Document:

<Page>

                                                                     EXHIBIT 4.3

                            GABLES RESIDENTIAL TRUST

                             ARTICLES SUPPLEMENTARY

                     ESTABLISHING AND FIXING THE RIGHTS AND
                   PREFERENCES OF A SERIES OF PREFERRED SHARES

     Gables Residential Trust, a Maryland real estate investment trust (the
"Trust"), having its principal office in Boca Raton, Florida, hereby certifies
to the State Department of Assessments and Taxation of the State of Maryland
that:

FIRST: Pursuant to the authority expressly vested in the Board of Trustees of
the Trust by Article IV of its Amended and Restated Declaration of Trust (which,
as hereafter restated or amended from time to time, is together with these
Articles Supplementary herein called the "Charter"), the Board of Trustees has,
by resolution, duly divided and classified 3,000,000 shares of the Preferred
Shares of the Trust into a series designated 7.50% Series D Cumulative
Redeemable Preferred Shares and has provided for the issuance of such series.

SECOND: Subject in all cases to the provisions of the Charter of the Trust,
including without limitation, Article V with respect to limitations on the
transfer and ownership of Shares, the following is a description of the
preferences, conversion and other rights, voting powers, restrictions,
limitations as to dividends, qualifications and terms and conditions of
redemption of the 7.50% Series D Cumulative Redeemable Preferred Shares of the
Trust:

(1)  DESIGNATION AND NUMBER. A series of Preferred Shares, designated the "7.50%
Series D Cumulative Redeemable Preferred Shares" (the "Series D Preferred
Shares"), is hereby established. The number of Series D Preferred Shares hereby
authorized shall be 3,000,000.

(2)  RANK. The Series D Preferred Shares shall, with respect to dividend rights
and rights upon liquidation, dissolution or winding up of the Trust, rank (a)
senior to all classes or series of Common Shares of the Trust, and to all equity
securities issued by the Trust ranking junior to such Series D Preferred Shares,
including without limitation the 5.00% Series Z Cumulative Redeemable Preferred
Shares; (b) on a parity with all other equity securities issued by the Trust,
the terms of which specifically provide that such equity securities rank on a
parity with the Series D Preferred Shares, including without limitation the (i)
8.625% Series B Cumulative Redeemable Preferred Shares and the (ii) 7.875%
Series C Cumulative Redeemable Preferred Shares (the "Series C Preferred
Shares"); and (c) junior to all equity securities issued by the Trust the terms
of which specifically provide that such equity securities rank senior to the
Series D Preferred Shares. The term "equity securities" shall not include
convertible debt securities.

(3)  DIVIDENDS.

     (a)  Holders of the then outstanding Series D Preferred Shares shall be
entitled to receive, when and as declared by the Board of Trustees, out of funds
legally available for the payment of dividends, cumulative preferential cash
dividends at the rate of 7.50% of the $25.00

<Page>

liquidation preference per annum (equivalent to a fixed annual amount of $1.875
per share). Such dividends shall be cumulative from the first date on which any
Series D Preferred Shares are issued and shall be payable quarterly in arrears
on or before March 15, June 15, September 15 and December 15 of each year or, if
not a business day, the next succeeding business day (each, a "Dividend Payment
Date"). The quarterly period between Dividend Payment Dates is referred to
herein as a "dividend period" and the dividend which shall accrue in respect of
any full dividend period shall be $0.46875 regardless of the actual number of
days in such full dividend period. The first dividend, which will be paid on
June 16, 2003, will be for less than a full quarter. Such dividend and any
dividend payable on the Series D Preferred Shares for any partial dividend
period will be computed on the basis of a 360-day year consisting of twelve
30-day months. Dividends will be payable to holders of record as they appear in
the stock records of the Trust at the close of business on the applicable record
date, which shall be the first day of the calendar month in which the applicable
Dividend Payment Date falls or on such other date designated by the Board of
Trustees of the Trust as the record date for the payment of dividends on the
Series D Preferred Shares that is not more than 30 nor less than 10 days prior
to such Dividend Payment Date (each, a "Dividend Record Date").

     (b)  No dividends on Series D Preferred Shares shall be declared by the
Board of Trustees of the Trust or paid or set apart for payment by the Trust at
such time as the terms and provisions of any agreement of the Trust, including
any agreement relating to its indebtedness, prohibits such declaration, payment
or setting apart for payment or provides that such declaration, payment or
setting apart for payment would constitute a breach thereof or a default
thereunder, or if such declaration or payment shall be restricted or prohibited
by law.

     (c)  Notwithstanding the foregoing, dividends on the Series D Preferred
Shares shall accrue whether or not the terms and provisions set forth in Section
3(b) hereof at any time prohibit the current payment of dividends, whether or
not the Trust has earnings, whether or not there are funds legally available for
the payment of such dividends and whether or not such dividends are declared.
Accrued but unpaid dividends on the Series D Preferred Shares will accumulate as
of the Dividend Payment Date on which they first become payable.

