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


                           FORM 10-Q


(Mark One)
X   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 1999


                                   OR


    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    AND EXCHANGE ACT OF 1934

For the transition period from __________________ to __________________

Commission file number:   1-13130 (Liberty Property Trust)
                          1-13132 (Liberty Property Limited Partnership)


                        LIBERTY PROPERTY TRUST
                LIBERTY PROPERTY LIMITED PARTNERSHIP
(Exact name of registrants as specified in their governing documents)


MARYLAND (Liberty Property Trust)                             23-7768996
PENNSYLVANIA (Liberty Property Limited Partnership)           23-2766549
(State or other jurisdiction of                         (I.R.S. Employer
incorporation or organization)                    Identification Number)

65 Valley Stream Parkway, Suite 100, Malvern, Pennsylvania         19355
(Address of Principal Executive Offices)                      (Zip Code)

Registrants' Telephone Number, Including Area Code         (610)648-1700

Indicate by check mark whether the registrants (1) have filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding twelve (12) months (or for such shorter
period that the registrants were required to file such reports) and (2)
have been subject to such filing requirements for the past ninety (90)
days.  YES X     NO

On November 8, 1999, 67,004,126 Common Shares of Beneficial Interest, par
value $.001 per share, of Liberty Property Trust were outstanding.


<PAGE>
          LIBERTY PROPERTY TRUST/LIBERTY PROPERTY LIMITED PARTNERSHIP
               FORM 10-Q FOR THE PERIOD ENDED SEPTEMBER 30, 1999

INDEX
-----

Part I.   Financial Information
-------------------------------
Item 1.   Financial Statements (unaudited)                         Page
                                                                   ----
          Consolidated balance sheets of Liberty Property
          Trust at September 30, 1999 and December 31, 1998.          4

          Consolidated statements of operations of Liberty
          Property Trust for the three months ended September
          30, 1999 and September 30, 1998.                            5

          Consolidated statements of operations of Liberty
          Property Trust for the nine months ended September
          30, 1999 and September 30, 1998.                            6

          Consolidated statements of cash flows of Liberty
          Property Trust for the nine months ended September
          30, 1999 and September 30, 1998.                            7

          Notes to consolidated financial statements for
          Liberty Property Trust.                                     8

          Consolidated balance sheets of Liberty Property
          Limited Partnership at September 30, 1999 and
          December 31, 1998.                                         12

          Consolidated statements of operations of Liberty
          Property Limited Partnership for the three months
          ended September 30, 1999 and September 30, 1998.           13

          Consolidated statements of operations of Liberty
          Property Limited Partnership for the nine months
          ended September 30, 1999 and September 30, 1998.           14

          Consolidated statements of cash flows of Liberty
          Property Limited Partnership for the nine months
          ended September 30, 1999 and September 30, 1998.           15

          Notes to consolidated financial statements for
          Liberty Property Limited Partnership.                      16

Item 2.   Management's Discussion and Analysis of Financial
          Condition and Results of Operations.                       19

Item 3.   Quantitative and Qualitative Disclosures About Market
          Risk                                                       27

Part II.  Other Information
---------------------------

Signatures                                                           30

Exhibit Index                                                        31

Page -2-

<PAGE>
-----------------------------
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. Certain information included in
this Quarterly Report on Form 10-Q contain statements that are or will be
forward-looking, such as statements relating to acquisitions,
dispositions and other business development and development activities,
future capital expenditures, the costs and risks associated with the Year
2000 issue, financing sources and availability, and the effects of
regulation (including environmental regulation) and competition. Such
forward-looking information involves important risks and uncertainties
that could significantly affect anticipated results in the future and,
accordingly, such results may differ from those expressed in any
forward-looking statements made by, or on behalf of, Liberty Property
Trust and Liberty Property Limited Partnership (together, the "Company").
These risks and uncertainties include, but are not limited to,
uncertainties affecting real estate businesses generally (such as entry
into new leases, renewals of leases and dependence on tenants' business
operations), risks relating to acquisition, construction and development
activities, possible environmental liabilities, risks relating to
leverage and debt service (including availability of financing terms
acceptable to the Company and sensitivity of the Company's operations to
fluctuations in interest rates), the potential for the use of borrowings
to make distributions necessary to qualify as a REIT, dependence on the
primary markets in which the Company's properties are located, the
existence of complex regulations relating to status as a REIT and the
adverse consequences of the failure to qualify as a REIT, the potential
adverse impact of market interest rates on the market price for the
Company's securities and risks relating to the Year 2000 issue.

Page -3-

<PAGE>
          CONSOLIDATED BALANCE SHEETS OF LIBERTY PROPERTY TRUST
                   (IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<CAPTION>
                                                    SEPTEMBER 30, 1999   DECEMBER 31, 1998
                                                    ------------------   -----------------
                                                        (UNAUDITED)
<S>                                                 <C>                  <C>
ASSETS
Real estate:
  Land and land improvements                               $  398,411          $  366,853
  Buildings and improvements                                2,497,267           2,378,272
  Less accumulated depreciation                              (252,031)           (209,023)
                                                           ----------          ----------
Operating real estate                                       2,643,647           2,536,102

  Development in progress                                     188,911             207,563
  Land held for development                                    99,206              75,454
                                                           ----------          ----------
Net real estate                                             2,931,764           2,819,119

Cash and cash equivalents                                      48,376              14,391
Accounts receivable                                            12,763              15,391
Deferred financing and leasing costs,
  net of accumulated amortization
  (1999, $57,502; 1998, $49,390)                               46,393              39,475
Prepaid expenses and other assets                              47,856              44,995
                                                           ----------          ----------
Total assets                                               $3,087,152          $2,933,371
                                                           ==========          ==========

LIABILITIES
Mortgage loans                                             $  377,224          $  413,224
Unsecured notes                                               985,000             645,000
Credit facility                                                10,000             264,000
Convertible debentures                                         91,240             101,619
Accounts payable                                               23,189              20,216
Accrued interest                                               17,510              18,263
Dividend payable                                               39,087              33,734
Other liabilities                                              62,040              69,025
                                                           ----------          ----------
Total liabilities                                           1,605,290           1,565,081

Minority interest                                             188,188             101,254

SHAREHOLDERS' EQUITY
8.80% Series A cumulative redeemable preferred
  shares, $.001 par value, 5,000,000 shares
  authorized, issued and outstanding as of
  September 30, 1999 and December 31, 1998                    120,814             120,814
9.25% Series B cumulative redeemable preferred
  shares, $.001 par value, 3,800,000 shares authorized
  as of September 30,1999, none issued and outstanding              -                   -
Common shares of beneficial interest, $.001
  par value, 191,200,000 shares authorized,
  66,732,616 and 65,645,340 shares issued
  and outstanding as of September 30, 1999
  and December 31, 1998, respectively                              67                  66
Additional paid-in capital                                  1,190,594           1,168,663
Unearned compensation                                            (885)               (562)
Dividends in excess of net income                             (16,916)            (21,945)
                                                           ----------         -----------
Total shareholders' equity                                  1,293,674           1,267,036
                                                           ----------         -----------
Total liabilities and shareholders' equity                 $3,087,152          $2,933,371
                                                           ==========         ===========
</TABLE>

See accompanying notes.

Page -4-

<PAGE>
<TABLE>
<CAPTION>
           CONSOLIDATED STATEMENTS OF OPERATIONS OF LIBERTY PROPERTY TRUST
              (UNAUDITED AND IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

                                                          THREE                  THREE
                                                       MONTHS ENDED           MONTHS ENDED
                                                    SEPTEMBER 30, 1999    SEPTEMBER 30, 1998
                                                    ------------------    ------------------
<S>                                                    <C>                   <C>
REVENUE
Rental                                                  $  87,064             $  74,264
Operating expense reimbursement                            31,503                27,674
Interest and other                                          1,680                 1,608
                                                        ---------             ---------
Total revenue                                             120,247               103,546
                                                        ---------             ---------

OPERATING EXPENSES
Rental property expenses                                   21,617                20,147
Real estate taxes                                          10,837                 9,228
Interest expense                                           24,760                20,836
General and administrative                                  3,969                 4,362
Depreciation and amortization                              21,866                18,070
                                                        ---------             ---------
Total operating expenses                                   83,049                72,643
                                                        ---------             ---------

Income before minority interest and
  property dispositions                                    37,198                30,903
                                                        ---------             ---------

Loss on property dispositions                               1,270                     -
                                                        ---------             ---------

Income before minority interest                            35,928                30,903

Minority interest                                           3,835                 2,092
                                                        ---------             ---------
Net income                                                 32,093                28,811

Preferred distributions                                     2,750                 2,750
                                                        ---------             ---------
Income available to common shareholders                 $  29,343             $  26,061
                                                        =========             =========

Income per common share - basic                         $    0.44             $    0.41
                                                        =========             =========

Income per common share - diluted                       $    0.44             $    0.41
                                                        =========             =========

Distributions declared per common share                 $    0.52             $    0.45
                                                        =========             =========
Weighted average number of common shares
  outstanding - basic                                      66,692                63,438
                                                        =========             =========
Weighted average number of common shares
  outstanding - diluted                                    66,975                63,671
                                                        =========             =========
</TABLE>

See accompanying notes.

