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                                                                   Exhibit 10.26

                        AMENDMENT TO EMPLOYMENT AGREEMENT
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     THIS AMENDMENT TO EMPLOYMENT AGREEMENT (the "Amendment") is entered into on
the 1st day of February 2002 (the "Amendment Date") to be effective as of April
2, 2002 (the "Effective Date"), by and between Craig Macnab (the "Executive")
and JDN Realty Corporation (the "Company").

                                    RECITALS
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     WHEREAS, the Company previously entered into an Employment Agreement (the
"Employment Agreement") with Executive, dated November 17, 2000 (the "Execution
Date") and made effective as of April 2, 2000; and

     WHEREAS, the Company and Executive desire to extend the term of the
Employment Agreement until December 14, 2002; and

     WHEREAS, the Company and Executive desire to amend the Employment Agreement
effective as of the Effective Date in the manner contemplated by this Amendment.

     In consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, it
is hereby agreed by the parties as follows:

I.   AMENDMENTS AND ADDITIONS TO EMPLOYMENT AGREEMENT

1.1. Section 3 of the Employment Agreement shall be amended by deleting such
     provision in its entirety and replacing it with the following:

          3. Employment Period. Except as otherwise provided herein, the term of
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          this Agreement (the "Employment Period") shall end on December 14,
          2002. The Employment Period may be extended by mutual written
          agreement of Executive and the Company upon such terms, provisions and
          conditions which are mutually acceptable to Executive and the Company.

1.2. Section 5(a) of the Employment Agreement shall be amended by deleting such
     provision in its entirety and replacing it with the following:

          (a) Base Salary. From April 2, 2002 until the end of the Employment
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          Period, the Company shall pay to Executive as compensation for the
          services to be performed by Executive a base salary of $400,000 per
          year. The base salary shall be payable in installments in accordance
          with the Company's normal payroll practice and shall be subject to
          such ordinary employee

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          withholdings as may be required by law.

1.3. Section 5(b)(i) of the Employment Agreement shall be amended by deleting
     such provision in its entirety and replacing it with the following:

          (i) Bonuses. In addition to the compensation set forth elsewhere in
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          this Section 5, for the year ending on December 31, 2002, Executive
          shall be entitled to receive a bonus as follows:

          Executive shall be entitled to receive a bonus equal to 100% of his
          base salary each year during the term of this Agreement in the event
          that Actual Per Share FFO (as defined herein) is greater than or equal
          to the Target Per Share FFO (as set forth herein) for the
          corresponding fiscal year. The Target Per Share FFO for the fiscal
          year ending December 31, 2002 is $1.25 and the base salary for the
          fiscal year ending December 31, 2002 is $400,000; provided that if the
          Company at any time subdivides (by any stock split, stock dividend,
          recapitalization or otherwise) its outstanding shares of common stock
          into a greater number of shares, the Target Per Share FFO in effect
          immediately prior to such issuance or subdivision shall be
          proportionately reduced, and if the Company at any time reduces the
          number of its outstanding shares of common stock or combines (by
          reverse stock split or otherwise) its outstanding shares of common
          stock into a smaller number of shares, the Target Per Share FFO in
          effect immediately prior to such reduction or combination shall be
          proportionately increased; provided that no adjustment hereunder will
          be required unless the effect of such reduction or increase (together
          with any other previously unmade adjustments, which shall be made
          collectively with the next required adjustment) does not result in the
          reduction or increase of the Target Per Share FFO by at least $0.01.
          The bonus payable to Executive under this Section 5(b)(i) shall be
          reduced by an amount equal to 1.67% of Executive's then-current base
          salary for each percentage point that the Actual Per Share FFO for the
          applicable fiscal year is below the Target Per Share FFO for that
          fiscal year. The bonus payable to Executive under this Section 5(b)(i)
          shall be paid on or before February 28 of the next fiscal year
          commencing after the fiscal year upon which such bonus is based unless
          required to be paid earlier pursuant to separate provisions of this
          Agreement. In the event that Executive's employment with the Company
          terminates prior to December 31, 2002, the bonus earned by Executive
          hereunder shall be calculated by: (i) annualizing the FFO per share of
          outstanding common stock of the Company for the period from January 1,
          2002 until the date of Executive's termination (adjusted for any
          one-time or nonrecurring charges

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          incurred by the Company during that period); (ii) comparing the
          resulting annualized FFO to the Target Per Share FFO; (iii) applying
          the criteria for determining Executive's bonus set forth herein to
          determine the annual bonus that would be payable to Executive based
          upon the annualized FFO; and (iv) prorating such amount based upon the
          number of days worked by Executive during the year commencing on
          January 1, 2002 and ending on December 31, 2002. For purposes of this
          Agreement, "Actual Per Share FFO" shall mean net income of the Company
          for the fiscal year for which Actual Per Share FFO is being
          calculated, computed in accordance with generally accepted accounting
          principles, excluding gains or losses from debt restructuring and
          sales of property, plus depreciation and amortization of real estate
          assets, and after adjustments for unconsolidated partnerships and
          joint ventures, applying accounting principles consistently with prior
          periods divided by the number of outstanding shares of the Company as
          of the last day of the fiscal year for which the Actual Per Share FFO
          is being calculated based upon JDN Realty Corporation's audited
          financial statements for such period. Notwithstanding anything to the
          contrary in this Amendment, the Target Per Share FFO for the fiscal
          year ended December 31, 2002 is subject to amendment by the Board of
          Directors in its sole discretion based on its review of the final 2002
          annual budget of the Company; and Executive hereby agrees and
          acknowledges that this Amendment may be unilaterally amended by the
          Board of Directors in its sole direction to reflect a different Target
          Per Share FFO for the year ending December 31, 2002, which amendment
          shall be provided to Executive in writing.