     (d)  Except as provided in Section 3(e) below, no dividends will be
declared or paid or set apart for payment on any capital stock of the Trust or
any other series of Preferred Shares ranking, as to dividends, on a parity with
or junior to the Series D Preferred Shares (other than a dividend in shares of
the Trust's Common Shares or in any other class of shares of beneficial interest
ranking junior to the Series D Preferred Shares as to dividends and upon
liquidation) for any period unless full cumulative dividends have been or
contemporaneously are declared and paid or declared and a sum sufficient for the
payment thereof is set apart for such payment on the Series D Preferred Shares
for all past dividend periods and the then current dividend period; PROVIDED,
HOWEVER, that insofar as the Board of Trustees of the Trust elects to declare
dividends on its Common Shares on a monthly basis and, as a result, the Trust is
committed to paying dividends on three monthly dividend payment dates with
respect to the Trust's Common Shares during each quarterly dividend period with
respect to the Series D Preferred Shares, nothing in this Section 3(d) shall be
deemed to prohibit the payment of a monthly dividend on the Trust's Common
Shares if such monthly dividend is paid not later than 90 days after the last
dividend payment made to holders of the Series D Preferred Shares.

                                        2
<Page>

     (e)  When dividends are not paid in full (and a sum sufficient for such
full payment is not so set apart) upon the Series D Preferred Shares and the
shares of any other series of Preferred Shares ranking on a parity as to
dividends with the Series D Preferred Shares, all dividends declared upon the
Series D Preferred Shares and any other series of Preferred Shares ranking on a
parity as to dividends with the Series D Preferred Shares shall be declared pro
rata so that the amount of dividends declared per share of Series D Preferred
Shares and such other series of Preferred Shares shall in all cases bear to each
other the same ratio that accrued dividends per share on the Series D Preferred
Shares and such other series of Preferred Shares (which shall not include any
accrual in respect of unpaid dividends for prior dividend periods if such
Preferred Shares do not have a cumulative dividend) bear to each other. No
interest, or sum of money in lieu of interest, shall be payable in respect of
any dividend payment or payments on Series D Preferred Shares which may be in
arrears.

     (f)  Except as provided in the immediately preceding paragraph, unless full
cumulative dividends on the Series D Preferred Shares have been or
contemporaneously are declared and paid or declared and a sum sufficient for the
payment thereof is set apart for payment for all past dividend periods and the
then current dividend period, no dividends (other than in Common Shares or other
shares of beneficial interest ranking junior to the Series D Preferred Shares as
to dividends and upon liquidation) shall be declared or paid or set aside for
payment, nor shall any other distribution be declared or made, upon the Common
Shares or any other shares of beneficial interest of the Trust ranking junior to
or on a parity with the Series D Preferred Shares as to dividends or upon
liquidation, nor shall any Common Shares, or any other shares of beneficial
interest of the Trust ranking junior to or on a parity with the Series D
Preferred Shares as to dividends or upon liquidation be redeemed, purchased or
otherwise acquired for any consideration (or any moneys be paid to or made
available for a sinking fund for the redemption of any such shares) by the Trust
(except by conversion into or exchange for other shares of beneficial interest
of the Trust ranking junior to the Series D Preferred Shares as to dividends and
upon liquidation).

     (g)  Any dividend payment made on Series D Preferred Shares shall first be
credited against the earliest accrued but unpaid dividend due with respect to
such shares which remains payable. Holders of the Series D Preferred Shares
shall not be entitled to any dividend, whether payable in cash, property or
securities in excess of full cumulative dividends on the Series D Preferred
Shares as described above.

(4)  LIQUIDATION PREFERENCE.

     (a)  Upon any voluntary or involuntary liquidation, dissolution or winding
up of the affairs of the Trust, the holders of Series D Preferred Shares then
outstanding are entitled to be paid out of the assets of the Trust legally
available for distribution to its stockholders a liquidation preference of
$25.00 per share, plus an amount equal to any accrued and unpaid dividends to
the date of payment, before any distribution of assets is made to holders of
Common Shares or any other class or series of shares of beneficial interest of
the Trust that ranks junior to the Series D Preferred Shares as to liquidation
rights.

                                        3
<Page>

     (b)  In the event that, upon any such voluntary or involuntary liquidation,
dissolution or winding up, the available assets of the Trust are insufficient to
pay the amount of the liquidating distributions on all outstanding Series D
Preferred Shares and the corresponding amounts payable on all shares of other
classes or series of shares of beneficial interest of the Trust ranking on a
parity with the Series D Preferred Shares in the distribution of assets, then
the holders of the Series D Preferred Shares and all other such classes or
series of shares of beneficial interest shall share ratably in any such
distribution of assets in proportion to the full liquidating distributions to
which they would otherwise be respectively entitled.

     (c)  After payment of the full amount of the liquidating distributions to
which they are entitled, the holders of Series D Preferred Shares will have no
right or claim to any of the remaining assets of the Trust.

     (d)  Written notice of any such liquidation, dissolution or winding up of
the Trust, stating the payment date or dates when, and the place or places
where, the amounts distributable in such circumstances shall be payable, shall
be given by first class mail, postage pre-paid, not less than 30 nor more than
60 days prior to the payment date stated therein, to each record holder of the
Series D Preferred Shares at the respective addresses of such holders as the
same shall appear on the stock transfer records of the Trust.

