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                                                                    EXHIBIT 10.3

                    PROPERTY MANAGEMENT AND LEASING AGREEMENT

         This PROPERTY MANAGEMENT AND LEASING AGREEMENT (this "Management
Agreement") is made and entered into as of the ____ day of _________________,
2003, by and among BEHRINGER HARVARD REIT I, INC., a Maryland corporation ("BH
REIT"), BEHRINGER HARVARD OPERATING PARTNERSHIP I LP, a Texas limited
partnership ("BH OP"), and HPT MANAGEMENT SERVICES LP, Texas limited partnership
(the "Manager").

         WHEREAS, BH OP was organized to acquire, own, operate, lease and manage
real estate properties on behalf of BH REIT; and

         WHEREAS, BH REIT intends to raise money from the sale of its common
stock to be used, net of payment of certain offering costs and expenses, for
investment in the acquisition or construction of income-producing real estate
and other real estate-related investments (including the making or purchase of
mortgage loans), some or all of which are to be acquired and held by Owner (as
hereinafter defined) on behalf of BH REIT; and

         WHEREAS, Owner intends to retain Manager to manage and coordinate the
leasing of certain of the real estate properties acquired by Owner under the
terms and conditions set forth in this Management Agreement;

         NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound hereby, do
hereby agree, as follows:

                                    ARTICLE I

                                   DEFINITIONS

         Except as otherwise specified or as the context may otherwise require,
the following terms have the respective meanings set forth below for all
purposes of this Management Agreement, and the definitions of such terms are
equally applicable both to the singular and plural forms thereof:

1.1      "Affiliate" means, with respect to any Person, (i) any Person directly
or indirectly owning, controlling or holding, with the power to vote, 10% or
more of the outstanding voting securities of such other Person; (ii) any Person
10% or more of whose outstanding voting securities are directly or indirectly
owned, controlled or held, with the power to vote, by such other Person; (iii)
any Person directly or indirectly controlling, controlled by or under common
control with such other Person; (iv) any executive officer, director, trustee or
general partner of such other Person; and (v) any legal entity for which such
Person acts as an executive officer, director, trustee or general partner.

1.2      "Gross Revenues" means all amounts actually collected as rents or other
charges for the use and occupancy of the Properties, but shall exclude interest
and other investment income of Owner and proceeds received by Owner for a sale,
exchange, condemnation, eminent domain taking, casualty or other disposition of
assets of Owner.

1.3      "Improvements" means buildings, structures, equipment from time to time
located on the Properties and all parking and common areas located on the
Properties.

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1.4      "Lease" means, unless the context otherwise requires, any lease or
sublease made by Owner as landlord or by its predecessor.

1.5      "Management Fees" has the meaning set forth in Section 5.1 hereof.

1.6      "Owner" means BH REIT, BH OP and any joint venture, limited liability
company or other Affiliate of BH REIT or BH OP that owns, in whole or in part,
on behalf of BH REIT, any Properties.

1.7      "Person" means an individual, corporation, association, business trust,
estate, trust, partnership, limited liability company or other legal entity.

1.8      "Properties" means all real estate properties owned by Owner and all
tracts as yet unspecified but to be acquired by Owner containing
income-producing improvements or on which Owner will construct income-producing
improvements.

                                   ARTICLE II

                APPOINTMENT OF MANAGER; SERVICES TO BE PERFORMED

2.1      Appointment of Manager. Owner hereby engages and retains Manager as the
manager and as tenant coordinating agent of the Properties, and Manager hereby
accepts such appointment on the terms and conditions hereinafter set forth; it
being understood that this Management Agreement shall cause Manager to be, at
law, Owner's agent upon the terms contained herein.

2.2      General Duties. Manager shall devote its best efforts to performing its
duties hereunder to manage, operate, maintain and lease the Properties in a
diligent, careful and vigilant manner. The services of Manager are to be of
scope and quality not less than those generally performed by professional
property managers of other similar properties in the area. Manager shall make
available to Owner the full benefit of the judgment, experience and advice of
the members of Manager's organization and staff with respect to the policies to
be pursued by Owner relating to the operation and leasing of the Properties.

2.3      Specific Duties.  Manager's duties include the following:

                  (a)      Lease Obligations. Manager shall perform all duties
         of the landlord under all Leases insofar as such duties relate to
         operation, maintenance, and day-to-day management. Manager shall also
         provide or cause to be provided, at Owner's expense, all services
         normally provided to tenants of like premises, including where
         applicable and without limitation, gas, electricity or other utilities
         required to be furnished to tenants under Leases, normal repairs and
         maintenance, and cleaning, and janitorial service. Manager shall
         arrange for and supervise the performance of all installations and
         improvements in space leased to any tenant that are either expressly
         required under the terms of the lease of such space or that are
         customarily provided to tenants.

                  (b)      Maintenance. Manager shall cause the Properties to be
         maintained in the same manner as similar properties in the area.
         Manager's duties and supervision in this respect shall include, without
         limitation, cleaning of the interior and the exterior of the
         Improvements and the public common areas on the Properties and the
         making and supervision of repair, alterations, and decoration of the
         Improvements, subject to and in strict compliance with this Management
         Agreement and the Leases. Construction activities undertaken by
         Manager, if any, will be limited to activities related to the
         management, operation, maintenance, and leasing of the Property (e.g.,
         repairs, renovations, and leasehold improvements).

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                  (c)      Leasing Functions. Manager shall coordinate the
         leasing of the Properties and shall negotiate and use its best efforts
         to secure executed Leases from qualified tenants, and to execute same
         on behalf of Owner, if requested, for available space in the
         Properties, such Leases to be in form and on terms approved by Owner
         and Manager, and to bring about complete leasing of the Properties.
         Manager shall be responsible for the hiring of all leasing agents, as
         necessary for the leasing of the Properties, and to otherwise oversee
         and manage the leasing process on behalf of Owner.

                  (d)      Notice of Violations. Manager shall forward to Owner
         promptly upon receipt all notices of violation or other notices from
         any governmental authority, and board of fire underwriters or any
         insurance company, and shall make such recommendations regarding
         compliance with such notice as shall be appropriate.

                  (e)      Personnel. Any personnel hired by Manager to
         maintain, operate and lease the Property shall be the employees or
         independent contractors of Manager and not of Owner of such Property,
         BH OP or BH REIT. Manager shall use due care in the selection and
         supervision of such employees or independent contractors. Manager shall
         be responsible for the preparation of and shall timely file all payroll
         tax reports and timely make payments of all withholding and other
         payroll taxes with respect to each employee.

                  (f)      Utilities and Supplies. Manager shall enter into or
         renew contracts for electricity, gas, steam, landscaping, fuel, oil,
         maintenance and other services as are customarily furnished or rendered
         in connection with the operation of similar rental property in the
         area.

                  (g)      Expenses. Manager shall analyze all bills received
         for services, work and supplies in connection with maintaining and
         operating the Properties, pay all such bills when due, and, if
         requested by Owner, pay, when due, utility and water charges, sewer
         rent and assessments, and any other amount payable in respect to the
         Properties. All bills shall be paid by Manager within the time required
         to obtain discounts, if any. Owner may from time to time request that
         Manager forward certain bills to Owner promptly after receipt, and
         Manager shall comply with any such request. Manager shall pay all
         bills, assessments, real property taxes, insurance premiums and any
         other amount payable in respect to the Properties out of the Account
         (as hereinafter defined). All expenses shall be billed at net cost
         (i.e., less all rebates, commissions, discounts and allowances, however
         designed).

                  (h)      Monies Collected. Manager shall timely collect all
         rent and other monies, in the form of a check or money order, from
         tenants and any sums otherwise due Owner with respect to the Properties
         in the ordinary course of business. Owner authorizes Manager to
         request, demand, collect and provide receipt for all such rent and
         other monies and to institute legal proceedings in the name of Owner
         for the collection thereof and for the dispossession of any tenant in
         default under its Lease.

                  (i)      Banking Accommodations. Manager shall establish and
         maintain a separate checking account (the "Account") for funds relating
         to the Properties. All monies deposited from time to time in the
         Account shall be deemed to be trust funds and shall be and remain the
         property of Owner and shall be withdrawn and disbursed by Manager for
         the account of Owner only as expressly permitted by this Management
         Agreement for the purposes of performing the obligations of Manager
         hereunder. No monies collected by Manager on Owner's behalf shall be
         commingled with funds of Manager. The Account shall be maintained, and
         monies shall be deposited therein and withdrawn therefrom, in
         accordance with the following:

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                      (i)  All sums received from rents and other income from
                           the Properties shall be promptly deposited by Manager
                           in the Account. Manager shall have the right to
                           designate two or more persons who shall be authorized
                           to draw against the Account, but only for purposes
                           authorized by this Management Agreement.

                     (ii)  All sums due to Manager hereunder, whether for
                           compensation, reimbursement for expenditures, or
                           otherwise, as herein provided, shall be a charge
                           against the operating revenues of the Properties and
                           shall be paid and/or withdrawn by Manager from the
                           Account prior to the making of any other
                           disbursements therefrom.

