<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                            ------------------------

                                   FORM 10-Q

(MARK ONE)

<TABLE>
<C>        <S>
   /X/     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
           SECURITIES EXCHANGE ACT OF 1934

           FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2001
</TABLE>

                                       OR

<TABLE>
<C>        <S>
   / /     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
           SECURITIES EXCHANGE ACT OF 1934

           For the transition period from ------------ to ------------
</TABLE>

                        Commission file number 000-24905

                         BEACON CAPITAL PARTNERS, INC.
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

<TABLE>
<S>                                                <C>
                 Maryland                                          04-3403281
------------------------------------------         ------------------------------------------
     (STATE OR OTHER JURISDICTION OF                   (IRS EMPLOYER IDENTIFICATION NO.)
      INCORPORATION OR ORGANIZATION)

     One Federal Street, 26th Floor,
          Boston, Massachusetts                                      02110
------------------------------------------         ------------------------------------------
 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICE)                           (ZIP CODE)

                                        617-457-0400
---------------------------------------------------------------------------------------------
                    (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
</TABLE>

    Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                                    Yes X  No __

    Number of Common Shares outstanding at the latest practicable date, May 11,
2001: 21,730,888 shares, $.01 par value.

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>
                         BEACON CAPITAL PARTNERS, INC.

                                   FORM 10-Q

                                     INDEX

<TABLE>
<CAPTION>
                                                                         PAGE
                                                                       --------
<S>      <C>                                                           <C>
Part I--Financial Information

Item 1.  Condensed Consolidated Financial Statements.................         1

         Condensed Consolidated Balance Sheets--March 31, 2001
           (Unaudited) and December 31, 2000.........................         1

         Condensed Consolidated Statements of Operations--Three
           Months Ended March 31, 2001 and 2000 (Unaudited)..........         2

         Condensed Consolidated Statements of Cash Flows--Three
           Months Ended March 31, 2001 and 2000 (Unaudited)..........         3

         Notes to Condensed Consolidated Financial Statements........         4

Item 2.  Management's Discussion and Analysis of Financial Condition
           and Results of Operations.................................         9

Item 3.  Quantitative and Qualitative Disclosures about Market
           Risk......................................................        16

Part II--Other Information

Item 1.  Legal Proceedings...........................................        17

Item 2.  Changes in Securities and Use of Proceeds...................        17

Item 3.  Defaults Upon Senior Securities.............................        17

Item 4.  Submission of Matters to a Vote of Security Holders.........        17

Item 5.  Other Information...........................................        17

Item 6.  Exhibits and Reports on Form 8-K............................        17

Exhibit Index........................................................        19
</TABLE>
<PAGE>
PART I--FINANCIAL INFORMATION

  ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                         BEACON CAPITAL PARTNERS, INC.

                     CONDENSED CONSOLIDATED BALANCE SHEETS

              (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)

<TABLE>
<CAPTION>
                                                               MARCH 31,    DECEMBER 31,
                                                                 2001           2000
                                                              -----------   ------------
                                                              (UNAUDITED)     (NOTE 1)
<S>                                                           <C>           <C>
ASSETS
Real Estate:
  Land......................................................   $  16,021      $  35,264
  Buildings, improvements and equipment.....................      98,322        228,764
                                                               ---------      ---------
                                                                 114,343        264,028
  Less accumulated depreciation.............................       7,181         12,607
                                                               ---------      ---------
                                                                 107,162        251,421

Deferred financing and leasing costs, net of accumulated
  amortization of $1,053 and $1,421, respectively...........       2,163          4,396
Cash and cash equivalents...................................      74,913         83,821
Restricted cash.............................................         353            366
Accounts receivable, net....................................       1,459          4,262
Deferred rent receivable....................................         878          2,222
Other assets................................................       1,062          1,504
Investments in partnership, joint ventures and
  corporations..............................................      54,204         55,274
                                                               ---------      ---------
      Total assets..........................................   $ 242,194      $ 403,266
                                                               =========      =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
  Mortgage notes payable....................................   $  30,731      $  30,797
  Note payable--interim financing...........................          --         97,830
  Accounts payable and accrued expenses.....................      24,623         17,205
  Deferred gain on sale of real estate......................      35,544             --
                                                               ---------      ---------
      Total liabilities.....................................      90,898        145,832
                                                               ---------      ---------
Commitments and contingencies...............................          --             --

Minority interest in consolidated partnership...............       1,438          2,544
                                                               ---------      ---------
Stockholders' equity:
  Preferred stock; $.01 par value, 200,000,000 shares
    authorized, none issued or outstanding..................          --             --
  Excess stock; $.01 par value, 250,000,000 shares
    authorized, none issued or outstanding..................          --             --
  Common stock; $.01 par value, 500,000,000 shares
    authorized, 21,730,888 shares issued and outstanding....         217            217
  Additional paid-in capital................................     412,414        412,414
  Cumulative net income.....................................     162,990         95,843
  Cumulative dividends......................................    (425,675)      (251,827)
  Unrealized loss on marketable equity securities...........         (88)        (1,757)
                                                               ---------      ---------
      Total stockholders' equity............................     149,858        254,890
                                                               ---------      ---------
      Total liabilities and stockholders' equity............   $ 242,194      $ 403,266
                                                               =========      =========
</TABLE>

                            SEE ACCOMPANYING NOTES.

                                       1
<PAGE>
                         BEACON CAPITAL PARTNERS, INC.

                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

              (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)

                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                              THREE MONTHS ENDED
                                                                   MARCH 31,
                                                              -------------------
                                                                2001       2000
                                                              --------   --------
<S>                                                           <C>        <C>
Revenues:
  Rental income.............................................  $  6,941   $  8,416
  Reimbursement of operating expenses and real estate
    taxes...................................................       286        316
  Equity in earnings of partnership and joint ventures......     1,908      2,852
  Interest and dividend income..............................     1,352      1,295
  Gains (losses) on investments, net........................    (2,196)     6,414
  Other income..............................................       179        256
                                                              --------   --------
      Total revenues........................................     8,470     19,549
                                                              --------   --------
Expenses:
  Property operating........................................     2,451      2,254
  Real estate taxes.........................................       904      1,249
  General and administrative................................     6,515      2,927
  Affiliate formation expenses..............................        --      2,054
  Interest expense..........................................     1,089      1,640
  Depreciation and amortization.............................     1,502      1,865
                                                              --------   --------
      Total expenses........................................    12,461     11,989
                                                              --------   --------
Income (loss) before gains on sales of real estate, minority
  interest and extraordinary item...........................    (3,991)     7,560
Gains on sales of real estate...............................    71,834         --
                                                              --------   --------
Income before minority interest and extraordinary item......    67,843      7,560
Minority interest in consolidated partnership...............      (696)      (877)
                                                              --------   --------
Income before extraordinary item............................    67,147      6,683
Extraordinary item, net of minority interest................        --        (12)
                                                              --------   --------
      Net income............................................  $ 67,147   $  6,671
                                                              ========   ========
Income before extraordinary item per common share-basic and
  diluted...................................................  $   3.09   $   0.32
Extraordinary item per common share-basic and diluted.......        --         --
                                                              --------   --------
Net income per common share-basic and diluted...............  $   3.09   $   0.32
                                                              ========   ========
Weighted average number of common shares outstanding (in
  thousands)................................................    21,731     20,974
                                                              ========   ========
</TABLE>

                            SEE ACCOMPANYING NOTES.

