Historically Cali has been a full-service development company.

It has both the land and the expertise to take advantage

of new development opportunities.


Cali added two new flex buildings to its fully-leased Commercenter business park in late 1996. The two single-story buildings, 80 and 100 Commerce Way, total over 47,000 square feet, and were designed to accommodate the expansion needs of both existing and new tenants.

The new buildings, located in Totowa, New Jersey, represent Cali's first construction project since 1990. This development is consistent with Cali's strategy of developing commercial space when market conditions support a favorable return on investment.

Buildable Land

Cali Realty now owns or has options to acquire more than 450 acres of land in several key submarkets in four states which are zoned and permitted for almost seven million square feet of future office, office/flex and industrial/ warehouse development, as follows:

                                 Development 
                                potential 
State            Acres	      (in sq. ft.)
________________________________________________

New Jersey	     340	    6,000,000
Pennsylvania	     12	              150,000
New York	     95	              550,000
Connecticut	     13	               80,000

This land represents a tremendous opportunity for future growth for the Company. Cali has historically been a full-service development company, and has a 48-year history of buying land, getting approvals, building, leasing and managing. Whether a large tenant requires a build-to-suit, or rental market conditions justify new development, Cali can provide the land and apply its expertise in the development of new properties.