Page -5-

<PAGE>
<TABLE>
<CAPTION>
            CONSOLIDATED STATEMENTS OF OPERATIONS OF LIBERTY PROPERTY TRUST
                 (UNAUDITED AND IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

                                                            NINE                 NINE
                                                        MONTHS ENDED         MONTHS ENDED
                                                     SEPTEMBER 30, 1999   SEPTEMBER 30, 1998
                                                     ------------------   ------------------
<S>                                                  <C>                  <C>
REVENUE
Rental                                                  $252,782              $203,297
Operating expense reimbursement                           90,536                71,048
Interest and other                                         4,349                 4,276
                                                        ---------             ---------
Total revenue                                            347,667               278,621
                                                        ---------             ---------

OPERATING EXPENSES
Rental property expenses                                  63,451                51,786
Real estate taxes                                         30,662                23,765
Interest expense                                          74,335                56,255
General and administrative                                11,885                11,409
Depreciation and amortization                             62,446                48,809
                                                        ---------             ---------
Total operating expenses                                 242,779               192,024
                                                        ---------             ---------

Income before minority interest and
  property dispositions                                  104,888                86,597

Gain (loss) on property dispositions                      11,941                (1,048)
                                                        ---------             ---------

Income before minority interest                          116,829                85,549

Minority interest                                          9,056                 5,962
                                                        ---------             ---------
Net income                                               107,773                79,587

Preferred distributions                                    8,250                 8,250
                                                        ---------             ---------
Income available to common shareholders                 $ 99,523              $ 71,337
                                                        =========             =========

Income per common share - basic                         $   1.50              $   1.20
                                                        =========             =========

Income per common share - diluted                       $   1.49              $   1.19
                                                        =========             =========

Distributions declared per common share                 $   1.42              $   1.29
                                                        =========             =========
Weighted average number of common shares
  outstanding - basic                                     66,341                59,507
                                                        =========             =========
Weighted average number of common shares
  outstanding - diluted                                   66,589                59,810
                                                        =========             =========
</TABLE>

See accompanying notes.

Page -6-

<PAGE>
<TABLE>
<CAPTION>
               CONSOLIDATED STATEMENTS OF CASH FLOWS OF LIBERTY PROPERTY TRUST
                                 (UNAUDITED AND IN THOUSANDS)

                                                             NINE                NINE
                                                         MONTHS ENDED        MONTHS ENDED
                                                      SEPTEMBER 30, 1999  SEPTEMBER 30, 1998
                                                      ------------------  ------------------
 <S>                                                  <C>                 <C>
OPERATING ACTIVITIES
Net income                                              $ 107,773             $  79,587
Adjustments to reconcile net income to
  net cash provided by operating activities:
    Depreciation and amortization                          62,446                48,809
    Amortization of deferred financing costs                4,052                 3,119
    Minority interest in net income                         9,056                 5,962
    (Gain) loss on sale                                   (11,941)                1,048
    Noncash compensation                                    1,697                 1,271
    Changes in operating assets and liabilities:
      Accounts receivable                                   2,628                (3,052)
      Prepaid expenses and other assets                    (4,024)               (4,901)
      Accounts payable                                      2,973                 7,193
      Accrued interest                                       (753)               (2,539)
      Other liabilities                                    (6,985)               11,670
                                                        ----------            ---------
Net cash provided by operating activities                 166,922               148,167
                                                        ----------            ---------
INVESTING ACTIVITIES
    Investment in properties                              (60,587)             (482,323)
    Proceeds from disposition of properties               115,135                13,707
    Investment in development in progress                (163,220)             (198,718)
    Investment in land held for development               (43,627)              (42,736)
    Increase in deferred leasing costs                    (11,824)               (9,356)
                                                        ----------            ---------
Net cash used in investing activities                    (164,123)             (719,426)
                                                        ----------            ---------
FINANCING ACTIVITIES
    Net proceeds from issuance of common shares             3,164               297,567
    Proceeds from issuance of preferred units              93,055                     -
    Proceeds from issuance of unsecured notes             385,000               275,000
    Repayment of unsecured notes                          (45,000)                    -
    Repayments of mortgage loans                          (39,818)              (21,961)
    Proceeds from credit facility                         125,024               567,000
    Repayments on credit facility                        (379,024)             (504,000)
    Increase in deferred financing costs                   (5,234)                 (745)
    Distributions paid on common shares                   (89,332)              (71,498)
    Distributions paid on preferred shares                 (8,250)               (8,250)
    Distributions paid on units                            (8,399)               (6,323)
                                                        ----------            ---------
Net cash provided by financing activities                  31,186               526,790

Increase (decrease) in cash and cash equivalents           33,985               (44,469)

Cash and cash equivalents at beginning of period           14,391                55,079
                                                        ----------            ---------
Cash and cash equivalents at end of period              $  48,376             $  10,610
                                                        ==========            =========
SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS
Write-off of fully depreciated property and
  deferred costs                                        $  14,432             $   2,595
Acquisition of properties                                  (3,818)             (100,981)
Assumption of mortgage loans                                3,818                73,287
Issuance of operating partnership units                         -                27,694
Conversion of convertible debentures                       10,164                 7,277
                                                        ==========            =========
</TABLE>
See accompanying notes.

Page -7-

<PAGE>
                               LIBERTY PROPERTY TRUST

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

                                 SEPTEMBER 30, 1999

NOTE 1 - BASIS OF PRESENTATION
------------------------------

The accompanying unaudited consolidated financial statements of Liberty
Property Trust (the "Trust") and its subsidiaries, including Liberty
Property Limited Partnership (the "Operating Partnership") (the Trust,
Operating Partnership and their respective subsidiaries referred to
collectively as the "Company"), have been prepared in accordance with
generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for
complete financial statements and should be read in conjunction with the
consolidated financial statements and notes thereto included in the
Annual Report on Form 10-K of the Trust and the Operating Partnership for
the year ended December 31, 1998. In the opinion of management, all
adjustments (consisting solely of normal recurring adjustments) necessary
for a fair presentation of the financial statements for these interim
periods have been included. The results of interim periods are not
necessarily indicative of the results to be obtained for a full fiscal
year.  Certain amounts from prior periods have been restated to conform
to current period presentation.

The following table sets forth the computation of basic and diluted
income per common share for the three and nine month periods ended
September 30, 1999 and 1998:

<TABLE>
<CAPTION>
                               FOR THE THREE MONTHS                    FOR THE THREE MONTHS
                             ENDED SEPTEMBER 30, 1999                ENDED SEPTEMBER 30, 1998
                      -------------------------------------    -------------------------------------
                        INCOME        SHARES      PER SHARE      INCOME        SHARES      PER SHARE
                      (NUMERATOR)  (DENOMINATOR)    AMOUNT     (NUMERATOR)  (DENOMINATOR)    AMOUNT
                      -----------  -------------  ---------    -----------  -------------  ---------
                                         (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<S>                   <C>          <C>            <C>          <C>          <C>            <C>
Net income             $ 32,093                                 $ 28,811
Less: Preferred
 distributions            2,750                                    2,750
                       --------                                 --------
Basic income per
 common share
 Income available
  to common share-
  holders                29,343       66,692       $  0.44        26,061       63,438       $  0.41
                                                   =======                                  =======
Effect of dilutive
 securities
Options                       -          283                           -          233
                       --------      -------                    --------      -------
Diluted income per
 common share
 Income available
  to common share-
  holders and assumed
  conversions          $ 29,343       66,975       $  0.44      $ 26,061       63,671       $  0.41
                       ========      =======       =======      ========      =======       =======
</TABLE>
Page -8-

<PAGE
<TABLE>
<CAPTION>
                               FOR THE NINE MONTHS                     FOR THE NINE MONTHS
                            ENDED SEPTEMBER 30, 1999                 ENDED SEPTEMBER 30, 1998
                      -------------------------------------    -------------------------------------
                        INCOME        SHARES      PER SHARE      INCOME        SHARES      PER SHARE
                      (NUMERATOR)  (DENOMINATOR)    AMOUNT     (NUMERATOR)  (DENOMINATOR)    AMOUNT
                      -----------  -------------  ---------    -----------  -------------  ---------
                                         (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<S>                   <C>          <C>            <C>          <C>          <C>            <C>
Net income             $107,773                                 $ 79,587
Less: Preferred
 distributions            8,250                                    8,250
                       --------                                 --------
Basic income per
 common share
 Income available
  to common share-
  holders                99,523       66,341       $ 1.50         71,337       59,507       $  1.20
                                                   =======                                  =======
Effect of dilutive
 securities
Options                       -          248                           -          303
                       --------      -------                    --------      -------
Diluted income per
 common share
 Income available
  to common share-
  holders and assumed
  conversions          $ 99,523       66,589       $ 1.49       $ 71,337       59,810       $  1.19
                       ========      =======       =======      ========      =======       =======
</TABLE>

Diluted income per common share includes the weighted average common
shares and the dilutive effect of the outstanding options.