                                       2
<PAGE>
                         BEACON CAPITAL PARTNERS, INC.

                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                             (DOLLARS IN THOUSANDS)

                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                                THREE MONTHS ENDED
                                                                     MARCH 31,
                                                              -----------------------
                                                                 2001         2000
                                                              ----------   ----------
<S>                                                           <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income................................................  $  67,147    $   6,671
  Adjustments to reconcile net income to net cash provided
    (used) by operating activities:
    Depreciation............................................      1,190        1,438
    Amortization............................................        312          427
    Extraordinary item, net of minority interest............         --           12
    Gains on sales of real estate...........................    (71,834)          --
    Equity in earnings of partnership and joint ventures....     (1,908)      (2,852)
    Distribution from partnership...........................      1,030           --
    Gains (losses) on investments, net......................      2,196       (6,414)
    Minority interest in consolidated partnership...........        696          877
  Increase (decrease) in cash arising from changes in
    operating assets and liabilities:
    Restricted cash.........................................         13          950
    Accounts receivable.....................................      2,425         (350)
    Deferred rent receivable................................       (146)        (332)
    Other assets............................................       (116)      (4,162)
    Accounts payable and accrued expenses...................      7,418          855
                                                              ---------    ---------
      Net cash provided (used) by operating activities......      8,423       (2,880)
                                                              ---------    ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Real estate asset acquisitions and improvements...........    (23,077)     (18,134)
  Proceeds from real estate asset sales.....................    276,886           --
  Payment of deferred leasing costs.........................       (342)        (340)
  Investments in partnership, joint ventures and
    corporations............................................       (265)      (4,231)
  Distribution from joint venture...........................      3,060           --
                                                              ---------    ---------
      Net cash provided (used) by investing activities......    256,262      (22,705)
                                                              ---------    ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Repayments on mortgage notes..............................        (66)         (61)
  Proceeds from note payable--interim financing.............         --        7,500
  Repayment on note payable--interim financing..............    (97,830)          --
  Payment of deferred financing costs.......................        (47)          (1)
  Distribution payments to minority interests...............     (1,802)      (1,377)
  Dividend payments to stockholders.........................   (173,848)     (10,487)
                                                              ---------    ---------
      Net cash used by financing activities.................   (273,593)      (4,426)
                                                              ---------    ---------

Net decrease in cash and cash equivalents...................     (8,908)     (30,011)
Cash and cash equivalents, beginning of period..............     83,821       76,927
                                                              ---------    ---------
Cash and cash equivalents, end of period....................  $  74,913    $  46,916
                                                              =========    =========
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING
  ACTIVITIES:
Distribution of Cypress stock to minority interests.........  $      --    $   2,073
Dividend of Cypress stock to stockholders...................         --       15,793
Distribution of CO Space stock to minority interests........         --          928
Dividend of CO Space stock to stockholders..................         --        7,065
SUPPLEMENTAL DISCLOSURE:
Cash paid for interest, net of capitalized interest of $454
  and $1,901, respectively..................................  $   1,749    $   1,550
</TABLE>

                            SEE ACCOMPANYING NOTES.

                                       3
<PAGE>
                         BEACON CAPITAL PARTNERS, INC.

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                 MARCH 31, 2001

              (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
                                  (UNAUDITED)

1. BASIS OF PRESENTATION

    The financial statements of Beacon Capital Partners, Inc. ("BCP") have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by accounting principles generally accepted in the United
States for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. Operating results for interim periods are
not necessarily indicative of the results that may be expected for the full
year.

    The balance sheet at December 31, 2000 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by accounting principles generally accepted in the United
States for complete financial statements.

    At March 31, 2001, the Company's investments in marketable equity securities
were included in other assets and had a fair value of approximately $162 and an
unrealized loss of approximately $88. Comprehensive income after giving effect
to the unrealized loss was $67,059 for the three months ended March 31, 2001.
Net income and comprehensive income were the same for the three months ended
March 31, 2000.

    For further information, refer to the consolidated financial statements and
footnotes thereto included in BCP's annual report on Form 10-K for the period
ended December 31, 2000.

2. ORGANIZATION

    Beacon Capital Partners, Inc. was incorporated on January 21, 1998 as a
Massachusetts corporation, and was initially capitalized through loans from the
two founders of BCP, Messrs. Leventhal and Fortin. The loans were repaid in
May 1998. BCP qualifies as a real estate investment trust ("REIT") under the
Internal Revenue Code of 1986, as amended. BCP was established to conduct real
estate investment and development activities and currently operates in one
segment.

    On March 17, 1998, BCP was reincorporated as a Maryland corporation and on
March 20, 1998, it completed an initial private offering in accordance with
Section 4(2) of the Securities Act of 1933. BCP initially issued 17,360,769
common shares with proceeds, net of expenses, of $323,110. In April 1998,
3,613,163 additional shares were issued through the exercise of the
underwriter's over-allotment, with proceeds, net of expenses, of $66,620.

    In connection with the reincorporation of BCP in Maryland, BCP established
Beacon Capital Partners, L.P. (the "Operating Partnership"). BCP and the
Operating Partnership are collectively referred to as the "Company". The
Operating Partnership is a Delaware limited partnership. BCP is the sole General
Partner of, and, as of March 31, 2001, holds approximately 99% of the economic
interest in the Operating Partnership. BCP holds an approximate 1% general
partnership interest in the Operating Partnership and the balance is held as a
limited partnership interest. The limited partnership interests not held by BCP
are presented as minority interest in consolidated partnership in the
accompanying condensed consolidated financial statements. On June 24, 1998,
$51,359 in Operating Partnership units were issued to Luddite Associates, an
affiliate of The Prudential Insurance Company of America, in connection with the
purchase of the property known as Technology Square and The Draper Building. On
October 17, 2000, Luddite Associates converted its Operating Partnership units
to common stock. As of

                                       4
<PAGE>
                         BEACON CAPITAL PARTNERS, INC.

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                 MARCH 31, 2001

              (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
                                  (UNAUDITED)

2. ORGANIZATION (CONTINUED)
March 31, 2001, $4,228 in Operating Partnership units had been issued to
Messrs. Leventhal's and Fortin's family trusts for cash. The term of the
Operating Partnership commenced on March 16, 1998 and shall continue until
January 1, 2056 or until such time as a Liquidating Event, as defined, has
occurred.

