45			7,381			17,673			25,054			6,244		2008	2011	1803 W. Pioneer Parkway		Industrial	—			7,381			17,628			45			7,381			17,673			25,054			7,476		2008	2011

Grove City, Ohio	Grove City, Ohio																					Grove City, Ohio
	SouthPointe 4001	Industrial	—	844	5,171	490			844			5,661			6,505			1,338		1995	2010	SouthPointe 4001		Industrial	—			844			5,171			490			844			5,661			6,505			1,586		1995	2010
	SouthPointe 3901	Industrial	—	790	4,880	60			790			4,940			5,730			1,164		1996	2010	SouthPointe 3901		Industrial	—			790			4,880			60			790			4,940			5,730			1,345		1996	2010
	SouthPointe 3801	Industrial	—	754	6,325	282			754			6,607			7,361			1,522		1996	2010	SouthPointe 3801		Industrial	—			754			6,325			282			754			6,607			7,361			1,798		1996	2010

Groveport, Ohio	Groveport, Ohio																					Groveport, Ohio
	6600 Port Road	Industrial	—	2,725	20,792	2,864			3,213			23,168			26,381			11,137		1998	1997	Groveport Commerce Center 6200		Industrial	6,250			1,049			6,463			2,790			1,049			9,253			10,302			4,839		1999
	Groveport Commerce Center 6200	Industrial	6,250	1,049	6,578	2,779			1,049			9,357			10,406			4,496		1999		Groveport Commerce Center 6300		Industrial	2,350			510			2,496			2,286			510			4,782			5,292			1,942		2000
	Groveport Commerce Center 6300	Industrial	2,350	510	2,496	2,275			510			4,771			5,281			1,760		2000		Groveport Commerce Center 6295		Industrial	4,900			435			5,494			2,237			435			7,731			8,166			3,235		2000
	Groveport Commerce Center 6295	Industrial	4,900	435	5,549	2,237			435			7,786			8,221			2,995		2000		Groveport Commerce Center 6405		Industrial	9,500			4,420			10,954			992			4,420			11,946			16,366			6,965		2005
	Groveport Commerce Center 6405	Industrial	9,500	4,420	10,954	992			4,420			11,946			16,366			6,331		2005		RGLP North 2842		Industrial	—			5,680			23,872			(13	)		5,680			23,859			29,539			5,561		2008	2010
	RGLP North 2842	Industrial	—	5,680	23,872	5			5,680			23,877			29,557			4,799		2008	2010
Hazelwood, Missouri																						Hazelwood, Missouri
												��										Lindbergh Distribution 5801		Industrial	—			8,200			9,311			3,692			8,491			12,712			21,203			5,504		2007
Hamilton, Ohio

Hebron, Kentucky																						Hebron, Kentucky
	CHI Bethesda Specialty Hosp	Medical Office	—	1,499	4,990	18,991			1,499			23,981			25,480			2,430		2000	2012	Southpark 1901		Industrial	—			779			2,859			4,800			779			7,659			8,438			2,989		1994
	CHI Bethesda Imaging/ER	Medical Office	—	751	3,325	3,930			1,239			6,767			8,006			1,326		2013	2012	Southpark 2030		Industrial	—			1,085			3,853			2,422			1,085			6,275			7,360			3,333		1994
	CHI Bethesda Sleep Center	Medical Office	—	501	2,220	24			501			2,244			2,745			476		2008	2012	Hebron 2305		Industrial	—			8,855			10,797			19,398			9,511			29,539			39,050			8,653		2006
	CHI Bethesda Condo 1 MOB	Medical Office	—	—	664	1,102			—			1,766			1,766			247		2004	2012
	CHI Bethesda Condo 2 MOB	Medical Office	—	—	3,440	1,214			—			4,654			4,654			976		2008	2012
	CHI Bethesda Dialysis MOB	Medical Office	—	375	1,098	53			375			1,151			1,526			236		2008	2012


Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2016 (in thousands)						Schedule III
				Initial Cost		Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/16
	Name	Building Type	Encumbrances	Land	Buildings			Land/Land Imp		Bldgs/TI		Total (1)		Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired
						Cost Capitalized Subsequent to Development or Acquisition
Hazelwood, Missouri
	Lindbergh Distribution 5801	Industrial	—	8,200	9,326	3,684			8,491		12,719		21,210		4,943		2007

Hebron, Kentucky
Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)																			Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)					Schedule III
	Southpark 1901	Industrial	—	779	2,859	4,797			779		7,656		8,435		2,621		1994					Initial Cost		Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/2017
	Southpark 2030	Industrial	—	1,085	3,853	2,422			1,085		6,275		7,360		3,110		1994		Name	Building Type	Encumbrances	Land	Buildings			Land/Land Imp			Bldgs/TI			Total (1)			Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired
	Hebron 2305	Industrial	—	8,855	10,797	472			8,855		11,269		20,124		6,587		2006		Hebron 2285	Industrial	—	6,790	6,803	Cost Capitalized Subsequent to Development or Acquisition	4,876			6,813			11,656			18,469			5,361		2007
	Hebron 2285	Industrial	—	6,790	6,946	3,925			6,813		10,848		17,661		4,906		2007		Skyport 2350	Industrial	—	1,057	5,876	67			1,057			5,943			7,000			1,619		1997	2010
	Skyport 2350	Industrial	—	1,057	5,876	67			1,057		5,943		7,000		1,384		1997	2010	Skyport 2250	Industrial	—	1,400	8,956	392			1,400			9,348			10,748			2,644		1998	2010
	Skyport 2250	Industrial	—	1,400	8,956	279			1,400		9,235		10,635		2,265		1998	2010	Skyport 2245	Industrial	—	2,016	8,512	619			2,016			9,131			11,147			2,568		2000	2010
	Skyport 2245	Industrial	—	2,016	8,512	261			2,016		8,773		10,789		2,208		2000	2010	Skyport 2265	Industrial	—	2,878	6,038	838			2,878			6,876			9,754			3,058		2006	2010
	Skyport 2265	Industrial	—	2,878	6,619	838			2,878		7,457		10,335		3,158		2006	2010	Southpark 1961	Industrial	—	553	1,538	369			553			1,907			2,460			664		1990	2010
	Southpark 1961	Industrial	—	553	1,627	369			553		1,996		2,549		618		1990	2010	Southpark 2053	Industrial	—	755	3,905	67			755			3,972			4,727			1,259		1991	2010
	Southpark 2053	Industrial	—	755	3,905	67			755		3,972		4,727		1,082		1991	2010	Southpark 1990	Industrial	—	366	8,344	—			366			8,344			8,710			486		2016
	Southpark 1990	Industrial	—	366	8,344	—			366		8,344		8,710		92		2016
Hialeah Gardens, Florida																			Hialeah Gardens, Florida
																			Miami Ind Logistics Ctr 15002	Industrial	—	10,671	14,071	—			10,671			14,071			24,742			501		2017
Holly Springs, North Carolina
																			Miami Ind Logistics Ctr 14802	Industrial	—	10,800	14,236	—			10,800			14,236			25,036			503		2017
	UNC Rex Holly Springs MOB	Medical Office	—	11	7,724	648			11		8,372		8,383		1,714		2011		Miami Ind Logistics Ctr 10701	Industrial	—	13,048	17,204	—			13,048			17,204			30,252			640		2017

Hopkins, Minnesota	Hopkins, Minnesota																		Hopkins, Minnesota
	Cornerstone 401	Industrial	—	1,469	7,644	2,138			1,454		9,797		11,251		4,272		1996	1997	Cornerstone 401	Industrial	—	1,469	7,636	2,626			1,454			10,277			11,731			4,654		1996	1997

Houston, Texas	Houston, Texas																		Houston, Texas
	Point North 8210	Industrial	—	3,125	2,178	2,631			3,125		4,809		7,934		2,180		2008		Point North 8210	Industrial	—	3,125	2,178	2,675			3,125			4,853			7,978			2,494		2008
	Point North 8120	Industrial	—	4,210	5,651	4,321			4,581		9,601		14,182		3,129		2013		Point North 8120	Industrial	—	4,210	5,651	4,321			4,581			9,601			14,182			4,216		2013
	Point North 8111	Industrial	—	3,957	15,093	—			3,957		15,093		19,050		1,568		2014		Point North 8111	Industrial	—	3,957	15,093	117			3,957			15,210			19,167			2,326		2014
	Westland 8323	Industrial	—	4,183	4,616	3,337			4,233		7,903		12,136		4,456		2008		Westland 8323	Industrial	—	4,183	4,609	3,370			4,233			7,929			12,162			4,979		2008
	Westland 13788	Industrial	—	3,439	8,890	501			3,246		9,584		12,830		3,114		2011		Westland 13788	Industrial	—	3,439	8,890	559			3,246			9,642			12,888			3,687		2011
	Gateway Northwest 20710	Industrial	—	7,204	8,028	4,159			7,204		12,187		19,391		1,375		2014		Gateway Northwest 20710	Industrial	—	7,204	8,028	4,167			7,204			12,195			19,399			2,143		2014
	Gateway Northwest 20702	Industrial	—	2,981	3,122	1,380			2,981		4,502		7,483		586		2014		Gateway Northwest 20702	Industrial	—	2,981	3,122	1,380			2,981			4,502			7,483			928		2014
	Gateway Northwest 20502	Industrial	—	2,987	5,342	—			2,987		5,342		8,329		234		2016		Gateway Northwest 20502	Industrial	—	2,987	5,342	—			2,987			5,342			8,329			628		2016
	22008 N Berwick Drive	Industrial	—	2,981	5,049	—			2,981		5,049		8,030		366		2002	2015	22008 N Berwick Drive	Industrial	—	2,981	4,949	—			2,981			4,949			7,930			524		2002	2015

Humble, Texas	Humble, Texas																		Humble, Texas
	Point North 8411	Industrial	—	5,333	6,946	1,182			5,333		8,128		13,461		559		2015		Point North 8411	Industrial	—	5,333	6,946	1,961			5,333			8,907			14,240			1,281		2015

Huntley, Illinois	Huntley, Illinois																		Huntley, Illinois
	14100 Weber Drive	Industrial	—	7,539	34,141	(41	)		7,539		34,100		41,639		1,982		2015		14100 Weber Drive	Industrial	—	7,539	34,141	(14	)		7,539			34,127			41,666			3,198		2015

Hutchins, Texas																			Hutchins, Texas
																			801 Wintergreen Road	Industrial	6,238	5,290	9,226	2,683			5,290			11,909			17,199			6,232		2006
																			Prime Pointe 1005	Industrial	—	5,865	19,420	59			5,865			19,479			25,344			1,623		2016

Indianapolis, Indiana																			Indianapolis, Indiana
																			Park 100 5550	Industrial	8,310	1,171	12,641	334			1,424			12,722			14,146			7,180		1997	1995
																			Park 100 8250	Industrial	—	273	4,537	4,636			273			9,173			9,446			5,137		1995	1994



Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)						Schedule III
				Initial Cost		Cost Capitalized Subsequent to Development or Acquisition	Gross Book Value 12/31/2017
	Name	Building Type	Encumbrances	Land	Buildings	Cost Capitalized Subsequent to Development or Acquisition	Land/Land Imp	Bldgs/TI	Total (1)	Accum. Depr. (2)	Year Constructed/Renovated	Year Acquired
	Park 100 8260	Industrial	—	103	1,518	945	103	2,463	2,566	1,429	1995	1995
	Park 100 8236	Industrial	—	96	1,280	722	96	2,002	2,098	1,148	1995	1995
	Park 100 5425	Industrial	1,035	1,120	2,419	540	1,120	2,959	4,079	1,548	2005	2005
	Hewlett-Packard Land Lease	Grounds	—	252	—	—	252	—	252	106	n/a	2003
	Park 100 Bldg 121 Land Lease	Grounds	—	5	—	—	5	—	5	2	n/a	2003
	West 79th St. Parking Lot LL	Grounds	—	350	—	699	1,049	—	1,049	654	n/a	2006
	PWW Granite City Lease	Grounds	—	1,846	856	143	1,989	856	2,845	895	2008	2009
	North Airport Park 7750	Industrial	—	1,800	4,790	601	1,800	5,391	7,191	1,796	1997	2010
	Park 100 5010	Industrial	—	690	1,687	673	690	2,360	3,050	771	1984	2010
	Park 100 5134	Industrial	—	642	2,057	198	642	2,255	2,897	688	1984	2010
	Park 100 5012	Industrial	—	616	279	484	642	737	1,379	219	1986	2010

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2016
(in thousands)
Schedule III
Initial Cost
Cost Capitalized
Subsequent to
Development or Acquisition
Gross Book Value 12/31/16
Name Building Type Encumbrances Land Buildings Land/Land Imp Bldgs/TI Total (1) Accum. Depr. (2) Year Constructed/Renovated Year Acquired
Park 100 5302 Industrial —
427
1,286
400
427
1,686
2,113
476
1989 2010
Park 100 5303 Industrial —
427
1,834
280
427
2,114
2,541
585
1989 2010
Park 100 5355 Industrial —
1,136
6,570
1,820
1,136
8,390
9,526
2,410
1989 2010
Park 100 5110 Industrial —
1,070
4,904
402
1,070
5,306
6,376
1,236
1994 2010
Park 100 7225 Industrial 6,275
1,152
13,458
616
1,152
14,074
15,226
3,096
1996 2010
Park 100 4925 Industrial 4,965
1,280
8,768
2,079
1,280
10,847
12,127
2,443
2000 2010
Park 100 7520 Industrial 4,965
1,680
10,834
476
1,680
11,310
12,990
2,674
1997 2010

Jourdanton, Texas
CHS Jourdanton MOB Medical Office —
583
10,152
—
583
10,152
10,735
1,324
2013 2014

Katy, Texas
Methodist St Catherine 1 MOB Medical Office —
47
8,315
465
47
8,780
8,827
1,574
2001 2011
Methodist St Catherine 2 MOB Medical Office —
122
11,988
342
122
12,330
12,452
2,893
2004 2011
Methodist St Catherine 3 MOB Medical Office —
131
8,247
160
131
8,407
8,538
1,579
2006 2011

Keller, Texas
Baylor Emerus Keller Hosp Medical Office —
2,365
10,028
759
2,365
10,787
13,152
1,741
2013 2013

Kissimmee, Florida
Adventist FH Kissimmee MOB Medical Office —
763
18,221
359
763
18,580
19,343
3,780
2009 2012

Kutztown, Pennsylvania
West Hills 9645 Industrial —
15,340
47,981
46
15,340
48,027
63,367
5,682
2014 2014
West Hills 9677 Industrial —
5,218
13,029
—
5,218
13,029
18,247
1,073
2015 2015

Kyle, Texas
Ascension Seton Hays MOB Medical Office —
165
11,668
4,567
165
16,235
16,400
4,032
2009 2009

La Miranda, California
16501 Trojan Way Industrial —
23,503
33,342
125
23,503
33,467
56,970
7,172
2002 2012

LaPorte, Texas
Bayport Container Lot Grounds —
3,334
—
1,041
4,375
—
4,375
—
n/a 2010

Las Cruces, New Mexico
CHS Mountain View MOB Medical Office —
430
18,882
1,226
430
20,108
20,538
3,100
2003 2012

Lawrenceville, Georgia
175 Alcovy Industrial Road Industrial —
3,974
2,935
56
3,982
2,983
6,965
2,900
2004 2004

Lebanon, Indiana
Lebanon Park 185 Industrial —
305
8,664
1,391
177
10,183
10,360
4,271
2000 1997
Lebanon Park 322 Industrial —
554
6,528
1,067
340
7,809
8,149
3,425
1999 1999



Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)						Schedule III
				Initial Cost		Cost Capitalized Subsequent to Development or Acquisition	Gross Book Value 12/31/2017
	Name	Building Type	Encumbrances	Land	Buildings	Cost Capitalized Subsequent to Development or Acquisition	Land/Land Imp	Bldgs/TI	Total (1)	Accum. Depr. (2)	Year Constructed/Renovated	Year Acquired
	Park 100 5302	Industrial	—	427	1,286	451	427	1,737	2,164	610	1989	2010
	Park 100 5303	Industrial	—	427	1,834	290	427	2,124	2,551	704	1989	2010
	Park 100 5355	Industrial	—	1,136	6,492	1,912	1,136	8,404	9,540	2,797	1989	2010
	Park 100 5110	Industrial	—	1,070	4,904	497	1,070	5,401	6,471	1,479	1994	2010
	Park 100 7225	Industrial	6,275	1,152	13,458	824	1,152	14,282	15,434	3,649	1996	2010
	Park 100 4925	Industrial	4,965	1,280	8,722	2,274	1,280	10,996	12,276	2,899	2000	2010
	Park 100 7520	Industrial	4,965	1,680	10,716	546	1,680	11,262	12,942	2,983	1997	2010

Kutztown, Pennsylvania
	West Hills 9645	Industrial	—	15,340	47,981	56	15,340	48,037	63,377	7,732	2014	2014
	West Hills 9677	Industrial	—	5,218	13,029	—	5,218	13,029	18,247	1,750	2015	2015

La Miranda, California
	16501 Trojan Way	Industrial	—	23,503	33,342	125	23,503	33,467	56,970	8,738	2002	2012

LaPorte, Texas
	Bayport Container Lot	Grounds	—	3,334	—	1,041	4,375	—	4,375	—	n/a	2010

Lawrenceville, Georgia
	175 Alcovy Industrial Road	Industrial	—	3,974	2,935	56	3,982	2,983	6,965	3,144	2004	2004

Lebanon, Indiana
	Lebanon Park 185	Industrial	—	305	8,664	1,434	177	10,226	10,403	4,657	2000	1997
	Lebanon Park 322	Industrial	—	554	6,528	1,067	340	7,809	8,149	3,682	1999	1999
	Lebanon Park 400	Industrial	—	5,163	11,249	944	5,163	12,193	17,356	7,898	2003	2003
	Lebanon Park 420	Industrial	—	561	5,156	684	1,901	4,500	6,401	2,941	2003	2003
	Lebanon Park 500	Industrial	—	2,813	10,748	2,601	2,813	13,349	16,162	5,923	2005	2005
	Lebanon Park 210	Industrial	—	312	3,594	172	312	3,766	4,078	1,142	1996	2010
	Lebanon Park 121	Industrial	—	948	19,037	7,734	1,268	26,451	27,719	6,203	2014	2010
	Lebanon Park 311	Industrial	—	699	7,877	204	699	8,081	8,780	2,459	1998	2010

Lebanon, Tennessee
	Park 840 West 14840	Industrial	—	6,776	8,460	6,000	6,776	14,460	21,236	7,670	2006	2006
	Park 840 East 1009	Industrial	—	7,731	14,881	915	7,852	15,675	23,527	5,146	2013	2013

Linden, New Jersey
	Legacy Commerce Center 801	Industrial	—	22,134	23,645	3,852	22,134	27,497	49,631	3,856	2014	2014
	Legacy Commerce Center 301	Industrial	—	6,933	8,575	168	6,933	8,743	15,676	1,120	2015	2015
	Legacy Commerce Center 901	Industrial	—	25,935	19,806	2,295	25,937	22,099	48,036	1,761	2016	2016

Lithia Springs, Georgia
	2601 Skyview Drive	Industrial	—	4,282	9,534	—	4,282	9,534	13,816	481	2016	2017

Lockport, Illinois

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2016
(in thousands)
Schedule III
Initial Cost
Cost Capitalized
Subsequent to
Development or Acquisition
Gross Book Value 12/31/16
Name Building Type Encumbrances Land Buildings Land/Land Imp Bldgs/TI Total (1) Accum. Depr. (2) Year Constructed/Renovated Year Acquired
Lebanon Park 400 Industrial —
5,163
11,249
944
5,163
12,193
17,356
7,271
2003 2003
Lebanon Park 420 Industrial —
561
5,156
695
1,901
4,511
6,412
2,660
2003 2003
Lebanon Park 500 Industrial —
2,813
11,137
2,058
2,813
13,195
16,008
5,666
2005 2005
Lebanon Park 210 Industrial —
312
3,594
172
312
3,766
4,078
954
1996 2010
Lebanon Park 121 Industrial —
948
19,037
7,733
1,268
26,450
27,718
5,202
2014 2010
Lebanon Park 311 Industrial —
699
7,877
94
699
7,971
8,670
2,094
1998 2010

Lebanon, Tennessee
Park 840 West 14840 Industrial —
6,776
8,469
6,001
6,776
14,470
21,246
6,770
2006 2006
Park 840 East 1009 Industrial —
7,731
14,881
809
7,852
15,569
23,421
3,989
2013 2013

Linden, New Jersey
Legacy Commerce Center 801 Industrial —
22,134
23,645
3,845
22,134
27,490
49,624
2,547
2014 2014
Legacy Commerce Center 301 Industrial —
6,933
8,575
168
6,933
8,743
15,676
692
2015 2015
Legacy Commerce Center 901 Industrial —
25,935
19,806
—
25,935
19,806
45,741
580
2016 2016

Littleton, Colorado
SCL Emerus Littleton Hosp Medical Office —
4,290
17,185
—
4,290
17,185
21,475
703
2016 2016

Lockbourne, Ohio
Creekside 2120 Industrial —
2,868
16,814
289
2,868
17,103
19,971
4,197
2008 2012
Creekside 4555 Industrial —
1,947
11,525
188
1,947
11,713
13,660
2,150
2005 2012

Logan Township, New Jersey
1130 Commerce Boulevard Industrial —
3,770
19,239
1,037
3,770
20,276
24,046
2,690
2002 2013

Long Beach, California
3700 Cover Street Industrial —
7,280
6,954
—
7,280
6,954
14,234
1,386
2012 2013

Longview, Texas
CHS Longview 1 MOB Medical Office —
403
23,612
1,007
403
24,619
25,022
3,619
2003 2012
CHS Longview 2 MOB Medical Office —
778
13,083
—
778
13,083
13,861
453
2015 2016

Lynwood, California
2700 East Imperial Highway Industrial —
16,847
17,881
34
16,847
17,915
34,762
4,253
2007 2011

Mansfield, Texas
Baylor Emerus Mansfield Hosp Medical Office —
3,238
9,546
13
3,238
9,559
12,797
1,290
2014 2014

Manteca, California
600 Spreckels Avenue Industrial —
4,851
19,703
67
4,851
19,770
24,621
3,825
1999 2012

Marble Falls, Texas
Baylor Marble Falls MOB Medical Office —
1,519
18,836
744
1,519
19,580
21,099
3,595
2013 2013



Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)						Schedule III
				Initial Cost		Cost Capitalized Subsequent to Development or Acquisition	Gross Book Value 12/31/2017
	Name	Building Type	Encumbrances	Land	Buildings	Cost Capitalized Subsequent to Development or Acquisition	Land/Land Imp	Bldgs/TI	Total (1)	Accum. Depr. (2)	Year Constructed/Renovated	Year Acquired
	Lockport 16328	Industrial	—	3,339	17,446	460	3,339	17,906	21,245	566	2016	2017
	Lockport 16410	Industrial	—	2,677	16,117	285	2,677	16,402	19,079	502	2016	2017
	Lockport 16508	Industrial	—	4,520	17,472	—	4,520	17,472	21,992	276	2017	2017

Lockbourne, Ohio
	Creekside 2120	Industrial	—	2,868	15,434	379	2,868	15,813	18,681	3,512	2008	2012
	Creekside 4555	Industrial	—	1,947	11,513	282	1,947	11,795	13,742	2,607	2005	2012

Logan Township, New Jersey
	1130 Commerce Boulevard	Industrial	—	3,770	19,239	1,615	3,770	20,854	24,624	3,660	2002	2013

Long Beach, California
	3700 Cover Street	Industrial	—	7,280	6,954	—	7,280	6,954	14,234	1,802	2012	2013

Lynwood, California
	2700 East Imperial Highway	Industrial	—	16,847	17,865	55	16,847	17,920	34,767	4,999	1999	2011
	11600 Alameda Street	Industrial	—	10,705	10,979	—	10,705	10,979	21,684	76	2017	2017

Manteca, California
	600 Spreckels Avenue	Industrial	—	4,851	18,985	162	4,851	19,147	23,998	3,971	1999	2012

Maryland Heights, Missouri
	Riverport 3128	Industrial	—	1,269	1,624	2,339	733	4,499	5,232	1,830	2001	2001
	Riverport 3101	Industrial	—	1,864	3,072	2,205	1,864	5,277	7,141	2,686	2007	2007

McDonough, Georgia
	Liberty Distribution 120	Industrial	—	615	8,234	1,313	615	9,547	10,162	4,544	1997	1999
	Liberty Distribution 250	Industrial	—	2,273	11,148	4,801	3,445	14,777	18,222	5,960	2001	2001

Mechanicsburg, Pennsylvania
	500 Independence Avenue	Industrial	—	4,494	15,711	233	4,494	15,944	20,438	3,009	2008	2013

Melrose Park, Illinois
	1600 North 25th Avenue	Industrial	—	5,907	17,516	72	5,907	17,588	23,495	4,919	2000	2010

Miami, Florida
	9601 NW 112 Avenue	Industrial	—	11,626	14,651	—	11,626	14,651	26,277	2,861	2003	2013

Minooka, Illinois
	Midpoint Distribution 801	Industrial	—	6,282	33,196	386	6,282	33,582	39,864	6,187	2008	2013

Modesto, California
	1000 Oates Court	Industrial	—	10,115	18,397	—	10,115	18,397	28,512	5,869	2002	2012

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2016
(in thousands)
Schedule III
Initial Cost
Cost Capitalized
Subsequent to
Development or Acquisition
Gross Book Value 12/31/16
Name Building Type Encumbrances Land Buildings Land/Land Imp Bldgs/TI Total (1) Accum. Depr. (2) Year Constructed/Renovated Year Acquired

Maryland Heights, Missouri
Riverport 3128 Industrial —
1,269
1,690
2,239
733
4,465
5,198
1,702
2001 2001
Riverport 3101 Industrial —
1,864
3,078
2,143
1,864
5,221
7,085
2,392
2007 2007

McDonough, Georgia
Liberty Distribution 120 Industrial —
615
8,234
1,313
615
9,547
10,162
4,190
1997 1999
Liberty Distribution 250 Industrial —
2,273
11,148
3,059
2,273
14,207
16,480
5,476
2001 2001

McKinney, Texas
Baylor McKinney 1 MOB Medical Office —
313
18,762
6,526
313
25,288
25,601
6,340
2012 2012
Baylor McKinney 2 MOB Medical Office —
2,717
12,742
—
2,717
12,742
15,459
240
2016 2016

Mechanicsburg, Pennsylvania
500 Independence Avenue Industrial —
4,494
15,711
85
4,494
15,796
20,290
2,320
2008 2013

Melrose Park, Illinois
1600 North 25th Avenue Industrial —
5,907
17,516
29
5,907
17,545
23,452
4,225
2000 2010

Mequon, Wisconsin
Ascension CSM Mequon MOB Medical Office —
560
13,281
600
560
13,881
14,441
3,284
1994 2012

Miami, Florida
9601 NW 112 Avenue Industrial —
11,626
14,651
—
11,626
14,651
26,277
2,176
2003 2013

Milwaukee, Wisconsin
Ascension CSM Water Tower MOB Medical Office —
1,024
43,728
154
1,024
43,882
44,906
8,325
2007 2012

Minooka, Illinois
Midpoint Distribution 801 Industrial —
6,282
33,196
386
6,282
33,582
39,864
4,671
2008 2013

Modesto, California
1000 Oates Court Industrial —
10,115
18,397
—
10,115
18,397
28,512
4,715
2002 2012

Morgans Point, Texas
Barbours Cut 1200 Industrial —
1,482
8,209
44
1,482
8,253
9,735
2,420
2004 2010
Barbours Cut 1000 Industrial —
1,447
8,471
71
1,447
8,542
9,989
2,499
2005 2010

Morrisville, North Carolina
Perimeter Park 3000 Industrial —
482
2,085
1,414
491
3,490
3,981
1,546
1989 1999
Perimeter Park 2900 Industrial —
235
1,358
1,449
241
2,801
3,042
1,227
1990 1999
Perimeter Park 2800 Industrial —
777
4,214
1,278
791
5,478
6,269
2,419
1992 1999
Perimeter Park 2700 Industrial —
662
1,107
1,919
662
3,026
3,688
1,186
2001 2001
Woodlake 100 Industrial —
633
3,430
1,103
633
4,533
5,166
1,950
1994 1999

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2016
(in thousands)
Schedule III
Initial Cost
Cost Capitalized
Subsequent to
Development or Acquisition
Gross Book Value 12/31/16
Name Building Type Encumbrances Land Buildings Land/Land Imp Bldgs/TI Total (1) Accum. Depr. (2) Year Constructed/Renovated Year Acquired
Woodlake 101 Industrial —
615
3,958
303
615
4,261
4,876
1,845
1997 1999
Woodlake 200 Industrial —
357
3,835
655
357
4,490
4,847
1,898
1999 1999
Woodlake 501 Industrial —
640
5,477
389
640
5,866
6,506
2,489
1999 1999
Woodlake 1000 Industrial —
514
2,882
255
514
3,137
3,651
1,213
1996 2002
Woodlake 1200 Industrial —
740
4,359
418
740
4,777
5,517
1,851
1996 2002
Woodlake 400 Industrial —
908
1,055
421
908
1,476
2,384
924
2004 2004

Murfreesboro, Tennessee
Ascension St Thom Mid Ten MOB Medical Office —
—
20,564
5,345
7
25,902
25,909
9,679
2008 2008

Murphy, Texas
Baylor Emerus Murphy Hosp Medical Office —
2,218
10,045
810
2,215
10,858
13,073
1,717
2014 2014

Naperville, Illinois
1835 Jefferson Industrial —
3,180
7,921
5
3,184
7,922
11,106
3,423
2005 2003
175 Ambassador Drive Industrial —
4,778
10,093
11
4,778
10,104
14,882
2,630
2006 2010
1860 West Jefferson Industrial 11,185
7,016
35,581
80
7,016
35,661
42,677
7,983
2000 2012

Nashville, Tennessee
Airpark East 800 Industrial 2,341
1,564
2,341
1,579
1,564
3,920
5,484
1,393
2002 2002
Nashville Business 3300 Industrial —
936
5,674
1,586
936
7,260
8,196
3,513
1997 1999
Nashville Business 3438 Industrial —
5,659
8,791
1,878
5,659
10,669
16,328
5,236
2005 2005
Four-Forty Business 700 Industrial —
938
6,364
523
938
6,887
7,825
2,888
1997 1999
Four-Forty Business 684 Industrial —
1,812
6,827
1,640
1,812
8,467
10,279
3,804
1998 1999
Four-Forty Business 782 Industrial —
1,522
5,069
1,546
1,522
6,615
8,137
2,794
1997 1999
Four-Forty Business 784 Industrial —
471
2,182
1,718
471
3,900
4,371
1,545
1999 1999
Four-Forty Business 701 Industrial —
1,108
4,829
17
1,108
4,846
5,954
1,080
1996 2010

New Century, Kansas
27200 West 157th Street Industrial —
1,710
17,922
(6,028 ) 1,710
11,894
13,604
2,716
2007 2013
North Bergen, New Jersey
Hackensack UMC Palisades MOB Medical Office —
53
15,650
76
53
15,726
15,779
1,175
2015 2015

Northglenn, Colorado
SCL Emerus Northglenn Hosp Medical Office —
3,264
20,663
—
3,264
20,663
23,927
—
2016 2016

Northlake, Illinois
Northlake Distribution 635 Industrial 14,200
5,721
9,056
882
5,721
9,938
15,659
3,511
2002 2002
Northlake Distribution 599 Industrial 7,450
5,382
5,708
3,568
5,382
9,276
14,658
3,576
2006 2006
200 Champion Way Industrial —
3,554
12,262
22
3,554
12,284
15,838
2,763
1997 2011

Orlando, Florida
2502 Lake Orange Industrial —
3,094
3,337
131
3,094
3,468
6,562
1,950
2003 2003



Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)						Schedule III
				Initial Cost		Cost Capitalized Subsequent to Development or Acquisition	Gross Book Value 12/31/2017
	Name	Building Type	Encumbrances	Land	Buildings	Cost Capitalized Subsequent to Development or Acquisition	Land/Land Imp	Bldgs/TI	Total (1)	Accum. Depr. (2)	Year Constructed/Renovated	Year Acquired
Moreno Valley, California
	17791 Perris Boulevard	Industrial	—	28,243	39,654	—	28,243	39,654	67,897	762	2014	2017
	15810 Heacock Street	Industrial	—	9,727	18,882	—	9,727	18,882	28,609	310	2017	2017

Morgans Point, Texas
	Barbours Cut 1200	Industrial	—	1,482	8,209	44	1,482	8,253	9,735	2,820	2004	2010
	Barbours Cut 1000	Industrial	—	1,447	8,471	123	1,447	8,594	10,041	2,915	2005	2010

Morrisville, North Carolina
	Perimeter Park 3000	Industrial	—	482	2,073	1,471	491	3,535	4,026	1,646	1989	1999
	Perimeter Park 2900	Industrial	—	235	1,326	1,567	241	2,887	3,128	1,290	1990	1999
	Perimeter Park 2800	Industrial	—	777	4,214	1,278	791	5,478	6,269	2,599	1992	1999
	Perimeter Park 2700	Industrial	—	662	1,081	2,067	662	3,148	3,810	1,253	2001	2001
	Woodlake 100	Industrial	—	633	3,200	1,276	633	4,476	5,109	1,938	1994	1999
	Woodlake 101	Industrial	—	615	3,958	499	615	4,457	5,072	1,985	1997	1999
	Woodlake 200	Industrial	—	357	3,835	883	357	4,718	5,075	2,071	1999	1999
	Woodlake 501	Industrial	—	640	5,477	427	640	5,904	6,544	2,662	1999	1999
	Woodlake 1000	Industrial	—	514	2,853	468	514	3,321	3,835	1,279	1996	2002
	Woodlake 1200	Industrial	—	740	4,330	532	740	4,862	5,602	1,966	1996	2002
	Woodlake 400	Industrial	—	908	1,055	454	908	1,509	2,417	1,001	2004	2004

