<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

[ X ]       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934
                       For the period ended July 31, 2001

                                       OR

[   ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934
              For the transition period from ________ to ________.

                         Commission File Number: 0-18150

                 DEAN WITTER REALTY INCOME PARTNERSHIP II, L.P.
                 ----------------------------------------------
         (Exact name of registrant as specified in governing instrument)


      Delaware                                  13-3244091
      ----------                      ----------------------------

(State of organization)             (IRS Employer Identification No.)

   2 World Trade Center, New York, NY                  10048
----------------------------------------             -------
(Address of principal executive offices)             (Zip Code)


Registrant's telephone number, including area code: (800) 829-8585
                                                    --------------

Former name, former address and former fiscal year, if changed since last
report: not applicable

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

                         PART I - FINANCIAL INFORMATION
                         ------------------------------

Item 1.  Financial Statements

                 DEAN WITTER REALTY INCOME PARTNERSHIP II, L.P.

                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                              July 31,         October 31,
---------------------------------------------------------------------------------------------------------------------------------
                                                                                2001               2000

                                     ASSETS

<S>                                                                          <C>                <C>
Cash and cash equivalents                                                    $   646,885        $1,316,641

Investment in joint venture                                                        4,159            13,637

Other assets                                                                       3,878             2,066
---------------------------------------------------------------------------------------------------------------------------------

                                                                             $   654,922        $1,332,344
=================================================================================================================================


                        LIABILITIES AND PARTNERS' CAPITAL

Accounts payable and other liabilities                                       $   302,062        $  263,462
---------------------------------------------------------------------------------------------------------------------------------

Partners' capital (deficiency):
   General partners                                                           (5,443,102)       (5,431,688)
   Limited partners ($1,000 per Unit,
      177,023 Units issued)                                                    5,795,962         6,500,570
---------------------------------------------------------------------------------------------------------------------------------

     Total partners' capital                                                     352,860         1,068,882
---------------------------------------------------------------------------------------------------------------------------------

                                                                             $   654,922        $1,332,344
=================================================================================================================================
</TABLE>

                See accompanying notes to financial statements.
<PAGE>

                DEAN WITTER REALTY INCOME PARTNERSHIP II, L.P.

                           STATEMENTS OF OPERATIONS

              Three and nine months ended July 31, 2001 and 2000

<TABLE>
<CAPTION>
                                                                   Three months ended                   Nine months ended
                                                                        July 31,                            July 31,
                                                                        --------                            --------
                                                                   2001            2000               2001            2000
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                           <C>               <C>               <C>               <C>
Revenues:
  Equity in earnings of joint
     venture                                                  $      --         $ 2,522,015       $        81       $ 2,648,885
  Interest and other                                                4,062            46,007            29,782            79,770
-------------------------------------------------------------------------------------------------------------------------------

                                                                    4,062         2,568,022            29,863         2,728,655
-------------------------------------------------------------------------------------------------------------------------------

Expenses:
   Property operating                                              (2,680)             --             (12,675)             --
   General and administrative                                      55,184            42,225           156,682           162,667
-------------------------------------------------------------------------------------------------------------------------------

                                                                   52,504            42,225           144,007           162,667
-------------------------------------------------------------------------------------------------------------------------------

Net (loss)income                                              $   (48,442)      $ 2,525,797       $  (114,144)      $ 2,565,988
===============================================================================================================================

Net (loss)income allocated to:
  Limited partners                                            $   (43,598)      $ 2,523,873       $  (102,730)      $ 2,560,045
  General partners                                                 (4,844)            1,924           (11,414)            5,943
-------------------------------------------------------------------------------------------------------------------------------

                                                              $   (48,442)      $ 2,525,797       $  (114,144)      $ 2,565,988
===============================================================================================================================

  Net (loss)income per Unit of limited
  partnership interest                                        $     (0.25)      $     14.26       $     (0.58)      $     14.46
===============================================================================================================================
</TABLE>

                See accompanying notes to financial statements.
<PAGE>

                 DEAN WITTER REALTY INCOME PARTNERSHIP II, L.P.

                         STATEMENT OF PARTNERS' CAPITAL

                         Nine months ended July 31, 2001

<TABLE>
<CAPTION>
                                                                 Limited                  General
                                                                 Partners                 Partners                   Total
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                             <C>                      <C>                      <C>
Partners' capital (deficiency)
   at November 1, 2000                                          $ 6,500,570              $(5,431,688)             $ 1,068,882

Net loss                                                           (102,730)                 (11,414)                (114,144)

Cash distribution                                                  (601,878)                    --                   (601,878)
-----------------------------------------------------------------------------------------------------------------------------
Partners' capital (deficiency)
   at July 31, 2001                                             $ 5,795,962              $(5,443,102)             $   352,860
=============================================================================================================================
</TABLE>

                See accompanying notes to financial statements.
<PAGE>

                 DEAN WITTER REALTY INCOME PARTNERSHIP II, L.P.