    On April 4, 2001, the Company adopted an asset sale plan (the "Asset Sale
Plan") which will permit the Company to sell, transfer or exchange all or
substantially all of its assets.

3. REAL ESTATE

    In September 2000, the Company commenced the sales of the Fort Point Place
residential condominiums and as of March 31, 2001, 97 of the 120 units have been
sold. On February 9, 2001, the Company sold Technology Square, a property
consisting of existing buildings, buildings under development and permitted land
for additional development for approximately $278,785. The Company will continue
to oversee the development and the buyer will fund the remaining development
costs for the new buildings. Under the terms of the purchase and sale agreement,
in order to avoid financial penalties, the Company is required to complete the
constuction of the new buildings by specific dates and within budget. The
development is scheduled to be completed in the third quarter of 2002. As of
March 31, 2001, the Company recognized a gain on the sale of approximately
$71,323. Pursuant to the applicable accounting rules, an additional gain
estimated at approximately $35,544 has been deferred and is expected to be
realized in future periods as construction is completed.

4. INVESTMENTS IN PARTNERSHIP, JOINT VENTURES AND CORPORATIONS

    The investments in partnership, joint ventures and corporations represent
the Company's interest in (i) a joint venture with PW Acquisitions IX, LLC,
known as Beacon/PW Kendall LLC ("The Athenaeum Portfolio"), (ii) a joint venture
with Mathilda Partners LLC ("Mathilda Research Centre"), (iii) a joint venture
with Mathilda Partners II LLC ("Mathilda Research Centre II"), (iv) a joint
venture with HA L.L.C. ("Millennium Tower"), and (v) an investment in Beacon
Capital Strategic Partners, L.P. ("BCSP").

                                       5
<PAGE>
                         BEACON CAPITAL PARTNERS, INC.

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                 MARCH 31, 2001

              (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
                                  (UNAUDITED)

4. INVESTMENTS IN PARTNERSHIP, JOINT VENTURES AND CORPORATIONS (CONTINUED)
    A reconciliation of the underlying net assets to the Company's carrying
value of investments in partnership, joint ventures and corporations is as
follows:

<TABLE>
<CAPTION>
                                           THE      MATHILDA    MATHILDA
                                        ATHENAEUM   RESEARCH    RESEARCH    MILLENNIUM
                                        PORTFOLIO    CENTRE    CENTRE II      TOWER        BCSP       TOTAL
                                        ---------   --------   ----------   ----------   --------   ---------
<S>                                     <C>         <C>        <C>          <C>          <C>        <C>
Operating Partnership equity interest
  (including accumulated earnings,
  net of distributions)..............   $    221    $19,296      $7,568      $19,315     $  1,854   $  48,254
Other costs..........................         --      2,519         353        3,005           73       5,950
                                        --------    -------      ------      -------     --------   ---------
Carrying value of investments in
  partnership, joint ventures and
  corporations at March 31, 2001.....   $    221    $21,815      $7,921      $22,320     $  1,927   $  54,204
                                        ========    =======      ======      =======     ========   =========
Equity in earnings of partnership and
  joint ventures
Three months ended
  March 31, 2001.....................   $     --    $ 1,050      $   --      $   315     $    543   $   1,908
  March 31, 2000.....................      1,366       (103)         --           --        1,589       2,852
Operating Partnership share of gains
  on sales of real estate
Three months ended
  March 31, 2001.....................   $     --    $    --      $   --      $    --     $    511   $     511
  March 31, 2000.....................         --         --          --           --           --          --
Operating Partnership share of
  extraordinary item
Three months ended
  March 31, 2001.....................   $     --    $    --      $   --      $    --     $     --   $      --
  March 31, 2000.....................         --         --          --           --          (12)        (12)
</TABLE>

MATHILDA RESEARCH CENTRE

    On August 9, 1998, the Company entered into a joint venture agreement with
Mathilda Partners LLC, an affiliate of Menlo Equities, a California based
developer, to develop two four-story Class A office/R&D buildings with surface
parking in Sunnyvale, California, known as Mathilda Research Centre. The Company
and Mathilda Partners LLC have agreed to fund 87.5% and 12.5% of the equity
required, respectively. On November 4, 1998, the venture acquired a twelve-acre
site on Mathilda Avenue in Sunnyvale, CA, on which it is developing Mathilda
Research Centre. The first building (approximately 144,000 square feet) was
completed in June 2000 and the second building (approximately 123,000 square
feet) was completed in March 2001. Both buildings are leased to Juniper
Networks, Inc. ("Juniper Networks"). The estimated cost of the 267,000 square
foot development is approximately $64,000. The joint venture has obtained a
$44,000 construction loan from an institutional lender to finance the
development, and the balance of the development costs will be funded by equity
contributions from the venturers. As of March 31, 2001, the venturers have
funded equity contributions of $20,000, of which the Company's portion was
$17,500.

                                       6
<PAGE>
                         BEACON CAPITAL PARTNERS, INC.

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                 MARCH 31, 2001

              (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
                                  (UNAUDITED)

4. INVESTMENTS IN PARTNERSHIP, JOINT VENTURES AND CORPORATIONS (CONTINUED)
MATHILDA RESEARCH CENTRE II

    On August 9, 2000, the Company entered into a joint venture agreement with
Mathilda Partners II LLC, an affiliate of Menlo Equities, a California based
developer, to develop an additional phase of Mathilda Research Centre in
Sunnyvale, California, also for Juniper Networks. The Company and Mathilda
Partners II LLC have agreed to fund 87.5% and 12.5% of the equity required,
respectively. On November 30, 2000, the joint venture acquired 1220 N. Mathilda
Avenue in Sunnyvale, California on which it is developing the additional phase
of Mathilda Research Centre. The estimated cost of the 158,000 square foot
building is approximately $40,650. The project will be funded from equity
contributions of approximately $8,040, of which the Company's portion will be
approximately $7,035, and a $32,610 construction loan from an institutional
lender. As of March 31, 2001, the members had funded equity contributions of
approximately $8,866, of which the Company's portion was approximately $7,758.
The Company currently expects a distribution of approximately $723, representing
its excess contributions, from loan proceeds when certain conditions are met.

MILLENNIUM TOWER

    On September 1, 1998 the Company entered into a joint venture agreement with
HA L.L.C., an affiliate of Martin Smith Real Estate Services, a Seattle based
real estate company, to develop a 20-story office/retail and residential tower
in downtown Seattle, Washington, known as Millennium Tower. The Company and HA
L.L.C. have agreed to fund 66 2/3% and 33 1/3% of the equity required,
respectively. Land was contributed to the joint venture by HA L.L.C. at an
agreed value of $10,500, and the Company agreed to fund the first $19,000 of
cash requirements for the venture. As of March 31, 2001, the Company has funded
its total commitment of $19,000. The joint venture has obtained a $45,000
construction loan from two institutional lenders to finance the balance of the
development costs. The estimated cost of the project is $72,000, including the
value of the land.