Naperville, Illinois
	1835 Jefferson	Industrial	—	3,180	7,921	5	3,184	7,922	11,106	3,698	2005	2003
	175 Ambassador Drive	Industrial	—	4,778	11,252	11	4,778	11,263	16,041	3,578	2006	2010
	1860 West Jefferson	Industrial	10,874	7,016	35,581	88	7,016	35,669	42,685	9,613	2000	2012

Nashville, Tennessee
	Airpark East 800	Industrial	2,276	1,564	2,341	1,579	1,564	3,920	5,484	1,579	2002	2002
	Nashville Business 3300	Industrial	—	936	4,951	1,586	936	6,537	7,473	3,054	1997	1999
	Nashville Business 3438	Industrial	—	5,659	8,165	2,101	5,659	10,266	15,925	5,203	2005	2005
	Four-Forty Business 700	Industrial	—	938	6,354	640	938	6,994	7,932	3,103	1997	1999
	Four-Forty Business 684	Industrial	—	1,812	6,782	1,831	1,812	8,613	10,425	4,064	1998	1999
	Four-Forty Business 782	Industrial	—	1,522	5,069	1,600	1,522	6,669	8,191	3,082	1997	1999
	Four-Forty Business 784	Industrial	—	471	2,182	1,749	471	3,931	4,402	1,734	1999	1999
	Four-Forty Business 701	Industrial	—	1,108	4,829	80	1,108	4,909	6,017	1,264	1996	2010

Northlake, Illinois
	Northlake Distribution 635	Industrial	14,200	5,721	9,056	929	5,721	9,985	15,706	3,767	2002	2002
	Northlake Distribution 599	Industrial	7,450	5,382	5,708	3,568	5,382	9,276	14,658	4,020	2006	2006
	200 Champion Way	Industrial	—	3,554	12,262	479	3,554	12,741	16,295	3,298	1997	2011

Orlando, Florida
	2502 Lake Orange	Industrial	—	3,094	3,337	131	3,094	3,468	6,562	2,107	2003	2003


Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2016 (in thousands)						Schedule III
				Initial Cost		Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/16
Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)																Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)									Schedule III
	Name	Building Type	Encumbrances	Land	Buildings	Cost Capitalized Subsequent to Development or Acquisition		Cost Capitalized Subsequent to Development or Acquisition		Land/Land Imp		Bldgs/TI		Total (1)		Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired				Initial Cost					Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/2017
	Parksouth Distribution 2500	Industrial	—	565	4,360		570	Cost Capitalized Subsequent to Development or Acquisition			5,833		6,403		2,247	1996	1999	Name		Building Type	Encumbrances	Land		Buildings			Land/Land Imp				Bldgs/TI			Total (1)			Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired
	Parksouth Distribution 2490	Industrial	—	493	4,188	944			498		5,127		5,625		2,246	1997	1999	Parksouth Distribution 2500		Industrial	—	565		4,360		2,057		Cost Capitalized Subsequent to Development or Acquisition		570			6,412			6,982			2,530		1996	1999
	Parksouth Distribution 2491	Industrial	—	593	4,056	996			597		5,048		5,645		2,534	1998	1999	Parksouth Distribution 2490		Industrial	—	493		4,170		992			498			5,157			5,655			2,415		1997	1999
	Parksouth Distribution 9600	Industrial	—	649	4,260	1,190			653		5,446		6,099		2,395	1997	1999	Parksouth Distribution 2491		Industrial	—	593		3,840		996			597			4,832			5,429			2,542		1998	1999
	Parksouth Distribution 9550	Industrial	—	1,030	4,459	2,501			1,035		6,955		7,990		2,750	1999		Parksouth Distribution 9600		Industrial	—	649		4,260		1,190			653			5,446			6,099			2,589		1997	1999
	Parksouth Distribution 2481	Industrial	—	725	2,589	1,445			730		4,029		4,759		1,601	2000		Parksouth Distribution 9550		Industrial	—	1,030		4,459		2,529			1,035			6,983			8,018			3,000		1999
	Parksouth Distribution 9592	Industrial	—	708	2,067	83			1,129		1,729		2,858		1,074	2003		Parksouth Distribution 2481		Industrial	—	725		2,539		1,450			730			3,984			4,714			1,754		2000
	Crossroads Business Park 301	Industrial	—	2,803	2,850	4,148			2,803		6,998		9,801		2,576	2006		Parksouth Distribution 9592		Industrial	—	708		2,067		83			1,129			1,729			2,858			1,160		2003
	Crossroads Business Park 601	Industrial	—	2,701	4,424	1,914			2,701		6,338		9,039		2,715	2007		Crossroads Business Park 301		Industrial	—	2,803		2,850		4,148			2,803			6,998			9,801			2,914		2006
	Adventist FH E Orlando ASC	Medical Office	—	683	14,011	213			683		14,224		14,907		3,136	2009	2012	Crossroads Business Park 601		Industrial	—	2,701		4,424		1,934			2,701			6,358			9,059			3,056		2007

Otsego, Minnesota	Otsego, Minnesota																	Otsego, Minnesota
	Gateway North 6035	Industrial	—	2,243	3,959	1,262			2,287		5,177		7,464		2,463	2007		Gateway North 6035		Industrial	—	2,243		3,959		1,262			2,287			5,177			7,464			2,741		2007
	Gateway North 6301	Industrial	—	1,543	6,515	28			1,571		6,515		8,086		446	2015		Gateway North 6301		Industrial	—	1,543		6,515		6,010			2,783			11,285			14,068			908		2015
	Gateway North 6651	Industrial	—	3,667	16,249	129			3,748		16,297		20,045		1,259	2015		Gateway North 6651		Industrial	—	3,667		16,249		129			3,748			16,297			20,045			1,917		2015
	Gateway North 6701	Industrial	—	3,266	11,653	181			3,374		11,726		15,100		1,170	2014		Gateway North 6701		Industrial	—	3,266		11,653		186			3,374			11,731			15,105			1,715		2014
	Gateway North 6651 Exp Land	Grounds	—	1,521	—	—			1,521		—		1,521		49	n/a	2016	Gateway North 6651 Exp Land		Grounds	—	1,521		—		—			1,521			—			1,521			146		n/a	2016

Pasadena, Texas	Pasadena, Texas																	Pasadena, Texas
	Interport 13001	Industrial	—	5,715	32,523	120			5,715		32,643		38,358		5,392	2007	2013	Interport 13001		Industrial	—	5,715		32,523		623			5,715			33,146			38,861			6,939		2007	2013
																		Bayport 4035		Industrial	—	3,772		10,255		—			3,772			10,255			14,027			—		2008	2017
Pembroke Pines, Florida
	Pembroke Pointe 880	Office	—	6,643	13,016	5,911			8,256		17,314		25,570		909	2015		Bayport 4331		Industrial	—	7,638		30,213		—			7,638			30,213			37,851			—		2008	2017

Perris, California	Perris, California																	Perris, California
	3500 Indian Avenue	Industrial	—	16,210	27,759	9,698			19,397		34,270		53,667		2,152	2015		3500 Indian Avenue		Industrial	—	16,210		27,759		8,968			18,720			34,217			52,937			4,170		2015
																		3300 Indian Avenue		Industrial	—	39,012		43,280		—			39,012			43,280			82,292			2,496		2017
Plainfield, Illinois

Plymouth, Minnesota																		Plymouth, Minnesota
	Edward Plainfield I MOB	Medical Office	—	—	6,192	1,685			—		7,877		7,877		2,508	2006	2007	Waterford Innovation Center		Industrial	—	2,689		9,897		—			2,689			9,897			12,586			412		2017

Plainfield, Indiana
Pomona, California																		Pomona, California
																		1589 E 9th St.		Industrial	—	7,386		15,515		359			7,386			15,874			23,260			831		2016	2017

Perth Amboy, New Jersey																		Perth Amboy, New Jersey
	Plainfield 1551	Industrial	—	1,104	7,924	8,114			1,097		16,045		17,142		4,942	2000		ePort 960		Industrial	—	14,424		23,464		—			14,424			23,464			37,888			209		2017
	Plainfield 1581	Industrial	—	1,094	7,547	1,986			1,094		9,533		10,627		4,004	2000		ePort 980		Industrial	—	43,778		87,019		—			43,778			87,019			130,797			776		2017
	Plainfield 2209	Industrial	—	2,016	8,806	2,738			2,016		11,544		13,560		3,944	2002		ePort 1000		Industrial	—	19,726		41,229		—			19,726			41,229			60,955			337		2017
	Plainfield 1390	Industrial	—	2,726	5,992	1,278			2,726		7,270		9,996		3,648	2004
	Plainfield 2425	Industrial	—	4,527	11,008	1,140			4,527		12,148		16,675		5,002	2006
	AllPoints Midwest Bldg. 1	Industrial	—	6,692	52,271	—			6,692		52,271		58,963		1,412	2008	2016
	AllPoints Midwest Bldg. 4	Industrial	—	4,111	9,943	—			4,111		9,943		14,054		2,748	2012	2013

Plainfield, Indiana																		Plainfield, Indiana

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2016
(in thousands)
Schedule III
Initial Cost
Cost Capitalized
Subsequent to
Development or Acquisition
Gross Book Value 12/31/16
Name Building Type Encumbrances Land Buildings Land/Land Imp Bldgs/TI Total (1) Accum. Depr. (2) Year Constructed/Renovated Year Acquired
Plano, Texas
Baylor Plano MOB Medical Office —
16
27,909
9,811
49
37,687
37,736
8,458
2009 2009

