Press Release

Mack-Cali Realty Corporation Announces 18.2% Increase in FFO Per Share for Third Quarter 1998

CRANFORD, NJ--November 12, 1998--Mack-Cali Realty Corporation (NYSE:CLI) today reported that third quarter 1998 funds from operations (FFO) per diluted share were $0.78, representing an increase of 18.2% over the same period in 1997.

Financial Highlights

For the quarter ended September 30, 1998, FFO, after adjustment for straight-lining of rents, amounted to $57.3 million, or $0.78 per share, versus $27.3 million, or $0.66 per share, for the quarter ended September 30, 1997. For the nine months ended September 30, 1998, FFO, after adjustment for straight-lining of rents, amounted to $158.3 million, or $2.26 per share, versus $77.8 million, or $1.90 per share, for the same period last year, a per share increase of 18.9%.

Cash available for distribution (CAD) for the quarter equaled $52.1 million, or $0.71 per share, versus $25.4 million, or $0.62 per share, for the same quarter last year, an increase of 14.5% on a per share basis. For the nine months ended September 30, 1998, CAD equaled $141.8 million, or $2.03 per share, versus $73.3 million, or $1.79 per share, for the same period last year, a per share increase of 13.4%.

Total revenues for the quarter increased 109.1% to $130.9 million from $62.6 million for the same quarter last year. For the nine months ended September 30, 1998, total revenues amounted to $358.8 million, an increase of 104.7% over the $175.3 million for the same period last year.

Income from operations before minority interest and extraordinary item for the quarter totaled $39.1 million, or $0.53 per common share, versus $20.0 million, or $0.49 per common share, for the same period last year, an increase of 8.2% on a per share basis. Income from operations before minority interest and extraordinary item for the nine months ended September 30, 1998 totaled $111.1 million, or $1.57 per common share, versus $58.1 million, or $1.42 per common share, for the same period last year, a per share increase of 10.6%.

All per share amounts presented are diluted; basic per share information is included in the financial tables accompanying this press release.

As of September 30, 1998, the Company had total debt of approximately $1.4 billion, with a weighted average annual interest rate of 6.83%. The Company had 57,281,697 shares of common stock, 8,626,266 common operating partnership units and 250,256 of 6.75%, $1,000 face-value preferred operating partnership units outstanding as of quarter end. The outstanding preferred units are convertible into 7,222,395 common operating partnership units at $34.65 per unit.

Barry Lefkowitz, executive vice president and chief financial officer, stated, "The Company has substantial financial resources as evidenced by one of the strongest balance sheets in the industry. This financial strength, coupled with a seasoned management team and solid operating infrastructure, positions Mack-Cali to continue to be one of the most successful companies in the real estate sector."

Summary of Third Quarter Transactions

During the third quarter, Mack-Cali acquired four properties in the Northeast, totaling 473,000 square feet, three of which were previously announced. The previously-announced acquisitions consisted of: East Point I, a six-story, 122,000 square-foot, class A office property with nine acres of adjacent developable land in Lanham, Maryland, for $15.5 million; Seven Skyline Drive, a three-story, 117,000 square-foot, class A office property in Hawthorne, New York, for $13.3 million; and 1510 Lancer Road, an 88,000 square-foot, class A office/flex property in Moorestown, New Jersey, for $3.7 million. The Company also acquired 40 Richards Avenue, a seven-story, 146,000 square-foot, class A office property in Norwalk, Connecticut, for $18.6 million.

In August 1998, Mack-Cali completed its redevelopment of 228 Strawbridge Drive, a 74,000 square-foot, class A office property in Moorestown, New Jersey, which was purchased vacant by the Company in July 1997. The building is now fully leased.

In third quarter financing transactions, Mack-Cali raised its dividend by 10%, from $0.50 per share to $0.55 per share ($2.20 per share on an annualized basis) effective for the quarter ended September 30, 1998.

