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                                                                    EXHIBIT 23.4



                         CONSENT OF INDEPENDENT AUDITORS


We consent to the reference to our firm under the caption "Experts" and to the
incorporation by reference in the Registration Statement Form S-3 for the offer
and sale of certain shares of American Industrial Properties REIT of our reports
(i) dated February 12, 1998 with respect to the Financial Statements of USAA
Real Estate Income Investments I Limited Partnerships as of December 31, 1997
and 1996 and for the three years in the period ended December 31, 1997; (ii)
dated July 25, 1997 with respect to the Financial Statements of USAA Real Estate
Income Investments II Limited Partnership as of June 30, 1997 and 1996 and for
the three years in the period ended June 30, 1997; (iii) dated February 9, 1998
with respect to the Financial Statements of USAA Income Properties III Limited
Partnership as of December 31, 1997 and 1996 and for the three years in the
period ended December 31, 1997; and (iv) dated February 9, 1998 with respect to
the Financial Statements of USAA Income Properties IV Limited Partnership as of
December 31, 1997 and 1996 and for the three years in the period ended December
31, 1997 which reports appear in Amendment No. 1 filed March 23, 1998 to Form
8-K of American Industrial Properties REIT dated January 20, 1998.



                                                       /s/ KPMG Peat Marwick LLP
                                                           KPMG Peat Marwick LLP

San Antonio, Texas
May 11, 1998