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                                                                   EXHIBIT 10.16

                          CENTERPOINT PROPERTIES TRUST

                             STOCK OPTION AGREEMENT

         THIS STOCK OPTION AGREEMENT (the "Agreement") is dated as of February
26, 1999 between CenterPoint Properties Trust, a Maryland real estate
investment trust (the "Company"), and Rockford O. Kottka (the "Optionee").

         This Agreement is made pursuant to, and is governed by, the
CenterPoint Properties 1993 Stock Option Plan, as amended (the "Plan").
Capitalized terms not otherwise defined herein shall have the meanings set
forth in the Plan. The purpose of this Agreement is to establish a written
agreement evidencing an option granted in accordance with the terms of the
Plan. In this Agreement, "shares" means shares of the Company's Common Stock
or other securities resulting from an adjustment under Article 8 of the Plan.

         The parties agree as follows:

1.       GRANT OF OPTION. The Company hereby grants to the Optionee an option
         (the "Option") to purchase 22,050 shares under the terms and
         conditions hereof.

2.       TERM. The Option becomes exercisable and terminates in accordance
         with the schedule set forth in Section 5 hereof; provided, however,
         that in the event employment of the Optionee with the Company or a
         Subsidiary terminates for any reason, the Option shall terminate in
         accordance with the provisions of Section 7.2 of the Plan.

3.       PRICE. The price of each share purchased by exercise of the Option is
         $32.0625.

4.       PARTIAL EXERCISE. The Option, to the extent exercisable under Section
         5 hereof, may be exercised in whole or in part provided that the
         Option may not be exercised for less than 100 shares in any single
         transaction unless such exercise pertains tot he entire number of
         shares then covered by the Option.

5.       EXERCISE PERIOD.

         (a)      Except as otherwise provided in the Plan or in this
                  Agreement, the Option shall become exercisable as follows:

<TABLE>
<CAPTION>

         --------------------------------------------------------------------------------------------------
                                      Time Period                                       Exercisable
         --------------------------------------------------------------------------------------------------
         <S>                                                                     <C>
         Prior to the first anniversary date of this Agreement                   None
         --------------------------------------------------------------------------------------------------
         After the first anniversary date of this Agreement                      One-fifth
         --------------------------------------------------------------------------------------------------
         After the second anniversary date of this Agreement                     Two-fifths
         --------------------------------------------------------------------------------------------------
         After the third anniversary date of this Agreement                      Three-fifths
         --------------------------------------------------------------------------------------------------
         After the fourth anniversary date of this Agreement                     Four-fifths
         --------------------------------------------------------------------------------------------------
         After the fifth anniversary date of this Agreement                      All
         --------------------------------------------------------------------------------------------------


</TABLE>


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         (b)      If it has not previously terminated pursuant to the terms of
                  the Plan or this Agreement, the Option shall terminate at the
                  close of business on the day before the tenth anniversary of
                  the date of this Agreement.

6.       METHOD OF EXERCISE. The Option shall be exercised by written notice
         by Optionee to the Company specifying the number of shares that such
         person elects to purchase, accompanied by full payment, in cash or
         current funds, for such shares.

7.       ISO TREATMENT. It is intended that the Option shall qualify as an
         "incentive stock option" as described in Section 422 of the Internal
         Revenue Code of 1986, as amended.

8.       RIGHTS OF STOCKHOLDER. No person, estate, or other entity will have
         the rights of a stockholder with respect to shares subject to the
         Options until a certificate or certificates for these shares have
         been delivered to the person exercising the option.

9.       RIGHTS OF THE COMPANY. This Agreement does not affect the Company's
         right to take any corporate action, including other changes in its
         right to recapitalize, reorganize or consolidate, issue bonds, notes
         or stock, including preferred stock or options therefor, to dissolve
         or liquidate, or to sell or transfer any part of its assets or
         business.

10.      CHANGES IN CAPITALIZATION. Upon the occurrence of an event described
         in Section 8.1(a) of the Plan, the Committee shall make the
         adjustments specified in Section 8.1(b) of the Plan.