     (e)  The consolidation or merger of the Trust with or into any other
corporation, trust or entity or of any other corporation with or into the Trust,
or the sale, lease or conveyance of all or substantially all of the property or
business of the Trust, shall not be deemed to constitute a liquidation,
dissolution or winding up of the Trust.

(5)  REDEMPTION.

     (a)  RIGHT OF OPTIONAL REDEMPTION; APPLICATION OF "EXCESS SHARE" PROVISION.
The Series D Preferred Shares are not redeemable prior to May 8, 2008. However,
in an effort to ensure that the Trust remains a qualified real estate investment
trust ("REIT") for federal income tax purposes, in accordance with the Charter,
the Series D Preferred Shares are, together with all other shares of beneficial
interest of the Trust, subject in all respects to the provisions of Article V of
the Charter. In addition, for so long as any Series D Preferred Shares are
outstanding, the definition of "Ownership Limit" in Article V shall be read so
that the following clause is appended to the end thereto: "and PROVIDED,
FURTHER, that so long as any Series D Preferred Shares are outstanding,
"Ownership Limit" shall also mean 9.8% of the outstanding Series D Preferred
Shares." Accordingly, pursuant to Sections 5.5.1 and 5.5.7 of the Charter, a
purported Transfer (as defined in Article V) of Series D Preferred Shares as a
result of which any person would Beneficially Own (as defined in Article V) more
than 9.8% of the outstanding Series D Preferred Shares will cause such excess to
automatically be exchanged for Excess Shares, and the Trust will have the right
to purchase such Excess Shares from the holder.

     On and after May 8, 2008, the Trust, at its option and upon not less than
30 nor more than 60 days' written notice, may redeem the Series D Preferred
Shares, in whole or in part, at any time or from time to time, for cash at a
redemption price of $25.00 per share, plus all accrued and unpaid dividends
thereon to the date fixed for redemption (except as provided in Section 5(c)

                                        4
<Page>

below), without interest. If less than all of the outstanding Series D Preferred
Shares are to be redeemed, the Series D Preferred Shares to be redeemed shall be
selected pro rata (as nearly as may be practicable without creating fractional
shares) or by any other equitable method determined by the Trust.

     (b)  LIMITATIONS ON REDEMPTION. Unless full cumulative dividends on all
Series D Preferred Shares shall have been or contemporaneously are declared and
paid or declared and a sum sufficient for the payment thereof set apart for
payment for all past dividend periods and the then current dividend period, no
Series D Preferred Shares shall be redeemed unless all outstanding Series D
Preferred Shares are simultaneously redeemed, and the Trust shall not purchase
or otherwise acquire directly or indirectly any Series D Preferred Shares
(except by exchange for shares of beneficial interest of the Trust ranking
junior to the Series D Preferred Shares as to dividends and upon liquidation);
PROVIDED, HOWEVER, that the foregoing shall not prevent the purchase by the
Trust of Excess Shares in order to ensure that the Trust remains qualified as a
REIT for federal income tax purposes or the purchase or acquisition of Series D
Preferred Shares pursuant to a purchase or exchange offer made on the same terms
to holders of all outstanding Series D Preferred Shares.

     (c)  PAYMENT OF DIVIDENDS IN CONNECTION WITH REDEMPTION. Immediately prior
to any redemption of Series D Preferred Shares, the Trust shall pay, in cash,
any accumulated and unpaid dividends through the redemption date, unless a
redemption date falls after a Dividend Record Date and prior to the
corresponding Dividend Payment Date, in which case each holder of Series D
Preferred Shares at the close of business on such Dividend Record Date shall be
entitled to the dividend payable on such shares on the corresponding Dividend
Payment Date notwithstanding the redemption of such shares before such Dividend
Payment Date. Except as provided above, the Trust will make no payment or
allowance for unpaid dividends, whether or not in arrears, on Series D Preferred
Shares which are redeemed.

     (d)  PROCEDURES FOR REDEMPTION.

          (i)   Notice of redemption will be (A) given by publication in a
newspaper of general circulation in the City of New York, such publication to be
made once a week for two successive weeks commencing not less than 30 nor more
than 60 days prior to the redemption date, and (B) mailed by the Trust, postage
prepaid, not less than 30 nor more than 60 days prior to the redemption date,
addressed to the respective holders of record of the Series D Preferred Shares
to be redeemed at their respective addresses as they appear on the stock
transfer records of the Trust. No failure to give such notice or any defect
thereto or in the mailing thereof shall affect the validity of the proceedings
for the redemption of any shares of Series D Preferred Shares except as to the
holder to whom notice was defective or not given.