NOTE 2 - ORGANIZATION
---------------------

Liberty Property Trust (the "Trust") is a self-administered and self-
managed Maryland real estate investment trust (a "REIT").  Substantially
all of the Trust's assets are owned directly or indirectly, and
substantially all of the Trust's operations are conducted directly or
indirectly, by its subsidiary, Liberty Property Limited Partnership, a
Pennsylvania limited partnership (the "Operating Partnership" and,
together with the Trust, the "Company").  The Trust is the sole general
partner and also a limited partner of the Operating Partnership, with a
combined common equity interest in the Operating Partnership of 93.2% at
September 30, 1999.  The Company provides leasing, property management,
development, acquisition, construction management and design management
for a portfolio of industrial and office properties which are located
principally within the Southeastern, Mid-Atlantic and Midwestern United
States.

In 1998, the Company received $296.3 million in aggregate net proceeds
from the issuance of Common Shares and $292.1 million in aggregate net
proceeds from the issuance of unsecured notes.  The Company used the
aggregate net proceeds from the sale of Common Shares and the unsecured
notes to fund the Company's activities, including paying down the Credit
Facility which funds acquisition and development activity.

On January 15, 1999, the Company closed on a $135 million, two-year
unsecured term loan.  The interest rate for the loan is 135 basis points
over LIBOR.

On April 20, 1999, the Company sold $250 million principal amount of
7.75% notes due 2009.  The aggregate net proceeds from such issuance was
approximately $246.0 million.

On July 28, 1999, the Company completed a private placement of 3.8
million Series B Cumulative Redeemable Preferred Units of the Operating

Page -9-

<PAGE>
Partnership.  The Series B Preferred Units are payable at the rate of
9.25% per annum of the $25 liquidation preference, and are redeemable at
the option of the Company at any time on or after July 28, 2004 at $25
per share.

NOTE 3 - SEGMENT INFORMATION
----------------------------

Liberty Property Trust operates its portfolio of properties throughout
the Southeastern, Mid-Atlantic and Midwestern United States.  The
Company reviews performance of the portfolio on a geographical basis, as
such, the following regions are considered the Company's reportable
segments:  Southeastern Pennsylvania; New Jersey; Lehigh Valley,
Pennsylvania; Virginia; the Carolinas; Jacksonville, Florida; Detroit,
Michigan; and all others combined (including Maryland; Tampa, Florida;
South Florida; Minneapolis, Minnesota; and the United Kingdom).  The
Company's reportable segments are distinct business units which are each
managed separately in order to concentrate market knowledge within a
geographical area.  Within these reportable segments, the Company
derives its revenues from its two product types: industrial properties
and office properties.

The Company evaluates performance of the reportable segments based on
property-level net operating income, which is calculated as rental
revenue and operating expense reimbursement less rental property
expenses and real estate taxes.  The accounting policies of the
reportable segments are the same as those for the Company on a
consolidated basis.  The operating information by segment is as follows
(in thousands):

<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999
------------------------------------------------------------------------------------------------------------------------

                            SE        New     Lehigh                The
                         Pennsyl.   Jersey    Valley   Virginia  Carolinas  Jacksonville  Michigan  All Others   Total
                         --------  --------  --------  --------  ---------  ------------  --------  ----------  --------
<S>                      <C>       <C>       <C>       <C>       <C>        <C>           <C>       <C>         <C>
Real-estate
 related revenues         $31,555   $10,095   $11,255   $10,052   $ 9,505      $10,573     $12,843    $22,689   $118,567
Rental property
 expenses and
 real estate taxes          8,376     3,033     2,477     2,128     2,906        2,587       4,377      6,570     32,454
                          --------  --------  --------  --------  --------     --------    --------   --------  --------
Property-level net
 operating income          23,179     7,062     8,778     7,924     6,599        7,986       8,466     16,119     86,113

Other income/
 expenses, net                                                                                                    50,185
                                                                                                                --------
Income before
 minority interest                                                                                                35,928

Minority interest                                                                                                  3,835

Preferred distributions                                                                                            2,750
                                                                                                                --------
Income available
 to common shareholders                                                                                         $ 29,343
                                                                                                                ========
</TABLE>

Page -10-


<PAGE>
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998
------------------------------------------------------------------------------------------------------------------------

                            SE        New     Lehigh                The
                         Pennsyl.   Jersey    Valley   Virginia  Carolinas  Jacksonville  Michigan  All Others   Total
                         --------  --------  --------  --------  ---------  ------------  --------  ----------  --------
<S>                      <C>       <C>       <C>       <C>       <C>        <C>           <C>       <C>         <C>
Real-estate
 related revenues         $24,780   $11,325   $ 9,789   $ 9,094   $ 9,278      $ 9,526     $10,937    $17,209   $101,938
Rental property
 expenses and
 real estate taxes          7,434     3,251     2,172     1,996     2,645        2,261       4,378      5,238     29,375
                          --------  --------  --------  --------  --------     --------    --------   --------  --------
Property-level net
 operating income          17,346     8,074     7,617     7,098     6,633        7,265       6,559     11,971     72,563

Other income/
 expenses, net                                                                                                    41,660
                                                                                                                --------
Income before
 minority interest                                                                                                30,903

Minority interest                                                                                                  2,092

Preferred distributions                                                                                            2,750
                                                                                                                --------
Income available
 to common shareholders                                                                                          $26,061
                                                                                                                ========

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999
------------------------------------------------------------------------------------------------------

                            SE        New     Lehigh                The
                         Pennsyl.   Jersey    Valley   Virginia  Carolinas  Jacksonville  Michigan  All Others   Total
                         --------  --------  --------  --------  ---------  ------------  --------  ----------  --------
<S>                      <C>       <C>       <C>       <C>       <C>        <C>           <C>       <C>         <C>
Real-estate
 related revenues         $87,399   $32,421   $32,877   $30,021   $28,361      $30,395     $37,030    $64,814   $343,318
Rental property
 expenses and
 real estate taxes         24,079     9,636     7,102     6,317     8,307        7,085      12,435     19,152     94,113
                          --------  --------  --------  --------  --------     --------    --------   --------  --------
Property-level net
 operating income          63,320    22,785    25,775    23,704    20,054       23,310      24,595     45,662    249,205

Other income/
 expenses, net                                                                                                   132,376
                                                                                                                --------
Income before
 minority interest                                                                                               116,829

Minority interest                                                                                                  9,056

Preferred distributions                                                                                            8,250
                                                                                                                --------
Income available
 to common shareholders                                                                                         $ 99,523
                                                                                                                ========

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
------------------------------------------------------------------------------------------------------

                            SE        New     Lehigh                The
                         Pennsyl.   Jersey    Valley   Virginia  Carolinas  Jacksonville  Michigan  All Others   Total
                         --------  --------  --------  --------  ---------  ------------  --------  ----------  --------
<S>                      <C>       <C>       <C>       <C>       <C>        <C>           <C>       <C>         <C>
Real-estate
 related revenues         $70,559   $28,732   $28,047   $25,766   $23,819      $26,476     $27,812    $43,134   $274,345
Rental property
 expenses and
 real estate taxes         20,285     7,901     5,717     5,733     6,684        6,058      10,265     12,908     75,551
                          --------  --------  --------  --------  --------     --------    --------   --------  --------
Property-level net
 operating income          50,274    20,831    22,330    20,033    17,135       20,418      17,547     30,226    198,794

Other income/
 expenses, net                                                                                                   113,245
                                                                                                                --------
Income before
 minority interest                                                                                                85,549

Minority interest                                                                                                  5,962

Preferred distributions                                                                                            8,250
                                                                                                                --------
Income available
 to common shareholders                                                                                         $ 71,337
                                                                                                                ========
</TABLE>

Page -11-

<PAGE>
<TABLE>
<CAPTION>
            CONSOLIDATED BALANCE SHEETS OF LIBERTY PROPERTY LIMITED PARTNERSHIP
                                      (IN THOUSANDS)

                                                   SEPTEMBER 30, 1999   DECEMBER 31, 1998
                                                   ------------------   -----------------
                                                       (UNAUDITED)
<S>                                                <C>                  <C>
ASSETS
Real estate:
  Land and land improvements                            $  398,411         $  366,853
  Buildings and improvements                             2,497,267          2,378,272
  Less accumulated depreciation                           (252,031)          (209,023)
                                                        ----------         ----------