11.      TAXES. The company, if necessary or desirable, may pay or withhold
         the amount of any tax attributable to any shares deliverable under
         this Agreement, and the company may defer making delivery until it is
         indemnified to its satisfaction for that tax.

12.      COMPLIANCE WITH LAWS. Options are exercisable, and shares can be
         delivered under this Agreement, only in compliance with all applicable
         federal and state laws and regulations, including without limitation
         state and federal securities laws, and the rules of all stock
         exchanges on which the Common Stock is listed at any time. Options
         may not be exercised and shares may not be issued under this
         Agreement until the Company has obtained the consent or approval of
         every regulatory body, federal or state, having jurisdiction over
         such matters as the Committee deems advisable. Each person or estate
         that acquired the right to exercise an Option by bequest or
         inheritance may be required by the Committee to furnish reasonable
         evidence of ownership of the Option as a condition to the exercise of
         the Option. In addition, the Committee may require such consents and
         releases of taxing authorities as the Committee deems advisable.

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13.      STOCK LEGENDS. Any certificate issued to evidence shares issued under
         the Option shall bear such legends and statements as the committee
         deems advisable to assure compliance with all federal and state laws
         and regulations.

14.      ASSIGNABILITY. The Option shall not be transferable other than by
         will or the laws of descent and distribution. G the Optionee's
         lifetime, the Option shall be exercisable only by the Optionee,
         except as otherwise provided herein. The Option shall be
         transferable, on the Optionee's death, to the Optionee's estate and
         shall be exercisable, during the Optionee's lifetime, by the
         Optionee's guardian or legal representative.

15.      NO RIGHT OF EMPLOYMENT. Nothing in this Agreement shall confer any
         right on an employee to continue in the employ of the Company or shall
         interfere in any way with the right of the Company to terminate such
         employee's employment at any time.

16.      AMENDMENT OF OPTION. The Company may alter, amend, or terminate the
         Option only with the Optionee's consent, except for adjustments
         expressly provided by this Agreement.

17.      CHOICE OF LAW. The provisions of Section 9.6 of the Plan, concerning
         choice of law, shall govern this Agreement.

18.      MISCELLANEOUS. This Agreement is subject to and controlled by the
         Plan. Any inconsistency between this Agreement and said Plan shall be
         controlled by the Plan. This Agreement is the final, complete, and
         exclusive expression of the understanding between the parties and
         supersedes any prior or contemporaneous agreement or representation,
         oral or written, between them. Modification of this Agreement or
         waiver of a condition herein must be written and signed by the party
         to be bound. In the event that any paragraph or provision of this
         Agreement shall be held to be illegal or unenforceable, such
         paragraph or provision shall be severed from the Agreement and the
         entire Agreement shall not fa9il on account thereof, but shall
         otherwise remain in full force and effect.

19.      NOTICES. All notices and other communications required or permitted
         under this Agreement shall be written, and shall be either delivered
         personally or sent by registered or certified first-class mail,
         postage prepaid and return receipt requested, or by telex or
         telecopier, addressed as follows: if to the Company, to the Company's
         principal office, and if to the Optionee or his successor, to the
         address last furnished by such person to the Company. Each such
         notice and communication delivered personally shall be deemed to have
         been given when delivered. Each such notice and communication given
         by mail shall be deemed to have been given when it is deposited in
         the United States mail in the manner specified herein, and each such
         notice and communication given by telex or telecopier shall be deemed
         to have been given when it is so transmitted and the

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         appropriate answer back is received. A party may change its address
         for the purpose hereof by giving notice in accordance with the
         provisions of this Section 19.








IN WITNESS WHEREOF, the Optionee and the Company have executed this Agreement
as of the date first written above.




                                                   CENTERPOINT PROPERTIES TRUST

                                            By:
                                                  -----------------------------

                                                  Its:
                                                       ------------------------


                                                  GRANTEE



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