          (ii)  In addition to any information required by law or by the
applicable rules of any exchange upon which Series D Preferred Shares may be
listed or admitted to trading, such notice shall state: (A) the redemption date;
(B) the redemption price; (C) the number of shares of Series D Preferred Shares
to be redeemed; (D) the place or places where the Series D Preferred Shares are
to be surrendered for payment of the redemption price; and (E) that dividends on
the shares to be redeemed will cease to accrue on such redemption date. If less
than all of the Series D

                                        5
<Page>

Preferred Shares held by any holder are to be redeemed, the notice mailed to
such holder shall also specify the number of Series D Preferred Shares held by
such holder to be redeemed.

          (iii) If notice of redemption of any Series D Preferred Shares has
been given and if the funds necessary for such redemption have been set aside by
the Trust in trust for the benefit of the holders of any Series D Preferred
Shares so called for redemption, then from and after the redemption date
dividends will cease to accrue on such Series D Preferred Shares, such Series D
Preferred Shares shall no longer be deemed outstanding and all rights of the
holders of such shares will terminate, except the right to receive the
redemption price. Holders of Series D Preferred Shares to be redeemed shall
surrender such Series D Preferred Shares at the place designated in such notice
and, upon surrender in accordance with said notice of the certificates for
Series D Preferred Shares so redeemed (properly endorsed or assigned for
transfer, if the Trust shall so require and the notice shall so state), such
Series D Preferred Shares shall be redeemed by the Trust at the redemption price
plus any accrued and unpaid dividends payable upon such redemption. In case less
than all the Series D Preferred Shares represented by any such certificate are
redeemed, a new certificate or certificates shall be issued representing the
unredeemed Series D Preferred Shares without cost to the holder thereof.

          (iv)  The deposit of funds with a bank or trust corporation for the
purpose of redeeming Series D Preferred Shares shall be irrevocable except that:

                (A)  the Trust shall be entitled to receive from such bank or
trust corporation the interest or other earnings, if any, earned on any money so
deposited in trust, and the holders of any shares redeemed shall have no claim
to such interest or other earnings; and

                (B)  any balance of monies so deposited by the Trust and
unclaimed by the holders of the Series D Preferred Shares entitled thereto at
the expiration of two years from the applicable redemption dates shall be
repaid, together with any interest or other earnings thereon, to the Trust, and
after any such repayment, the holders of the shares entitled to the funds so
repaid to the Trust shall look only to the Trust for payment without interest or
other earnings.

     (e)  EXCESS SHARE PROVISIONS. The Series D Preferred Shares are subject to
the provisions of Article V of the Charter, including, without limitation, the
provision for the redemption of Excess Shares. In addition to the redemption
rights set forth in Article V of the Charter, Excess Shares issued upon exchange
of Series D Preferred Shares pursuant to such Article may be redeemed, in whole
or in part, at any time when outstanding Series D Preferred Shares are being
redeemed, for cash at a redemption price of $25.00 per share, plus all accrued
and unpaid dividends on the Series D Preferred Shares, which were exchanged for
such Excess Shares, through the date of such exchange, without interest. If the
Trust elects to redeem Excess Shares pursuant to the redemption right set forth
in the preceding sentence, such Excess Shares shall be redeemed in such
proportion and in accordance with such procedures as Series D Preferred Shares
are being redeemed.

     (f)  STATUS OF REDEEMED SHARES. Any Series D Preferred Shares that shall at
any time have been redeemed shall, after such redemption, have the status of
authorized but unissued

                                        6
<Page>

Preferred Shares, without designation as to series until such shares are
thereafter designated as part of a particular series by the Board of Trustees.

(6)  VOTING RIGHTS.

     (a)  Holders of the Series D Preferred Shares will not have any voting
rights, except as set forth below or as otherwise from time to time required by
law.

     (b)  Whenever dividends on any Series D Preferred Shares shall be in
arrears for six or more quarterly periods (a "Preferred Dividend Default"), the
holders of such Series D Preferred Shares (voting separately as a class with the
holders of all other series of Preferred Shares ranking on a parity with the
Series D Preferred Shares as to dividends or upon liquidation ("Parity
Preferred") upon which like voting rights have been conferred and are
exercisable) will be entitled to vote for the election of a total of two
trustees of the Trust (the "Preferred Share Trustees") at a special meeting
called by the holders of record of at least 20% of the Series D Preferred Shares
or the holders of any other series of Parity Preferred so in arrears (unless
such request is received less than 90 days before the date fixed for the next
annual or special meeting of shareholders) or at the next annual meeting of
shareholders, and at each subsequent annual meeting until all dividends
accumulated on such Series D Preferred Shares for the past dividend periods and
the dividend for the then current dividend period shall have been fully paid or
declared and a sum sufficient for the payment thereof set aside for payment.