The Company also expanded its unsecured credit facility by $30 million to $900 million. Combined with the Company's existing $100 million credit facility, Mack-Cali's revolving credit lines now total $1 billion.

Leasing Summary

Mack-Cali Realty Corporations's in-service portfolio (excluding joint venture properties) was 96.1% leased at September 30, 1998, unchanged from June 30, 1998. The Company's development/ redevelopment properties (excluding joint venture properties) not-in-service as of September 30, 1998, totaled 147,000 square feet of space.

During the third quarter 1998, the Company executed 188 leases totaling 999,316 square feet, consisting of 700,670 square feet of office space, 277,030 square feet of office/flex space and 21,616 square feet of industrial/warehouse space; 466,523 square feet resulting from new leases and 532,793 square feet from lease renewals, expansions and other leasing transactions with existing tenants.

A schedule is attached highlighting the third quarter's leasing statistics.

About the Company

Mack-Cali Realty Corporation is a fully-integrated, self-administered, self-managed real estate investment trust (REIT) providing leasing, management, acquisition, development, construction and tenant-related services for its portfolio. With the completion of pending transactions, Mack-Cali will own or have interests in 253 properties, primarily office and office/flex buildings, totaling approximately 27.9 million square feet, serving over 2,300 tenants. The Company's portfolio is located in 12 states and the District of Columbia, primarily in the Northeast, as well as the Southwest and West.

Additional information on Mack-Cali Realty Corporation is available on the Company's website at www.mack-cali.com.

Certain information discussed in this press release may constitute forward-looking statements within the meaning of the Federal Securities law. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office, office/flex and industrial/warehouse properties; interest rate levels; the availability of financing; and other risks associated with the development and acquisition of properties, including risks that the development may not be completed on schedule, that the tenants will not take occupancy or pay rent, or that development or operating costs may be greater than anticipated. For further information on factors which could impact the Company and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission including quarterly reports on Form 10-Q, current reports on Form 8-K, and annual reports on Form 10-K.

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                    Mack-Cali Realty Corporation
                Consolidated Statements of Operations
               (in thousands, except per share amounts)


                                   Quarter Ended September 30,
                                    1998                 1997
-----------------------------------------------------------------------------------------
Base rents                       $112,976              $52,148
Escalations & recoveries           14,182                8,185
Parking and other                   3,008                1,648
Interest income                       728                  628


 Total revenues                   130,894               62,609


Real estate taxes                  13,488                6,584
Utilities                          11,300                5,061
Operating services                 15,807                7,283
General and administrative          6,118                3,675
Depreciation and amortization      21,213                9,339
Interest expense                   23,881               10,694


 Total expenses                    91,807               42,636
        
Income from operations before                                   
 minority interest and
 extraordinary item                39,087               19,973 
Minority interest                  (8,375)              (2,015)
Extraordinary item-loss on
 early retirement of debt(1)           --               (3,583)


Net income                        $30,712              $14,375


Earnings per Common Share-Basic:
 Income from operations
  before extraordinary item         $0.53                $0.49
 Extraordinary item                    --                (0.10)
 Net income per common share        $0.53                $0.39


Earnings per Common Share-Diluted:
 Income from operations
  before extraordinary item         $0.53                $0.49
 Extraordinary item                    --                (0.10)     Net 
income per common share             $0.53                $0.39


Dividends declared per
 common share                       $0.55                $0.50


Basic weighted average common
 shares outstanding                57,720               36,457    Diluted weighted 
average common
 shares outstanding                65,884               41,421


(1) Net of minority interest's share of extraordinary item of $402 in 1997.



