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                                                                    EXHIBIT 23.4


                         CONSENT OF INDEPENDENT AUDITORS


We consent to the incorporation by reference in the Registration Statement (Form
S-8) relating to the Deferred Compensation Plan for Non-Employee Trust Managers
of American Industrial Properties REIT (the "Company") of our reports (i) dated
February 12, 1998 with respect to the Financial Statements of USAA Real Estate
Income Investments I Limited Partnership as of December 31, 1997 and 1996 and
for the three years in the period ended December 31, 1997; (ii) dated July 25,
1997, except for Note 10 as to which the date is August 20, 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 the Company's Current Report on
Form 8-K dated January 20, 1998 filed with the Securities and Exchange
Commission.


                                        /s/ KPMG Peat Marwick LLP
                                        KPMG Peat Marwick LLP

San Antonio, Texas
December 21, 1998