     (c)  If and when all accumulated dividends and the dividend for the then
current dividend period on the Series D Preferred Shares shall have been paid in
full or set aside for payment in full, the holders of Series D Preferred Shares
shall be divested of the voting rights set forth in Section 6(b) hereof (subject
to revesting in the event of each and every Preferred Dividend Default) and, if
all accumulated dividends and the dividend for the current dividend period have
been paid in full or set aside for payment in full on all other series of Parity
Preferred upon which like voting rights have been conferred and are exercisable,
the term of office of each Preferred Share Trustee so elected shall terminate.
Any Preferred Share Trustee may be removed at any time with or without cause by
the vote of, and shall not be removed otherwise than by the vote of, the holders
of record of a majority of the outstanding Series D Preferred Shares when they
have the voting rights set forth in Section 6(b) (voting separately as a class
with all other series of Parity Preferred upon which like voting rights have
been conferred and are exercisable). So long as a Preferred Dividend Default
shall continue, any vacancy in the office of a Preferred Share Trustee may be
filled by written consent of the Preferred Share Trustee remaining in office, or
if none remains in office, by a vote of the holders of record of a majority of
the outstanding Series D Preferred Shares when they have the voting rights set
forth in Section 6(b) (voting separately as a class with all other series of
Parity Preferred upon which like voting rights have been conferred and are
exercisable). The Preferred Share Trustees shall each be entitled to one vote
per trustee on any matter.

     (d)  So long as any Series D Preferred Shares remain outstanding, the Trust
shall not, without the affirmative vote of the holders of at least two-thirds of
the Series D Preferred Shares outstanding at the time, given in person or by
proxy, either in writing or at a meeting (voting separately as a class), (i)
authorize or create, or increase the authorized or issued amount of, any

                                        7
<Page>

class or series of shares of beneficial interest ranking senior to the Series D
Preferred Shares with respect to payment of dividends or the distribution of
assets upon liquidation, dissolution or winding up, or reclassify any authorized
shares of beneficial interest of the Trust into any such shares, or create,
authorize or issue any obligation or security convertible into or evidencing the
right to purchase any such shares or (ii) amend, alter or repeal the provisions
of the Charter, whether by merger, consolidation or otherwise, so as to
materially and adversely affect any right, preference, privilege or voting power
of the Series D Preferred Shares or the holders thereof; PROVIDED, HOWEVER, that
with respect to the occurrence of any event set forth in (ii) above, so long as
the Series D Preferred Shares remain outstanding with the terms thereof
materially unchanged or, if the Trust is not the surviving entity in such
transaction, are exchanged for a security of the surviving entity with terms
that are materially the same as the Series D Preferred Shares, the occurrence of
any such event shall not be deemed to materially and adversely affect such
rights, preferences, privileges or voting powers of the holders of the Series D
Preferred Shares and; PROVIDED, FURTHER, that (i) any increase in the amount of
the authorized Preferred Shares or the creation or issuance of any other series
of Preferred Shares, or any increase in the amount of authorized shares of such
series, in each case ranking on a parity with or junior to the Series D
Preferred Shares with respect to payment of dividends or the distribution of
assets upon liquidation, dissolution or winding up, shall not be deemed to
materially and adversely affect such rights, preferences, privileges or voting
powers and (ii) any amendment to Article V of the Charter relating to Excess
Shares, the Ownership Limit or any other matter described therein of any type or
nature shall in no event be deemed to materially and adversely affect such
rights, preferences, privileges or voting powers so long as after such amendment
any single holder may "beneficially own" (as defined in Article V prior to or
after such amendment) 9.8% of the outstanding Series D Preferred Shares and 9.8%
of any other class or series of shares of beneficial interest without violating
the Ownership Limit.

     (e)  The foregoing voting provisions will not apply if, at or prior to the
time when the act with respect to which such vote would otherwise be required to
be effected, all outstanding Series D Preferred Shares shall have been redeemed
or called for redemption upon proper notice and sufficient funds shall have been
deposited in trust to effect such redemption.

(7)  CONVERSION. The Series D Preferred Shares are not convertible into or
exchangeable for any other property or securities of the Trust, except that the
Series D Preferred Shares will automatically be exchanged by the Trust for
Excess Shares, in accordance with Article V of the Charter in the same manner
that Common Shares are exchanged for Excess Shares pursuant thereto, in order to
ensure that the Trust remains qualified as a REIT for federal income tax
purposes.

THIRD: These Articles Supplementary shall be effective at the time the State
Department of Assessments and Taxation of Maryland accepts these Articles
Supplementary for record.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                        8
<Page>

     IN WITNESS WHEREOF, GABLES RESIDENTIAL TRUST has caused these presents to
be signed in its name and on its behalf by its Senior Vice President, Secretary,
Treasurer and Chief Financial Officer on May 7, 2003.

                                       GABLES RESIDENTIAL TRUST

                                       By:   /s/ Marvin R. Banks, Jr.
                                           ---------------------------------
                                           Marvin R. Banks, Jr.
                                           Senior Vice President, Secretary,
                                           Treasurer and Chief Financial Officer

     THE UNDERSIGNED, as Senior Vice President, Secretary, Treasurer and Chief
Financial Officer of Gables Residential Trust, who executed on behalf of the
Trust the Articles Supplementary of which this Certificate is made a part,
hereby acknowledges in the name and on behalf of said Trust the foregoing
Articles Supplementary to be the act of said Trust by resolution adopted by a
majority of the Trust's trustees and hereby certifies that the matters and facts
set forth herein with respect to the authorization and approval thereof are true
in all material respects under the penalties of perjury.

