AMB PROPERTY CORP. PRESS RELEASE DATED 10/08/2001

Exhibit 99.1


For Immediate Release

AMB Property Corporation Announces

Third Quarter 2001 Results


Highlights


- Earnings per share (EPS) for the quarter were $0.34, reflecting a 12.8%
decline from the third quarter 2000; year-to-date EPS increased 10.4% to
$1.17


- Adjusted EPS (before gains and extraordinary and one-time items)
increased 6.3% from the third quarter of 2000 to $0.34


- Funds from operations (FFO) per share increased 6.8% from the third
quarter 2000 to $0.63


- Same store net operating income (NOI) growth was 6.7% for the quarter
and 7.2% year-to-date


- Occupancy was 96.6% in the industrial portfolio, up from 95.9% at June
30, 2001


- Industrial acquisitions totaled $118.1 million and dispositions totaled
$97.3 million including $57.2 million of retails assets


- Repurchased 1.0 million shares of common stock


- AMB Institutional Alliance Fund II announces $195 million of third party
equity commitments

San Francisco, October 8, 2001 - AMB Property Corporation (NYSE: AMB) today
reported earnings per share (EPS) of $0.34 for the third quarter 2001, a 12.8%
decline from the third quarter of 2000. Adjusted EPS (before gains and
extraordinary and one-time items) was $0.34 for the quarter, reflecting a 6.3%
increase over the third quarter of 2000. Year-to-date EPS increased 10.4% to
$1.17 and adjusted EPS increased 5.1% to $1.03.

"I am very pleased with our strong results in this difficult operating
environment. Our overall same store net operating income grew by 6.7% compared
to the third quarter of 2000. Our top eight hub and gateway markets, which
account for 72.7% of our total revenues, outperformed our entire portfolio with
9.6% same store NOI growth. Our strategy of focusing on the supply constrained
submarkets of our hub and gateway markets helped us achieve portfolio-wide
occupancy of 96.6% and increase rents by 14.4%. The San Francisco Bay Area came
in as our strongest market with an overall occupancy of 99.0%," stated Hamid
Moghadam, chairman & chief executive officer. "As we have said before, we
anticipate that it will become increasingly difficult to continue to produce
operating results at this level, however we will continue to work hard to
outperform on a relative basis."

Earnings growth for the quarter was positively impacted by the sale of a
value-added conversion project by AMB's subsidiary, Headlands Realty, of $1.3
million. Gains on dispositions of operating properties of $8.8 million was
offset by unrealized losses taken against two retail assets held for sale
totaling $10.0 million. In the third quarter 2000, AMB recognized gains of $5.8
million. Growth in earnings before gains and extraordinary and one-time items
was driven by continued strong operating performance at the company's industrial
properties. Same store cash basis NOI growth was 6.7% with a 16.8% increase in
same store base rents on lease renewals and rollovers during the quarter, and
65.7% tenant retention at the same store properties. Year-to-date same store NOI
growth was 7.2%. Rent increases on renewals and rollovers during the quarter for
the entire industrial portfolio were 14.4% and tenant retention was



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68.4%. Occupancy for the industrial portfolio was 96.6%, up from 95.9% at the
end of the second quarter. The eight hub and gateway markets had occupancy of
97.0%.

Funds from operations (FFO) per fully diluted share were $0.63, including $0.01
per share of gains from Headlands Realty, and reflecting an increase of 6.8%
over the third quarter of 2000. Excluding these gains FFO per share was $0.61,
an increase of 3.4% over 2000. FFO growth for the quarter was offset by $0.04
from dilution of dispositions and contributions to co-investment ventures
earlier in 2001. Year-to-date FFO per share decreased 4.1% to $1.64, negatively
impacted by non-cash charges for impairment reserves of $0.23 per share.
Excluding the charges, year-to-date FFO per share increased 9.4% to $1.87.

"Since the beginning of the year, AMB has continued to build liquidity by
raising private equity capital, disposing of non-core assets and
opportunistically raising long-term capital which has resulted in a reduction of
our debt-to-book capitalization ratio by 170 basis points," stated W. Blake
Baird, president. "It is important to be well positioned with a strong balance
sheet in an economic downturn, and we believe this liquidity, including more
than $250 million of cash on hand, will enable AMB to execute on opportunities
in both the real estate and capital markets."