    The Company's residential portion of this investment is held by BCP
Millennium Residential, Inc., a Massachusetts corporation ("BCP Millennium
Residential"). Prior to March 2001, in order to comply with certain rules
applicable to REITs, the voting common stock of BCP Millennium Residential was
controlled by Messrs. Leventhal and Fortin. In March 2001, BCP Millennium
Residential was converted to a taxable REIT subsidiary and Messrs. Leventhal and
Fortin transferred their ownership to the Company. The Company owns 100% of the
economic interests in BCP Millennium Residential and for financial statement
presentation purposes, the Company consolidates BCP Millennium Residential.

BCSP

    On October 1, 1999, the Company completed the initial closing for BCSP, a
real estate limited partnership, of which BCP Strategic Partners LLC, the
Company's wholly-owned subsidiary, is the General Partner. Subsequent to
October 1, 1999, the Company completed additional closings and as of March 28,
2000 (the BCSP final closing date), equity commitments totaled $287,500, of
which the Company's equity commitment was $57,500. The commitments include
investments from various endowments, foundations, pension funds and other
institutional investors. For a period of up to two years from October 1, 1999,
BCSP will be the Company's exclusive real estate investment vehicle. As of
March 31, 2001, the Company has funded approximately $3,200 of its committed
investment. In connection with the formation of BCSP, for the three months ended
March 31, 2000, the Company incurred affiliate formation expenses of

                                       7
<PAGE>
                         BEACON CAPITAL PARTNERS, INC.

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                 MARCH 31, 2001

              (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
                                  (UNAUDITED)

4. INVESTMENTS IN PARTNERSHIP, JOINT VENTURES AND CORPORATIONS (CONTINUED)
approximately $2,054. The expenses consist of underwriter commissions and fees
for legal and professional services not reimbursed by the partners of BCSP.

    On March 17, 2000, BCSP obtained a $137,500 secured revolving credit
facility. On June 14, 2000, BCSP sold 233 Fremont Street, a property located in
San Francisco, California that was undergoing redevelopment. The property was
sold for approximately $145,894, including approximately $15,894 held in escrow
pending completion of the property's redevelopment. A portion of the escrow
funds were subsequently expended. BCSP oversaw the redevelopment and the buyer
funded the remaining redevelopment costs. The redevelopment was substantially
completed in the second quarter of 2001. For the three months ended March 31,
2001 and the year ended December 31, 2000, BCSP recognized a gain on the sale of
approximately $1,592 and $71,643, respectively. Pursuant to the applicable
accounting rules, an additional gain estimated at approximately $6,368 has been
deferred by BCSP and is expected to be realized in future periods in 2001. The
Company's share of the recognized gain for the three months ended March 31, 2001
and the year ended December 31, 2000 was approximately $511 and $25,736,
respectively. On June 28, 2000, BCSP distributed $70,000 of the sale proceeds,
of which the Company's share was approximately $25,169.

5. MORTGAGE NOTES PAYABLE

    The mortgage notes payable, collateralized by certain properties and
assignments of leases, total $30,731 at March 31, 2001. Mortgage notes payable
with fixed interest rates ranging from 7.75% to 9.25% and maturities ranging
from May 2002 to October 2022 total $18,231. A variable rate mortgage note
payable with a current interest rate of approximately 7.27% at March 31, 2001
matures in April 2002 and totals $12,500. The net book value of the mortgaged
assets is approximately $64,196 at March 31, 2001.

    Future minimum principal payments due during the next five years and
thereafter are as follows:

<TABLE>
<S>                                                  <C>
2001...............................................  $   341
2002...............................................   14,313
2003...............................................      417
2004...............................................    3,522
2005...............................................    8,769
Thereafter.........................................    3,369
                                                     -------
Total                                                $30,731
                                                     =======
</TABLE>

6. NOTE PAYABLE--INTERIM FINANCING

    On June 28, 1999, the Company obtained $100,000 of secured interim financing
(the "Interim Financing") from Bankers Trust Company. On December 3, 1999, the
Company executed an amendment to the Interim Financing that increased the loan
amount to $130,000. The Draper Building, which was sold on April 19, 2000, was
part of the collateral for the Interim Financing and as a condition of the
property's release, the Interim Financing was paid down by approximately
$32,170. The Interim Financing matured in June 2000 and pursuant to the terms of
the note, the Company exercised its option to extend the maturity date to June
2001. On February 9, 2001, in conjunction with the sale of Technology Square,
the Interim Financing was paid off.

                                       8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
  OF OPERATIONS.

OVERVIEW

    This Form 10-Q contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. The words "believe", "expect", "anticipate", "intend",
"estimate" and other expressions which are predictions of or indicate future
events and trends and which do not relate to historical matters identify
forward-looking statements. Our actual results could differ materially from
those set forth in the forward-looking statements. Certain factors that might
cause such a difference include the following: risks associated with the
adoption of the Asset Sale Plan; real estate investment considerations, such as
the effect of economic and other conditions in the market area on cash flows and
values; the need to renew leases or relet space upon the expiration of current
leases, the need to lease new developments and redevelopments and the ability of
a property to generate revenue sufficient to meet debt service payments and
other operating expenses; risks associated with borrowing, such as the
possibility that we will not have sufficient funds available to make principal
payments on outstanding debt and outstanding debt may be refinanced at higher
interest rates or otherwise on terms less favorable to us; the impact of pending
or future litigation; variations in quarterly operating results; securities held
for investment are subject to fluctuations in valuation based upon the
performance of the underlying businesses; risks that some of our investments
could cause us to fail to qualify as a REIT; and those risks and uncertainties
contained elsewhere in this report and under the heading "Risk Factors"
beginning on page 9 on our Form 10-K as filed with the Securities and Exchange
Commission on March 23, 2001.

    The following discussion and analysis of the financial condition and results
of operations should be read in conjunction with the accompanying consolidated
financial statements and notes thereto. Our consolidated financial statements
include Beacon Capital Partners, Inc. ("BCP") and Beacon Capital Partners, L.P.
(the "Operating Partnership"), our majority-owned partnership.