                                       By:   /s/ Marvin R. Banks, Jr.     (SEAL)
                                           -------------------------------
                                           Marvin R. Banks, Jr.
                                           Senior Vice President, Secretary,
                                           Treasurer and Chief Financial Officer<Page>

                                                                    EXHIBIT 10.1

                                ESCROW AGREEMENT

     THIS AGREEMENT is made and entered into as of the _________ day of
___________, 2003, by and among INLAND WESTERN RETAIL REAL ESTATE TRUST, INC., a
Maryland corporation (the "Company"), INLAND SECURITIES CORPORATION, an Illinois
Corporation (the "Dealer Manager"), and LASALLE BANK NATIONAL ASSOCIATION, a
national banking association (the "Escrow Agent").

     1.   The Company does hereby open this escrow and Escrow Agent's sole
concern and duties shall be as specifically set forth herein:

               1.1 From time to time during the course of this escrow, in
     connection with the Company's offering (the "Offering") of up to
     270,000,000 shares of common stock on a "best efforts" basis (the "Shares")
     (exclusive of Shares offered and sold pursuant to the Company's
     distribution reinvestment program), Escrow Agent will receive from
     subscribers deposits to be held in escrow in accordance with the terms
     hereof. All such funds received by Escrow Agent shall be placed into an
     interest-bearing account entitled "Inland Western Retail Real Estate Trust,
     Inc. Subscription Account" (the "Escrow Account").

     2.   All deposits from each subscriber shall be accompanied by the
subscriber name, social security number, current address and investment amount.

     3.   Checks deposited in the Escrow Account from the various subscribers
shall be made payable to "LBNA, Escrow Agent for IWRRET."

     4.   All parties understand and are aware that all funds received during
the course of the escrow and deposited in the Escrow Account must clear the
normal banking channels prior to the release of any funds.

     5.   The Company understands that it is not entitled to any funds received
into escrow in the event of cancellation of the Offering and in such event,
deposits shall be returned to the subscribers.

     6.   The parties agree that this is an impound escrow between the Company,
the Dealer Manager and the Escrow Agent. The Company and the Dealer Manager
agree that the subscribers who deposit into the "Escrow Account" are not a party
to this escrow.

     7.   All documents, including any instrument necessary for the negotiation
or other transfer of escrow assets, deposited simultaneously with the execution
of this Agreement are approved by the Company, and the Escrow Agent shall not be
obligated to inquire as to the form, manner of execution or validity of these
documents or any document hereafter deposited pursuant to the provisions hereof,
nor shall the Escrow Agent be obligated to inquire as to the identity, authority
or rights of the persons executing the same. The Escrow Agent shall be liable
under this Agreement only for its gross negligence or willful misconduct in the
performance of its duties expressly set forth in this Agreement. The Escrow
Agent shall have a lien on all securities, monies and documents deposited in
this escrow by each subscriber to secure Escrow Agent's reasonable compensation
and expenses and for judgments, attorneys' fees and other

<Page>

liabilities which the Escrow Agent may incur or sustain by reason of this
escrow, and the undersigned agrees to pay to Escrow Agent, upon demand, amounts
to satisfy all such liabilities, fees and expenses. In case of conflicting
demands upon it, the Escrow Agent may withhold performance of this escrow until
such time as the conflicting demands shall have been withdrawn or the rights of
the respective parties shall have been settled by court adjudication,
arbitration, joint order or otherwise.

     8.   Until the termination of the Offering, the Company shall notify the
Escrow Agent of the Company's acceptance or rejection of each subscription
agreement as promptly as practicable, but in any event within ten (10) days of
its receipt, and of any subscription which is rescinded within five (5) days of
such rescission. If the Escrow Agent receives notice that a subscription is
rejected by the Company, the subscriber's deposit will be returned by the Escrow
Agent to the subscriber, without interest or deduction, as promptly as
practicable, but in any event within ten (10) days after its receipt of notice
from the Company that the subscription has been rejected. If a subscription is
rescinded, the Escrow Agent shall return to the subscriber the subscriber's
deposit, without interest or deduction, within seven (7) days of being notified
by the Company of such rescission. In the event the check of a subscriber whose
subscription has been rescinded has been negotiated (and if the funds
represented thereby have been disbursed to the Company), the Company shall
deposit with the Escrow Agent an amount of funds equal to the amount necessary
to be returned to the subscriber (or the Escrow Agent may deduct such amount
from any funds due to the Company under this Agreement). The Escrow Agent shall
not be liable for the failure to return a rejected or rescinded subscription if
the Company fails to notify the Escrow Agent of the rejection of rescission of
the corresponding subscription agreement.