Operating real estate                                    2,643,647          2,536,102

  Development in progress                                  188,911            207,563
  Land held for development                                 99,206             75,454
                                                        ----------         ----------
Net real estate                                          2,931,764          2,819,119

Cash and cash equivalents                                   48,376             14,391
Accounts receivable                                         12,763             15,391
Deferred financing and leasing costs,
  net of accumulated amortization
  (1999, $57,502; 1998, $49,390)                            46,393             39,475
Prepaid expenses and other assets                           47,856             44,995
                                                        ----------         ----------
Total assets                                            $3,087,152         $2,933,371
                                                        ==========         ==========
LIABILITIES
Mortgage loans                                          $  377,224         $  413,224
Unsecured notes                                            985,000            645,000
Credit facility                                             10,000            264,000
Convertible debentures                                      91,240            101,619
Accounts payable                                            23,189             20,216
Accrued interest                                            17,510             18,263
Dividend payable                                            39,087             33,734
Other liabilities                                           62,040             69,025
                                                        ----------         ----------
Total liabilities                                        1,605,290          1,565,081

OWNERS' EQUITY
General partner's equity-preferred units                   120,814            120,814
                        -common units                    1,172,860          1,146,222
Limited partners' equity                                   188,188            101,254
                                                        ----------         ----------
Total owners' equity                                     1,481,862          1,368,290
                                                        ----------         ----------
Total liabilities and owners' equity                    $3,087,152         $2,933,371
                                                        ==========         ==========
</TABLE>

See accompanying notes.

Page -12-

<PAGE>
<TABLE>
<CAPTION>
          CONSOLIDATED STATEMENTS OF OPERATIONS OF LIBERTY PROPERTY LIMITED PARTNERSHIP
                                      (UNAUDITED AND IN THOUSANDS)

                                                            THREE               THREE
                                                         MONTHS ENDED       MONTHS ENDED
                                                      SEPTEMBER 30, 1999  SEPTEMBER 30, 1998
                                                      ------------------  ------------------
<S>                                                   <C>                 <C>
REVENUE
Rental                                                       $  87,064          $  74,264
Operating expense reimbursement                                 31,503             27,674
Interest and other                                               1,680              1,608
                                                             -----------        ---------
Total revenue                                                  120,247            103,546
                                                             -----------        ---------

OPERATING EXPENSES
Rental property expenses                                        21,617             20,147
Real estate taxes                                               10,837              9,228
Interest expense                                                24,760             20,836
General and administrative                                       3,969              4,362
Depreciation and amortization                                   21,866             18,070
                                                             -----------        ---------
Total operating expenses                                        83,049             72,643
                                                             -----------        ---------
Income before property dispositions                             37,198             30,903

Loss on property dispositions                                    1,270                  -
                                                             -----------        ---------
Net income                                                   $  35,928          $  30,903
                                                             ===========        =========
Net income allocated to general partners                     $  32,093          $  28,811
                                                             ===========        =========
Net income allocated to limited partners                     $   3,835          $   2,092
                                                             ===========        =========
</TABLE>

See accompanying notes.

Page -13-

<PAGE>
<TABLE>
<CAPTION>
          CONSOLIDATED STATEMENTS OF OPERATIONS OF LIBERTY PROPERTY LIMITED PARTNERSHIP
                                      (UNAUDITED AND IN THOUSANDS)

                                                             NINE                NINE
                                                         MONTHS ENDED        MONTHS ENDED
                                                      SEPTEMBER 30, 1999  SEPTEMBER 30, 1998
                                                      ------------------  ------------------
<S>                                                   <C>                 <C>
REVENUE
Rental                                                       $252,782           $203,297
Operating expense reimbursement                                90,536             71,048
Interest and other                                              4,349              4,276
                                                             ---------          ---------
Total revenue                                                 347,667            278,621
                                                             ---------          ---------

OPERATING EXPENSES
Rental property expenses                                       63,451             51,786
Real estate taxes                                              30,662             23,765
Interest expense                                               74,335             56,255
General and administrative                                     11,885             11,409
Depreciation and amortization                                  62,446             48,809
                                                             ---------          ---------
Total operating expenses                                      242,779            192,024
                                                             ---------          ---------
Income before property dispositions                           104,888             86,597

Gain (loss) on property dispositions                           11,941             (1,048)
                                                             ---------          ---------
Net income                                                   $116,829           $ 85,549
                                                             =========          =========
Net income allocated to general partners                     $107,773           $ 79,587
                                                             =========          =========
Net income allocated to limited partners                     $  9,056           $  5,962
                                                             =========          =========
</TABLE>

See accompanying notes.

Page -14-

<PAGE>
<TABLE>
<CAPTION>
       CONSOLIDATED STATEMENTS OF CASH FLOWS OF LIBERTY PROPERTY LIMITED PARTNERSHIP
                                  (UNAUDITED AND IN THOUSANDS)

                                                              NINE                NINE
                                                          MONTHS ENDED         MONTHS ENDED
                                                       SEPTEMBER 30, 1999   SEPTEMBER 30, 1998
                                                       ------------------   ------------------

<S>                                                    <C>                  <C>
OPERATING ACTIVITIES
Net income                                                   $ 116,829          $   85,549
Adjustments to reconcile net income to
  net cash provided by operating activities:
    Depreciation and amortization                               62,446              48,809
    Amortization of deferred financing costs                     4,052               3,119
    (Gain) loss on sale                                        (11,941)              1,048
    Noncash compensation                                         1,697               1,271
    Changes in operating assets and liabilities:
      Accounts receivable                                        2,628              (3,052)
      Prepaid expenses and other assets                         (4,024)             (4,901)
      Accounts payable                                           2,973               7,193
      Accrued interest                                            (753)             (2,539)
      Other liabilities                                         (6,985)             11,670
                                                             ----------         ----------
Net cash provided by operating activities                      166,922             148,167
                                                             ----------         ----------
INVESTING ACTIVITIES
    Investment in properties                                   (60,587)           (482,323)
    Proceeds from disposition of properties                    115,135              13,707
    Investment in development in progress                     (163,220)           (198,718)
    Investment in land held for development                    (43,627)            (42,736)
    Increase in deferred leasing costs                         (11,824)             (9,356)
                                                             ----------          ---------
Net cash used in investing activities                         (164,123)           (719,426)
                                                             ----------          ---------

FINANCING ACTIVITIES
    Proceeds from issuance of unsecured notes                  385,000             275,000
    Repayments of unsecured notes                              (45,000)                  -
    Repayments of mortgage loans                               (39,818)            (21,961)
    Proceeds from credit facility                              125,024             567,000
    Repayments on credit facility                             (379,024)           (504,000)
    Increase in deferred financing costs                        (5,234)               (745)
    Capital contributions                                       96,219             297,567
    Distributions to partners                                 (105,981)            (86,071)
                                                             ----------          ---------
Net cash provided by financing activities                       31,186             526,790

Increase (decrease) in cash and cash equivalents                33,985             (44,469)

Cash and cash equivalents at beginning of period                14,391              55,079
                                                             ----------          ---------
Cash and cash equivalents at end of period                   $  48,376           $  10,610
                                                             ==========          =========

SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS
Write-off of fully depreciated property and
  deferred costs                                             $  14,432           $   2,595
Acquisition of properties                                       (3,818)           (100,981)
Assumption of mortgage loans                                     3,818              73,287
Issuance of operating partnership units                              -              27,694
Conversion of convertible debentures                            10,164               7,277
                                                             ==========          =========
</TABLE>
See accompanying notes.

Page -15-

<PAGE>
                       LIBERTY PROPERTY LIMITED PARTNERSHIP

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

                              SEPTEMBER 30, 1999

NOTE 1 - BASIS OF PRESENTATION
------------------------------

The accompanying unaudited consolidated financial statements of Liberty
Property Limited Partnership (the "Operating Partnership") and its direct
and indirect subsidiaries have been prepared in accordance with generally
accepted accounting principles for interim financial information and with
the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete
financial statements and should be read in conjunction with the
consolidated financial statements and notes thereto included in the
Annual Report on Form 10-K of the Trust and the Operating Partnership for
the year ended December 31, 1998. In the opinion of management, all
adjustments (consisting solely of normal recurring adjustments) necessary
for a fair presentation of the financial statements for these interim
periods have been included. The results of interim periods are not
necessarily indicative of the results to be obtained for a full fiscal
year.  Certain amounts from prior periods have been restated to conform
to current period presentation.

NOTE 2 - ORGANIZATION
---------------------

Liberty Property Trust (the "Trust") is a self-administered and self-
managed Maryland real estate investment trust (a "REIT").  Substantially
all of the Trust's assets are owned directly or indirectly, and
substantially all of the Trust's operations are conducted directly or
indirectly, by its subsidiary, Liberty Property Limited Partnership, a
Pennsylvania limited partnership (the "Operating Partnership" and,
together with the Trust and its consolidated subsidiaries, the
"Company").  The Trust is the sole general partner and also a limited
partner of the Operating Partnership, with a combined common equity
interest in the Operating Partnership of 93.2% at September 30, 1999.
The Company provides leasing, property management, acquisition,
development, construction management and design management for a
portfolio of industrial and office properties which are located
principally within the Southeastern, Mid-Atlantic and Midwestern United
States.