RESULTS OF OPERATIONS

    SUMMARY

    Changes in revenues and expenses for the three months ended March 31, 2001
and 2000 were primarily due to the timing of investment, financing and sale
transactions and redevelopment and releasing programs during 2000 and 2001. The
Technology Square Building 300 development commenced in January 2000; The
Athenaeum Portfolio was refinanced in April 2000; The Draper Building was sold
in April 2000; some of the assets in The Athenaeum Portfolio (215 First Street,
195 First Street and Doc Linskey Way) were sold in June 2000; BCSP sold 233
Fremont Street in June 2000; the first building in Mathilda Research Centre was
completed in June 2000; the repurchase of common stock of BCP and certain voting
trust interests in accordance with the share repurchase program occurred in July
2000; the development of Technology Square Buildings 600 and 700 commenced in
August 2000; additional Wyndham preferred stock was distributed in November
2000; $3.2 million of capital was contributed to BCSP in December 2000; the
remaining assets in The Athenaeum Portfolio (One Kendall Square) were sold in
December 2000; Technology Square was sold in February 2001; the Interim
Financing was paid off in February 2001; cash dividends totaling $8.00 per share
were paid in the first quarter of 2001; the second building in Mathilda Research
Centre was completed in the first quarter of 2001; the office portion of
Millennium Tower was completed in the first quarter of 2001; the marketing and
sales of Millennium Tower residential condominiums commenced in the first
quarter of 2001; and our shareholders adopted the Asset Sale Plan in April 2001
which authorizes us to sell, transfer or exchange all or substantially all of
our assets.

                                       9
<PAGE>
COMPARISON OF THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000

    Total revenues were $8.5 million and $19.5 million for the three months
ended March 31, 2001 and 2000, respectively. Rental income was $6.9 million and
$8.4 million for the three months ended March 31, 2001 and 2000, respectively.
The decrease of $1.5 million was due to the sale of Technology Square offset by
increased rents in Fort Point Place and the Dallas Office and Industrial
Portfolio. Reimbursement of operating expenses and real estate taxes remained
unchanged at $0.3 million for both the three months ended March 31, 2001 and
2000. Equity in earnings of partnership and joint ventures was $1.9 million and
$2.9 million for the three months ended March 31, 2001 and 2000, respectively.
The decrease of $1.0 million was due to the sale of The Athenaeum Portfolio and
reduced income from BCSP, offset by earnings from Mathilda Research Centre and
Millennium Tower. Interest and dividend income was $1.4 million and
$1.3 million for the three months ended March 31, 2001 and 2000, respectively.
The increase of $0.1 million was due to interest earned from cash on hand offset
by Wyndham dividends received in 2000. Gains (losses) on investments were ($2.2)
million and $6.4 million for the three months ended March 31, 2001 and 2000,
respectively. The decrease of $8.6 million was due to the Cypress investment
gain recognized in 2000, and Cypress and CO Space losses recognized in 2001.
Other income remained unchanged at $0.2 million for both the three months ended
March 31, 2001 and 2000.

    Total expenses were $12.5 million and $12.0 million for the three months
ended March 31, 2001 and 2000, respectively. Property operating expenses were
$2.5 million and $2.3 million for the three months ended March 31, 2001 and
2000, respectively. The increase of $0.2 million was due to increased expenses
in the Dallas Office and Industrial Portfolio. Real estate taxes were
$0.9 million and $1.2 million for the three months ended March 31, 2001 and
2000, respectively. The decrease of $0.3 million was due to the sale of
Technology Square. General and administrative expenses were $6.5 million and
$2.9 million for the three months ended March 31, 2001 and 2000, respectively.
The increase of $3.6 million was primarily due to management personnel bonuses
for 2000 achievements that were expensed and paid in 2001. Affiliate formation
expenses were $2.1 million for the three months ended March 31, 2000. Affiliate
formation expenses were costs incurred in the formation of BCSP and consist of
underwriter commissions and fees for legal and professional services not
reimbursed by the partners of BCSP. Interest expense was $1.1 million and
$1.6 million for the three months ended March 31, 2001 and 2000, respectively.
The decrease of $0.5 million was due to interest on the Interim Financing offset
by capitalized interest. Depreciation and amortization was $1.5 million and
$1.9 million for the three months ended March 31, 2001 and 2000, respectively.
The decrease of $0.4 million was due to the sale of Technology Square.

    The gains on sales of real estate for the three months ended March 31, 2001
of $71.8 million resulted from the recognized gain on the sale of Technology
Square of $71.3 million and our share of the gain on the sale of 233 Fremont
Street recognized in 2001. The minority interest in consolidated partnership of
$0.7 million and $0.9 million for the three months ended March 31, 2001 and
2000, respectively, represent the portion of the Operating Partnership that is
not owned by BCP.

FUTURE RESULTS OF OPERATIONS

    We anticipate that future periods will be impacted by future dispositions
expected under the Asset Sale Plan. Rental income will decline as a result of
the sale of Technology Square in February 2001 and future sales expected under
the Asset Sale Plan. Equity in earnings of partnership and joint ventures may
increase due to the completion and lease up of Mathilda Research Centre and
Millennium Tower, until such time that they are disposed of under the Asset Sale
Plan. Property operating and related expenses are also expected to decline as a
result of the sale of Technology Square and the associated payoff of debt and
future sales expected under the Asset Sale Plan. We have initiated the sale of
the Dallas Office and Industrial Portfolio, which consists of fourteen separate
properties. We expect to have multiple sale transactions and recognize losses on
the sales.

                                       10
<PAGE>
    Under the new management incentive plan adopted in 2000, members of
management will be entitled to participate in all returns realized by the
Company after specified benchmarks are achieved. To the extent that return
hurdles are achieved, we will record an allocation of earnings as a minority
interest charge in amounts that could be material. In addition, we intend to
retain assets in amounts sufficient to fund amounts owed to the minority
interest unitholders.

LIQUIDITY AND CAPITAL RESOURCES

    Cash and cash equivalents were $74.9 million at March 31, 2001 as compared
to $83.8 million at December 31, 2000. The decrease of $8.9 million was
primarily the result of (i) the payments of the January 2001 and March 2001
dividends to stockholders and distributions to unitholders, (ii) the payoff the
Interim Financing and (iii) the payment of Technology Square development costs,
all offset by (i) proceeds from the sale of Technology Square and (ii) cash flow
from operations.

SHORT AND LONG-TERM LIQUIDITY

    We have considered our short-term (up to 12 months) liquidity needs and the
adequacy of expected liquidity sources to meet these needs. We believe that our
principal short-term operating liquidity needs are to fund normal recurring
expenses, debt service requirements and the minimum distribution required to
maintain the Company's REIT qualification under the Internal Revenue Code of
1986, as amended. We believe that these needs will be provided for by cash flow
from operating activities, sales of assets and current cash balances. We believe
that our 2001 distribution requirement to maintain our REIT qualification will
be met from our 2001 cash distributions to date ($8.00 per share of common stock
of BCP) and from future distributions expected from the implementation of the
Asset Sale Plan. We believe our other short-term liquidity needs are the funding
of BCSP capital commitments, the completion of current development projects and
funding of the management incentive plan. We expect to fund these needs from
current cash balances, mortgages and other debt instruments, and through sales
of assets.