          The Executive shall also be eligible to receive such other bonuses or
          incentive payments as may be approved by the Board of Directors.

          For purposes of the remainder of this Employment Agreement, commencing
          on the Effective Date "Base Salary" shall mean Four Hundred Thousand
          Dollars ($400,000).

1.4  Section 5(b)(ii) of the Employment Agreement shall be amended by adding the
     following language to the end of such Section:

          In addition to the stock options granted on the Execution Date, if
          Executive's employment with the Company has not been terminated as of
          April 2, 2002, pursuant to a certain Stock Option Agreement to be
          dated as of April 2, 2002, Executive will be granted options to
          acquire 70,000 shares of the common stock of the Company at a
          per-share exercise price of the closing price as of April 1, 2002, all

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          of which will vest and become exercisable on December 13, 2002 (i.e.
          prior to expiration of the Employment Agreement). Any unexercised
          options shall expire ten years from the date of grant. Notwithstanding
          anything to the contrary contained herein, the options referenced in
          this Section 5(b)(ii) shall be subject to the terms of the JDN Realty
          Corporation 1993 Incentive Stock Option Plan, as amended, and any
          agreement between Executive and the Company pursuant thereto.

1.5  Section 5(b)(iii) of the Employment Agreement shall be amended by adding
     the following language to the end of such Section:

          In addition to restricted stock granted on the Execution Date, (i) on
          the Amendment Date, pursuant to a Restricted Stock Agreement between
          Executive and the Company, to be dated as of the Amendment Date,
          Executive will be issued 3,000 shares of restricted common stock, all
          of which shall vest and become transferable, subject to applicable
          federal and state securities laws, on December 13, 2002, or such
          earlier date as such shares of restricted stock may become vested and
          exercisable under separate provisions of this Agreement and (ii) if
          Executive's employment with the Company has not been terminated as of
          April 2, 2002, pursuant to a Restricted Stock Agreement between
          Executive and the Company, to be dated as of April 2, 2002, Executive
          will be issued 13,000 shares of restricted common stock, all of which
          shall vest and become transferable, subject to applicable federal and
          state securities laws, on December 13, 2002, or such earlier date as
          such shares of restricted stock may become vested and exercisable
          under separate provisions of this Agreement. Notwithstanding anything
          to the contrary contained herein, the shares of restricted stock
          referenced in this Section 5(b)(iii) shall be subject to the terms of
          the JDN Realty Corporation 1993 Incentive Stock Plan, as amended, and
          any agreement between Executive and the Company pursuant thereto.

1.6. Section 8(a) and Section 8(a)(i) of the Employment Agreement shall be
     amended by deleting such provisions in their entirety and replacing them
     with the following:

          (a) Termination Upon Change in Control or Termination Other than for
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     Cause. In the event that Executive's employment is terminated in a
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     termination Upon a Change in Control or a termination Other than For Cause,
     Executive shall be paid the following severance compensation:

               (i) From the date of Executive's termination until December 14,
          2002 (the "Remainder Period"), an amount (payable on

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          the dates specified in Section 5(a) except as otherwise provided
          herein) equal to any amount of the Base Salary that would otherwise be
          payable for the Remainder Period but for Executive's termination plus
          one year's Base Salary at the rate payable at the time of such
          termination. Notwithstanding any provision in this paragraph (a) to
          the contrary, Executive may, in Executive's sole discretion, by
          delivery of a notice to the Company within thirty (30) days following
          a Termination Upon a Change in Control, elect to receive from the
          Company a lump sum severance payment by bank cashier's check equal to
          the present value of the flow of cash payments that would otherwise be
          paid to Executive pursuant to this paragraph (a). Such present value
          shall be determined as of the date of delivery of the notice of
          election by Executive and shall be based on a discount rate equal to
          LIBOR plus 2.25%, as reported in the Wall Street Journal, or similar
          publication, on the date of delivery of the election notice. If
          Executive elects to receive a lump sum severance payment, the Company
          shall make such payment to Executive within thirty (30) days following
          the date on which Executive notifies the Company of Executive's
          election.

1.7. Section 8(a)(ii) of the Employment Agreement shall be amended by deleting
     such provision in its entirety and replacing with the following:

               (ii) A bonus equal to 100% of his Base Salary, payable on the
          date Executive's employment with the Company ceases as a result of a
          Termination Upon Change of Control or Termination Other than For
          Cause.

1.8. Section 8(a)(iii) of the Employment Agreement shall deleted in its
     entirety.

1.9  The ADDENDUM TO EMPLOYMENT AGREEMENT appended to the Employment Agreement
     is hereby deleted in its entirety.

II.  DEFINED TERMS

     Capitalized terms used in Section I hereof, but not defined therein, shall
     have the same meaning ascribed to such terms in the Employment Agreement,
     to the extent such terms are defined in the Employment Agreement.

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     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
Employment Agreement to be effective as of the Effective Date.

                                    JDN REALTY CORPORATION


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                                    By: /s/ Craig Macnab
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                                    Title: President and Chief Executive Officer
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                                    Craig Macnab

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