                    (iii)  By the 15th day after the end of each month, Manager
                           shall forward to Owner all monies contained in the
                           Account other than a reserve of $5,000 and any other
                           amounts otherwise provided in the budget, which shall
                           remain in the Account.

                  (j)      Ownership Agreements. Manager has received copies of
         (and will be provided with copies of future) Articles of Incorporation,
         Agreements of Limited Partnership, Joint Venture Partnership Agreements
         and Operating Agreements, each as may be amended from time to time, of
         Owner, as applicable (the "Ownership Agreements") and is familiar with
         the terms thereof. Manager shall use reasonable care to avoid any act
         or omission that, in the performance of its duties hereunder, shall in
         any way conflict with the terms of Ownership Agreements.

                  (k)      Signs. Manager shall place and remove, or cause to be
         placed and removed, such signs upon the Properties as Manager deems
         appropriate, subject, however, to the terms and conditions of the
         Leases and to any applicable ordinances and regulations.

2.4      Approval of Leases, Contracts, Etc. In fulfilling its duties to Owner,
Manager may and hereby is authorized to enter into any leases, contracts or
agreements on behalf of Owner in the ordinary course of the management,
operation, maintenance and leasing of the Property.

2.5      Accounting, Records and Reports.

                  (a)      Records. Manager shall maintain all office records
         and books of account and shall record therein, and keep copies of, each
         invoice received from services, work and supplies ordered in connection
         with the maintenance and operation of the Properties. Such records
         shall be maintained on a double entry basis. Owner and persons
         designated by Owner shall at all reasonable time have access to and the
         right to audit and make independent examinations of such records, books
         and accounts and all vouchers, files and all other material pertaining
         to the Properties and this Management Agreement, all of which Manager
         agrees to keep safe, available and separate from any records not
         pertaining to the Properties, at a place recommended by Manager and
         approved by Owner.

                  (b)      Monthly Reports. On or before the 15th day after the
         end of each month during the term of this Management Agreement, Manager
         shall prepare and submit to Owner the following reports and statements:

                     (i)   rental collection record;

                    (ii)   monthly operating statement;

                   (iii)   copy of cash disbursements ledger entries for such
                           period, if requested;

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                    (iv)   copy of cash receipts ledger entries for such period,
                           if requested;

                     (v)   the original copies of all contracts entered into by
                           Manager on behalf of Owner during such period, if
                           requested; and

                    (vi)   copy of ledger entries for such period relating to
                           security deposits maintained by Manager, if
                           requested.

                  (c)      Budgets and Leasing Plans. Not later than November 15
         of each calendar year, Manager shall prepare and submit to Owner for
         its approval an operating budget and a marketing and leasing plan on
         each Property for the calendar year immediately following such
         submission. In connection with any acquisition of a Property by Owner,
         Manager shall prepare a budget and marketing and leasing plan for the
         remainder of the calendar year. The budget and marketing and leasing
         plan shall be in the form of the budget and plan approved by Owner
         prior to the date thereof. As often as reasonably necessary during the
         period covered by any such budget, Manager may submit to Owner for its
         approval an updated budget or plan incorporating such changes as shall
         be necessary to reflect cost over-runs and the like during such period.
         If Owner does not disapprove any such budget within 30 days after
         receipt thereof by Owner, such budget shall be deemed approved. If
         Owner shall disapprove any such budget or plan, it shall so notify
         Manager within said 30-day period and explain the reasons therefor. If
         Owner disapproves of any budget or plan, Manager shall submit a revised
         budget or plan, as applicable, within 10 (ten) days of receipt of the
         notice of disapproval, and Owner shall have 10 (ten) days to provide
         notice to Manager if it disapproves of any such revised budget or plan.
         Manager will not incur any costs other than those estimated in any
         budget except for:

                      (i)  tenant improvements and real estate commissions
                           required under a Lease;

                     (ii)  maintenance or repair costs under $5,000 per
                           Property;

                    (iii)  costs incurred in emergency situations in which
                           action is immediately necessary for the preservation
                           or safety of the Property, or for the safety of
                           occupants or other persons (or to avoid the
                           suspension of any necessary service of the Property);

                     (iv)  expenditures for real estate taxes and assessment;
                           and

                      (v)  maintenance supplies calling for an aggregate
                           purchase price less than $25,000 per annum for all
                           Properties.

         Budgets prepared by Manager shall be for planning and informational
         purposes only, and Manager shall have no liability to Owner for any
         failure to meet any such budget. However, Manager will use its best
         efforts to operate within the approved budget.

                  (d)      Legal Requirements. Manager shall execute and file
         when due all forms, reports, and returns required by law relating to
         the employment of its personnel. Manager shall be responsible for
         notifying Owner in the event it receives notice that any Improvement on
         a Property or any equipment therein does not comply with the
         requirements of any statute, ordinance, law or regulation of any
         governmental body or of any public authority or official thereof having
         or claiming to have jurisdiction thereover. Manager shall promptly
         forward to Owner any complaints, warnings, notices or summonses
         received by it relating to such matters. Owner represents that to the
         best of its knowledge each of its Properties and any equipment

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         thereon will upon acquisition by Owner comply with all such
         requirements. Owner authorizes Manager to disclose the ownership of the
         Property by Owner to any such officials. Owner agrees to indemnify,
         protect, defend, save and hold Manager and its stockholders, officers,
         directors, employees, managers, successors and assigns (collectively,
         the "Indemnified Parties") harmless of and from any and all Losses (as
         defined in Section 3.5(a) hereof) that may be imposed on them or any or
         all of them by reason of the failure of Owner to correct any present or
         future violation or alleged violation of any and all present or future
         laws, ordinances, statutes, or regulations of any public authority or
         official thereof, having or claiming to have jurisdiction thereover, of
         which it has actual notice.

                                   ARTICLE III

           AUTHORITY GRANTED TO MANAGER AND CERTAIN OWNER OBLIGATIONS

3.1      Authority As To Tenants, Etc. Owner agrees and does hereby give Manager
the following exclusive authority and powers (all of which shall be exercised
either in the name of Manager, as Manager for Owner, or in the name or Owner
entered into by Manager as Owner's authorized agent, and Owner shall assume all
expenses in connection with such matters):

                  (a)      to advertise each Property or any part thereof and to
         display signs thereon, as permitted by law;

                  (b)      to lease the Properties to tenants;

                  (c)      to pay all expenses of leasing such Property,
         including but not limited to, newspaper and other advertising, signage,
         banners, brochures, referral commissions, leasing commissions, finder's
         fees and salaries, bonuses and other compensation of leasing personnel
         responsible for the leasing of the Property;

                  (d)      to cause references of prospective tenants to be
         investigated, it being understood and agreed by the parties hereto that
         Manager does not guarantee the creditworthiness or collectibility of
         accounts receivable from tenants, users or lessees; and to negotiate
         new Leases and renewals and cancellations of existing Leases that shall
         be subject to Manager obtaining Owner's approval;

                  (e)      to collect from tenants all or any of the following:
         a late rent administrative charge, a non-negotiable check charge,
         credit report fee, a subleasing administrative charge and/or broker's
         commission; and Manager need not account for such charges and/or
         commission to Owner;

                  (f)      to terminate tenancies and to sign and serve in the
         name of Owner of each Property such notices as are deemed necessary by
         Manager;

                     (i)   to institute and prosecute actions to evict tenants
                           and to recover possession of the Property or portions
                           thereof;

                    (ii)   with Owner's authorization, to sue for and in the
                           name of Owner and recover rent and other sums due;
                           and to settle, compromise, and release such actions
                           or suits, or reinstate such tenancies. All expenses
                           of litigation including, but not limited to,
                           attorneys' fees, filing fees, and court costs that
                           Manager shall incur in connection with the collecting
                           of rent and other sums, or to recover possession of

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                           any Property or any portion thereof, shall be deemed
                           to be an operational expense of the Property. Manager
                           and Owner shall concur on the selection of the
                           attorneys to handle such litigation.

3.2      Operational Authority. Owner agrees and does hereby give Manager the
following exclusive authority and powers (all of which shall be exercised either
in the name of Manager, as Manager for Owner, or in the name or Owner entered
into by Manager as Owner's authorized agent, and Owner shall assume all expenses
in connection with such matters):

                  (a)      to hire, supervise, discharge, and pay all labor
         required for the operation and maintenance of each Property including
         but not limited to on-site personnel, managers, assistant managers,
         leasing consultants, engineers, janitors, maintenance supervisors and
         other employees required for the operation and maintenance of the
         Property, including personnel spending a portion of their working hours
         (to be charged on a pro rata basis) at the Property. All expenses of
         such employment shall be deemed operational expenses of the Property.

                  (b)      to make or cause to be made all ordinary repairs and
         replacements necessary to preserve each Property in its present
         condition and for the operating efficiency thereof and all alterations
         required to comply with lease requirements, and to decorate the
         Property;

                  (c)      to negotiate and enter into, as Manager of the
         Property, contracts for all items on budgets that have been approved by
         Owner, any emergency services or repairs for items not exceeding
         $5,000, appropriate service agreements and labor agreements for normal
         operation of the Property, which have terms not to exceed three years,
         and agreements for all budgeted maintenance, minor alterations, and
         utility services, including, but not limited to, electricity, gas,
         fuel, water, telephone, window washing, scavenger service, landscaping,
         snow removal, pest exterminating, decorating and legal services in
         connection with the Leases and service agreements relating to the
         Property, and other services or such of them as Manager may consider
         appropriate; and

                  (d)      to purchase supplies and pay all bills.

