Operating properties performance remains strong with a 96.9% average occupancy as of Dec. 31, 2000. Property net operating income figures show $82.9 million for the fourth quarter, down 5% from 1999. This reduction is due to property sales and the previously announced joint venture with New York State Teachers' Retirement System.

At the end of 2000, CarrAmerica and its affiliate, CarrAmerica Development Inc., had approximately 552,000 sf of wholly owned projects under development in six of the company's markets. The firm anticipates total development cost to be approximately $94.7 million, with $48.3 million invested by Dec. 31, 2000. These projects are 95.5% leased or committed and the year-one unleveraged return on CarrAmerica's invested capital is expected to be around 12.4%. p> The company or its affiliates own partial interest in seven developments totaling approximately 1.2 million sf in Austin, Chicago, Dallas, Denver and Washington, DC. Total cost of these projects is expected to be $255 million with 63.3% already leased or committed. The expected is approximately $98.9 million. The year-one unleveraged return, exclusive of fees, is approximately 10.2%.