                            STATEMENTS OF CASH FLOWS

                    Nine months ended July 31, 2001 and 2000
<TABLE>
<CAPTION>
                                                                                               2001                   2000
--------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                        <C>                      <C>
Cash flows from operating activities:
   Net (loss) income                                                                       $  (114,144)             $ 2,565,988
    Adjustments to reconcile net (loss) income to net
      cash used in operating activities:
         Equity in earnings of Taxter joint venture                                                (81)              (2,648,885)
       Increase in other assets                                                                 (1,812)                 (23,477)
       Decrease in accounts payable and
          other liabilities                                                                     38,600                   78,655
--------------------------------------------------------------------------------------------------------------------------------
           Net cash used in operating activities                                               (77,437)                 (27,719)
--------------------------------------------------------------------------------------------------------------------------------

Cash flows from investing activities:

    Distributions from Taxter joint venture                                                      9,559                5,136,229
  Investments in Taxter joint venture                                                             --                   (190,578)
--------------------------------------------------------------------------------------------------------------------------------
           Net cash provided by
             investing activities                                                                9,559                4,945,651
--------------------------------------------------------------------------------------------------------------------------------

Cash flows from financing activities:
    Cash distributions                                                                        (601,878)              (5,133,667)
--------------------------------------------------------------------------------------------------------------------------------

Decrease in cash and cash equivalents                                                         (669,756)                (215,735)

Cash and cash equivalents at beginning of period                                             1,316,641                1,409,281
--------------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period                                                 $   646,885              $ 1,193,546
================================================================================================================================
</TABLE>

                See accompanying notes to financial statements.
<PAGE>

                 DEAN WITTER REALTY INCOME PARTNERSHIP II, L.P.

                          Notes to Financial Statements

1.   The Partnership
     ---------------

Dean Witter Realty Income Partnership II, L.P. (the "Partnership") is a limited
partnership organized under the laws of the State of Delaware in 1984. The
Partnership's fiscal year ends on October 31.

The Partnership's last remaining property investment was its 14.8% interest in
the partnership ("TPA") which owned Taxter Corporate Park. TPA sold the Taxter
property on May 23, 2000, and this sale has effectuated the dissolution of the
Partnership. However, the Partnership can't wind up its affairs, and distribute
the balance of the Partnership's cash reserves, until TPA terminates its
operations (see Note 2). The Managing General Partner plans to terminate the
Partnership in 2001.

The equity method of accounting had been applied to the Partnership's 14.8%
interest in TPA because of the Partnership's continuing ability to exert
significant influence over TPA.

The Partnership's records are maintained on the accrual basis of accounting for
financial reporting and tax reporting purposes.

Net (loss) income per Unit of limited partnership interest amounts are
calculated by dividing net (loss) income allocated to Limited Partners by the
weighted average number of Units outstanding.

In the opinion of management, the accompanying financial statements, which have
not been audited, include all adjustments necessary to present fairly the
results for the interim period. Except for the gain on sale of the Taxter
property included in equity in earnings in 2000, such adjustments consist only
of normal recurring accruals.

These financial statements should be read in conjunction with the annual
financial statements and notes thereto included in the Partnership's annual
report on Form 10-K filed with the Securities and Exchange Commission for the
year ended October 31, 2000. Operating results of interim periods may not be
indicative of the operating results for the entire year.
<PAGE>

                 DEAN WITTER REALTY INCOME PARTNERSHIP II, L.P.

                          Notes to Financial Statements

2.  Investment in Joint Venture
    ---------------------------

The Partnership understands that TPA has certain operating issues that TPA must
resolve, both with the buyer of the Taxter property and other third parties,
before TPA can terminate its operations. Resolution of these issues is not
anticipated to require any significant funding from the Partnership.