Manager shall use its best efforts to obtain the foregoing services and
utilities for the Property under terms that are as cost-effective and otherwise
favorable to Manager as possible for the quality of services and utilities
required. Owner hereby appoints Manager as Owner's authorized Manager for the
purpose of executing, as Manager for said Owner, all such contracts. In
addition, Owner agrees to specifically assume in writing all obligations under
all such contracts so entered into by Manager, on behalf of Owner of the
Property, upon the termination of this Agreement, and Owner shall indemnify,
protect, save, defend and hold Manager and the other Indemnified Parties
harmless from and against any and all Losses resulting from, arising out of or
in any way related to such contracts and that relate to or concern matters
occurring after termination of this Agreement, but excluding matters arising out
of Manager's willful misconduct, gross negligence and/or unlawful acts. Manager
shall secure the approval of, and execution of appropriate contracts by, Owner
for any non-budgeted and non-emergency/contingency capital items, alterations or
other expenditures in excess of $5,000 for any one item, securing for each item
at least three written bids, if practicable, or providing evidence satisfactory
to Owner that the contract amount is lower than industry standard pricing, from
responsible contractors. Manager shall have the right from time to time during
the term hereof, to contract with and make purchases from Affiliates of Manager,
provided that contract rates and prices are competitive with other available
sources. Manager may at any time and from time to time request and receive the
prior written authorization of Owner of the Property of any one or more
purchases or other expenditures, notwithstanding that Manager may otherwise be
authorized hereunder to make such purchases or expenditures.

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3.3      Rent and Other Collections. Owner agrees and does hereby give Manager
the exclusive authority and powers (all of which shall be exercised either in
the name of Manager, as Manager for Owner, or in the name or Owner entered into
by Manager as Owner's authorized agent, and Owner shall assume all expenses in
connection with such matters) to collect rents and/or assessments and other
items, including but not limited to tenant payments for real estate taxes,
property liability and other insurance, damages and repairs, common area
maintenance, tax reduction fees and all other tenant reimbursements,
administrative charges, proceeds of rental interruption insurance, parking fees,
income from coin operated machines and other miscellaneous income, due or to
become due and give receipts therefor and to deposit all such Gross Revenue
collected hereunder in the Account. Manager may endorse any and all checks
received in connection with the operation of any Property and drawn to the order
of Owner, and Owner shall, upon request, furnish Manager's depository with an
appropriate authorization for Manager to make such endorsement. Manager shall
also have the exclusive authority to collect and handle tenants' security
deposits, including the right to apply such security deposits to unpaid rent,
and to comply, on behalf of Owner of the Property, with applicable state or
local laws concerning security deposits and interest thereon, if any. Manager
shall not be required to advance any monies for the care or management of any
Property. Owner agrees to advance all monies necessary therefor. If Manager
shall elect to advance any money in connection with a Property, Owner agrees to
reimburse Manager forthwith and hereby authorizes Manager to deduct such
advances from any monies due Owner. In connection with any insured losses or
damages relating to any Property, Manager shall have the exclusive authority to
handle all steps necessary regarding any such claim; provided that Manager will
not make any adjustments or settlements in excess of $10,000 without Owner's
prior written consent.

3.4      Payment of Expenses. Owner agrees and does hereby give Manager the
exclusive authority and power (all of which shall be exercised either in the
name of Manager, as Manager for Owner, or in the name or Owner entered into by
Manager as Owner's authorized agent, and Owner shall assume all expenses in
connection with such matters) to pay all expenses of the Property from the Gross
Revenue collected in accordance with Section 3.3 above, from the Account. It is
understood that the Gross Revenue will be used first to pay the compensation to
Manager as contained in Article 5 below, then operational expenses and then any
mortgage indebtedness, including real estate tax and insurance impounds, but
only as directed by Owner in writing and only if sufficient Gross Revenue is
available for such payments. Nothing in this Agreement shall be interpreted in
such a manner as to obligate Manager to pay from Gross Revenue, any expenses
incurred by Owner prior to the commencement of this Agreement, except to the
extent Owner advances additional funds to pay such expenses.

3.5      Certain Owner Indemnification Obligations.

                  (a)      On Termination. In the event this Agreement is
         terminated for any reason prior to the expiration of its original term
         or any renewal term, Owner shall indemnify, protect, defend, save and
         hold Manager and all of the other Indemnified Parties harmless from and
         against any and all claims, causes of action, demands, suits,
         proceedings, loss, judgments, damage, awards, liens, fines, costs,
         attorney's fees and expenses, of every kind and nature whatsoever
         (collectively, "Losses"), that may be imposed on or incurred by Manager
         by reason of the willful misconduct, gross negligence and/or unlawful
         acts (such unlawfulness having been adjudicated by a court of proper
         jurisdiction) of Owner.

                  (b)      Property Damage, Etc. Owner agrees to indemnify,
         defend, protect, save and hold Manager and all of the other Indemnified
         Parties harmless from any and all Losses in connection with or in any
         way related to the Property and from liability for damage to the
         Property and injuries to or death of any person whomsoever, and damage
         to property; provided, however, that such indemnification shall not
         extend to any such Losses arising out of the willful misconduct, gross
         negligence and/or unlawful acts (such unlawfulness having been
         adjudicated

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         by a court of proper jurisdiction) of Manager or any of the other
         Indemnified Parties. Manager shall not be liable for any error of
         judgment or for any mistake of fact or law, or for any thing that it
         may do or refrain from doing, except in cases of willful misconduct,
         gross negligence and/or unlawful acts (such unlawfulness having been
         adjudicated by a court of proper jurisdiction).

3.6      Environmental Matters. Owner hereby warrants and represents to Manager
that to the best of Owner's knowledge, no Property, upon acquisition by Owner,
nor any part thereof, will be used to treat, deposit, store, dispose of or place
any hazardous substance that may subject Manager to liability or claims under
the Comprehensive Environmental Response, Compensation and Liability Act of 1980
(42 U.S.C.A. Section 9607) or any constitutional provision, statute, ordinance,
law, or regulation of any governmental body or of any order or ruling of any
public authority or official thereof, having or claiming to have jurisdiction
thereover. Furthermore, Owner agrees to indemnify, protect, defend, save and
hold Manager and all of the other Indemnified Parties from any and all Losses
involving, concerning or in any way related to any past, current or future
allegations regarding treatment, depositing, storage, disposal or placement by
any party other than Manager of hazardous substances on the Property.

3.7      Legal Status of Properties. Owner represents that to the best of its
knowledge each Property and any equipment thereon, when acquired by Owner, will
comply with all legal requirements and authorizes Manager to disclose the
identity of the Owner of the Property to any such officials and agrees to
indemnify, protect, defend, save and hold Manager and the other Indemnified
Parties harmless of and from any and all Losses that may be imposed on them or
any of them by reason of the failure of Owner to correct any present or future
violation or alleged violation of any and all present or future laws,
ordinances, statutes, or regulations of any public authority or official
thereof, having or claiming to have jurisdiction thereover, of which it has
actual notice. In the event it is alleged or charged that any Improvement or any
equipment on a Property or any act or failure to act by Owner with respect to
the Property or the sale, rental, or other disposition thereof fails to comply
with, or is in violation of, any of the requirements of any constitutional
provision, statute, ordinance, law, or regulation of any governmental body or
any order or ruling of any public authority or official thereof having or
claiming to have jurisdiction thereover, and Manager, in its sole and absolute
discretion, considers that the action or position of Owner, with respect thereto
may result in damage or liability to Manager, Manager shall have the right to
cancel this Agreement at any time by written notice to Owner of its election so
to do, which cancellation shall be effective upon the service of such notice.
Such cancellation shall not release the indemnities of Owner set forth in this
Agreement and shall not terminate any liability or obligation of Owner to
Manager for any payment, reimbursement, or other sum of money then due and
payable to Manager hereunder.

3.8      Extraordinary Payments. Owner agrees to give adequate advance written
notice to Manager if Owner desires that Manager make any extraordinary payment,
out of Gross Revenue, to the extent funds are available after the payment of
Manager's compensation as provided for herein and all operational expenses, of
mortgage indebtedness, general taxes, special assessments, or fire, boiler or
any other insurance premiums.

                                   ARTICLE IV

                                    EXPENSES

4.1      Owner's Expenses. Except as otherwise specifically provided, all costs
and expenses incurred hereunder by Manager in fulfilling its duties to Owner
shall be for the account of and on behalf of Owner. Such costs and expenses
shall include the wages and salaries and other employee-related expenses of all
on-site and off-site employees of Manager who are engaged in the operation,
management, maintenance and leasing or access control of the Properties,
including taxes, insurance and benefits relating to such

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employees, and legal, travel and other out-of-pocket expenses that are directly
related to the management of specific Properties. All costs and expenses for
which Owner is responsible under this Management Agreement shall be paid by
Manager out of the Account. In the event the Account does not contain sufficient
funds to pay all said expenses, Owner shall fund all sums necessary to meet such
additional costs and expenses.