In 1998, the Company received $296.3 million in aggregate net proceeds
from the issuance of Common Shares and $292.1 million in aggregate net
proceeds from the issuance of unsecured notes.  The Company used the
aggregate net proceeds from the sale of Common Shares and the unsecured
notes to fund the Company's activities, including paying down the Credit
Facility, which funds acquisition and development activity.

On January 15, 1999, the Company closed on a $135 million, two-year
unsecured term loan.  The interest rate for the loan is 135 basis points
over LIBOR.

On April 20, 1999, the Company sold $250 million principal amount of
7.75% notes due 2009.  The aggregate net proceeds from such issuance was
approximately $246.0 million.

Page -16-

<PAGE>
On July 28, 1999, the Company completed a private placement of 3.8
million Series B Cumulative Redeemable Preferred Units of the Operating
Partnership.  The Series B Preferred Units are payable at the rate of
9.25% per annum of the $25 liquidation preference, and are redeemable at
the option of the Company at any time on or after July 28, 2004 at $25
per share.

NOTE 3 - SEGMENT INFORMATION
----------------------------

Liberty Property Limited Partnership operates its portfolio of
properties throughout the Southeastern, Mid-Atlantic and Midwestern
United States.  The Company reviews performance of the portfolio on a
geographical basis, as such, the following regions are considered the
Company's reportable segments:  Southeastern Pennsylvania; New Jersey;
Lehigh Valley, Pennsylvania; Virginia; the Carolinas; Jacksonville,
Florida; Detroit, Michigan; and all others combined (including Maryland,
Tampa, Florida; South Florida; Minneapolis, Minnesota; and the United
Kingdom).  The Company's reportable segments are distinct business units
which are each managed separately in order to concentrate market
knowledge within a geographical area.  Within these reportable segments,
the Company derives its revenues from its two product types: industrial
and office properties.

The Company evaluates performance of the reportable segments based on
property-level net operating income, which is calculated as rental
revenue and operating expense reimbursement less rental property
expenses and real estate taxes.  The accounting policies of the
reportable segments are the same as those for the Company on a
consolidated basis.  The operating information by segment is as follows
(in thousands):

<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999
-----------------------------------------------------------------------------------------------------

                            SE        New     Lehigh                The
                         Pennsyl.   Jersey    Valley   Virginia  Carolinas  Jacksonville  Michigan  All Others   Total
                         --------  --------  --------  --------  ---------  ------------  --------  ----------  --------
<S>                      <C>       <C>       <C>       <C>       <C>        <C>           <C>       <C>         <C>
Real-estate
 related revenues        $31,555   $10,095   $11,255   $10,052   $ 9,505      $10,573     $12,843    $22,689    $118,567
Rental property
 expenses and
 real estate taxes         8,376     3,033     2,477     2,128     2,906        2,587       4,377      6,570      32,454
                        --------  --------  --------  --------  --------     --------    --------   ----------  --------
Property-level net
 operating income         23,179     7,062     8,778     7,924     6,599        7,986       8,466     16,119      86,113

Other income/
 expenses, net                                                                                                    50,185
                                                                                                                --------
Net income                                                                                                      $ 35,928
                                                                                                                ========
Net income allocated to general partners                                                                        $ 32,093
                                                                                                                ========
Net income allocated to limited partners                                                                        $  3,835
                                                                                                                ========
</TABLE>

Page -17-

<PAGE>
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998
------------------------------------------------------------------------------------------------------

                            SE        New     Lehigh                The
                         Pennsyl.   Jersey    Valley   Virginia  Carolinas  Jacksonville  Michigan  All Others   Total
                         --------  --------  --------  --------  ---------  ------------  --------  ----------  -------
<S>                      <C>       <C>       <C>       <C>       <C>        <C>           <C>       <C>         <C>
Real-estate
 related revenues        $24,780   $11,325   $ 9,789   $ 9,094   $ 9,278      $ 9,526     $10,937    $17,209   $101,938
Rental property
 expenses and
 real estate taxes         7,434     3,251     2,172     1,996     2,645        2,261       4,378      5,238     29,375
                         --------  --------  --------  --------  --------     --------    --------   --------  --------
Property-level net
 operating income         17,346     8,074     7,617     7,098     6,633        7,265       6,559     11,971     72,563

Other income/
 expenses, net                                                                                                   41,660
                                                                                                               --------
Net income                                                                                                     $ 30,903
                                                                                                               ========
Net income allocated to general partners                                                                       $ 28,811
                                                                                                               ========
Net income allocated to limited partners                                                                       $  2,092
                                                                                                               ========

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999
-----------------------------------------------------------------------------------------------------

                            SE        New     Lehigh                The
                         Pennsyl.   Jersey    Valley   Virginia  Carolinas  Jacksonville  Michigan  All Others   Total
                         --------  --------  --------  --------  ---------  ------------  --------  ----------  --------
<S>                      <C>       <C>       <C>       <C>       <C>        <C>           <C>       <C>         <C>
Real-estate
 related revenues         $87,399   $32,421   $32,877   $30,021   $28,361      $30,395     $37,030    $64,814   $343,318
Rental property
 expenses and
 real estate taxes         24,079     9,636     7,102     6,317     8,307        7,085      12,435     19,152     94,113
                          --------  --------  --------  --------  --------     --------    --------   --------  --------
Property-level net
 operating income          63,320    22,785    25,775    23,704    20,054       23,310      24,595     45,662    249,205

Other income/
 expenses, net                                                                                                   132,376
                                                                                                                --------

Net income                                                                                                      $116,829
                                                                                                                ========
Net income allocated to general partners                                                                        $107,773
                                                                                                                ========
Net income allocated to limited partners                                                                        $  9,056
                                                                                                                ========

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
------------------------------------------------------------------------------------------------------

                            SE        New     Lehigh                The
                         Pennsyl.   Jersey    Valley   Virginia  Carolinas  Jacksonville  Michigan  All Others   Total
                         --------  --------  --------  --------  ---------  ------------  --------  ----------  --------
<S>                      <C>       <C>       <C>       <C>       <C>        <C>           <C>       <C>         <C>
Real-estate
 related revenues         $70,559   $28,732   $28,047   $25,766   $23,819      $26,476     $27,812    $43,134   $274,345
Rental property
 expenses and
 real estate taxes         20,285     7,901     5,717     5,733     6,684        6,058      10,265     12,908     75,551
                          --------  --------  --------  --------  --------     --------    --------   --------  --------
Property-level net
 operating income          50,274    20,831    22,330    20,033    17,135       20,418      17,547     30,226    198,794

Other income/
 expenses, net                                                                                                   113,245
                                                                                                                --------
Net income                                                                                                      $ 85,849
                                                                                                                ========
Net income allocated to general partners                                                                        $ 79,587
                                                                                                                ========
Net income allocated to limited partners                                                                        $  5,962
                                                                                                                ========
</TABLE>

Page -18-

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

OVERVIEW

The following discussion and analysis is based on a consolidated view of
the Company.  Geographic segment data for the three and nine month
periods ended September 30, 1999 and 1998 is included in Note 3 of the
Notes to the Liberty Property Trust and Liberty Property Limited
Partnership Financial Statements, respectively.

In 1999, the Company has continued to pursue development and acquisition
opportunities and has continued to focus on increasing the cash flow from
its Properties in Operation by increasing property occupancy and
increasing rental rates.