Pompano Beach, Florida
Atlantic Business 1700 Industrial —
3,165
8,935
1,738
3,165
10,673
13,838
2,514
2000 2010
Atlantic Business 1800 Industrial —
2,663
8,598
1,111
2,663
9,709
12,372
2,466
2001 2010
Atlantic Business 1855 Industrial —
2,764
8,323
171
2,764
8,494
11,258
2,026
2001 2010
Atlantic Business 2022 Industrial —
1,804
5,888
40
1,804
5,928
7,732
1,337
2002 2010
Atlantic Business 1914 Industrial —
1,834
5,339
31
1,834
5,370
7,204
1,229
2002 2010
Atlantic Business 2003 Industrial —
1,980
5,933
1,212
1,980
7,145
9,125
1,772
2002 2010
Atlantic Business 1901 Industrial —
1,995
6,257
523
1,995
6,780
8,775
1,642
2004 2010
Atlantic Business 2200 Industrial —
1,999
6,086
849
1,999
6,935
8,934
1,581
2004 2010
Atlantic Business 2100 Industrial —
1,988
6,155
36
1,988
6,191
8,179
1,411
2002 2010
Atlantic Business 2201 Industrial —
2,194
4,171
123
2,194
4,294
6,488
1,074
2005 2010
Atlantic Business 2101 Industrial —
2,066
6,682
58
2,066
6,740
8,806
1,514
2004 2010
Atlantic Business 2103 Industrial —
1,616
3,634
162
1,616
3,796
5,412
897
2005 2010
Copans Business Park 1571 Industrial —
1,710
3,718
250
1,710
3,968
5,678
985
1989 2010
Copans Business Park 1521 Industrial —
1,781
3,270
243
1,781
3,513
5,294
845
1989 2010
Park Central 3250 Industrial —
1,688
1,997
116
1,688
2,113
3,801
581
1999 2010
Park Central 3760 Industrial —
3,098
3,396
1,104
3,098
4,500
7,598
1,634
1995 2010
Pompano Commerce Center 2901 Industrial —
3,250
5,229
755
3,250
5,984
9,234
2,531
2010 2010
Pompano Commerce Center 3101 Industrial —
2,905
4,670
484
2,916
5,143
8,059
434
2015 2015
Pompano Commerce Center 2951 Industrial —
3,250
5,704
—
3,250
5,704
8,954
2,424
2010 2010
Pompano Commerce Center 3151 Industrial —
2,897
3,939
919
2,908
4,847
7,755
257
2015 2015
Sample 95 Business Park 3101 Industrial —
3,300
6,371
370
3,300
6,741
10,041
1,612
1999 2010
Sample 95 Business Park 3001 Industrial 9,414
2,963
6,158
173
2,963
6,331
9,294
1,443
1999 2011
Sample 95 Business Park 3035 Industrial 8,235
3,713
4,298
362
3,713
4,660
8,373
1,225
1999 2011
Sample 95 Business Park 3135 Industrial —
1,688
5,095
614
1,688
5,709
7,397
1,350
1999 2010
Copans Business Park 1551 Industrial —
1,856
3,162
1,323
1,856
4,485
6,341
1,051
1989 2011
Copans Business Park 1501 Industrial —
1,988
3,528
234
1,988
3,762
5,750
990
1989 2011
Park Central 1700 Industrial —
4,136
6,485
738
4,136
7,223
11,359
1,832
1998 2011
Park Central 2101 Industrial 9,379
2,696
6,170
757
2,696
6,927
9,623
1,728
1998 2011
Park Central 3300 Industrial —
1,635
2,864
375
1,635
3,239
4,874
794
1996 2011
Park Central 100 Industrial —
1,500
2,129
840
1,500
2,969
4,469
785
1998 2011



Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)						Schedule III
				Initial Cost		Cost Capitalized Subsequent to Development or Acquisition	Gross Book Value 12/31/2017
	Name	Building Type	Encumbrances	Land	Buildings	Cost Capitalized Subsequent to Development or Acquisition	Land/Land Imp	Bldgs/TI	Total (1)	Accum. Depr. (2)	Year Constructed/Renovated	Year Acquired
	Plainfield 1551	Industrial	—	1,104	7,880	10,723	1,097	18,610	19,707	5,548	2000	2000
	Plainfield 1581	Industrial	—	1,094	7,348	2,048	1,094	9,396	10,490	4,076	2000	2000
	Plainfield 2209	Industrial	—	2,016	8,779	2,740	2,016	11,519	13,535	4,245	2002	2002
	Plainfield 1390	Industrial	—	2,726	5,981	1,279	2,726	7,260	9,986	4,010	2004	2004
	Plainfield 2425	Industrial	—	4,527	11,001	1,700	4,527	12,701	17,228	5,533	2006	2006
	AllPoints Midwest Bldg. 1	Industrial	—	6,692	52,271	—	6,692	52,271	58,963	3,833	2008	2016
	AllPoints Midwest Bldg. 4	Industrial	—	4,111	9,943	—	4,111	9,943	14,054	3,449	2012	2013

Pompano Beach, Florida
	Atlantic Business 1700	Industrial	—	3,165	8,821	1,877	3,165	10,698	13,863	2,893	2000	2010
	Atlantic Business 1800	Industrial	—	2,663	8,581	1,144	2,663	9,725	12,388	2,928	2001	2010
	Atlantic Business 1855	Industrial	—	2,764	8,190	204	2,764	8,394	11,158	2,234	2001	2010
	Atlantic Business 2022	Industrial	—	1,804	5,888	40	1,804	5,928	7,732	1,562	2002	2010
	Atlantic Business 1914	Industrial	—	1,834	5,339	31	1,834	5,370	7,204	1,435	2002	2010
	Atlantic Business 2003	Industrial	—	1,980	5,933	1,233	1,980	7,166	9,146	2,185	2002	2010
	Atlantic Business 1901	Industrial	—	1,995	6,257	540	1,995	6,797	8,792	1,969	2004	2010
	Atlantic Business 2200	Industrial	—	1,999	6,076	852	1,999	6,928	8,927	1,901	2004	2010
	Atlantic Business 2100	Industrial	—	1,988	6,155	36	1,988	6,191	8,179	1,649	2002	2010
	Atlantic Business 2201	Industrial	—	2,194	4,171	123	2,194	4,294	6,488	1,268	2005	2010
	Atlantic Business 2101	Industrial	—	2,066	6,682	85	2,066	6,767	8,833	1,776	2004	2010
	Atlantic Business 2103	Industrial	—	1,616	3,634	162	1,616	3,796	5,412	1,066	2005	2010
	Copans Business Park 1571	Industrial	—	1,710	3,653	251	1,710	3,904	5,614	1,092	1989	2010
	Copans Business Park 1521	Industrial	—	1,781	3,263	404	1,781	3,667	5,448	1,061	1989	2010
	Park Central 3250	Industrial	—	1,688	1,997	116	1,688	2,113	3,801	696	1999	2010
	Park Central 3760	Industrial	—	3,098	2,567	1,195	3,098	3,762	6,860	1,231	1995	2010
	Pompano Commerce Center 2901	Industrial	—	3,250	5,206	755	3,250	5,961	9,211	2,956	2010	2010
	Pompano Commerce Center 3101	Industrial	—	2,905	4,670	486	2,916	5,145	8,061	843	2015	2015
	Pompano Commerce Center 2951	Industrial	—	3,250	5,704	—	3,250	5,704	8,954	2,810	2010	2010
	Pompano Commerce Center 3151	Industrial	—	2,897	3,939	1,226	2,908	5,154	8,062	610	2015	2015
	Sample 95 Business Park 3101	Industrial	—	3,300	6,355	371	3,300	6,726	10,026	1,937	1999	2010
	Sample 95 Business Park 3001	Industrial	—	2,963	6,158	199	2,963	6,357	9,320	1,717	1999	2011
	Sample 95 Business Park 3035	Industrial	—	3,713	4,298	362	3,713	4,660	8,373	1,469	1999	2011
	Sample 95 Business Park 3135	Industrial	—	1,688	5,035	708	1,688	5,743	7,431	1,578	1999	2010
	Copans Business Park 1551	Industrial	—	1,856	3,141	1,303	1,856	4,444	6,300	1,369	1989	2011
	Copans Business Park 1501	Industrial	—	1,988	3,381	234	1,988	3,615	5,603	1,022	1989	2011


Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2016 (in thousands)						Schedule III
Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)																						Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)												Schedule III
																												Initial Cost						Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/2017
																						Name		Building Type	Encumbrances			Land			Buildings					Land/Land Imp			Bldgs/TI			Total (1)			Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired
																						Park Central 1700		Industrial	—			4,136			6,407			Cost Capitalized Subsequent to Development or Acquisition	770			4,136			7,177			11,313			2,112		1998	2011
																						Park Central 2101		Industrial	—			2,696			6,170			757			2,696			6,927			9,623			2,092		1998	2011
				Initial Cost		Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/16													Park Central 3300		Industrial	—			1,635			2,855			375			1,635			3,230			4,865			939		1996	2011
	Name	Building Type	Encumbrances	Land	Buildings			Land/Land Imp			Bldgs/TI			Total (1)			Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired	Park Central 100		Industrial	—			1,500			2,129			840			1,500			2,969			4,469			999		1998	2011
	Park Central 1300	Industrial	—	2,438	3,021	Cost Capitalized Subsequent to Development or Acquisition	1,691			2,438			4,712			7,150			1,144		1997	2011	Park Central 1300		Industrial	—			2,438			3,021			2,181			2,438			5,202			7,640			1,497		1997	2011
	Atlantic Business Ctr. 10-KFC	Grounds	—	771	—	—			771			—			771			25		n/a	2010	Atlantic Business Ctr. 10-KFC		Grounds	—			771			—			—			771			—			771			29		n/a	2010

Port Wentworth, Georgia	Port Wentworth, Georgia																					Port Wentworth, Georgia
	318 Grange Road	Industrial	—	957	4,141	104			880			4,322			5,202			1,286		2001	2006	318 Grange Road		Industrial	—			957			4,131			813			880			5,021			5,901			1,405		2001	2006
	246 Grange Road	Industrial	3,948	1,191	7,494	(14	)		1,124			7,547			8,671			2,171		2006		246 Grange Road		Industrial	3,619			1,191			7,486			(14	)		1,124			7,539			8,663			2,366		2006
	100 Logistics Way	Industrial	7,218	2,306	12,075	1,906			2,336			13,951			16,287			4,210		2006		100 Logistics Way		Industrial	6,650			2,306			12,075			1,999			2,336			14,044			16,380			4,829		2006
	500 Expansion Boulevard	Industrial	3,184	649	6,282	216			649			6,498			7,147			1,853		2006	2008	500 Expansion Boulevard		Industrial	2,959			649			5,842			216			649			6,058			6,707			1,586		2006	2008
	400 Expansion Boulevard	Industrial	7,529	1,636	13,194	550			1,636			13,744			15,380			2,992		2007	2008	400 Expansion Boulevard		Industrial	—			1,636			13,194			616			1,636			13,810			15,446			3,375		2007	2008
	605 Expansion Boulevard	Industrial	4,436	1,615	6,893	67			1,615			6,960			8,575			1,584		2007	2008	605 Expansion Boulevard		Industrial	—			1,615			6,893			67			1,615			6,960			8,575			1,788		2007	2008
	405 Expansion Boulevard	Industrial	1,860	535	3,194	2			535			3,196			3,731			650		2008	2009	405 Expansion Boulevard		Industrial	1,801			535			3,192			2			535			3,194			3,729			732		2008	2009
	600 Expansion Boulevard	Industrial	5,328	1,248	9,392	33			1,248			9,425			10,673			1,895		2008	2009	600 Expansion Boulevard		Industrial	5,158			1,248			9,392			33			1,248			9,425			10,673			2,144		2008	2009
	602 Expansion Boulevard	Industrial	—	1,840	10,981	42			1,859			11,004			12,863			2,122		2009		602 Expansion Boulevard		Industrial	—			1,840			10,981			42			1,859			11,004			12,863			2,416		2009