    We expect to meet long-term (greater than 12 months) liquidity requirements
for the completion of current development projects, scheduled debt maturities,
other non-recurring capital improvements and funding of the management incentive
plan through sales of assets, indebtedness, and from current cash balances.

CAPITALIZATION

    As of March 31, 2001, our total consolidated debt was approximately
$30.7 million and our total consolidated debt plus our proportionate share of
total unconsolidated debt was approximately $103.1 million. The following table
sets forth certain information regarding our consolidated and unconsolidated
debt obligations, including obligations relating to specific properties. We have
not entered into any hedging transactions and the variable interest rates
reflected in the table are the weighted averages of the outstanding loan layers.
All of the debt is non-recourse to us, with certain exceptions such as liability
for fraud, misapplication of insurance proceeds, environmental matters and
certain guarantees for completion of construction.

                                       11
<PAGE>

<TABLE>
<CAPTION>
                                                                        CURRENT
                                                                       INTEREST
                                                         COMPANY'S      RATE AT
                                            PRINCIPAL     PORTION      MARCH 31,   MATURITY        PREPAYMENT
DEBT                                         AMOUNT     OF PRINCIPAL     2001        DATE          PROVISIONS
----                                        ---------   ------------   ---------   --------       -------------
                                             (DOLLARS IN MILLIONS)
<S>                                         <C>         <C>            <C>         <C>            <C>
CONSOLIDATED DEBT
FIXED RATE:

DALLAS OFFICE AND INDUSTRIAL PORTFOLIO:

Northcreek Place..........................   $  4.1        $  4.1         7.80%     12/1/05       Prepayable
                                                                                                  subject to
                                                                                                  conditions(a)

One Glen Lakes............................      5.5           5.5         7.75%      9/1/05       Prepayable
                                                                                                  subject to
                                                                                                  conditions(b)

Greenville Place..........................      3.3           3.3         7.80%     12/1/04       Prepayable
                                                                                                  subject to
                                                                                                  conditions(c)

Plaza at Walnut Hill......................      1.4           1.4         9.00%            (d)    Prepayable
                                                                                                  subject to
                                                                                                  conditions(e)

Richardson Business Center................      1.4           1.4         9.00%            (f)    Prepayable
                                                                                                  subject to
                                                                                                  conditions(g)

Park North Business Center................      1.0           1.0         8.25%            (h)    Prepayable
                                                                                                  subject to
                                                                                                  conditions(i)

T. I. Business Park.......................      1.5           1.5         9.25%      5/1/02       Prepayable
                                            -------      --------        -----                    subject to
                                                                                                  conditions(j)

Subtotal / Weighted Average

  Fixed Rate Debt.........................     18.2          18.2         8.11%
                                             ------        ------       ------

VARIABLE RATE:

Fort Point Place..........................     12.5          12.5         7.27%            (k)    Prepayable
                                            -------      --------      -------                    subject to
                                                                                                  conditions(l)

Subtotal / Weighted Average
  Variable Rate Debt......................     12.5          12.5         7.27%
                                             ------        ------       ------

Subtotal / Weighted Average
  Consolidated Debt.......................     30.7          30.7         7.77%
                                             ------        ------       ------
</TABLE>

                                       12
<PAGE>

<TABLE>
<CAPTION>
                                                                        CURRENT
                                                                       INTEREST
                                                         COMPANY'S      RATE AT
                                            PRINCIPAL     PORTION      MARCH 31,   MATURITY        PREPAYMENT
DEBT                                         AMOUNT     OF PRINCIPAL     2001        DATE          PROVISIONS
----                                        ---------   ------------   ---------   --------       -------------
                                             (DOLLARS IN MILLIONS)
<S>                                         <C>         <C>            <C>         <C>            <C>
UNCONSOLIDATED DEBT
VARIABLE RATE:

Beacon Capital Strategic
  Partners, L.P. (m)......................     74.4          14.9         6.14%            (m)    Prepayable
                                                                                                  subject to
                                                                                                  conditions(l)

Mathilda Research Centre I................     37.6          32.9         7.82%    10/25/02       Prepayable
                                                                                                  subject to
                                                                                                  conditions(l)

Mathilda Research Centre II...............      4.0           3.5         7.57%    12/29/03       Prepayable
                                                                                                  subject to
                                                                                                  conditions(l)

Millennium Tower..........................     31.5          21.1         7.53%            (n)    Prepayable
                                            -------      --------      -------                    subject to
                                                                                                  conditions(l)

Subtotal / Weighted Average
  Unconsolidated Debt.....................    147.5          72.4         7.38%
                                             ------        ------       ------

Total / Weighted Average..................   $178.2        $103.1         7.49%
                                             ======        ======       ======
</TABLE>

--------------------------

 (a) Prepayable after January 1, 2001 subject to a yield maintenance payment
     based on the rate of United States Treasury Notes having a term closest to
     the date of maturity but in no event less than 1% of the then balance.

 (b) Prepayable after October 1, 2000 subject to a yield maintenance payment
     based on the rate of United States Treasury Notes having a term closest to
     the date of maturity but in no event less than 1% of the then balance.

 (c) Prepayable after January 1, 2002 subject to a yield maintenance payment
     based on the rate of United States Treasury Notes having a term closest to
     the date of maturity but in no event less than 1% of the then balance.

 (d) Plaza at Walnut Hill loan matures on July 1, 2017. The lender has the right
     to accelerate the maturity in the sixth, eleventh or sixteenth loan years,
     on six months' notice. No prepayment penalties apply in that event.

 (e) Prepayable after June 12, 2002 subject to payment of 5% of the amount
     prepaid, reducing by 1% per annum to a minimum payment of 1% of the amount
     prepaid.

 (f) The Richardson Business Center loan matures on November 1, 2021. The lender
     has the right to accelerate the maturity in the sixth, eleventh, sixteenth
     or twenty-first loan years, on six months' notice. No prepayment penalties
     apply in that event.

 (g) Prepayable after October 24, 2001 subject to payment of 5% of the amount
     prepaid, reducing by 1% per annum to a minimum prepayment of 1% of the
     amount prepaid.

 (h) The Park North Business Center loan matures on October 1, 2022. The lender
     has the right to accelerate the maturity in the sixth, eleventh, sixteenth
     or twenty-first loan years, on six months' notice. No prepayment penalties
     apply in that event.

 (i) Prepayable after September 8, 2002 subject to payment of 5% of the amount
     prepaid, reducing by 1% per annum to a minimum prepayment of 1% of the
     amount prepaid.

 (j) Prepayable after March 1, 2000 subject to a yield maintenance payment based
     on the rate of United States Treasury Notes having a term closest to the
     date of maturity but in no event less than 2% of the then balance.