4.2      Manager's Expenses. Manager shall, out of its own funds, pay all of its
general overhead and administrative expenses.

                                    ARTICLE V

                             MANAGER'S COMPENSATION

5.1      Management Fees. Commencing on the date hereof, Owner shall pay Manager
property management and leasing fees in an amount equal to three percent (3.0%)
of Gross Revenues (the "Management Fees") on a monthly basis from the rental
income received from the Properties over the term of this Management Agreement.
Manager's compensation under this Section 5.1 shall apply to all renewals,
extensions or expansions of Leases that Manager has originally negotiated. In
the event Manager assists with planning and coordinating the construction of any
tenant-paid finish-out or improvements, Manager shall be entitled to receive
from any such tenant an amount equal to not greater than five percent (5.0%) of
the cost of such tenant improvements.

5.2      Leasing Fees. In addition to the compensation paid to Manager under
Section 5.1 above, Manager shall be entitled to receive a separate fee for the
Leases of new tenants and renewals of Leases with existing tenants in an amount
not to exceed the fee customarily charged in arm's length transactions by others
rendering similar services in the same geographic area for similar properties as
determined by a survey of brokers and agents in such area.

5.3      Audit Adjustment. If any audit of the records, books or accounts
relating to the Properties discloses an overpayment or underpayment of
Management Fees, Owner or Manager shall promptly pay to the other party the
amount of such overpayment or underpayment, as the case may be. If such audit
discloses an overpayment of Management Fees for any fiscal year of more than the
correct Management Fees for such fiscal year, Manager shall bear the cost of
such audit.

                                   ARTICLE VI

                          INSURANCE AND INDEMNIFICATION

6.1      Insurance to be Carried.

                  (a)      Manager shall obtain and keep in full force and
         effect insurance on the Properties against such hazards as Owner and
         Manager shall deem appropriate, but in any event insurance sufficient
         to comply with the Leases and Ownership Agreements shall be maintained.
         All liability policies shall provide sufficient insurance satisfactory
         to both Owner and Manager and shall contain waivers of subrogation for
         the benefit of Manager.

                  (b)      Manager shall obtain and keep in full force and
         effect, in accordance with the laws of the state in which each Property
         is located, employer's liability insurance applicable to and covering
         all employees of Manager at the Properties and all persons engaged in
         the performance of any work required hereunder, and Manager shall
         furnish Owner certificates of insurers naming Owner as a co-insured and
         evidencing that such insurance is in effect. If any

                                     - 10 -
<PAGE>

         work under this Management Agreement is subcontracted as permitted
         herein, Manager shall include in each subcontract a provision that the
         subcontractor shall also furnish Owner with such a certificate.

6.2      Insurance Expenses. Premiums and other expenses of such insurance, as
well as any applicable payments in respect of deductibles shall be borne by
Owner.

6.3      Cooperation with Insurers. Manager shall cooperate with and provide
reasonable access to the Properties to representatives of insurance companies
and insurance brokers or agents with respect to insurance that is in effect or
for which application has been made. Manager shall use its best efforts to
comply with all requirements of insurers.

6.4      Accidents and Claims. Manager shall promptly investigate and shall
report in detail to Owner all accidents, claims for damage relating to
Ownership, operation or maintenance of the Properties, and any damage or
destruction to the Properties and the estimated costs of repair thereof, and
shall prepare for approval by Owner all reports required by an insurance company
in connection with any such accident, claim, damage, or destruction. Such
reports shall be given to Owner promptly, and any report not so given within 10
(ten) days after the occurrence of any such accident, claim, damage or
destruction shall be noted in the monthly operating statement delivered to Owner
pursuant to Section 2.5(b). Manager is authorized to settle any claim against an
insurance company arising out of any policy and, in connection with such claim,
to execute proofs of loss and adjustments of loss and to collect and receipt for
loss proceeds.

6.5      Indemnification. Manager shall hold Owner harmless from and indemnify
and defend Owner against any and all claims or liability for any injury or
damage to any person or property whatsoever for which Manager is responsible
occurring in, on, or about the Properties, including, without limitation, the
Improvements when such injury or damage shall be caused by the negligence of
Manager, its agents, servants, or employees, except to the extent that Owner
recovers insurance proceeds with respect to such matter. Owner will indemnify
and hold Manager harmless against all liability for injury to persons and damage
to property caused by Owner's negligence and which did not result from the
negligence of misconduct of Manager, except to the extent Manager recovers
insurance proceeds with respect to such matter.

                                   ARTICLE VII

                              TERM AND TERMINATION

7.1      Term. This Agreement shall commence on the date first above written and
shall continue until the third anniversary of such date and thereafter for
successive three year renewal periods, unless on or before 30 days prior to the
date last above mentioned or on or before 30 days prior to the expiration of any
such renewal period, Manager shall notify Owner in writing that it elects to
terminate this Agreement, in which case this Agreement shall be thereby
terminated on said last mentioned date. In addition, and notwithstanding the
foregoing, Owner may terminate this Agreement at any time upon delivery of
written notice to Manager not less than thirty (30) days prior to the effective
date of termination, in the event of (and only in the event of) a showing by
Owner of willful misconduct, gross negligence, or deliberate malfeasance by
Manager in the performance of Manager's duties hereunder. In addition, either
party may terminate this Agreement immediately upon the occurrence of any of the
following:

                  (a)      A decree or order is rendered by a court having
         jurisdiction (i) adjudging Manager as bankrupt or insolvent, or (ii)
         approving as properly filed a petition seeking reorganization,
         readjustment, arrangement, composition or similar relief for Manager
         under the

                                     - 11 -
<PAGE>

         federal bankruptcy laws or any similar applicable law or practice, or
         (iii) appointing a receiver or liquidator or trustee or assignee in
         bankruptcy or insolvency of Manager or a substantial part of the
         property of Manager, or for the winding up or liquidation of its
         affairs, or

                  (b)      Manager (i) institutes proceedings to be adjudicated
         a voluntary bankrupt or an insolvent, (ii) consents to the filing of a
         bankruptcy proceeding against it, (iii) files a petition or answer or
         consent seeking reorganization, readjustment, arrangement, composition
         or relief under any similar applicable law or practice, (iv) consents
         to the filing of any such petition, or to the appointment of a receiver
         or liquidator or trustee or assignee in bankruptcy or insolvency for it
         or for a substantial part of its property, (v) makes an assignment for
         the benefit of creditors, (vi) is unable to or admits in writing its
         inability to pay its debts generally as they become due unless such
         inability shall be the fault of the other party, or (iv) takes
         corporate or other action in furtherance of any of the aforesaid
         purposes.

7.2      Manager's Obligations Upon Termination. Upon the termination of
this Management Agreement, Manager shall have the following duties:

                  (a)      Manager shall deliver to Owner or its designee, all
         books and records with respect to the Properties.

                  (b)      Manager shall transfer and assign to Owner, or its
         designee, all service contracts and personal property relating to or
         used in the operation and maintenance of the Properties, except
         personal property paid for and owned by Manager. Manager shall also,
         for a period of sixty (60) days immediately following the date of such
         termination, make itself available to consult with and advise Owner, or
         its designee, regarding the operation, maintenance and leasing of the
         Properties.

                  (c)      Manager shall render to Owner an accounting of all
         funds of Owner in its possession and shall deliver to Owner a statement
         of all Management Fees claimed to be due to Manager and shall cause
         funds of Owner held by Manager relating to the Properties to be paid to
         Owner or its designee.

7.3      Owner's Obligations Upon Termination. Owner shall pay or reimburse
Manager for any sums of money due it under this Agreement for services and
expenses prior to termination of this Agreement. All provisions of this
Agreement that require Owner to have insured, or to protect, defend, save, hold
and indemnify or to reimburse Manager shall survive any expiration or
termination of this Agreement and, if Manager is or becomes involved in any
claim, proceeding or litigation by reason of having been Manager of Owner, such
provisions shall apply as if this Agreement were still in effect.

The parties understand and agree that Manager may withhold funds for sixty (60)
days after the end of the month in which this Agreement is terminated to pay
bills previously incurred but not yet invoiced and to close accounts. Should the
funds withheld be insufficient to meet the obligation of Manager to pay bills
previously incurred, Owner will, upon demand, advance sufficient funds to
Manager to ensure fulfillment of Manager's obligation to do so, within ten (10)
days of receipt of notice and an itemization of such unpaid bills.

                                     - 12 -
<PAGE>

                                  ARTICLE VIII

                                  MISCELLANEOUS

8.1 Notices. All notices, approvals, consents and other communications hereunder
shall be in writing, and, except when receipt is required to start the running
of a period of time, shall be deemed given when delivered in person or on the
fifth day after its mailing by either party by registered or certified United
States mail, postage prepaid and return receipt requested, to the other party,
at the addresses set forth after their respect name below or at such different
addresses as either party shall have theretofore advised the other party in
writing in accordance with this Section 8.1.