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                     Mack-Cali Realty Corporation
                Statements of Funds from Operations and
                   Cash Available for Distribution
             (in thousands, except per share/unit amounts)


                                   Quarter Ended September 30,
                                            1998         1997
-----------------------------------------------------------------------------------------
Income from operations before
 minority interest and
 extraordinary item                       $39,087      $19,973
Add: Real estate depreciation
  and amortization(1)                      21,520        9,327    Deduct: Adj. to rental 
income for
  straight-lining of rents(1)              (3,355)      (1,969)
Funds from operations(2) after adj.
  for straight-lining of rents            $57,252      $27,331
Deduct:
Non-incremental revenue generating
 capital expenditures:
  Capital improvements                       (965)        (489)   Tenant 
improvements and leasing
   commissions                             (4,165)      (1,412)


Cash available for distribution           $52,122      $25,430
                                                                  Basic 
weighted average shares/units
  outstanding (3)                          65,577       40,547    Diluted 
weighted average shares/units
  outstanding(4)                           73,044       41,222


Per Share/Unit - Basic(5):
  Funds from operations                     $0.81        $0.67
  Cash available for distribution           $0.73        $0.63


Per Share/Unit - Diluted:
  Funds from operations                     $0.78        $0.66
  Cash available for distribution           $0.71        $0.62


Dividend per common share                   $0.55        $0.50


Dividend payout ratios:
  Funds from operations-diluted             70.17%       75.41%
  Cash available for distribution-diluted   77.08%       81.05%

(1) Includes FFO adjustments in 1998 related to Company's investments in
    joint ventures.
(2) Funds from operations for both periods are calculated in accordance 
    with the National Association of Real Estate Investment Trusts (NAREIT)
    definition, as published in March 1995.
(3) Calculated based on weighted average common shares outstanding, 
    assuming redemption of operating partnership common units into common shares.
(4) Calculated based on shares and units included in basic per share/unit
    computation, plus dilutive Common Stock Equivalents (i.e. convertible 
    preferred units, options and warrants).
(5) 1998 amount calculated after deduction for distributions to preferred
    unitholders of $4,194.



=========================================================================================
              
                     Mack-Cali Realty Corporation
                Consolidated Statements of Operations
               (in thousands, except per share amounts)


                               Nine Months Ended September 30,
                                    1998                 1997
-----------------------------------------------------------------------------------------
Base rents                       $311,753             $145,328
Escalations & recoveries           36,897               22,464
Parking and other                   7,921                5,245
Interest income                     2,187                2,268


Total revenues                    358,758              175,305


Real estate taxes                  35,415               18,513
Utilities                          28,717               13,001
Operating services                 44,128               21,056
General and administrative         18,708               10,601
Depreciation and amortization      56,537               25,631
Interest expense                   64,146               28,398


Total expenses                    247,651              117,200


Income from operations before                                   
 minority interest and
 extraordinary item               111,107               58,105


Minority interest                 (23,464)              (5,663)
Extraordinary item-loss on early
 retirement of debt(1)             (2,373)              (3,583)


Net income                        $85,270              $48,859


Earnings per Common Share-Basic:
 Income from operations before
  extraordinary item                $1.58                $1.44
 Extraordinary item                 (0.04)               (0.10)
 Net Income per common share        $1.54                $1.34


Earnings per Common Share-Diluted:
 Income from operations before
  extraordinary item                $1.57                $1.42
 Extraordinary item                 (0.04)               (0.10)
 Net income per common share        $1.53                $1.32 
Dividends declared per
 common share                       $1.55                $1.40


Basic weighted average common
 shares outstanding                 55,391               36,469    Diluted weighted 
average common
 shares outstanding                 63,093               41,152

(1) Net of minority interest's share of extraordinary item of $297 in 1998 
    and $402 in 1997.