The composition of the Company's properties in operation as of September
30, 1999 and 1998 is as follows (in thousands):

<TABLE>
<CAPTION>
                                     TOTAL           PERCENT OF TOTAL
                                  SQUARE FEET          SQUARE FEET           PERCENT OCCUPIED
                               -----------------     ----------------       -----------------
                                 SEPTEMBER 30,         SEPTEMBER 30,          SEPTEMBER 30,
TYPE                            1999      1998         1999     1998          1999     1998
-------------------------      -------   -------     -------  -------       -------   -------
<S>                            <C>       <C>         <C>      <C>           <C>       <C>
Industrial - Distribution      19,372    17,852       42.6%    42.4%         93.8%     95.4%
Industrial - Flex              12,811    12,334       28.2%    29.3%         93.9%     93.3%
Office                         13,284    11,905       29.2%    28.3%         94.4%     95.8%
                               -------   ------      -------  -------       -------   -------
Total                          45,467    42,091      100.0%   100.0%         94.0%     94.9%
                               ======    ======      ======   ======        ======    ======
</TABLE>

Page -19-

<PAGE>
The expiring square feet and annual base rent by year for the properties
in operation as of September 30, 1999 are as follows (in thousands):

<TABLE>
<CAPTION>
                    INDUSTRIAL-
                   DISTRIBUTION       INDUSTRIAL-FLEX           OFFICE                 TOTAL
               ------------------    ------------------    ------------------    ------------------
               SQUARE    ANNUAL      SQUARE    ANNUAL      SQUARE    ANNUAL      SQUARE    ANNUAL
YEAR            FEET    BASE RENT     FEET    BASE RENT     FEET    BASE RENT     FEET    BASE RENT
----------     ------   ---------    ------   ---------    ------   ---------    ------   ---------
<S>            <C>      <C>          <C>      <C>          <C>      <C>          <C>      <C>
1999              806    $ 3,780        754    $  5,489       833    $  8,909     2,393    $ 18,178
2000            1,786      8,189      2,292      17,096     1,827      21,776     5,905      47,061
2001            2,855     12,490      2,095      15,803     1,544      19,602     6,494      47,895
2002            3,427     14,033      1,770      14,066     1,247      15,372     6,444      43,471
2003            1,750      8,216      1,902      17,583     1,283      17,260     4,935      43,059
2004            1,856      8,279      1,200      11,504     1,185      17,499     4,241      37,282
Thereafter      5,692     28,571      2,019      21,946     4,617      69,939    12,328     120,456
               ------    -------     ------   ---------    ------   ---------    ------    --------
Total          18,172    $83,558     12,032    $103,487    12,536    $170,357    42,740    $357,402
               ======    =======     ======   =========    ======   =========    ======    ========
</TABLE>


The scheduled deliveries of the 2.8 million square feet of properties
under development as of September 30, 1999 are as follows (in thousands):

<TABLE>
<CAPTION>
                                SQUARE FEET
                         -----------------------------
   SCHEDULED             IND-    IND-                      PERCENT PRE-LEASED
IN-SERVICE DATE          DIST.   FLEX    OFFICE   TOTAL    SEPTEMBER 30, 1999   TOTAL INVESTMENT
----------------        ------  ------  -------  ------    ------------------    ----------------
<S>                     <C>     <C>     <C>      <C>        <C>                  <C>
4th Quarter 1999           171       -      517     688            80.2%           $ 90,971
1st Quarter 2000             -       -      313     313           100.0%             42,079
2nd Quarter 2000             -      99      204     303            46.1%             35,239
3rd Quarter 2000             -      55      336     391            59.0%             44,120
Thereafter                 772      97      219   1,088             1.7%             62,043
                        ------  ------  -------  ------           ------          ----------
Total                      943     251    1,589   2,783            45.0%           $274,452
                        ======  ======  =======  ======           ======          ==========
</TABLE>

RESULTS OF OPERATIONS
---------------------

The following discussion is based on the consolidated financial
statements of the Company.  It compares the results of operations of the
Company for the three and nine months ended September 30, 1999
(unaudited) with the results of operations of the Company for the three
and nine months ended September 30, 1998 (unaudited).  As a result of the
significant level of acquisition, disposition and development activities
by the Company in 1999 and 1998, the overall operating results of the
Company during such periods are not directly comparable.  However,
certain data, including the "Same Store" comparison, do lend themselves
to direct comparison.  As used herein, the term "Company" includes the
Trust, the Operating Partnership and their subsidiaries.

This information should be read in conjunction with the accompanying
consolidated financial statements and notes included elsewhere in this
report.

For the three and nine months ended September 30, 1999 compared to the
three and nine months ended September 30, 1998.
-----------------------------------------------------------------------

Total revenue (principally rental revenue and operating expense
reimbursement) increased to $120.2 million from $103.5 million for the
three months ended September 30, 1999 compared to the same period in
1998, and increased to $347.7 million from $278.6 million for the nine
months ended September 30, 1999 compared to the same period in 1998.
These increases are primarily due to the increase in the number of
properties in operation during the respective periods.  As of September
30, 1998, the Company had 598 properties in operation and, as of
September 30, 1999, the Company had 626 properties in operation. From
January 1, 1998 through June 30, 1998, and from July 1, 1998 through
September 30, 1998, the Company acquired or completed the development on
103 properties and 59 properties, respectively, for Total Investments (as
defined below) of approximately $526.4 million and $200.4 million,
respectively.  From January 1, 1999 through June 30, 1999, and from July
1, 1999 through September 30, 1999, the Company acquired or completed the
development on 34 properties and 10 properties, respectively, for Total
Investments of approximately $191.2 million and $47.0 million,
respectively. Offsetting the increases in the number of properties
acquired and developed and the related Total Investments during the
periods were property dispositions. From January 1, 1998 through June 30,
1998, the Company sold 5 properties for net proceeds of approximately
$11.7 million.  From July 1, 1998 through September 30, 1998, the Company

Page -20-

<PAGE>
did not sell any properties.  From January 1, 1999 through June 30, 1999,
and from July 1, 1999 through September 30, 1999, the Company sold 16 and
11 properties, respectively, for net proceeds of approximately $60.0
million and $45.4 million, respectively.  The "Total Investment" for a
property is defined as the property's purchase price plus closing costs
and management's estimate, as determined at the time of acquisition, of
the cost of necessary building improvements in the case of acquisitions,
or land costs and land and building improvement costs in the case of
development projects, and where appropriate, other development costs and
carrying costs required to reach rent commencement.

Rental property and real estate tax expenses increased to $32.5 million
from $29.4 million for the three months ended September 30, 1999 compared
to the same period in 1998, and to $94.1 million from $75.6 million for
the nine months ended September 30, 1999 compared to the same period in
1998. These increases are due to the increase in the number of properties
owned during the respective periods.

Property-level operating income for the "Same Store" properties
(properties owned as of January 1, 1998) increased to $164.8 million for
the nine months ended September 30, 1999 from $158.4 million for the nine
months ended September 30, 1998, with straightlining (which recognizes
rental revenue evenly over the life of the lease), and increased to
$162.4 million for the nine months ended September 30, 1999 from $155.8
million for the nine months ended September 30, 1998, without
straightlining.  These increases of 4.0% and 4.2%, respectively, are due
to increases in the rental rates for the properties.

Set forth below is a schedule comparing the property-level operating
income for the Same Store properties for the nine month periods ended
September 30, 1999 and 1998 (in thousands).

<TABLE>
<CAPTION>
                                        WITH STRAIGHTLINING           WITHOUT STRAIGHTLINING
                                  ------------------------------  ------------------------------
                                         NINE MONTHS ENDED               NINE MONTHS ENDED
                                  ------------------------------  ------------------------------
                                  SEPT. 30, 1999  SEPT. 30, 1998  SEPT. 30, 1999  SEPT. 30, 1998
                                  --------------  --------------  --------------  --------------
<S>                               <C>             <C>             <C>             <C>
Rental Revenue                      $166,631        $161,274        $164,237        $158,642
Operating expense reimbursement       59,687          55,555          59,687          55,555
                                    --------        --------        --------        --------
                                     226,318         216,829         223,924         214,197

Rental property expenses              42,264          40,825          42,264          40,825
Real estate taxes                     19,256          17,577          19,256          17,577
                                    --------        --------        --------        --------
Property level operating income     $164,798        $158,427        $162,404        $155,795
                                    ========        ========        ========        ========
</TABLE>

General and administrative expenses decreased to $4.0 million for the
three months ended September 30, 1999 from $4.4 million for the three
months ended September 30, 1998, due to the decrease in cancelled project
costs for the quarter.  General and administrative expense increased to
$11.9 million for the nine months ended September 30, 1999 from $11.4
million for the nine months ended September 30, 1998, due to the increase
in personnel and other related overhead costs necessitated by the
increase in the number of properties owned during the respective periods.
This increase is somewhat mitigated by the benefit of certain economies
of scale experienced by the Company in owning and operating the increased
number of properties.

Page -21-

<PAGE>
Depreciation and amortization expense increased to $21.9 million for the
three months ended September 30, 1999 from $18.1 million for the three
months ended September 30, 1998, and to $62.4 million for the nine months
ended September 30, 1999 from $48.8 million for the nine months ended
September 30, 1998.  These increases are due to an increase in the number
of properties owned during the respective periods.

Interest expense increased to $24.8 million for the three months ended
September 30, 1999 from $20.8 million for the three months ended
September 30, 1998, and to $74.3 million for the nine months ended
September 30, 1999 from $56.3 million for the nine months ended September
30, 1998.  These increases are due to an increase in the average debt
outstanding for the respective periods which was $1,488.2 million for the
third quarter of 1999 compared to $1,311.8 million for the third quarter
of 1998, and $1,470.4 million for the first nine months of 1999 compared
to $1,185.7 million for the first nine months of 1998.  The weighted
average interest rates for the respective periods are relatively
unchanged.