             Owner:      BEHRINGER HARVARD OPERATING PARTNERSHIP I LP
                         c/o Behringer Harvard REIT I, Inc.
                         1323 North Stemmons Freeway, Suite 210
                         Dallas, Texas 75207
                         Attention:  Chief Operating Officer

             Manager:    HPT MANAGEMENT SERVICES LP
                         1323 North Stemmons Freeway, Suite 204
                         Dallas, Texas 75207
                         Attention:  Chief Operating Officer

8.2      Governing Law; Venue. This Management Agreement shall be governed by
and construed in accordance with the laws of the State of Texas, and any action
brought to enforce the agreements made hereunder or any action which arises out
of the relationship created hereunder shall be brought exclusively in Dallas
County, Texas.

8.3      Assignment. Manager may delegate partially or in full its duties and
rights under this Management Agreement but only with the prior written consent
of Owner. Owner acknowledges and agrees that any or all of the duties of Manager
as contained herein may be delegated by Manager and performed by a person or
entity ("Submanager") with whom Manager contracts for the purpose of performing
such duties. Owner specifically grants Manager the authority to enter into such
a contract with a Submanager; provided that Owner shall have no liability or
responsibility to any such Submanager for the payment of the Submanager's fee or
for reimbursement to the Submanager of its expenses or to indemnify the
Submanager in any manner for any matter; and provided further that Manager shall
require such Submanager to agree, in the written agreement setting forth the
duties and obligations of such Submanager, to indemnify Owner for all Losses
incurred by Owner as a result of the willful misconduct, gross negligence and/or
unlawful acts of the Submanager. This Management Agreement shall be binding upon
and shall inure to the benefit of the parties hereto and their respective
successors and assigns.

8.4      No Waiver. The failure of Owner to seek redress for violation or to
insist upon the strict performance of any covenant or condition of this
Management Agreement shall not constitute a waiver thereof for the future.

8.5      Amendments. This Management Agreement may be amended only by an
instrument in writing signed by the party against whom enforcement of the
amendment is sought.

8.6      Headings. The headings of the various subdivisions of this Management
Agreement are for reference only and shall not define or limit any of the terms
or provisions hereof.

                                     - 13 -
<PAGE>

8.7      Counterparts. This Management Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, and it shall not be
necessary in making proof of this Management Agreement to produce or account for
more than one such counterpart.

8.8      Entire Agreement. This Management Agreement contains the entire
understanding and all agreements between Owner and Manager respecting the
management of the Properties. There are no representations, agreements,
arrangements or understandings, oral or written, between Owner and Manager
relating to the management of the Properties that are not fully expressed
herein.

8.9      Disputes. If there shall be a dispute between Owner and Manager
relating to this Management Agreement resulting in litigation, the prevailing
party in such litigation shall be entitled to recover from the other party to
such litigation such amount as the court shall fix as reasonable attorneys'
fees.

8.10     Activities of Manager. The obligations of Manager pursuant to the terms
and provisions of this Management Agreement shall not be construed to preclude
Manager from engaging in other activities or business ventures, whether or not
such other activities or ventures are in competition with Owner or the business
of Owner.

8.11     Independent Contractor. Manager and Owner shall not be construed as
joint venturers or partners of each other pursuant to this Management Agreement,
and neither shall have the power to bind or obligate the other except as set
forth herein. In all respects, the status of Manger to Owner under this
Agreement is that of an independent contractor.

8.12     No Third-Party Rights. Nothing expressed or referred to in this
Management Agreement will be construed to give any Person other than the parties
to this Management Agreement any legal or equitable right, remedy or claim under
or with respect to this Management Agreement or any provision of this Management
Agreement, except such rights as shall inure to a successor or permitted
assignee pursuant to Section 8.3.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

                                     - 14 -
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Property Management
and Leasing Agreement as of the date first above written.

                                         BEHRINGER HARVARD REIT I, INC.

                                         By:
                                             -----------------------------------
                                             Robert M. Behringer
                                             President

                                         BEHRINGER HARVARD OPERATING
                                         PARTNERSHIP I LP

                                         By: Behringer Harvard REIT I, Inc.
                                             General Partner

                                             By:
                                                --------------------------------
                                                Robert M. Behringer
                                                President

                                         HPT MANAGEMENT SERVICES LP

                                         By:
                                             -----------------------------------
                                             Robert M. Behringer
                                             President

                                     - 15 -<PAGE>

                                                                    EXHIBIT 10.4

                                ESCROW AGREEMENT

Wells Fargo Bank Iowa, National Association
666 Walnut N8200-034
Corporate Trust Services, PFG
Des Moines, IA  50309

         Re:      Behringer Harvard REIT I, Inc.

Ladies and Gentlemen:

BEHRINGER HARVARD REIT I, INC., a Maryland corporation (the "Company"), will
issue in a public offering (the "Offering") shares of its common stock (the
"Stock") pursuant to a Registration Statement on Form S-11 filed by the Company
with the Securities and Exchange Commission. Behringer Securities LP, a Texas
limited partnership (the "Dealer Manager"), will act as dealer manager for the
offering of the Stock. The Company is entering into this agreement to set forth
the terms on which Wells Fargo Bank Iowa, National Association (the "Escrow
Agent"), will hold and disburse the proceeds from subscriptions for the purchase
of the Stock in the Offering until such time as: (i) in the case of
subscriptions received from all nonaffiliates of the Company, the Company has
received subscriptions for Stock resulting in total minimum capital raised of
$2,500,000 (the "Required Capital"); and (ii) in the case of subscriptions
received from residents of Pennsylvania ("Pennsylvania Subscribers") and
residents of Nebraska ("Nebraska Subscribers"), the Company has received
subscriptions for Stock from nonaffiliates of the Company resulting in total
minimum capital raised of $44,000,000 (the "Pennsylvania/Nebraska Required
Capital").

The Company hereby appoints Wells Fargo Bank Iowa, National Association as
Escrow Agent for purposes of holding the proceeds from the subscriptions for the
Stock, on the terms and conditions hereinafter set forth:

1.       Persons subscribing to purchase the Stock (the "Subscribers") will be
instructed by the Dealer Manager or any soliciting dealers to remit the purchase
price in the form of checks, drafts, wires, Automated Clearing House (ACH) or
money orders (hereinafter "instruments of payment") payable to the order of
"Wells Fargo Bank Iowa, N.A., Escrow Agent for Behringer Harvard REIT I, Inc."
Any checks, drafts or money orders received made payable to a party other than
the Escrow Agent shall be returned to the soliciting dealer who submitted the
check, draft or money order. Within one (1) business day after receipt of
instruments of payment from the Offering, the Dealer Manager will send to the
Escrow Agent: (a) each Subscriber's name, address, executed IRS Form W-9, number
of shares purchased, and purchase price remitted, and (b) the instruments of
payment from such Subscribers (the "Subscription Materials"), for deposit by the
Escrow Agent into an interest-bearing deposit account entitled "ESCROW ACCOUNT
FOR THE BENEFIT OF SUBSCRIBERS FOR COMMON STOCK OF BEHRINGER HARVARD REIT I,
INC." (the "Escrow Account"), which deposit shall occur within one (1) business
day after the Escrow Agent's receipt of all the Subscription Materials, until
such Escrow Account has closed pursuant to paragraph 3(a) hereof. Instruments of
payment received from Pennsylvania Subscribers and Nebraska Subscribers (as
identified as such by the Company) shall be accounted for separately in a
subaccount entitled "ESCROW ACCOUNT FOR THE BENEFIT OF PENNSYLVANIA AND NEBRASKA
SUBSCRIBERS" (the "Pennsylvania/Nebraska Escrow

<PAGE>

Account"), until such Pennsylvania/Nebraska Escrow Account has closed pursuant
to paragraph 3(a) hereof. The Director of Banking and Finance of the State of
Nebraska shall have the right to inspect and make copies of the records of the
Escrow Agent relating to the Pennsylvania/Nebraska Escrow Account at any
reasonable time wherever the records are located. Both the Escrow Account and
the Pennsylvania/Nebraska Escrow Account will be established and maintained in
such a way as to permit the interest income calculations described in paragraph
7.

2.       The Escrow Agent agrees to promptly process for collection the
instruments of payment upon deposit into the applicable Escrow Account or
Pennsylvania/Nebraska Escrow Account. Deposits shall be held in the Escrow
Account or the Pennsylvania/Nebraska Escrow Account until such funds are
disbursed in accordance with paragraph 3 hereof. Prior to disbursement of the
funds deposited in the Escrow Account or the Pennsylvania/Nebraska Escrow
Account, such funds shall not be subject to claims by creditors of the Company
or the Dealer Manager or any their affiliates. If any of the instruments of
payment are returned to the Escrow Agent for nonpayment, the Escrow Agent shall
promptly notify the Dealer Manager and the Company in writing via mail, email or
facsimile of such nonpayment, and is authorized to debit the Escrow Account or
the Pennsylvania/Nebraska Escrow Account, as applicable, in the amount of such
returned payment as well as any interest earned on the amount of such payment.