Raleigh, North Carolina	Raleigh, North Carolina																					Raleigh, North Carolina
	WakeMed Brier Creek MOB	Medical Office	—	10	6,653	1,689			10			8,342			8,352			1,267		2011		Walnut Creek 540		Industrial	—			419			1,651			689			419			2,340			2,759			952		2001
	WakeMed Raleigh MOB	Medical Office	—	15	12,078	6,314			15			18,392			18,407			3,974		2012		Walnut Creek 4000		Industrial	—			456			2,078			445			456			2,523			2,979			1,033		2001
	Walnut Creek 540	Industrial	—	419	1,729	652			419			2,381			2,800			959		2001		Walnut Creek 3080		Industrial	—			679			2,766			1,343			679			4,109			4,788			1,562		2001
	Walnut Creek 4000	Industrial	—	456	2,233	445			456			2,678			3,134			1,102		2001		Walnut Creek 3070		Industrial	—			2,038			1,460			1,508			2,083			2,923			5,006			2,164		2004
	Walnut Creek 3080	Industrial	—	679	2,766	1,343			679			4,109			4,788			1,449		2001		Walnut Creek 3071		Industrial	—			1,718			2,762			651			1,718			3,413			5,131			1,660		2008
	Walnut Creek 3070	Industrial	—	2,038	1,460	1,463			2,083			2,878			4,961			1,987		2004
Rancho Cucamonga, California																						Rancho Cucamonga, California
																						9189 Utica Ave		Industrial	—			5,794			12,646			264			5,794			12,910			18,704			558		2016	2017

Rancho Dominguez, California																						Rancho Dominguez, California
	Walnut Creek 3071	Industrial	—	1,718	2,976	651			1,718			3,627			5,345			1,694		2008		18700 Laurel Park Rd		Industrial	—			8,080			2,987			87			8,080			3,074			11,154			—		1971	2017

Redlands, California	Redlands, California																					Redlands, California
	2300 W. San Bernadino Ave	Industrial	—	20,031	18,835	1,308			20,031			20,143			40,174			3,891		2001	2013	2300 W. San Bernadino Ave		Industrial	—			20,031			18,835			1,308			20,031			20,143			40,174			5,038		2001	2013

Rockwall, Texas
Romeoville, Illinois																						Romeoville, Illinois
	Baylor Emerus Rockwall Hosp	Medical Office	—	2,974	10,075	528			2,974			10,603			13,577			1,616		2014		875 W. Crossroads Parkway		Industrial	9,850			6,433			7,452			1,876			6,433			9,328			15,761			5,084		2005
																						Crossroads 1255		Industrial	6,500			2,938			9,320			2,568			2,938			11,888			14,826			3,366		1999	2010
Rome, Georgia
	Harbin Clinic Cancer Center	Medical Office	—	718	14,032	46			718			14,078			14,796			3,009		2010	2012
	Harbin Clinic Heart Center MOB	Medical Office	—	2,556	10,363	8			2,556			10,371			12,927			1,585		1994	2012
	Harbin Clinic Hospital	Medical Office	—	—	28,714	(157	)		—			28,557			28,557			4,006		1960	2012
	Harbin Clinic Rome Dialysis	Medical Office	—	190	765	—			190			765			955			173		2005	2012
	Harbin Clinic Specialty Center	Medical Office	—	2,203	14,764	—			2,203			14,764			16,967			2,850		2007	2012

Romeoville, Illinois
	875 W. Crossroads Parkway	Industrial	9,850	6,433	7,472	1,876			6,433			9,348			15,781			4,618		2005



Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)						Schedule III
				Initial Cost		Cost Capitalized Subsequent to Development or Acquisition		Gross Book Value 12/31/2017
	Name	Building Type	Encumbrances	Land	Buildings	Cost Capitalized Subsequent to Development or Acquisition		Land/Land Imp	Bldgs/TI	Total (1)	Accum. Depr. (2)	Year Constructed/Renovated	Year Acquired
	Crossroads 801	Industrial	7,350	5,296	6,184	305		5,296	6,489	11,785	4,933	2009	2010
	1341-1343 Enterprise Drive	Industrial	—	3,076	12,660	462		3,076	13,122	16,198	1,479	2015	2015
	50-56 N. Paragon	Industrial	—	3,985	5,433	—		3,985	5,433	9,418	163	2017	2017

Roseville, Minnesota
	2215 Highway 36 West	Industrial	—	1,655	5,944	1,060		1,655	7,004	8,659	2,020	1998	2011
	2420 Long Lake Road	Industrial	—	1,373	4,135	1,043		1,373	5,178	6,551	1,284	2000	2011

Savannah, Georgia
	198 Gulfstream	Industrial	—	549	3,661	310		549	3,971	4,520	1,235	1997	2006
	194 Gulfstream	Industrial	—	412	2,367	171		412	2,538	2,950	797	1998	2006
	190 Gulfstream	Industrial	—	689	4,208	361		689	4,569	5,258	1,404	1999	2006
	250 Grange Road	Industrial	—	928	7,776	(17	)	884	7,803	8,687	2,447	2002	2006
	248 Grange Road	Industrial	—	664	3,180	(43	)	613	3,188	3,801	1,028	2002	2006
	163 Portside Court	Industrial	—	8,433	7,765	48		8,433	7,813	16,246	4,903	2004	2006
	151 Portside Court	Industrial	236	966	7,140	642		966	7,782	8,748	2,457	2003	2006
	175 Portside Court	Industrial	7,847	4,300	13,894	2,361		5,782	14,773	20,555	5,437	2005	2006
	150 Portside Court	Industrial	—	3,071	20,085	1,383		3,071	21,468	24,539	6,792	2001	2006


Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2016 (in thousands)						Schedule III
Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)																						Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)											Schedule III
				Initial Cost		Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/16																			Initial Cost					Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/2017
	Name	Building Type	Encumbrances	Land	Buildings			Land/Land Imp			Bldgs/TI			Total (1)			Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired	Name		Building Type	Encumbrances			Land			Buildings			Cost Capitalized Subsequent to Development or Acquisition		Land/Land Imp			Bldgs/TI			Total (1)			Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired
	235 Jimmy Deloach Parkway	Industrial	—	1,074	7,691	Cost Capitalized Subsequent to Development or Acquisition	1,186			1,074			8,877			9,951			2,571		2001	2006	235 Jimmy Deloach Parkway		Industrial	—			1,074			7,621		1,307			1,187			8,815			10,002			2,952		2001	2006
	239 Jimmy Deloach Parkway	Industrial	—	1,074	6,473	558			1,074			7,031			8,105			1,982		2001	2006	239 Jimmy Deloach Parkway		Industrial	—			1,074			6,473		564			1,074			7,037			8,111			2,212		2001	2006
	246 Jimmy Deloach Parkway	Industrial	2,399	992	4,892	141			992			5,033			6,025			1,484		2006		246 Jimmy Deloach Parkway		Industrial	2,199			992			4,878		141			992			5,019			6,011			1,614		2006
	200 Logistics Way	Industrial	4,881	878	9,996	121			883			10,112			10,995			2,907		2006	2008	200 Logistics Way		Industrial	4,548			878			9,274		232			883			9,501			10,384			2,443		2006	2008
	2509 Dean Forest Road	Industrial	7,891	2,392	7,572	2,225			2,960			9,229			12,189			2,618		2008	2011	2509 Dean Forest Road		Industrial	—			2,392			7,572		2,432			2,960			9,436			12,396			3,261		2008	2011
	276 Jimmy Deloach Land	Grounds	—	2,267	—	276			2,520			23			2,543			502		n/a	2006	276 Jimmy Deloach Land		Grounds	—			2,267			—		276			2,520			23			2,543			550		n/a	2006

Sea Brook, Texas	Sea Brook, Texas																					Sea Brook, Texas
	Bayport Logistics 5300	Industrial	—	2,629	13,284	60			2,629			13,344			15,973			4,042		2009	2010	Bayport Logistics 5300		Industrial	—			2,629			13,284		78			2,629			13,362			15,991			4,766		2009	2010
	Bayport Logistics 5801	Industrial	—	5,116	7,663	24			5,116			7,687			12,803			780		2015		Bayport Logistics 5801		Industrial	—			5,116			7,663		47			5,116			7,710			12,826			1,212		2015

Sebring, Florida
Shakopee, Minnesota																						Shakopee, Minnesota
	Adventist FH Sebring MOB	Medical Office	—	393	6,870	49			393			6,919			7,312			1,389		2008	2012	3880 4th Avenue East		Industrial	—			1,496			6,112		67			1,522			6,153			7,675			1,569		2000	2011

Shakopee, Minnesota
	3880 4th Avenue East	Industrial	—	1,496	6,112	67			1,522			6,153			7,675			1,306		2000	2011	Gateway South 2301		Industrial	—			2,648			11,900		—			2,648			11,900			14,548			750		2016
	Gateway South 2301	Industrial	—	2,648	11,900	—			2,648			11,900			14,548			218		2016		Gateway South 2101		Industrial	—			4,273			16,727		—			4,273			16,727			21,000			149		2017

Sharonville, Ohio	Sharonville, Ohio																					Sharonville, Ohio
	Mosteller 11400	Industrial	—	828	2,926	1,771			408			5,117			5,525			2,433		1997		Mosteller 11400		Industrial	—			828			2,705		1,771			408			4,896			5,304			2,453		1997

Snellville, Georgia
South Brunswick, New Jersey																						South Brunswick, New Jersey
	HCA New Hampton Place MOB	Medical Office	—	27	5,912	1,660			27			7,572			7,599			1,936		2011		10 Broadway Road		Industrial	—			15,168			13,916		—			15,168			13,916			29,084			211		2017
																						377-387 Davidsons Mill Road		Industrial	—			3,001			36,527		—			3,001			36,527			39,528			583		2016	2017
Springfield, Missouri

St. Peters, Missouri																						St. Peters, Missouri
																						Premier 370 Bus Park 2001		Industrial	—			8,709			25,705		—			8,709			25,705			34,414			1,339		2017
																						Premier 370 Bus Park 2000		Industrial	—			4,361			12,052		—			4,361			12,052			16,413			238		2017
	Centerre Mercy Springfield	Medical Office	—	2,729	18,319	—			2,729			18,319			21,048			2,857		2014		Premier 370 Bus Park 1000		Industrial	—			4,563			9,805		—			4,563			9,805			14,368			140		2017

Stafford, Texas	Stafford, Texas																					Stafford, Texas
	10225 Mula Road	Industrial	—	3,502	3,670	3,390			3,502			7,060			10,562			3,278		2008		10225 Mula Road		Industrial	—			3,502			3,670		3,390			3,502			7,060			10,562			3,675		2008

Sterling, Virginia	Sterling, Virginia																					Sterling, Virginia
	TransDulles Centre 107	Office	—	837	426	—			837			426			1,263			—		2005	2016	TransDulles Centre 107		Office	—			837			426		41			837			467			1,304			57		2005	2016
	TransDulles Centre 109	Office	—	750	270	—			750			270			1,020			—		2004	2016	TransDulles Centre 109		Office	—			750			270		—			750			270			1,020			56		2004	2016
	TransDulles Centre 22601	Industrial	—	1,700	5,001	—			1,700			5,001			6,701			—		2004	2016	TransDulles Centre 22601		Industrial	—			1,700			5,001		292			1,700			5,293			6,993			570		2004	2016
	TransDulles Centre 22620	Industrial	—	773	1,994	—			773			1,994			2,767			—		1999	2016	TransDulles Centre 22620		Industrial	—			773			1,994		5			773			1,999			2,772			239		1999	2016
	TransDulles Centre 22626	Industrial	—	1,544	4,055	—			1,544			4,055			5,599			—		1999	2016	TransDulles Centre 22626		Industrial	—			1,544			4,055		7			1,544			4,062			5,606			500		1999	2016
	TransDulles Centre 22633	Industrial	—	702	1,657	—			702			1,657			2,359			—		2004	2016	TransDulles Centre 22633		Industrial	—			702			1,657		47			702			1,704			2,406			197		2004	2016
	TransDulles Centre 22635	Industrial	—	1,753	4,336	—			1,753			4,336			6,089			—		1999	2016	TransDulles Centre 22635		Industrial	—			1,753			4,336		6			1,753			4,342			6,095			524		1999	2016
	TransDulles Centre 22645	Industrial	—	1,228	3,411	—			1,228			3,411			4,639			—		2005	2016	TransDulles Centre 22645		Industrial	—			1,228			3,411		38			1,228			3,449			4,677			381		2005	2016
	TransDulles Centre 22714	Industrial	—	3,973	3,537	1,098			3,973			4,635			8,608			1,934		2007		TransDulles Centre 22714		Industrial	—			3,973			3,537		1,181			3,973			4,718			8,691			2,146		2007
																						TransDulles Centre 22750		Industrial	—			2,068			5,334		276			2,068			5,610			7,678			2,592		2003	2016
																						TransDulles Centre 22815		Industrial	—			7,685			5,811		338			7,685			6,149			13,834			718		2000	2016
																						TransDulles Centre 22825		Industrial	—			1,758			4,988		65			1,758			5,053			6,811			1,209		1997	2016


Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2016 (in thousands)						Schedule III
Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)																						Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)											Schedule III
				Initial Cost		Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/16																			Initial Cost					Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/2017
	Name	Building Type	Encumbrances	Land	Buildings			Land/Land Imp			Bldgs/TI			Total (1)			Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired	Name		Building Type	Encumbrances			Land			Buildings			Cost Capitalized Subsequent to Development or Acquisition		Land/Land Imp			Bldgs/TI			Total (1)			Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired
	TransDulles Centre 22750	Industrial	—	2,068	5,334	Cost Capitalized Subsequent to Development or Acquisition	—			2,068			5,334			7,402			—		2003	2016	TransDulles Centre 22879		Industrial	—			2,828			8,607		85			2,828			8,692			11,520			1,056		1989	2016
	TransDulles Centre 22815	Industrial	—	7,685	5,811	—			7,685			5,811			13,496			—		2000	2016	TransDulles Centre 22880		Industrial	—			2,311			4,922		—			2,311			4,922			7,233			568		1998	2016
	TransDulles Centre 22825	Industrial	—	1,758	4,988	—			1,758			4,988			6,746			—		1997	2016	TransDulles Centre 46213		Industrial	—			5,912			3,965		720			5,912			4,685			10,597			791		2015
	TransDulles Centre 22879	Industrial	—	2,828	8,607	—			2,828			8,607			11,435			—		1989	2016	TransDulles Center 45900		DataCenter	—			15,437			10,190		—			15,437			10,190			25,627			491		2017
	TransDulles Centre 22880	Industrial	—	2,311	4,922	—			2,311			4,922			7,233			—		1998	2016	TransDulles Center 45930		DataCenter	—			13,788			10,944		—			13,788			10,944			24,732			299		2017
	TransDulles Centre 46213	Industrial	—	5,912	3,965	720			5,912			4,685			10,597			394		2015		TransDulles Center 45950		DataCenter	—			13,052			10,797		—			13,052			10,797			23,849			150		2017

Summerville, Georgia
	Harbin Clinic Summerville Dial	Medical Office	—	195	1,182	—			195			1,182			1,377			427		2007	2012

Sumner, Washington	Sumner, Washington																					Sumner, Washington
	13501 38th Street East	Industrial	—	16,032	5,935	353			16,032			6,288			22,320			4,110		2005	2007

Sunrise, Florida
	VA Sunrise MOB	Medical Office	—	5,132	20,887	908			5,132			21,795			26,927			4,382		2008	2012	13501 38th Street East		Industrial	—			16,032			5,935		353			16,032			6,288			22,320			4,580		2005	2007

Suwanee, Georgia	Suwanee, Georgia																					Suwanee, Georgia
	Horizon Business 90	Industrial	—	180	1,169	107			180			1,276			1,456			304		2001	2010	Horizon Business 90		Industrial	—			180			1,169		182			180			1,351			1,531			365		2001	2010
	Horizon Business 225	Industrial	—	457	2,056	187			457			2,243			2,700			549		1990	2010	Horizon Business 225		Industrial	—			457			2,056		263			457			2,319			2,776			650		1990	2010
	Horizon Business 250	Industrial	—	1,625	6,354	1,043			1,625			7,397			9,022			1,953		1997	2010	Horizon Business 250		Industrial	—			1,625			6,354		1,165			1,625			7,519			9,144			2,325		1997	2010
	Horizon Business 70	Industrial	—	956	3,489	451			956			3,940			4,896			1,001		1998	2010	Horizon Business 70		Industrial	—			956			3,489		882			956			4,371			5,327			1,191		1998	2010
	Horizon Business 2780	Industrial	—	1,143	5,724	217			1,143			5,941			7,084			1,471		1997	2010	Horizon Business 2780		Industrial	—			1,143			5,724		335			1,143			6,059			7,202			1,717		1997	2010
	Horizon Business 25	Industrial	—	723	2,551	1,303			723			3,854			4,577			1,043		1999	2010	Horizon Business 25		Industrial	—			723			2,551		1,314			723			3,865			4,588			1,276		1999	2010
	Horizon Business 2790	Industrial	—	1,505	4,958	—			1,505			4,958			6,463			1,548		2006	2010	Horizon Business 2790		Industrial	—			1,505			4,958		—			1,505			4,958			6,463			1,786		2006	2010
	1000 Northbrook Parkway	Industrial	—	756	3,818	621			756			4,439			5,195			1,360		1986	2010	1000 Northbrook Parkway		Industrial	—			756			3,818		621			756			4,439			5,195			1,622		1986	2010

Tampa, Florida	Tampa, Florida																					Tampa, Florida
	Fairfield Distribution 8640	Industrial	1,194	483	2,536	330			487			2,862			3,349			1,298		1998	1999	Fairfield Distribution 8640		Industrial	1,194			483			2,473		384			487			2,853			3,340			1,332		1998	1999
	Fairfield Distribution 4720	Industrial	2,728	530	4,786	644			534			5,426			5,960			2,316		1998	1999	Fairfield Distribution 4720		Industrial	2,728			530			4,786		644			534			5,426			5,960			2,529		1998	1999
	Fairfield Distribution 4758	Industrial	1,671	334	2,658	175			338			2,829			3,167			1,216		1999		Fairfield Distribution 4758		Industrial	1,671			334			2,658		235			338			2,889			3,227			1,291		1999
	Fairfield Distribution 8600	Industrial	1,740	600	1,323	1,830			604			3,149			3,753			1,219		1999		Fairfield Distribution 8600		Industrial	1,740			600			1,276		1,996			604			3,268			3,872			1,331		1999
	Fairfield Distribution 4901	Industrial	2,115	488	2,580	395			488			2,975			3,463			1,261		2000		Fairfield Distribution 4901		Industrial	2,115			488			2,466		519			488			2,985			3,473			1,244		2000
	Fairfield Distribution 4727	Industrial	2,814	555	3,433	1,045			555			4,478			5,033			1,735		2001		Fairfield Distribution 4727		Industrial	2,814			555			3,427		1,210			555			4,637			5,192			1,885		2001
	Fairfield Distribution 4701	Industrial	2,260	394	1,758	1,346			394			3,104			3,498			1,159		2001		Fairfield Distribution 4701		Industrial	2,260			394			1,723		1,354			394			3,077			3,471			1,308		2001
	Fairfield Distribution 4661	Industrial	1,978	1,082	1,659	863			1,082			2,522			3,604			1,240		2004		Fairfield Distribution 4661		Industrial	1,978			1,082			1,659		872			1,082			2,531			3,613			1,385		2004
	Eagle Creek Business 8701	Industrial	—	3,705	2,343	2,226			3,705			4,569			8,274			2,664		2006		Eagle Creek Business 8701		Industrial	—			3,705			2,343		2,621			3,705			4,964			8,669			3,070		2006
	Eagle Creek Business 8651	Industrial	—	2,354	1,661	1,002			2,354			2,663			5,017			1,659		2007		Eagle Creek Business 8651		Industrial	—			2,354			1,661		1,120			2,354			2,781			5,135			1,840		2007
	Eagle Creek Business 8601	Industrial	—	2,332	2,229	1,771			2,332			4,000			6,332			2,431		2007		Eagle Creek Business 8601		Industrial	—			2,332			2,229		1,771			2,332			4,000			6,332			2,706		2007
	VA Tampa MOB	Medical Office	—	7,456	25,437	22			7,456			25,459			32,915			2,649		2014
Teterboro, New Jersey																						Teterboro, New Jersey
																						1 Catherine Street		Industrial	—			14,376			18,788		—			14,376			18,788			33,164			517		2016	2017

Tracy, California																						Tracy, California
																						1400 Pescadero Avenue		Industrial	—			9,633			39,644		—			9,633			39,644			49,277			8,085		2008	2013

West Chester, Ohio																						West Chester, Ohio
																						World Park Union Centre 9287		Industrial	—			2,150			827		7,934			2,151			8,760			10,911			3,882		2006

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2016
(in thousands)
Schedule III
Initial Cost
Cost Capitalized
Subsequent to
Development or Acquisition
Gross Book Value 12/31/16
Name Building Type Encumbrances Land Buildings Land/Land Imp Bldgs/TI Total (1) Accum. Depr. (2) Year Constructed/Renovated Year Acquired
Temple, Texas
Baylor Temple Bone & Joint MOB Medical Office —
1,534
17,382
1,522
1,613
18,825
20,438
3,228
2013 2013

Tracy, California
1400 Pescadero Avenue Industrial —
9,633
39,644
—
9,633
39,644
49,277
6,321
2008 2013

Waco, Texas
Baylor Hillcrest 1 MOB Medical Office —
812
25,050
1,871
812
26,921
27,733
6,947
2009 2012
Baylor Hillcrest 2 MOB Medical Office —
502
12,243
593
502
12,836
13,338
2,932
2009 2012
Baylor Hillcrest Cancer Center Medical Office —
1,844
11,006
505
1,926
11,429
13,355
2,209
2013 2013

West Chester, Ohio
World Park Union Centre 9287 Industrial —
2,150
827
7,819
2,151
8,645
10,796
3,487
2006 2006
World Park Union Centre 9271 Industrial —
2,592
6,065
189
2,592
6,254
8,846
3,626
2004 2004
World Park Union Centre 9422 Industrial —
287
2,312
257
287
2,569
2,856
656
1999 2010
World Park Union Centre 9266 Industrial —
1,125
6,042
337
1,125
6,379
7,504
1,520
1998 2010
World Park Union Centre 9407 Industrial —
482
2,356
73
482
2,429
2,911
566
1999 2010
World Park Union Centre 9451 Industrial —
1,219
6,415
214
1,219
6,629
7,848
1,732
1999 2010
World Park Union Centre 5443 Industrial —
1,918
5,207
524
1,918
5,731
7,649
2,124
2005 2010
World Park Union Centre 9107 Industrial —
1,160
5,985
1,165
1,160
7,150
8,310
1,605
1999 2010
World Park Union Centre 9245 Industrial —
1,189
5,914
393
1,189
6,307
7,496
1,639
2001 2010

Wesley Chapel, Florida
Adventist FH Wesley Chapel MOB Medical Office —
—
15,699
1,324
—
17,023
17,023
4,220
2012 2013