As a result of the foregoing, the Company's income before minority
interest and property dispositions increased to $37.2 million for the
three months ended September 30, 1999 from $30.9 million for the three
months ended September 30, 1998, and to $104.9 million for the nine
months ended September 30, 1999 from $86.6 million for the nine months
ended September 30, 1998.  In addition, net income increased to $32.1
million for the three months ended September 30, 1999 from $28.8 million
for the three months ended September 30, 1998, and to $107.8 million for
nine months ended September 30, 1999 from $79.6 million for the nine
months ended September 30, 1998.

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 1999, the Company had cash and cash equivalents of
$48.4 million.

Net cash flow provided by operating activities increased to $166.9
million for the nine months ended September 30, 1999 from $148.2 million
for the nine months ended September 30, 1998.  This $18.7 million
increase was primarily due to the cash provided by the additional
Operating Properties in service during the latter period.

Net cash used in investing activities decreased to $164.1 million for the
nine months ended September 30, 1999 from $719.4 million for the nine
months ended September 30, 1998.  This decrease primarily resulted from
decreased acquisition activity in 1999, and an increase in property
dispositions.

Net cash provided by financing activities decreased to $31.2 million for
the nine months ended September 30, 1999 from $526.8 million for the nine
months ended September 30, 1998. This decrease is due to a decrease in
the Company's financing requirements consistent with its decrease in
investing activities.

The Company believes that its undistributed cash flow from operations is
adequate to fund its short-term liquidity requirements.

The Company funds its acquisitions and completed development with long-
term capital sources.  These activities may be funded on a temporary
basis through its $325.0 million unsecured line of credit (the "Credit
Facility"), which matures May 2000.

Page -22-

<PAGE>
The interest rate on borrowings under the Credit Facility fluctuates
based upon the Company's leverage levels or ratings from Moody's
Investors Services, Inc. ("Moody's") and Standard & Poor's Ratings Group
("Standard & Poor's"). Moody's and Standard & Poor's have assigned senior
debt ratings to the Company of Baa3 and BBB-, respectively.  At these
ratings, the interest rate for borrowings under the Credit Facility is
110 basis points over LIBOR.

As of September 30, 1999, $377.2 million in mortgage loans, $895.0
million in unsecured notes and $90.0 million in an unsecured term loan
were outstanding.  The interest rates on $370.7 million of mortgage loans
and unsecured notes are fixed and range from 5.0% to 9.1%.  Interest
rates on $6.5 million of mortgage loans and the unsecured term loan float
with LIBOR or a municipal bond index, none of which is subject to a cap.
The weighted average remaining term for the mortgage loans, unsecured
notes and the unsecured term loan is 7.8 years. The scheduled maturities
of principal amortization of the Company's mortgage loans, unsecured
notes and the unsecured term loan outstanding and the related weighted
average interest rates are as follows (in thousands):

<TABLE>
<CAPTION>
                     MORTGAGES            UNSECURED                        WEIGHTED
            --------------------------    NOTES AND                        AVERAGE
            AMORTIZATION    MATURITIES    TERM LOAN         TOTAL       INTEREST RATE
            ------------    ----------    ----------      ----------    --------------
<S>         <C>             <C>           <C>             <C>           <C>
1999          $  2,147       $      -     $        -      $    2,147          6.6%
2000             8,858         26,623              -          35,481          8.4%
2001             8,512         20,122         90,000         118,634          6.9%
2002             7,353              -        100,000         107,353          6.7%
2003             7,270         26,606         50,000          83,876          7.3%
2004             7,280         15,910        100,000         123,190          7.0%
2005             6,431         99,018              -         105,449          7.6%
2006             5,092         30,078        100,000         135,170          7.2%
2007             4,640              -        100,000         104,640          7.3%
2008             4,331         28,835              -          33,166          7.2%
2009             2,218         42,063        270,000         314,281          7.8%
2010             1,426              -              -           1,426          7.7%
2011             1,168          3,303              -           4,471          7.7%
2012               266         17,674              -          17,940          7.7%
2013                 -              -         75,000 (1)      75,000          6.4%
2018                 -              -        100,000         100,000          7.5%
             ---------      ---------     ----------      ----------       -------
              $ 66,992       $310,232     $  985,000      $1,362,224          7.3%
             =========      =========     ==========      ==========       =======
</TABLE>

(1)  Callable 2003.

General

The Company believes that its existing sources of capital will provide
sufficient funds to finance its continued development and acquisition
activities.  The Company's need for capital has been somewhat reduced by
a decline in acquisition activity throughout the year, resulting from a
general marketplace decline in initial returns on acquisitions.  The
Company's existing sources of capital include the public debt and equity
markets, proceeds from property dispositions and net cash provided from
its operating activities.  Additionally, the Company expects to incur
variable rate debt, including borrowings under the Credit Facility, from
time to time.

In 1998, the Company received $296.3 million in aggregate net proceeds
from the issuance of Common Shares and $292.1 million in aggregate net
proceeds from the issuance of unsecured notes.  The Company used the
aggregate net proceeds from the sale of Common Shares and the unsecured

Page -23-

<PAGE>
notes to fund the Company's activities, including paying down the Credit
Facility, which funds acquisition and development activity.

On January 15, 1999, the Company closed a $135 million, two-year
unsecured term loan.  The interest rate for the loan is 135 basis points
over LIBOR.

On April 20, 1999, the Company sold $250 million principal amount of
7.75% notes due 2009.  The aggregate net proceeds from such issuance was
approximately $246.0 million.

On July 28, 1999, the Company completed a private placement of 3.8
million 9.25% Series B Cumulative Redeemable Preferred Units of the
Operating Partnership at a price of $25 per unit.  The Company used the
aggregate net proceeds of approximately $93.0 million from the sale of
the preferred units to repay outstanding borrowings under the Company's
term loan and to fund the Company's activities including paying down the
Credit Facility which funds acquisitions and development activity.

The Company has an effective S-3 shelf registration statement on file
with the Securities and Exchange Commission.  As of November 8, 1999, the
Company had the capacity pursuant to the Shelf Registration Statement to
issue $688.4 million in equity securities and the Operating Partnership
has the capacity to issue $108.0 million in debt securities.

Calculation of Funds from Operations

Management generally considers funds from operations (as defined below) a
useful financial performance measure of the operating performance of an
equity REIT, because, together with net income and cash flows, funds from
operations provides investors with an additional basis to evaluate the
ability of a REIT to incur and service debt and to fund acquisitions and
capital expenditures.  Funds from operations is defined by NAREIT as net
income or loss after preferred distributions (computed in accordance with
generally accepted accounting principles ("GAAP")), excluding gains (or
losses) from debt restructuring and sales of property, plus real estate-
related depreciation and amortization and minority interest and excluding
significant nonrecurring events that materially distort the comparative
measurement of the Company's performance over time.  Funds from
operations does not represent net income or cash flows from operations as
defined by GAAP and does not necessarily indicate that cash flows will be
sufficient to fund cash needs.  It should not be considered as an
alternative to net income as an indicator of the Company's operating
performance or to cash flows as a measure of liquidity.  Funds from
operations also does not represent cash flows generated from operating,
investing or financing activities as defined by GAAP.  Funds from
operations for the three and nine months ended September 30, 1999 and
September 30, 1998 are as follows (in thousands):
<TABLE>
<CAPTION>
                                                THREE MONTHS ENDED         NINE MONTHS ENDED
                                                  (IN THOUSANDS)             (IN THOUSANDS)
                                              ----------------------     ---------------------
                                              SEPT. 30,   SEPT. 30,      SEPT. 30,   SEPT. 30,
                                                1999        1998            1999       1998
                                              ----------  ----------     ----------  ---------
<S>                                           <C>         <C>            <C>         <C>
Income available to common shareholders       $ 29,343    $ 26,061       $ 99,523    $  71,337
Addback:
  Minority interest                              2,273       2,092          7,494        5,962
  Depreciation and amortization                 21,385      17,707         61,283       47,986
  Loss (gain) on sale                            1,270           -        (11,941)       1,048
                                              ========    ========       =========   =========
Funds from operations                         $ 54,271    $ 45,860       $156,359    $ 126,333
                                              ========    ========       =========   =========
</TABLE>

Page -24-

<PAGE>
YEAR 2000

Background

In the past, many computer software programs were written using two
digits rather than four to define the applicable year.  As a result,
date-sensitive computer software may recognize a date using "00" as the
year 1900 rather than the year 2000.  This is generally referred to as
the Year 2000 issue.  If this situation occurs, the potential exists for
computer system failures or miscalculations by computer programs, which
could disrupt operations.

Approach

The Company has established a group to coordinate the Company's response
to the Year 2000 issue.  This group, which reports to the President and
Chief Operating Officer, includes the Company's MIS Director, a Vice-
President-Property Management and its General Counsel, as well as
support staff.  The Company is in the process of implementing a Year
2000 compliance program at the Company's offices and properties
consisting of the following phases:

      PHASE 1  Compilation of an inventory of information technology
(IT) and non-IT systems that may be sensitive to the Year 2000 problem.