3.       (a)      Subject to the provisions of subparagraphs 3(b)-3(f) below:

                  (i)      once the aggregate of all collected funds in the
                  Escrow Account and Pennsylvania/Nebraska Escrow Account is an
                  amount equal to or greater than the Required Capital, the
                  Escrow Agent shall promptly notify the Company and, upon
                  receiving written instruction from the Company, (A) disburse
                  to the Company, by check, ACH or wire transfer, the funds in
                  the Escrow Account representing the gross purchase price for
                  the Stock, and (B) disburse to the Subscribers or the Company,
                  as applicable, any interest thereon pursuant to the provisions
                  of subparagraph 3(f). For purposes of this Agreement, the term
                  "collected funds" shall mean all funds received by the Escrow
                  Agent that have cleared normal banking channels and are in the
                  form of cash or a cash equivalent. After such time the Escrow
                  Account shall remain open and the Company shall continue to
                  cause subscriptions for the Stock that are not to be deposited
                  in the Pennsylvania/Nebraska Escrow Account to be deposited
                  therein until the Company informs the Escrow Agent in writing
                  to close the Escrow Account, and thereafter any subscription
                  documents and instruments of payment received by the Escrow
                  Agent from Subscribers other than Pennsylvania Subscribers and
                  Nebraska Subscribers shall be forwarded directly to the
                  Company.

                  (ii)     regardless of any closing of the Escrow Account, the
                  Company and the Dealer Manager shall continue to forward
                  instruments of payment and Subscription Materials received
                  from Pennsylvania Subscribers for deposit into the
                  Pennsylvania/Nebraska Escrow Account to the Escrow Agent until
                  such time as the Company notifies the Escrow Agent in writing
                  that total subscription proceeds (including the amount then in
                  the Pennsylvania/Nebraska Escrow Account) equal or exceed the
                  Pennsylvania/Nebraska Required Capital. Upon receipt of a
                  written notice from the Company that total subscription
                  proceeds (including the amount then in the
                  Pennsylvania/Nebraska Escrow Account) equaling or exceeding
                  the Pennsylvania/Nebraska Required Capital have been received
                  in collected funds, the Escrow Agent shall promptly notify the
                  Company and provide to the Director of Banking and Finance of
                  the State of Nebraska an affidavit which states that all of
                  the conditions of this Agreement relating to the
                  Pennsylvania/Nebraska Escrow Account have been met (the
                  "Escrow Agent Affidavit"). Upon receipt of such notice, the
                  Company shall provide the Director of Banking and

                                     - 2 -
<PAGE>

                  Finance of the State of Nebraska an affidavit which states
                  that there have been no material omissions or changes in the
                  financial condition of the Company or other changes of
                  circumstance, that would render the Pennsylvania/Nebraska
                  Required Capital inadequate to finance the Company's proposed
                  plan of operations or business, or render the representations
                  in the Company's registration statement, as amended through
                  such time, fraudulent, false or misleading (the "Company
                  Affidavit"). Five days after the Escrow Agent Affidavit and
                  the Company Affidavit have been provided to the Director of
                  Banking and Finance of the State of Nebraska, the Escrow Agent
                  shall (A) disburse to the Company, by check, ACH or wire
                  transfer, the funds then in the Pennsylvania/Nebraska Escrow
                  Account representing the gross purchase price for the Stock,
                  and (B) disburse to the Pennsylvania Subscribers, the Nebraska
                  Subscribers or the Company, as applicable, any interest
                  thereon pursuant to the provisions of subparagraph 3(f).
                  Following such disbursements, the Escrow Agent shall close the
                  Pennsylvania/Nebraska Escrow Account, and thereafter any
                  Subscription Materials and instruments of payment received by
                  the Escrow Agent from Pennsylvania Subscribers and Nebraska
                  Subscribers shall be deposited directly to the Escrow Account
                  (or to the Company, if it has closed the Escrow Account, as
                  instructed in writing by the Company).

         (b)      At the close of business on __________ ___, 2003 (the
         "Expiration Date") the Escrow Agent shall promptly notify the Company
         if it is not in receipt of evidence of Subscription Materials accepted
         on or before the Expiration Date, and instruments of payment dated not
         later than that the Expiration Date, for the purchase of Stock
         providing for total purchase proceeds that equal or exceed the Required
         Capital (from all sources but exclusive of any funds received from
         subscriptions for Stock from entities which the Company has notified
         the Escrow Agent are affiliated with the Company). In the event the
         Escrow Agent is not in possession of an executed IRS Form W-9 from any
         Subscriber, the Company shall provide the Escrow Agent an executed IRS
         Form W-9 from such Subscriber within ten (10) calendar days after such
         notice. On the tenth (10th) day following the receipt of such notice,
         the Escrow Agent shall promptly return directly to each Subscriber the
         collected funds deposited in the Escrow Account and the
         Pennsylvania/Nebraska Escrow Account on behalf of such Subscriber
         (unless earlier disbursed in accordance with paragraph 3(c)), or shall
         return the instruments of payment delivered, but not yet processed for
         collection prior to such time, together with interest in the amounts
         calculated pursuant to paragraph 7 for each Subscriber at the address
         provided by the Dealer Manager or the Company. In the event an executed
         IRS Form W-9 is not received for each Subscriber within ten (10)
         calendar days, the Escrow Agent shall thereupon remit an amount to the
         Subscribers in accordance with the provisions hereof, withholding
         thirty percent (30%) of any interest income on subscription proceeds
         (determined in accordance with paragraph 7) attributable to those
         Subscribers for whom the Escrow Agent does not possess an executed IRS
         Form W-9. However, the Escrow Agent shall not be required to remit any
         payments until funds represented by such payments have been collected.

         (c)      Notwithstanding subparagraphs 3(a) and 3(b) above, if the
         Escrow Agent is not in receipt of evidence of subscriptions accepted on
         or before the close of business on such date that is 120 days after
         commencement of the Offering (the Company will notify the Escrow Agent
         of the commencement date of the Offering) (the "Initial Escrow
         Period"), and instruments of payment dated not later than that date,
         for the purchase of Stock providing for total purchase proceeds from
         all nonaffiliated sources that equal or exceed the
         Pennsylvania/Nebraska Required Capital, the Escrow Agent shall promptly
         notify the Company. Thereafter, the Company shall send to each
         Pennsylvania Subscriber and Nebraska Subscriber by certified mail
         within ten (10) calendar days after the end of the Initial Escrow
         period a notification in the form of Exhibit A. If, pursuant to such
         notification, a Pennsylvania Subscriber or a Nebraska Subscriber
         requests the return of his

                                     - 3 -
<PAGE>

         or her subscription funds within ten (10) calendar days after receipt
         of the notification (the "Request Period") and the Escrow Agent is not
         in possession of an executed IRS form W-9, the Company shall provide
         the Escrow Agent with an executed IRS Form W-9 from each such
         Pennsylvania Subscriber or Nebraska Subscriber, as the case may be,
         within ten (10) calendar days after receiving notice from such
         Pennsylvania Subscriber or Nebraska Subscriber. The Escrow Agent shall
         promptly refund directly to each Pennsylvania Subscriber or Nebraska
         Subscriber, as the case may be, the collected funds deposited in the
         Pennsylvania/Nebraska Escrow Account on behalf of such Pennsylvania
         Subscriber or Nebraska Subscriber, or shall return the instruments of
         payment delivered, but not yet processed for collection prior to such
         time, to the address provided by the Dealer Manager or the Company,
         together with interest income in the amounts calculated pursuant to
         paragraph 7. If an executed IRS Form W-9 is not received for such
         Pennsylvania Subscriber or Nebraska Subscriber within ten (10) calendar
         days, the Escrow Agent shall thereupon remit an amount to such
         Pennsylvania Subscriber or Nebraska Subscriber, as the case may be, in
         accordance with the provisions hereof, withholding thirty percent (30%)
         of any interest income earned on subscription proceeds (determined in
         accordance with paragraph 7) attributable to such Pennsylvania
         Subscriber or Nebraska Subscriber for whom the Escrow Agent does not
         possess an executed IRS Form W-9. However, the Escrow Agent shall not
         be required to remit such payments until funds represented by such
         payments have been collected by the Escrow Agent.

         (d)      The subscription funds of Pennsylvania Subscribers and
         Nebraska Subscribers who do not request the return of their
         subscription funds within the Request Period shall remain in the
         Pennsylvania/Nebraska Escrow Account for successive 120-day escrow
         periods (a "Successive Escrow Period"), each commencing automatically
         upon the termination of the prior Successive Escrow Period, and the
         Company and Escrow Agent shall follow the notification and payment
         procedure set forth in subparagraph 3(c) above with respect to the
         Initial Escrow Period for each Successive Escrow Period until the
         occurrence of the earliest of (i) the Expiration Date, (ii) the receipt
         and acceptance by the Company of subscriptions for the purchase of
         Stock with total purchase proceeds that equal or exceed the
         Pennsylvania/Nebraska Required Capital and the disbursement of the
         Pennsylvania/Nebraska Escrow Account on the terms specified herein, or
         (iii) all funds held in the Pennsylvania/Nebraska Escrow Account having
         been returned to the Pennsylvania Subscribers and Nebraska Subscribers
         in accordance with the provisions hereof.