                                       13
<PAGE>
 (k) The Fort Point Place loan matures on April 1, 2002. The loan may be
     extended for one year if certain conditions are met.

 (l) Prepayable any time in whole or in part subject to payment of applicable
     breakage costs and in some cases fees.

 (m) Includes a subscription line and a construction loan with varying maturity
     dates.

 (n) The Millennium Tower loan matures on June 1, 2002. The loan may be extended
     for one year if certain conditions are met.

    The following table, which includes both consolidated and unconsolidated
debt, summarizes the scheduled amortization of principal and maturities of the
loans outstanding as of March 31, 2001.

<TABLE>
<CAPTION>
                                               SCHEDULED
                                              AMORTIZATION   MATURITIES    TOTAL
                                              ------------   ----------   --------
                                                     (DOLLARS IN THOUSANDS)
<S>                                           <C>            <C>          <C>
4/1/01-12/31/01.............................     $  341       $ 13,900    $ 14,241
2002........................................        399         68,870      69,269
2003........................................        417          3,527       3,944
2004........................................        438          3,083       3,521
2005........................................        259          8,510       8,769
Thereafter..................................      3,369             --       3,369
                                                 ------       --------    --------
  Total.....................................     $5,223       $ 97,890    $103,113
                                                 ======       ========    ========
</TABLE>

FUNDS FROM OPERATIONS

    We believe that to facilitate a clear understanding of the operating results
of BCP, Funds from Operations ("FFO") should be examined in conjunction with net
income. The definition of FFO was clarified in the National Association of Real
Estate Investment Trusts, Inc. ("NAREIT") White Paper, adopted by the NAREIT
Board of Governors in March 1995 and subsequently clarified in October 1999, as
net income (loss) (computed in accordance with generally accepted accounting
principles), excluding gains (losses) from sales of properties, plus real estate
related depreciation and amortization, and after adjustments for unconsolidated
partnerships and joint ventures. Adjustments for unconsolidated partnerships and
joint ventures will be calculated to reflect FFO on the same basis. FFO should
not be considered as a substitute for net income, as an indication of our
performance, as a substitute for cash flow or as a measure of our liquidity. The
following table presents the calculations of FFO:

<TABLE>
<CAPTION>
                                                                THREE MONTHS ENDED
                                                                     MARCH 31,
                                                                 2001         2000
                                                              ----------   ----------
                                                              (UNAUDITED, DOLLARS IN
                                                                    THOUSANDS)
<S>                                                           <C>          <C>
Income (loss) before gains on sales of real estate, minority
  interest and extraordinary item...........................
                                                                $(3,991)     $ 7,560
Add real estate related depreciation and amortization:
  Consolidated entities.....................................      1,369        1,519
  Joint venture entities....................................        591          552
                                                                -------      -------
Funds from operations before minority interest..............     (2,031)       9,631
Company share of consolidated partnership...................      98.97%       88.40%
                                                                -------      -------
Company funds from operations...............................    $(2,010)     $ 8,514
                                                                =======      =======
Weighted average number of common shares outstanding (in
  thousands)................................................     21,731       20,974
                                                                =======      =======
</TABLE>

For the periods presented above, our FFO results would be the same using both
the March 1995 and October 1999 definitions.

                                       14
<PAGE>
PROPERTY INFORMATION

    The following table sets forth the Total Area, the Percentage Leased, the
Average Base Rent (as defined below) and the Average Net Effective Rent (as
defined below) per square foot for each of the properties we owned or had an
interest in (excluding properties controlled by BCSP) as of March 31, 2001. Base
Rent is gross rent excluding payments by tenants on account of real estate taxes
and operating expense escalation charges. Net Effective Rent is Base Rent
adjusted on a straight-line basis for contractual rent step-ups and free rent
periods, plus tenant payments on account of real estate tax and operating
expense escalation charges, less total operating expenses and real estate taxes.

<TABLE>
<CAPTION>
                                                                                     AVERAGE    AVERAGE
                                                                TOTAL        %         BASE     NET EFF
PROPERTY                                                        AREA       LEASED      RENT       RENT
--------                                                      ---------   --------   --------   --------
<S>                                                           <C>         <C>        <C>        <C>
SOUTH BOSTON, MA:
Fort Point Place (1)........................................    145,222      97%      $32.21     $25.75
                                                              ---------     ----      ------     ------
  Subtotal / Weighted Average South Boston, MA..............    145,222      97%       32.21      25.75
                                                              ---------     ----      ------     ------
SUBURBAN DALLAS, TX:
  OFFICE
Bank One LBJ................................................     42,000      84%       14.56       6.89
Brandywine Place............................................     66,237      89%       14.27      10.25
Crosspoint Atrium...........................................    220,212      88%       14.70       9.57
Forest Abrams Place.........................................     68,827      74%       14.28       7.45
6500 Greenville Avenue......................................    114,600      74%       15.96       8.62
Northcreek Place II.........................................    163,303      83%       15.63       9.03
One Glen Lakes..............................................    166,272      96%       17.90      14.57
                                                              ---------     ----      ------     ------
  Subtotal / Weighted Average...............................    841,451      85%       15.66      10.24
                                                              ---------     ----      ------     ------
R&D / INDUSTRIAL
Park North Business Center..................................     36,885     100%        9.11       7.19
Plaza at Walnut Hill........................................     88,280      90%        8.55       8.34
Richardson Business Center..................................     66,300     100%        6.00       6.40
Richardson Commerce Centre..................................     60,517      88%        7.38       5.45
Sherman Tech................................................     16,176     100%        7.49       4.63
T I Business Park...........................................     96,902      88%        8.25       6.66
Venture Drive Tech Center...................................    128,322      60%        5.01       3.67
                                                              ---------     ----      ------     ------
  Subtotal / Weighted Average...............................    493,382      84%        7.28       6.19
                                                              ---------     ----      ------     ------
  Subtotal / Weighted Average Suburban Dallas, TX...........  1,334,833      85%       12.59       8.76
                                                              ---------     ----      ------     ------
SEATTLE, WA:
Millennium Tower (2)........................................    199,384      81%       33.32      36.37
                                                              ---------     ----      ------     ------
  Subtotal / Weighted Average Seattle, WA...................    199,384      81%       33.32      36.37
                                                              ---------     ----      ------     ------
SUNNYVALE, CA:
Mathilda Research Centre (3)................................    266,750     100%       30.98      37.69
                                                              ---------     ----      ------     ------
  Subtotal / Weighted Average Sunnyvale, CA.................    266,750     100%       30.98      37.69
                                                              ---------     ----      ------     ------
  Total / Weighted Average Properties.......................  1,946,189      87%      $19.07     $17.32
                                                              =========     ====      ======     ======
</TABLE>

--------------------------

(1) Fort Point Place includes two additional buildings that are not included in
    these figures. The two buildings consist of approximately 137,000 square
    feet of recently converted residential condominiums. We are currently in the
    process of selling the condominiums and as of March 31, 2001, 97 of the 120
    units have been sold.