West Jefferson, Ohio
Park 70 at West Jefferson 100 Industrial —
6,454
24,812
16,107
10,017
37,356
47,373
12,198
2008 2008
Park 70 at West Jefferson 15 Industrial —
10,439
27,143
63
10,439
27,206
37,645
9,190
2011 2011
Park 70 at West Jefferson 10 Industrial —
2,300
18,093
5
2,300
18,098
20,398
2,009
2014 2014
Park 70 at West Jefferson 115 Industrial —
2,547
23,469
103
2,547
23,572
26,119
1,989
2015 2015

West Palm Beach, Florida
Park of Commerce 5655 Industrial —
1,635
1,927
200
1,635
2,127
3,762
690
2010 2010
Park of Commerce 5720 Industrial —
2,160
3,999
588
2,320
4,427
6,747
1,224
2010 2010
Airport Center 1701 Industrial —
2,437
5,901
352
2,437
6,253
8,690
1,465
2002 2010
Airport Center 1805 Industrial —
1,706
4,453
358
1,706
4,811
6,517
1,128
2002 2010
Airport Center 1865 Industrial —
1,500
4,506
340
1,500
4,846
6,346
1,259
2002 2010
Park of Commerce #4 Grounds 5,708
5,934
—
—
5,934
—
5,934
30
n/a 2011
Park of Commerce #5 Grounds 6,009
6,308
—
—
6,308
—
6,308
29
n/a 2011
Turnpike Crossing 1315 Industrial —
7,390
5,762
—
7,390
5,762
13,152
292
2016 2016



Duke Realty Corporation and Duke Realty Limited Partnership Real Estate and Accumulated Depreciation December 31, 2017 (in thousands)						Schedule III
				Initial Cost		Cost Capitalized Subsequent to Development or Acquisition		Gross Book Value 12/31/2017
	Name	Building Type	Encumbrances	Land	Buildings	Cost Capitalized Subsequent to Development or Acquisition		Land/Land Imp		Bldgs/TI		Total (1)		Accum. Depr. (2)		Year Constructed/Renovated	Year Acquired
	World Park Union Centre 9271	Industrial	—	2,592	6,065	298		2,592		6,363		8,955		3,949		2004	2004
	World Park Union Centre 9422	Industrial	—	287	2,232	294		287		2,526		2,813		689		1999	2010
	World Park Union Centre 9266	Industrial	—	1,125	6,042	337		1,125		6,379		7,504		1,780		1998	2010
	World Park Union Centre 9407	Industrial	—	482	2,356	681		482		3,037		3,519		724		1999	2010
	World Park Union Centre 9451	Industrial	—	1,219	6,415	214		1,219		6,629		7,848		2,011		1999	2010
	World Park Union Centre 5443	Industrial	—	1,918	5,207	524		1,918		5,731		7,649		2,501		2005	2010
	World Park Union Centre 9107	Industrial	—	1,160	5,985	1,166		1,160		7,151		8,311		1,952		1999	2010
	World Park Union Centre 9245	Industrial	—	1,189	5,914	677		1,189		6,591		7,780		1,948		2001	2010

West Jefferson, Ohio
	Park 70 at West Jefferson 100	Industrial	—	6,454	24,812	16,107		10,017		37,356		47,373		14,014		2013	2008
	Park 70 at West Jefferson 15	Industrial	—	10,439	27,143	63		10,439		27,206		37,645		10,928		2011	2011
	Park 70 at West Jefferson 10	Industrial	—	2,300	18,093	5		2,300		18,098		20,398		2,881		2014	2014
	Park 70 at West Jefferson 115	Industrial	—	2,547	23,469	102		2,547		23,571		26,118		2,987		2015	2015

West Palm Beach, Florida
	Park of Commerce 5655	Industrial	—	1,635	1,737	205		1,635		1,942		3,577		611		2010	2010
	Park of Commerce 5720	Industrial	—	2,160	3,999	588		2,320		4,427		6,747		1,464		2010	2010
	Airport Center 1701	Industrial	—	2,437	5,901	528		2,437		6,429		8,866		1,776		2002	2010
	Airport Center 1805	Industrial	—	1,706	4,453	358		1,706		4,811		6,517		1,358		2002	2010
	Airport Center 1865	Industrial	—	1,500	4,385	365		1,500		4,750		6,250		1,368		2002	2010
	Park of Commerce #4	Grounds	—	5,934	—	—		5,934		—		5,934		35		n/a	2011
	Park of Commerce #5	Grounds	—	6,308	—	—		6,308		—		6,308		34		n/a	2011
	Turnpike Crossing 1315	Industrial	—	7,390	5,762	352		7,390		6,114		13,504		787		2016	2016
	Turnpike Crossing 1333	Industrial	—	6,255	4,560	975		6,255		5,535		11,790		615		2016	2016
	Turnpike Crossing 6747	Industrial	—	10,607	7,112	—		10,607		7,112		17,719		—		2017	2017

Whitestown, Indiana
	AllPoints Anson Building 14	Industrial	—	2,127	7,528	944		2,127		8,472		10,599		2,740		2007	2011

	Accum. Depr. on Improvements of Undeveloped Land		—	—	—	—		—		—		—		11,989
	Eliminations		—	—	—	(367	)	(13	)	(354	)	(367	)	(939	)
	Properties held-for-sale							(8,157	)	(10,505	)	(18,662	)	(2,553	)
			311,963	1,923,804	4,115,331	573,094		1,950,735		4,642,832		6,593,567		1,193,905


(1)	The tax basis (in thousands) of our real estate assets at December 31, ~~2016~~2017 was approximately $~~6,769,583~~6,365,637 (unaudited) for federal income tax purposes.


(2)	Depreciation of real estate is computed using the straight-line method over 40 years for buildings and 15 years for land improvements for properties that we develop, 30 years for buildings and 10 years for land improvements for properties that we acquire, and shorter periods based on lease terms (generally 3 to 10 years) for tenant improvements.


	Real Estate Assets									Accumulated Depreciation									Real Estate Assets									Accumulated Depreciation
	2016			2015			2014			2016			2015			2014			2017			2016			2015			2017			2016			2015
Balance at beginning of year	$	6,181,877		$	7,305,848		$	7,031,660		$	1,199,608		$	1,505,677		$	1,382,757		$	6,523,281		$	6,181,877		$	7,305,848		$	1,302,210		$	1,199,608		$	1,505,677
Acquisitions	232,698			28,025			117,981												945,912			232,698			28,025
Construction costs and tenant improvements	549,506			421,404			592,651												716,627			549,506			421,404
Depreciation expense										255,419			253,683			290,279												242,606			255,419			253,683
Cost of real estate sold or contributed	(387,017		)	(1,468,635		)	(350,698		)	(102,753		)	(458,393		)	(97,032		)	(1,538,680		)	(387,017		)	(1,468,635		)	(314,306		)	(102,753		)	(458,393		)
Impairment Allowance	(3,719		)	(3,406		)	(15,406		)										(859		)	(3,719		)	(3,406		)
Write-off of fully depreciated assets	(50,064		)	(101,359		)	(70,340		)	(50,064		)	(101,359		)	(70,327		)	(34,052		)	(50,064		)	(101,359		)	(34,052		)	(50,064		)	(101,359		)
Balance at end of year including held-for-sale	$	6,523,281		$	6,181,877		$	7,305,848		$	1,302,210		$	1,199,608		$	1,505,677		$	6,612,229		$	6,523,281		$	6,181,877		$	1,196,458		$	1,302,210		$	1,199,608
Properties held-for-sale	(41,126		)	(49,277		)	(906,591		)	(18,581		)	(7,183		)	(270,340		)	(18,662		)	(1,378,476		)	(1,230,916		)	(2,553		)	(259,266		)	(196,025		)
Balance at end of year excluding held-for-sale	$	6,482,155		$	6,132,600		$	6,399,257		$	1,283,629		$	1,192,425		$	1,235,337		$	6,593,567		$	5,144,805		$	4,950,961		$	1,193,905		$	1,042,944		$	1,003,583

See Accompanying Notes to Independent Auditors' Report

Item 16. Form of 10-K Summary

Not applicable.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.




		DUKE REALTY CORPORATION

		/s/ James B. Connor
		James B. Connor
		~~President,~~Chairman & Chief Executive Officer ~~and Director~~
		(Principal Executive Officer)

		/s/ Mark A. Denien
		Mark A. Denien
		Executive Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)




		DUKE REALTY LIMITED PARTNERSHIP
		By: DUKE REALTY CORPORATION, its general partner

		/s/ James B. Connor
		James B. Connor
		~~President,~~Chairman & Chief Executive Officer ~~and Director~~ of the General Partner
		(Principal Executive Officer)

		/s/ Mark A. Denien
		Mark A. Denien
		Executive Vice President and Chief Financial Officer of the General Partner
		(Principal Financial and Accounting Officer)


Date:	February ~~17, 2017~~16, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.




Signature	Date	Title

/s/ James B. Connor	2/~~17/2017~~16/2018	~~President,~~Chairman & Chief Executive Officer ~~and Director~~ (Principal Executive Officer)
James B. Connor

/s/ Mark A. Denien	2/~~17/2017~~16/2018	Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)
Mark A. Denien

/s/ Thomas J. Baltimore, Jr.John P. Case	2/~~17/2017~~16/2018	Director
~~Thomas J. Baltimore, Jr.~~John P. Case

/s/ William Cavanaugh III*	2/~~17/2017~~16/2018	Director
William Cavanaugh III

/s/ Alan H. Cohen*	2/~~17/2017~~16/2018	Director
Alan H. Cohen

/s/ Ngaire E. Cuneo*	2/~~17/2017~~16/2018	Director
Ngaire E. Cuneo

/s/ Charles R. Eitel*	2/~~17/2017~~16/2018	Director
Charles R. Eitel

/s/ ~~Dennis D. Oklak~~Norman K. Jenkins*	2/~~17/2017~~16/2018	Director
~~Dennis D. Oklak~~ Norman K. Jenkins

/s/ Melanie R. Sabelhaus*	2/~~17/2017~~16/2018	Director
Melanie R. Sabelhaus

/s/ Peter M. Scott III*	2/~~17/2017~~16/2018	Director
Peter M. Scott III

/s/ Jack R. Shaw*	2/~~17/2017~~16/2018	Director
Jack R. Shaw

/s/ David P. Stockert*	2/16/2018	Director
David P. Stockert

/s/ Chris Sultemeier*	2/16/2018	Director
Chris Sultemeier




/s/ Michael E. Szymanczyk*	2/~~17/2017~~16/2018	Director
Michael E. Szymanczyk

/s/ Lynn C. Thurber*	2/~~17/2017~~16/2018	Director
Lynn C. Thurber



*	By James B. Connor, Attorney-in-Fact	/s/ James B. Connor

~~-130-~~-132-



General and administrative expenses - 2014	$	49.4
Decrease to overall pool of overhead costs (1)	(18.0		)
Overhead restructuring charges (2)	7.4
Decreased absorption of costs by wholly-owned development and leasing activities (3)	7.2
Decreased allocation of costs to Service Operations and Rental Operations (4)	12.6
General and administrative expenses - 2015	$	58.6



	2016
	Low	High
Discount rate	8.00%	10.50%
Exit capitalization rate	6.50%	9.00%
Lease-up period (months)	12	36
Net rental rate per square foot - Industrial	$8.20	$8.50
Net rental rate per square foot - Office	$9.34	$18.54