         (e)      If the Company rejects any subscription for which the Escrow
         Agent has collected funds, the Escrow Agent shall, upon the written
         request of the Company, promptly issue a refund to the rejected
         Subscriber. If the Company rejects any subscription for which the
         Escrow Agent has not yet collected funds but has submitted the
         Subscriber's check for collection, the Escrow Agent shall promptly
         return the funds in the amount of the Subscriber's check to the
         rejected Subscriber after such funds have been collected. If the Escrow
         Agent has not yet submitted a rejected Subscriber's check for
         collection, the Escrow Agent shall promptly remit the Subscriber's
         check directly to the Subscriber.

         (f)      At any time after funds are disbursed upon the Company's
         acceptance of subscriptions pursuant to subparagraph 3(a) above on the
         tenth (10th) day following the date of such acceptance, the Escrow
         Agent shall promptly provide directly to each Subscriber the amount of
         the interest payable to the Subscribers; provided that the Escrow Agent
         is in possession of such Subscriber's executed IRS Form W-9. In the
         event the Escrow Agent is not in possession of an executed IRS Form W-9
         from any Subscriber, the Company shall provide the Escrow Agent with an
         executed IRS Form W-9 from such Subscriber within ten (10) calendar
         days after acceptance of such subscription. In the event an executed
         IRS Form W-9 is not received for each Subscriber within such period,
         the Escrow Agent shall remit an amount to the Subscribers in accordance
         with

                                     - 4 -
<PAGE>

         the provisions hereof, withholding thirty percent (30%) of any interest
         income on subscription proceeds (determined in accordance with
         paragraph 7) attributable to those Subscribers for whom the Escrow
         Agent does not possess an executed IRS Form W-9. However, the Escrow
         Agent shall not be required to remit any payments until funds
         represented by such payments have been collected by the Escrow Agent.
         The forgoing notwithstanding, interest, if any, earned on accepted
         subscription proceeds will be payable to a Subscriber only if the
         Subscriber's funds have been held in escrow by the Escrow Agent for at
         least 35 days; interest, if any, earned on accepted subscription
         proceeds of Subscribers' funds held less than 35 days will be payable
         to the Company.

         In the event that instruments of payment are returned for nonpayment,
the Escrow Agent is authorized to debit the Escrow Account or the
Pennsylvania/Nebraska Escrow Account, as applicable, in accordance with
paragraph 2 hereof.

4.       The Escrow Agent shall report to the Company weekly on the account
balances in the Escrow Account and the Pennsylvania/Nebraska Escrow Account and
the activity in each account since the last report.

5.       Prior to the disbursement of funds deposited in the Escrow Account or
the Pennsylvania/Nebraska Escrow Account in accordance with the provisions of
paragraph 3 hereof, the Escrow Agent shall invest all of the funds deposited as
well as earnings and interest derived therefrom in the Escrow Account and the
Pennsylvania/Nebraska Escrow Account, as applicable, in the "Short-Term
Investments" specified below, unless the costs to the Company for the making of
such investment are reasonably expected to exceed the anticipated interest
earnings from such investment in which case the funds and interest thereon shall
remain in the respective escrow account until the balance in the respective
escrow account reaches the minimum amount necessary for the anticipated interest
earnings from such investment to exceed the costs to the Company for the making
of such investment, as determined by the Company based upon applicable interest
rates.

         "Short-Term Investments" include obligations of, or obligations
guaranteed by, the United States government or bank money-market accounts or
certificates of deposit of national or state banks that have deposits insured by
the Federal Deposit Insurance Corporation (including certificates of deposit of
any bank acting as a depository or custodian for any such funds) which mature on
or before the Expiration Date, unless such instrument cannot be readily sold or
otherwise disposed of for cash by the Expiration Date without any dissipation of
the offering proceeds invested. Without limiting the generality of the
foregoing, Exhibit B hereto sets forth specific Short-Term Investments that
shall be deemed permissible investments hereunder.

The following securities are not permissible investments:

         (a)      money market mutual funds;
         (b)      corporate equity or debt securities;
         (c)      repurchase agreements;
         (d)      bankers' acceptances;
         (e)      commercial paper; and
         (f)      municipal securities.

It is hereby expressly agreed and stipulated by the parties hereto that the
Escrow Agent shall not be required to exercise any discretion hereunder and
shall have no investment or management responsibility and, accordingly, shall
have no duty to, or liability for its failure to, provide investment
recommendations or investment advice to the parties hereto. It is the intention
of the parties hereto that the Escrow Agent

                                     - 5 -
<PAGE>

shall never be required to use, advance or risk its own funds or otherwise incur
financial liability in the performance of any of its duties or the exercise of
any of its rights and powers hereunder.

6.       The Escrow Agent is entitled to rely upon written instructions received
from the Company, unless the Escrow Agent has actual knowledge that such
instructions are not valid or genuine; provided that, if in the Escrow Agent's
opinion, any instructions from the Company are unclear, the Escrow Agent may
request clarification from the Company prior to taking any action, and if such
instructions continue to be unclear, the Escrow Agent may rely upon written
instructions from the Company's legal counsel in distributing or continuing to
hold any funds. However, the Escrow Agent shall not be required to disburse any
funds attributable to instruments of payment that have not been processed for
collection, until such funds are collected and then shall disburse such funds in
compliance with the disbursement instructions from the Company.

7.       If the Offering terminates prior to receipt of the Required Capital or
one or more Pennsylvania Subscribers or Nebraska Subscribers elects to have his
or her subscription returned in accordance with paragraph 3, interest income
earned on subscription proceeds deposited in the Escrow Account (the "Escrow
Income"), the Pennsylvania/Nebraska Escrow Account (the "Pennsylvania/Nebraska
Escrow Income") shall be remitted to Subscribers, or to the Company if the
applicable Subscriber's funds have been held in escrow by the Escrow Agent for
less than 35 days, in accordance with paragraph 3 and without any deductions for
escrow expenses. For each such Subscriber who has invested funds that have been
held in escrow by the Escrow Agent for at least 35 days, such Subscriber's pro
rata portion of Escrow Income or Pennsylvania/Nebraska Escrow Income, as
applicable, shall be determined as follows: the total amount of Escrow Income
(or Pennsylvania/Nebraska Escrow Income, as appropriate) minus interest earned
on accepted subscription proceeds held by the Escrow Agent for less than 35 days
shall be multiplied by a fraction, (i) the numerator of which is determined by
multiplying the number of shares of Stock purchased by said Subscriber times the
number of days said Subscriber's proceeds are held in the Escrow Account or the
Pennsylvania/Nebraska Escrow Account, as applicable, prior to the date of
disbursement, and (ii) the denominator of which is the total of the numerators
for all Subscribers in such account who have invested funds that have been held
in escrow by the Escrow Agent for at least 35 days. The Company shall reimburse
the Escrow Agent for all escrow expenses. The Escrow Agent shall remit all such
Escrow Income and Pennsylvania/Nebraska Escrow Income in accordance with
paragraph 3. If the Company chooses to leave the Escrow Account open after
receiving the Required Capital then it shall make regular acceptances of
subscriptions therein, but no less frequently than monthly, and the Escrow
Income from the last such acceptance shall be calculated and remitted to the
Subscribers or the Company, as applicable, pursuant to the provisions of
paragraph 3(f).

8.       The Escrow Agent shall receive compensation from the Company as set
forth in Exhibit C attached hereto.

9.       In performing any of its duties hereunder, the Escrow Agent shall not
incur any liability to anyone for any damages, losses, or expenses, except for
willful misconduct, breach of trust, or gross negligence. Accordingly, the
Escrow Agent shall not incur any such liability with respect to any action taken
or omitted (a) in good faith upon advice of the Escrow Agent's counsel given
with respect to any questions relating to the Escrow Agent duties and
responsibilities under this Agreement, or (b) in reliance upon any instrument,
including any written instrument or instruction provided for in this Agreement,
not only as to its due execution and validity and effectiveness of its
provisions but also as to the truth and accuracy of information contained
therein, which the Escrow Agent shall in good faith believe to be genuine, to
have been signed or presented by a proper person or persons and to conform to
the provisions of this Agreement.

                                     - 6 -
<PAGE>

10.      The Company hereby agrees to indemnify and hold the Escrow Agent
harmless against any and all losses, claims, damages, liabilities, and expenses,
including reasonable attorneys' fees and disbursements, that may be imposed on
or incurred by the Escrow Agent in connection with acceptance of appointment as
the Escrow Agent hereunder, or the performance of the duties hereunder,
including any litigation arising from this Agreement or involving the subject
matter hereof, except where such losses, claims, damages, liabilities, and
expenses result from willful misconduct, breach of trust, or gross negligence.

11.      In the event of a dispute between the parties hereto sufficient in the
Escrow Agent's discretion to justify doing so, the Escrow Agent shall be
entitled to tender into the registry or custody of any court of competent
jurisdiction all money or property in its hands under this Agreement, together
with such legal pleadings as deemed appropriate, and thereupon be discharged
from all further duties and liabilities under this Agreement. In the event of
any uncertainty as to the duties hereunder, the Escrow Agent may refuse to act
under the provisions of this Agreement pending order of a court of competent
jurisdiction and shall have no liability to the Company or to any other person
as a result of such action. Any such legal action may be brought in such court
as the Escrow Agent shall determine to have jurisdiction thereof. The filing of
any such legal proceedings shall not deprive the Escrow Agent of its
compensation earned prior to such filing.