(2) We own Millennium Tower with our joint venture partner, HA L.L.C., an
    affiliate of Martin Smith Real Estate Services. Millennium Tower leases are
    NNN leases. Millennium Tower includes approximately 61,000 square feet of
    residential condominiums that are not included in these figures. The joint
    venture is currently marketing the condominiums for sale and as of
    March 31, 2001, 2 of the 20 units have been sold.

(3) We own Mathilda Research Centre with our joint venture partner, Mathilda
    Partners LLC, an affiliate of Menlo Equities. Mathilda Research Centre is
    comprised of two buildings, 1194 and 1184 Mathilda Avenue. Both buildings
    are leased to Juniper Networks on a NNN basis.

                                       15
<PAGE>
    The following table sets forth Lease Expirations (in square feet) for the
portfolio of properties we owned or had an interest in (excluding properties
controlled by BCSP) as of March 31, 2001.

<TABLE>
<CAPTION>
                                             SQUARE     % OF SQUARE    ANNUAL    % ANNUAL      # OF
                                             FEET(1)      FEET(2)     RENT(3)    RENT(4)    TENANTS(5)
                                            ---------   -----------   --------   --------   ----------
                                                              (DOLLARS IN THOUSANDS)
<S>                                         <C>         <C>           <C>        <C>        <C>
April 1, 2001 - December 31, 2001.........    120,900        6.2%     $ 1,365       3.5%         52
2002......................................    259,507       13.3%       4,128      10.5%         64
2003......................................    316,425       16.3%       4,277      10.8%         79
2004......................................    131,476        6.8%       1,884       4.8%         37
2005......................................    277,067       14.2%       6,012      15.2%         38
Thereafter................................    596,310       30.6%      21,807      55.2%         20
                                            ---------       ----      -------     -----         ---
  Total...................................  1,701,685       87.4%     $39,473     100.0%        290
                                            =========       ====      =======     =====         ===
</TABLE>

------------------------

(1) Total area in square feet covered by such leases.

(2) Percentage of total square feet of our portfolio.

(3) Annualized expiring base rental income represented by such leases in the
    year of expiration plus the current tenant payments on account of operating
    expense and real estate tax escalation charges.

(4) Calculated as annual rent divided by the total annual rent.

(5) The number of tenants whose leases will expire.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

    We are exposed to certain financial market risks, the most predominant being
fluctuations in the prime, Eurodollar and LIBOR interest rates. Interest rate
fluctuations are monitored by management as an integral part of our overall risk
management program, which recognizes the unpredictability of financial markets
and seeks to reduce the potentially adverse effect on our results of operations.
The effect of interest rate fluctuations historically has been small relative to
other factors affecting operating results, such as rental rates and occupancy.

    The following table summarizes our debt obligations outstanding as of
March 31, 2001. This information should be read in conjunction with Notes 5 and
6 to the condensed consolidated financial statements and with the information
contained under Capitalization in Part I--Item 2.

<TABLE>
<CAPTION>
                                                         EXPECTED MATURITY DATE
                        4/1/01-
                        12/31/01     2002       2003       2004       2005     THEREAFTER    TOTAL     FAIR VALUE
                        --------   --------   --------   --------   --------   ----------   --------   ----------
                                                         (DOLLARS IN THOUSANDS)
<S>                     <C>        <C>        <C>        <C>        <C>        <C>          <C>        <C>
Liabilities
DEBT:
----------------------
FIXED RATE............  $   341    $ 1,813     $ 417      $3,522     $8,769      $ 3,369    $ 18,231    $ 18,967
Weighted Average Fixed
  Interest Rate.......     8.1%       8.0%      8.0%        8.1%       8.8%         8.8%        8.3%

VARIABLE RATE.........       --    $12,500        --          --         --           --    $ 12,500    $ 12,500
Current Variable
  Interest Rate.......       --       7.3%        --          --         --           --        7.3%
</TABLE>

                                       16
<PAGE>
                         BEACON CAPITAL PARTNERS, INC.

PART II--OTHER INFORMATION

Item 1.  Legal Proceedings

    None.

Item 2.  Changes in Securities and Use of Proceeds

    None.

Item 3.  Defaults upon Senior Securities

    None.

Item 4.  Submission of Matters to a Vote of Security Holders

    On April 4, 2001, the Company's stockholders voted in favor of a proposal to
adopt an asset sale plan for the Company. The vote was 15,219,828 in favor and
2,129,083 against. The stockholders voted against a proposal to amend the
Company's charter. The vote was 12,711,835 in favor and 4,637,076 against;
however, in order to pass, this proposal required a favorable vote from
shareholders holding at least two-thirds of all outstanding shares.

Item 5.  Other Information

    None.

Item 6.  Exhibits and Reports on Form 8-K

<TABLE>
        <S>  <C>     <C>
        (a)   3.1    Articles of Incorporation.(1)
              3.2    Certificate of Correction to Articles of Incorporation.(1)
              3.3    Amended and Restated By-laws.(1)
              3.4    Amended and Restated Agreement of Limited Partnership of
                       Beacon Capital Partners, L.P.(2)
</TABLE>

------------------------

(1) Previously filed as an exhibit to BCP's Registration Statement on Form S-11
    (SEC File No. 333-56937) filed with the Commission on June 16, 1998.

(2) Previously filed as an exhibit to BCP's Annual Report on Form 10-K for the
    year ended December 31, 2000.

                                       17
<PAGE>
                                   SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

<TABLE>
<S>                                                   <C>
                                                      BEACON CAPITAL PARTNERS, INC.

                                                      /s/ RANDY J. PARKER
                                                      ------------------------------------------------
                                                      Randy J. Parker
                                                      Chief Financial Officer (Authorized Officer and
May 14, 2001                                          Principal Accounting Officer)
</TABLE>

                                       18
<PAGE>
                                 EXHIBIT INDEX

<TABLE>
<CAPTION>
     EXHIBIT NO.        DESCRIPTION
---------------------   -----------
<S>                     <C>                                                           <C>
Exhibit 3.1             Articles of Incorporation (1)

Exhibit 3.2             Certificate of Correction to Articles of Incorporation (1)

Exhibit 3.3             Amended and Restated By-laws (1)

Exhibit 3.4             Amended and Restated Agreement of Limited Partnership of
                        Beacon Capital Partners, L.P. (2)
</TABLE>

------------------------

(1) Previously filed as an exhibit to BCP's Registration Statement on Form S-11
    (SEC File No. 333-56937) filed with the Commission on June 16, 1998.

(2) Previously filed as an exhibit to BCP's Annual Report on Form 10-K for the
    year ended December 31, 2000.

                                       19