In the third quarter, AMB purchased 16 industrial buildings totaling 1.7 million
square feet for $118.1 million and disposed of $97.3 million of non-core assets,
including the largest remaining retail asset for $52.9 million. Industrial
development completions totaled 336,000 square feet for $26.8 million, and
retail development deliveries totaled 229,000 square feet for $38.9 million. The
remaining industrial development commitments through 2003 total $204.6 million,
down $49.6 million since the second quarter, and are 43% pre-leased with 67% of
the total estimated investment funded. AMB's development commitments represent
only 4.2% of total assets.

AMB Institutional Alliance Fund II, a multi-investor fund including pension
funds, foundations, endowments and private individuals that co-invest alongside
AMB, announced an additional $36 million of private equity capital commitments
subsequent to June 30, 2001, bringing the expected total capitalization of Fund
II to $487 million when combined with debt financings and AMB's 20% equity
investment. Fund II had $136 million invested in operating properties at
September 30, 2001.

During the quarter, AMB issued $40 million of fixed rate perpetual preferred
units at a coupon of 7.95% and sold $25 million of 10-year notes at a fixed rate
of 6.75%. At the end of the quarter, AMB had no outstanding borrowings on its
$500 million line of credit. AMB repurchased 1.0 million shares of its common
stock for $24.7 million. Under the company's previously announced $100 million
share repurchase program, AMB has repurchased a total of 2.5 million common
shares in the open market for $52.6 million.

AMB will hold its third quarter 2001 conference call tomorrow, October 9, 2001
at 2:00 p.m. EDT (11:00 a.m. PDT). Stockholders and interested parties may
access a webcast of the call through AMB's website or a broadcast of the call by
dialing (719) 457-2629 reservation code 562979. For those who are not able to
listen to the live broadcast, a replay will be available for one week following
the call through AMB's website or by dialing (719) 457-0820, reservation code
562797.

AMB Property Corporation is one of the leading owners and operators of
industrial real estate nationwide. As of September 30, 2001, AMB owned, managed
and had renovation and development projects totaling 92.6 million square feet
and 996 buildings in 26 metropolitan markets. AMB targets High Throughput
Distribution(TM) properties - industrial properties located in major
distribution markets near airports, seaports and ground transportation systems.
These HTD(TM) facilities are built for speed and benefit from barriers to entry
due to their supply-constrained locations and proximity to large customer bases.
AMB -- A tradition of nontraditional thinking(TM).

######

This press release contains forward-looking statements about business
strategy and future plans, which are made pursuant to the safe-harbor
provisions of Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements involve numerous risks and uncertainties and
should not be relied upon as predictions of future events. The events or
circumstances reflected in our forward-looking statements might not occur.
In particular, a number of factors could cause AMB's actual results to
differ materially from those anticipated, including, among other things,
defaults on or non-renewal of leases by tenants, increased interest rates
and operating costs, AMB's failure to obtain necessary outside financing,
difficulties in identifying properties to acquire and in effecting
acquisitions, AMB's failure to successfully integrate acquired properties
and operations, AMB's failure to timely reinvest proceeds from any such
dispositions, risks and uncertainties affecting property development and
construction (including construction delays, cost overruns, AMB's inability
to obtain necessary permits and public opposition to these activities),
AMB's failure to qualify and maintain its status as a real estate investment
trust under the Internal Revenue Code, environmental uncertainties, risks
related to natural disasters, financial market fluctuations, risks arising
from the California energy shortage, changes in real estate and zoning



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laws and increases in real property tax rates. AMB's success also depends
upon economic trends generally, including interest rates, income tax laws,
governmental regulation, legislation and population changes. For further
information on these and other factors that could impact AMB and the
statements contained herein, reference should be made to AMB's filings with
the Securities and Exchange Commission, including AMB's quarterly report on
Form 10-Q for the quarter ended June 30, 2001.


CONSOLIDATED BALANCE SHEETS
(dollars in thousands)