12.      All communications and notices required or permitted by this Agreement
shall be in writing and shall be deemed to have been given when delivered
personally or by messenger or by overnight delivery service or when received via
telecopy or other electronic transmission, in all cases addressed to the person
for whom it is intended at such person's address set forth below or to such
other address as a party shall have designated by notice in writing to the other
party in the manner provided by this paragraph:

         (a)      if to the Company:

                  Behringer Harvard REIT I, Inc.
                  1323 North Stemmons Freeway, Suite 210
                  Dallas, Texas 75207
                  Fax:  (214) 655-1610
                  Attention:  President and Chief Executive Officer

         (b)      if to the Dealer Manager:

                  Behringer Securities LP
                  1323 North Stemmons Freeway, Suite 202
                  Dallas, Texas 75207
                  Fax:  (214) 655-6801
                  Attention:  Chief Operating Officer of Harvard Property
                              Trust, LLC, General Partner

         (c)      if to the Escrow Agent:

                  Wells Fargo Bank Iowa, National Association
                  666 Walnut
                  N8200-034
                  Corporate Trust Services, PFG
                  Des Moines, IA 50309
                  Fax: (515) 245-3337
                  Attention:  M.J. Dolan

                                     - 7 -
<PAGE>

Each party hereto may, from time to time, change the address to which notices to
it are to be delivered or mailed hereunder by notice in accordance herewith to
the other parties.

13.      This Agreement shall be governed by the laws of the State of Texas as
to both interpretation and performance without regard to the conflict of laws
rules thereof.

14.      The provisions of this Agreement shall be binding upon the legal
representatives, successors, and assigns of the parties hereto.

15.      The Company and the Dealer Manager hereby acknowledge that Wells Fargo
Bank Iowa, National Association is serving as Escrow Agent only for the limited
purposes herein set forth, and hereby agree that they will not represent or
imply that, by serving as Escrow Agent hereunder or otherwise, have investigated
the desirability or advisability of investment in the Company or have approved,
endorsed, or passed upon the merits of the Stock or the Company, nor shall they
use the name of the Escrow Agent in any manner whatsoever in connection with the
offer or sale of the Stock other than by acknowledgment that is has agreed to
serve as Escrow Agent for the limited purposes herein set forth.

16.      This Agreement and any amendment hereto may be executed by the parties
hereto in one or more counterparts, each of which shall be deemed to be an
original.

17.      Except as otherwise required for subscription funds received from
Pennsylvania Subscribers and Nebraska Subscribers as provided herein, in the
event that the Escrow Agent receive instruments of payment after the Required
Capital has been received and the proceeds of the Escrow Account have been
distributed to the Company, the Escrow Agent is hereby authorized to deposit
such instruments of payment within one (1) business day to any deposit account
as directed by the Company. The application of said funds into a deposit account
or to forward such funds directly to the Company, in either case directed by the
Company shall be a full acquittance to the Escrow Agent, who shall not be
responsible for the application of said funds thereafter.

18.      The Escrow Agent shall be bound only by the terms of this Escrow
Agreement and shall not be bound by or incur any liability with respect to any
other agreements or understanding between any other parties, whether or not the
Escrow Agent has knowledge of any such agreements or understandings.

19.      Indemnification provisions set forth herein shall survive the
termination of this Agreement.

20.      In the event that any part of this Agreement is declared by any court
or other judicial or administrative body to be null, void, or unenforceable,
said provision shall survive to the extent it is not so declared, and all of the
other provisions of this Agreement shall remain in full force and effect.

21.      Unless otherwise provided in this Agreement, final termination of this
Escrow Agreement shall occur on the date that all funds held in the Escrow
Account and the Pennsylvania/Nebraska Escrow Account are distributed either (a)
to the Company or to Subscribers and the Company has informed the Escrow Agent
in writing to close the Escrow Account and the Pennsylvania/Nebraska Escrow
Account pursuant to paragraph 3 hereof or (b) to a successor escrow agent upon
written instructions from the Company.

22.      The Escrow Agent has no responsibility for accepting, rejecting, or
approving subscriptions. The Escrow Agent shall complete an OFAC search, in
compliance with its policy and procedures, of each subscription check prior to
depositing the check in the Escrow Account or the Pennsylvania/Nebraska Escrow
Account and shall inform the Company if a subscription check fails the OFAC
search. The

                                     - 8 -
<PAGE>

Dealer Manager shall provide a copy of each subscription check in order that the
Escrow Agent may perform such OFAC search.

23.      This Agreement shall not be modified, revoked, released, or terminated
unless reduced to writing and signed by all parties hereto, subject to the
following paragraph.

If, at any time, any attempt is made to modify this Agreement in a manner that
would increase the duties and responsibilities of the Escrow Agent or to modify
this Agreement in any manner which the Escrow Agent shall deem undesirable, or
at any other time, the Escrow Agent may resign by providing written notice to
the Company and until (a) the acceptance by a successor escrow agent as shall be
appointed by the Company; or (b) thirty (30) days after such written notice has
been given, whichever occurs sooner, the Escrow Agent's only remaining
obligation shall be to perform its duties hereunder in accordance with the terms
of the Agreement.

24.      The Escrow Agent may resign at any time from its obligations under this
Escrow Agreement by providing written notice to the Company. Such resignation
shall be effective on the date specified in such notice which shall be not less
than thirty (30) days after such written notice has been given. The Escrow Agent
shall have no responsibility for the appointment of a successor escrow agent.

25.      The Escrow Agent may be removed for cause by the Company by written
notice to the Escrow Agent effective on the date specified in such written
notice. The removal of the Escrow Agent shall not deprive the Escrow Agent of
its compensation earned prior to such removal.

                            [Signature page follows]

                                     - 9 -
<PAGE>

Agreed to as of the ____ day of ________________, 2003.

                                           BEHRINGER HARVARD REIT I, INC.

                                           By:
                                               ---------------------------------
                                               Robert M. Behringer, President

                                           BEHRINGER SECURITIES LP

                                           By: Harvard Property Trust, LLC
                                               Its General Partner

                                           By:
                                               ---------------------------------
                                               Gerald J. Reihsen, III
                                               Chief Operating Officer

The terms and conditions contained above are hereby accepted and agreed to by:

WELLS FARGO BANK IOWA, NATIONAL ASSOCIATION, AS ESCROW AGENT

By:
   ----------------------------------------------
Name:
     --------------------------------------------
Title:
      -------------------------------------------

                                     - 10 -
<PAGE>

                                    EXHIBIT A

      [Form of Notice to Pennsylvania Subscribers and Nebraska Subscribers]

You have tendered a subscription to purchase shares of common stock of Behringer
Harvard REIT I, Inc. (the "Company"). Your subscription is currently being held
in escrow. The guidelines of the Pennsylvania Securities Commission do not
permit the Company to accept subscriptions from Pennsylvania residents until an
aggregate of $44,000,000 of gross offering proceeds have been received by the
Company. The Pennsylvania guidelines provide that until this minimum amount of
offering proceeds is received by the Company, every 120 days during the offering
period Pennsylvania Subscribers may request that their subscription be returned.
The Nebraska Securities Commission has imposed similar requirements on the
Company with respect to subscriptions from Nebraska residents.

If you wish to continue your subscription in escrow until the
Pennsylvania/Nebraska minimum subscription amount is received, nothing further
is required.

If you wish to terminate your subscription for the Company's common stock and
have your subscription returned please so indicate below, sign, date, and return
to the Escrow Agent, Wells Fargo Bank Iowa, National Association, at the address
below.

I hereby terminate my prior subscription to purchase shares of common stock of
Behringer Harvard REIT I, Inc. and request the return of my subscription funds.
I certify to Behringer Harvard REIT I, Inc. that I am a resident of either
Pennsylvania or Nebraska.

                                            Signature:
                                                      --------------------------
                                            Name:
                                                      --------------------------
                                                           (please print)

                                            Date:
                                                      --------------------------

Please send the subscription refund to:

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

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

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

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

<PAGE>

                                    EXHIBIT B

                         PERMISSIBLE ESCROW INVESTMENTS

(i)      obligations issued or guaranteed by the United States or by any person
         controlled or supervised by or acting as an instrumentality of the
         United States pursuant to authority granted by Congress, or an
         investment fund consisting of such obligations;

(ii)     obligations issued or guaranteed by any state or political subdivision
         thereof rated either: AA or higher or MIG 1 or higher, by Moody's
         Investors Service, Inc.; or AA or higher or an equivalent, by Standard
         & Poor's Corporation, both of New York, New York, or their successors;

(iii)    commercial or finance paper which is rated either: Prime-1 or higher,
         or an equivalent by Moody's Investors Service, Inc.; or A-1 or higher
         or any equivalent by Standard & Poor's Corporation, both of New York,
         New York, or their successors; or

(iv)     certificates of deposit or time deposits of banks or trust companies,
         organized under the laws of the United States or any state.

<PAGE>

                                    EXHIBIT C

                            ESCROW AGENT COMPENSATION

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