     9.   Commencing with the date paid subscriptions have been received and
accepted for at least 200,000 Shares or $2,000,000 (the "Minimum Offering"),
provided such date is within six months of the initial date of the Company's
prospectus (such initial date of the Company's prospectus being the "Effective
Date"), and ending on the Termination Date (the "Offering Period"), the Escrow
Agent shall (i) disburse to the Company on a weekly basis any funds received by
the Escrow Agent for accepted subscriptions (but not those funds of a subscriber
whose subscription has been rejected or rescinded of which the Escrow Agent has
been notified by the Company, or otherwise in accordance with the Company's
written request; and (ii) invest any funds held in the escrow subject to
paragraph 10 hereof, in such instruments as the Company may direct. Upon
termination of the Offering, which shall occur not later than 12 months after
the Effective Date, provided however that, subject to requalification in certain
states, the Company may extend the Offering Period from time to time, but in no
event more than two years after the Effective Date (the "Termination Date"), all
amounts theretofore undistributed shall be distributed to the Company, and this
escrow shall close and be consummated in its entirety. If subscriptions for at
least the Minimum Offering have not been received, accepted and paid for within
six months of the Effective Date, all funds received will be promptly returned
in full to subscribers, together with their pro rata share of any interest
earned thereon pursuant to instructions made by the Company, upon which the
Escrow Agent may conclusively rely. If such refund is made, Inland Real Estate
Investment Corporation will pay any escrow fees.

                                        2
<Page>

     10.  The funds deposited herein shall be invested in federally insured bank
accounts (e.g., savings accounts), short-term certificates of deposit issued by
a bank, short-term securities issued or guaranteed by the United States
government and any other investments permitted under Rule 15c2-4 of the
Securities Exchange Act of 1934, as amended, at the direction of the Company.
The interest on such investments shall, on a monthly basis while subscribers'
deposits remain in escrow and, if all conditions herein are met, when such
deposits are disbursed to the Company, be disbursed by the Escrow Agent to the
Company in accordance with paragraph 9 hereof.

     11.  The Company agrees to disburse to the Dealer Manager any funds due to
it for the Offering in accordance with the terms and conditions of the Dealer
Manager Agreement dated ______________, 2003 between the Company and the Dealer
Manager, provided that the Escrow Agent has disbursed to the Company the funds
due to the Company for the related subscriptions. The Dealer Manager shall
assist the Company in connection with the Company's compliance with this
Agreement. The Dealer Manager shall not have any lien on or security interest in
any securities, monies or documents deposited in this escrow.

     12.  Any notices which are required or desired to be given hereunder to the
parties hereto shall be in writing and may be given by mailing the same to the
address indicated below (or to such other address as either of the parties may
have theretofore substituted therefor by written notification to the other party
hereto), by registered or certified United States mail, postage prepaid. For all
purposes hereof, any notice so mailed by the Escrow Agent shall be treated as
though served upon the party to whom it was mailed at the time it is deposited
in the United States mail by the Escrow Agent whether or not such party
thereafter actually receives such notice. Notices to the Escrow Agent shall be
in writing and shall not be deemed to be given until actually received by the
Escrow Agent's trust department. Whenever under the terms hereof the time for
giving a notice or performing an act falls upon a Saturday, Sunday or bank
holiday, such time shall be extended to the Escrow Agent's next business day.

     13.  The Escrow Agent, when acting as the Escrow Agent undertakes to
perform only such duties as are expressly set forth herein and the Escrow Agent
shall not be subject to, nor obliged to recognize, any other agreement between,
or direction or instruction of, the Company even though reference thereto may be
made herein; provided, however, this Agreement may be amended at any time or
times by an instrument in writing signed by the Company, the Dealer Manager and
Escrow Agent. In the event the Escrow Agent becomes involved in or is threatened
with litigation by reason hereof, it is hereby authorized to and may deposit
with the clerk of a court of competent jurisdiction any and all funds held by it
pursuant hereto, and thereupon the Escrow Agent shall stand fully relieved and
discharged of any further duties hereunder.

     14.  If any property subject hereto is at any time attached, garnished or
levied upon, under any court order, or in case the payment, assignment,
transfer, conveyance or delivery of any such property shall be stayed or
enjoined by any court order, or in any case any order, judgment or decree shall
be made or entered by any court affecting such property, or any part thereof,
then in any of such events, the Escrow Agent is authorized, in its sole
discretion, to rely upon and comply with any such order, writ, judgment or
decree, which it is advised by legal counsel of its own choosing is binding upon
it, and if it complies with any such order, writ, judgment or decree, it shall
not be liable to any of the parties hereto or to any other person, firm

                                        3
<Page>

or corporation by reason of such compliance, even though such order, writ,
judgment or decree may be subsequently reversed, modified, annulled, set aside
or vacated.

     15.  This Agreement shall be construed, enforced and administered in
accordance with the internal laws, as opposed to the conflicts of laws
provisions, of the State of Illinois.

     16.  The Escrow Agent shall be entitled to reasonable fees in connection
with this Escrow, which fees shall be payable by the Company.