      PHASE 2  Identification and prioritization of the critical systems
from the systems inventory compiled in Phase 1 and inquiries of third
parties with whom the Company does significant business (i.e., vendors,
service providers and certain tenants) as to the state of their Year
2000 readiness.

      PHASE 3   Analysis of critical systems to determine which systems
are not Year 2000 compliant and evaluation of the costs to repair or
replace those systems.

      PHASE 4   Repair or replace noncompliant systems and testing of
critical systems, where applicable.

Status

The Company's property management and accounting system uses four-digit
year fields and consequently is believed to be Year 2000 compliant.

Phases 1, 2, 3 and 4 are substantially complete but for the process of
making inquiries of significant third parties as to their Year 2000
readiness and testing of critical systems, which is ongoing.

Based upon the analysis conducted to date, the Company believes the
major critical systems at the Company's properties are currently
compliant.

Costs

The total cost to the Company of making its systems Year 2000 compliant
is currently estimated to be in the range of $200,000-$300,000.  The
majority of this cost relates to repairing certain software, testing
systems and retrofitting or replacing energy management systems at
certain of the properties.  The cost for the replacement of the
equipment and the software will be capitalized and depreciated over
their expected useful life.  To the extent existing hardware or software

Page -25-

<PAGE>
is replaced, the Company will expense the cost as incurred.  This
expense is included in the above cost estimate.  Furthermore, all costs
related to software modification, as well as all costs associated with
the Company's administration of its Year 2000 project, are being
expensed as incurred and are likewise included in the cost estimate
above.

Risks Associated with the Year 2000 Problem

The Company utilizes computer systems in many aspects of its business.
As noted, the Company's property management and accounting systems use
four-digit year fields and are believed to be Year 2000 compliant.
Additionally, with respect to the hardware and software systems utilized
by the Company in its management information systems, the Company's
assessment to date indicates that these systems are Year 2000 compliant
or can readily be made Year 2000 compliant on a stand-alone basis.
Testing of the operation of these systems together is ongoing.

The Company's also utilizes microprocessors which are imbedded in
systems which are part of the building operations (e.g., microprocessors
contained within the buildings' energy management systems or fire and
life safety systems).  In particular, Year 2000 problems in the HVAC,
elevator, security or other such systems at the properties could disrupt
operations at the affected properties.  The properties generally consist
of suburban office and industrial properties.  The properties are also
principally single-story and low-rise buildings.  The Company has
reviewed its building operating systems on a building-by-building basis.
 At this point, based on the status of its assessment, the Company does
not believe a material number of these systems will be non-compliant.
Additionally, many of these systems, which operate automatically, can be
operated manually and consequently in the event these systems experience
a failure as a result of the Year 2000 problem, the disruption caused by
such failure should not be material to the Company's operations.

The Company is also exposed to the risk that one or more of its vendors
or service providers could experience Year 2000 problems that impact the
ability of such vendor or service provider to provide goods and
services.  Though this is not considered as significant a risk with
respect to the suppliers of goods, due to the availability of
alternative suppliers, the disruption of certain services, such as
utilities, could, depending upon the extent of the disruption, have a
material adverse impact on the Company's operations.  To date, the
Company is not aware of any vendor or service provider Year 2000 issue
that management believes would have a material adverse impact on the
Company's operations.  However, the Company has no means of ensuring
that its vendors or service providers will be Year 2000 ready.  The
inability of vendors or service providers to complete their Year 2000
resolution process in a timely fashion could have a adverse impact on
the Company.  The effect of non-compliance by vendors or service
providers is not determinable at this time.

In addition, the Company is exposed to the risk that one or more of its
tenants could experience Year 2000 problems that impact the ability of
such tenant to pay its rent to the Company in a timely fashion.  The
Company does not believe that such a problem is likely to affect enough
tenants to pose a material problem for the Company.  To date, the
Company is not aware of any tenant Year 2000 issue that would have a
material adverse impact on the Company's operations.  However, the
Company has no means of ensuring that its tenants will be Year 2000
ready.  The inability of tenants to complete their Year 2000 resolution
process in a timely fashion could have an adverse impact on the Company.

Page -26-

<PAGE>
The effect of non-compliance by tenants is not determinable at this
time.

Widespread disruptions in the national or international economy,
including disruptions affecting the financial markets, resulting from
Year 2000 issues, or in certain industries, such as commercial or
investment banks, could also have an adverse impact on the Company.  The
likelihood and effect of such disruptions is not determinable at this
time.

Readers are cautioned that forward-looking statements contained in the
Year 2000 discussion should be read in conjunction with the Company's
disclosures regarding forward-looking statements previously disclosed.

INFLATION
---------

Inflation has remained relatively low during the last three years, and as
a result, it has not had a significant impact on the Company during this
period. The Credit Facility bears interest at a variable rate; therefore,
the amount of interest payable under the Credit Facility will be
influenced by changes in short-term interest rates, which tend to be
sensitive to inflation. To the extent an increase in inflation would
result in increased operating costs, such as in insurance, real estate
taxes and utilities, substantially all of the tenants' leases require the
tenants to absorb these costs as part of their rental obligations. In
addition, inflation also may have the effect of increasing market rental
rates.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
-------------------------------------------------------------------

There have been no material changes to the Company's exposure to market
risk since its Annual Report on Form 10-K for 1998.

Page -27-


<PAGE>
PART II: OTHER INFORMATION
--------------------------

Item 1.  Legal Proceedings

         None

Item 2.  Changes in Securities and Use of Proceeds

         On July 28, 1999, the Operating Partnership issued 3.8 million
9.25% Series B Cumulative Redeemable Preferred Units of Limited
Partnership Interest (the "Units").  The aggregate sale price of the
Units was $95.0 million.  The Units were sold to two institutional
investors in a private placement in reliance on the exemption from
registration under Section 4(2) of the Securities Act of 1933, as
amended.  The Units are convertible after ten years (or, under limited
circumstances, a shorter period of time), on a one-for-one basis, into
the 9.25% Series B Cumulative Redeemable Preferred Shares of Beneficial
Interest of the Trust (the "Preferred Shares"), which were authorized
for issuance by the Trust in connection with this transaction.  The
Units have identical rights, preferences and privileges as the Preferred
Shares.  The Units do not include any mandatory redemption or sinking
fund provisions.  The holders of the Units have certain rights to cause
the Trust to register the Preferred Shares pursuant to the terms of a
registration rights agreement entered into in connection with this
private placement.

         The net proceeds of the sale of the units, approximately $93.0
million, was used to repay the Company's term loan and to fund other
Company activities, including paying down the outstanding balance under
the Credit Facility.

         In connection with the sale of the Units, the Operating
Partnership amended its Second Restated and Amended Agreement of Limited
Partnership pursuant to the First Amendment thereto, filed as Exhibit
3.1.1 to this Report.  The Articles Supplementary to the Amended and
Restated Declaration of Trust of the Trust creating the Preferred Shares
are filed as Exhibit 3.1.2 to this Report.

         The Units are pari passu with the 8.80% Series A Cumulative
Redeemable Preferred Units of Limited Partnership of the Operating
Partnership, and senior to all other units of limited partnership
interest of the Operating Partnership.  The Preferred Shares are pari
passu with the 8.80% Series A Cumulative Redeemable Preferred Shares of
Beneficial Interest of the Trust, and senior to the Common Shares of
Beneficial Interest of the Trust.

Item 3.  Defaults upon Senior Securities

         None

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

         None.

Page -28-

<PAGE>
Item 5.  Other Information

         None.

Item 6.  Exhibits and Reports on Form 8-K

         None

Page -29-





<PAGE>
                                   SIGNATURES

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

LIBERTY PROPERTY TRUST


/s/ JOSEPH P. DENNY                           November 10, 1999
------------------------------          --------------------------------
Joseph P. Denny                               Date
President


/s/ GEORGE J. ALBURGER, JR.                   November 10, 1999
------------------------------          --------------------------------
George J. Alburger, Jr.                       Date
Chief Financial Officer


LIBERTY PROPERTY LIMITED PARTNERSHIP
By: LIBERTY PROPERTY TRUST, GENERAL PARTNER


/s/ JOSEPH P. DENNY                           November 10, 1999
------------------------------          --------------------------------
Joseph P. Denny                               Date
President


/s/ GEORGE J. ALBURGER, JR.                   November 10, 1999
------------------------------          --------------------------------
George J. Alburger, Jr.                       Date
Chief Financial Officer

Page -30-





<PAGE>
                             EXHIBIT INDEX


EXHIBIT                           EXHIBIT DESCRIPTION
-------       -----------------------------------------------------------

27            Financial Data Schedule (EDGAR version only)



Page -31-