Summarized income statements of TPA are as follows:

<TABLE>
<CAPTION>
                                                         Three months                                   Nine months
                                                         ended July 31,                                 ended July 31,
                                                   2001                   2000                   2001                    2000
-------------------------------------------------------------------------------------------------------------------------------
<S>                                            <C>                    <C>                    <C>                    <C>
Operating income                               $      --              $   395,751            $       544            $ 3,065,210

Gain on sale of
 real estate                                          --               15,551,472                   --               15,551,472
-------------------------------------------------------------------------------------------------------------------------------
                                                      --               15,947,223                    544             18,616,682

Expenses                                              --                  291,300                   --                2,103,527
-------------------------------------------------------------------------------------------------------------------------------
Net income                                     $      --              $15,655,923            $       544            $16,513,155
===============================================================================================================================
</TABLE>

3. Related Party Transactions
   --------------------------

An affiliate of the Managing General Partner performs administrative functions,
processes investor transactions and prepares tax information for the
Partnership. For the nine months ended July 31 2001 and 2000, the Partnership
incurred approximately $46,000 and $81,000, respectively, for these services.
These amounts have been recorded in general and administrative expenses. The
2001 fees are also included in accounts payable and other liabilities as of July
31, 2001.
<PAGE>

4. Cash Distribution
   -----------------

On February 27, 2001, the Partnership distributed, 100% to Limited Partners,
approximately $602,000 ($3.40 per Unit), which represents the remaining balance
of previously undistributed proceeds from the sales of the Taxter, Pavilions at
East Lake and Glenhardie properties (sold 2000, 1999, and 1998, respectively).


                 DEAN WITTER REALTY INCOME PARTNERSHIP II, L.P.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
-------  -------------------------------------------------
         CONDITION AND RESULTS OF OPERATIONS
         -----------------------------------

Liquidity and Capital Resources
-------------------------------

As discussed in Note 1 to the Financial Statements, the partnership ("TPA")
which owned the Taxter office property sold the property on May 23, 2000. The
Partnership's interest in TPA was the Partnership's only remaining property
interest. The Partnership dissolved pursuant to the terms of its Partnership
Agreement, effective May 23, 2000, the date on which the Taxter property was
sold. The Partnership plans to wind up its affairs, distribute its remaining
cash reserves and terminate its existence by filing a certificate of
cancellation in the office of the Delaware Secretary of State in 2001.

As discussed in Note 4 to the Financial Statements, on February 27, 2001, the
Partnership paid, to Limited Partners only, a distribution of $3.40 per Unit.
The Partnership believes that its cash reserves are adequate for its needs until
it is terminated.

Except as discussed above and in the Financial Statements, the Managing General
Partner is not aware of any trends or events, commitments or uncertainties that
may have a material impact on liquidity.

Operations
----------

Fluctuations in the Partnership's operating results for the three and nine month
periods ended July 31, 2001 compared to 2000 are primarily attributable to the
following:

The decreases in equity in earnings of joint venture in 2001 are due to the loss
of operating income from TPA after its sale of the Taxter property in May 2000.
Also, the Partnership's share of the gain on sale of the Taxter property
(approximately $2.5
<PAGE>

million) was included in the equity in earnings of joint venture amounts in
2000.

The decreases in interest and other revenues in 2001 compared to 2000 were
primarily due to the absence of third quarter 2000 interest earned on the Taxter
sale proceeds until such proceeds were distributed to Limited Partners.

                 DEAN WITTER REALTY INCOME PARTNERSHIP II, L.P.


The negative property operating expenses in 2001 were primarily caused by the
collection of tenant receivables which were previously written off by the
Partnership.

There were no other individually significant factors which caused changes in
revenues or expenses.

Inflation
---------

Inflation has been consistently low during the periods presented in the
financial statements and, as a result, has not had a significant effect on the
operations of the Partnership or its properties.
<PAGE>

                 DEAN WITTER REALTY INCOME PARTNERSHIP II, L.P.



PART II - OTHER INFORMATION
---------------------------

Item 6.  Exhibits and Reports on Form 8-K

         a) Exhibits

            None

         b) Reports on Form 8-K

            None
<PAGE>

                DEAN WITTER REALTY INCOME PARTNERSHIP II, L.P.


                                  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 there unto duly authorized.

                                    DEAN WITTER REALTY INCOME
                                      Partnership II, L.P.

                                By: Dean Witter Realty Income
                                    Properties II Inc.
                                    Managing General Partner

Date:  September 11, 2001       By: /s/E. Davisson Hardman, Jr.
                                    ---------------------------
                                    E. Davisson Hardman, Jr.
                                    President

Date:  September 11, 2001       By: /s/Raymond E. Koch
                                    ------------------
                                    Raymond E. Koch
                                    Vice President, Assistant
                                    Secretary and Controller
                                    (Principal Financial and
                                    Accounting Officer)