     17.  The Escrow Agent may resign at any time upon giving at least thirty
(30) days prior written notice to the Company; provided, however, that no such
resignation shall become effective until the appointment of a successor escrow
agent which shall be accomplished as follows: The Company shall use its best
efforts to select a successor escrow agent within thirty (30) days after
receiving such notice. If the Company fails to appoint a successor escrow agent
within such time, the Escrow Agent shall have the right to appoint a successor
escrow agent. The successor escrow agent shall execute and deliver an instrument
accepting such appointment and it shall, without further acts, be vested with
all the estates, properties, rights, powers, and duties of the predecessor
escrow agent as if originally named as escrow agent. Upon delivery of such
instrument, the Escrow Agent shall be discharged from any further duties and
liability under this Agreement. The Escrow Agent shall be paid any outstanding
fees and expenses prior to transferring assets to a successor escrow agent.

     18.  Any notice required to be given hereunder by any of the parties hereto
shall be addressed as follows:

     If to the Company:

     Inland Western Retail Real Estate Trust, Inc.
     2901 Butterfield Road
     Oak Brook, Illinois  60523
     Attention:  Ms. Roberta S. Matlin, Vice President - Administration

     If to the Dealer Manager:

     Inland Securities Corporation
     2901 Butterfield Road
     Oak Brook, Illinois 60523

     Attention:  Ms. Brenda G. Gujral, President

     If to Escrow Agent:

     LaSalle Bank National Association
     135 South LaSalle Street
     Chicago, Illinois 60603

     Attention:  _______________, Corporate Trust Department

                                        4
<Page>

     19.  The foregoing is subject to the following conditions:

     The obligations and duties of the Escrow Agent are confined to those
specifically enumerated in the escrow instructions. The Escrow Agent shall not
be subject to, nor be under any obligation to ascertain or construe the terms
and conditions of any other instrument, whether or not now or hereafter
deposited with or delivered to the Escrow Agent or referred to in the escrow
instructions, nor shall the Escrow Agent be obligated to inquire as to the form,
execution, sufficiency, or validity of any such instrument nor to inquire as to
the identity, authority, or rights of the person or persons executing or
delivering the same.

     The Escrow Agent shall not be personally liable for any act which it may do
or omit to do hereunder in good faith and in the exercise of its own best
judgment. Any act done or omitted by the Escrow Agent pursuant to the advice of
its attorneys shall be deemed conclusively to have been performed or omitted in
good faith by the Escrow Agent.

     If the Escrow Agent should receive or become aware of any conflicting
demands or claims with respect to this Agreement, or the rights of any of the
parties hereto, or any money, property, or instruments deposited herein or
affected hereby, the Escrow Agent shall have the right in its sole discretion,
without liability for interest or damages, to discontinue any or all further
acts on its part until such conflict is resolved to its satisfaction and/or to
commence or defend any action or proceeding for the determination of such
conflict. Notwithstanding any other provision hereof, in the event of any
dispute, disagreement or legal action relating to or arising in connection with
the escrow, the Escrow Fund, or the performance of the Escrow Agent's duties
under this Agreement, the Escrow Agent will not be required to determine the
controversy or to take any action regarding it. The Escrow Agent may hold all
documents and funds and may wait for settlement of any such controversy by final
appropriate legal proceedings, arbitration, or other means as, in the Escrow
Agent's discretion, it may require. In such event, the Escrow Agent will not be
liable for interest or damage. Furthermore, the Escrow Agent may, at its option,
file an action of interpleader requiring the parties to answer and litigate any
claims and rights among themselves. The Escrow Agent is authorized, at its
option, to deposit with the Court in which such interpleader action is filed all
documents and funds held in escrow. The Escrow Agent is further authorized to
withhold from such deposit for its own account an amount sufficient to
compensate itself for all costs, expenses, charges, and reasonable attorneys'
fees incurred by it due to the interpleader action. Upon initiating such action,
the Escrow Agent shall be fully released and discharged of and from all
obligations and liability imposed by the terms of this Agreement.

     The Company and Dealer Manager agree, jointly and severally, to indemnify
and hold the Escrow Agent, its officers, directors and employees harmless from
and against all costs, damages, judgments, attorney's fees (whether such
attorneys shall be regularly retained or specially employed), expenses,
obligations and liabilities of every kind and nature which the Escrow Agent may
incur, sustain, or be required to pay in connection with or arising out of this
Agreement, and to pay the Escrow Agent on demand the amount of all such costs,
damages, judgments, attorney's fees, expenses, obligations, and liabilities. To
secure said indemnification and to satisfy its compensation hereunder, the
Escrow Agent is hereby given a first lien upon and the right to reimburse itself
therefor out of, all of the rights, titles, and interests of each of said
parties in all money, property, and instruments deposited hereunder, except for
any money,

                                        5
<Page>

property or instruments that relate to money received that must be returned
pursuant to the provisions of the second to last sentence of paragraph 9.

                         [Signatures on Following Page]

                                        6
<Page>

     IN WITNESS WHEREOF, the parties hereto have executed this Escrow Agreement
as of the day and year first above written.

                              INLAND WESTERN RETAIL REAL ESTATE TRUST, INC.

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

                              Title:
                                    --------------------------------------------

                              INLAND SECURITIES CORPORATION

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

                              Title:
                                    --------------------------------------------

                              LASALLE BANK NATIONAL ASSOCIATION

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

                              Title:
                                    --------------------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}]]