=========================================================================================


                     Mack-Cali Realty Corporation
                Statements of Funds from Operations and
                   Cash Available for Distribution
             (in thousands, except per share/unit amounts)


                               Nine Months Ended September 30,
                                            1998         1997
-----------------------------------------------------------------------------------------
Income from operations before
 minority interest & extraordinary item  $111,107      $58,105
Add: Real estate depreciation
  and amortization(1)                      56,850       25,592    Deduct: 
Adj. to rental income for
  straight-lining of rents(1)              (9,700)      (5,913)
Funds from operations(2) after adj.
  for straight-lining of rents           $158,257      $77,784
Deduct:
Non-incremental revenue generating
 capital expenditures:
  Capital improvements                     (1,704)      (1,122)   Tenant 
improvements and leasing
   commissions                            (14,789)      (3,338)


Cash available for distribution          $141,764      $73,324


Basic weighted average shares/units
  outstanding (3)                          62,580       40,406
Diluted weighted average shares/units
  outstanding(4)                           69,983       40,953


Per Share/Unit - Basic(5):
  Funds from operations                     $2.34        $1.93
  Cash available for distribution           $2.07        $1.81


Per Share/Unit - Diluted:
  Funds from operations                     $2.26        $1.90
  Cash available for distribution           $2.03        $1.79


Dividend per common share                   $1.55        $1.40


Dividend payout ratios:
  Funds from operations-diluted             68.54%       73.71%
  Cash available for distribution-diluted   76.52%       78.19%

(1) Includes FFO adjustments in 1998 related to Company's investments in
    joint ventures.
(2) Funds from operations for both periods are calculated in accordance 
    with the National Association of Real Estate Investment Trusts (NAREIT)
    definition, as published in March 1995.
(3) Calculated based on weighted average common shares outstanding, 
    assuming redemption of operating partnership common units into common shares.
(4) Calculated based on shares and units included in basic per share/unit
    computation, plus dilutive Common Stock Equivalents (i.e. convertible 
    preferred units, options and warrants).
(5) 1998 amount calculated after deduction of distributions to preferred
    unitholders of $12,090.



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                    Mack-Cali Realty Corporation
                       Leasing Statistics
             For Quarter Ended September 30, 1998


                         SPACE LEASED
-----------------------------------------------------------------------------------------
IN-SERVICE PROPERTIES:
Square feet leased at June 30, 1998                   25,172,345
 Net leasing activity in 3rd quarter 1998                 62,391
 Leased s.f. from 3rd quarter 1998 acquisitions          456,252
 Occupancy adjustment(1)                                   2,550


Square feet leased at September 30, 1998              25,693,538


Percent leased at September 30, 1998                        96.1%


Square feet of Development/Redevelopment 
 Properties Not-in-Service as of September 30, 1998      147,000


                         OFFICE SPACE


                         Number              Weighted    Average
                           of     Rentable   Average      Term
                         Leases     S.F.     Base Rent   (Years)
-----------------------------------------------------------------------------------------
New Leases:
First generation space      5     104,068     $20.21       5.0
Second generation space    57     322,817     $28.83       8.0
Total new leasing          62     426,885     $26.73


Renewals & extensions      54     177,513     $19.76       3.6
Other retained tenants     34      96,272     $19.91       4.4
    Total leasing         150     700,670


Capital Expenditures - Second Generation Space(2):


                                 Tenant       Leasing
                         Improvements(3)  Commissions       Total
-----------------------------------------------------------------------------------------
Expend. committed-3rd qtr  $5,957,962     $3,529,335   $9,487,297
Rentable s.f. leased-3rd qtr                              596,602
Cap. ex. committed
      per r.s.f. per year       $1.33          $0.82        $2.15

(1) Represents the net change in the amount of space leased/expired since 
    the prior reporting period in excess of 100 percent of the gross 
    rentable area of certain properties in the portfolio.
(2) Represents amounts committed, but not necessarily expended during 
    period.
(3) Equals estimated workletter costs, net of estimated profit and 
    overhead.



=========================================================================================


                         OFFICE/FLEX SPACE
-----------------------------------------------------------------------------------------
                         Number              Weighted     Average
                           of     Rentable   Average       Term
                         Leases     S.F.     Base Rent(1) (Years)
-----------------------------------------------------------------------------------------
New Leases:
First generation space      1      10,100     $13.08        5.0
Second generation space     6      29,538     $12.13        3.7
Total new leasing           7      39,638     $12.37


Renewals & extensions      21     217,656     $12.53        4.2
Other retained tenants      7      19,736     $15.14        4.6
    Total leasing          35     277,030


Capital Expenditures - Second Generation Space(2):


                                 Tenant       Leasing
                         Improvements(3)  Commissions     Total
-----------------------------------------------------------------------------------------
Expend. committed-3rd qtr    $358,282     $372,826     $731,108
Rentable s.f. leased-3rd qtr                            266,930
Cap. ex. committed
     per r.s.f. per year        $0.32        $0.33        $0.65


                         INDUSTRIAL/WAREHOUSE SPACE
-----------------------------------------------------------------------------------------
                         Number              Weighted     Average
                           of    Rentable    Average       Term
                         Leases    S.F.      Base Rent(1) (Years)
-----------------------------------------------------------------------------------------
Renewals & extensions       1         557      $11.50       3.0
Other retained tenants      2      21,059      $ 8.48       1.0
    Total leasing           3      21,616


Capital Expenditures - Second Generation Space(2):


                                 Tenant       Leasing
                         Improvements(3)  Commissions      Total
-----------------------------------------------------------------------------------------
Expend. committed-3rd qtr      $ 401       $4,546         $4,947  Rentable 
s.f. leased-3rd qtr                        21,616
Cap. ex. committed
         per r.s.f. per year   $0.01        $0.20          $0.21

(1) Equals "triple net" rent plus common area costs and real estate taxes.
(2) Represents amounts committed, but not necessarily expended during 
period.
(3) Equals estimated workletter costs, net of estimated profit and 
overhead.

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                           LEASE RENEWALS
-----------------------------------------------------------------------------------------
                              Number of
                               Leases              Rentable S.F.
-----------------------------------------------------------------------------------------
Leases expiring                  184                     936,925


Leases renewed & extended         76                     395,726
Other retained tenants            43                     137,067
Total leases retained            119                     532,793
Percent retained                64.7%                       56.9%


Future expirations renewed or relet 
(included in totals above)        44                     301,012


=========================================================================================


                         Leasing Statistics
                      Joint Venture Properties
               For Quarter Ended September 30, 1998


                         TOTAL SPACE LEASED
-----------------------------------------------------------------------------------------
JOINT VENTURE PROPERTIES:
Square feet leased at June 30, 1998                      349,343
 Net leasing activity in 3rd quarter 1998                 51,917
 Leased s.f. from 3rd quarter 1998 acquisitions          122,765


Square feet leased at September 30, 1998                 524,025


Percent leased at September 30, 1998                        88.5%


Square feet of Development/Redevelopment 


Properties Not-in-Service as of September 30, 1998      601,300


                         Number              Weighted     Average
                           of     Rentable   Average       Term
                         Leases     S.F.     Base Rent    (Years)
-----------------------------------------------------------------------------------------
New Leases:
First generation space      1      15,350     $37.00        5.0
Second generation space     1       9,839     $25.99        5.0
Total new leasing           2      25,189     $32.70


Renewals & extensions       0           0      N/A          N/A
Other retained tenants      1      26,728     $33.00        5.0
    Total leasing           3      51,917


Capital Expenditures - Second Generation Space(1):


                                 Tenant       Leasing
                         Improvements(2)  Commissions     Total


Expend. committed-3rd qtr    $534,560     $300,981     $835,541
Rentable s.f. leased-3rd qtr                             36,567
Cap. ex. committed
     per r.s.f. per year        $2.92        $1.64        $4.56


(1) Represents amounts committed, but not necessarily expended during 
    period.
(2) Equals estimated workletter costs, net of estimated profit and 
    overhead.