FILED PURSUANT TO

RULE 424(b)(7)

SEC FILE NO. 333-140796

PROSPECTUS SUPPLEMENT No. 2

(To Prospectus dated February 20, 2007)

DATED: April 16, 2007

11,747,135 Common Shares


 

Our operating partnership, Duke Realty Limited Partnership, issued and sold $575 million aggregate principal amount of its 3.75% Exchangeable Senior Notes due 2011, or the “notes,” in a private transaction on November 22, 2006. Under certain circumstances, we may issue shares of our common stock upon the exchange or redemption of the notes. In such circumstances, the recipients of such common stock, whom we refer to as the “selling shareholders,” may use this prospectus supplement, together with the prospectus to which it relates, to resell from time to time the shares of our common stock that we may issue to them upon the exchange or redemption of the notes.  Additional selling shareholders may be named by future prospectus supplements.

This prospectus supplement amends and supplements, and should be read in conjunction with, the prospectus dated February 20, 2007 and prospectus supplement No. 1 dated March 19, 2007 both of which are to be delivered with the prospectus supplement.

The selling shareholder table, appearing under the heading “Selling Shareholders” in the accompanying prospectus, is amended and supplemented by the information in the following table.

Name

 

Number of
Shares
Beneficially
Owned Prior to
the Offering(1)

 

Percentage of
Shares
Beneficially
Owned Prior to
the Offering(2)

 

Number of
Shares Offered
Hereby

 

Number of
Shares
Beneficially
Owned Following
the Offering(3)

 

Percentage of
Shares
Beneficially
Owned Following
the Offering(2)(3)

 

Admiral Flagship Master Fund, Ltd.

 

51,074

 

*

 

51,074

 

 

 

Arctos Partners Inc.

 

204,298

 

*

 

204,298

 

 

 

BBT Fund, L.P.

 

210,937

 

*

 

210,937

 

 

 

BMO Nesbitt Burns Inc.

 

102,149

 

*

 

102,149

 

 

 

Bank of America Pension Plan

 

102,149

 

*

 

102,149

 

 

 

Barnet Partners Ltd.

 

20,429

 

*

 

20,429

 

 

 

Black Diamond Offshore Ltd.

 

14,729

 

*

 

14,729

 

 

 

Black Diamond Convertible Offshore LDC

 

32,687

 

*

 

32,687

 

 

 

BNP Paribas Arbitrage

 

51,074

 

*

 

51,074

 

 

 

CAP Fund, L.P.

 

96,530

 

*

 

96,530

 

 

 

Canyon Capital Arbitrage Master Fund, Ltd.

 

679,290

 

*

 

679,290

 

 

 

 




 

The Canyon Value Realization Fund (Cayman), Ltd.

 

763,053

 

*

 

763,053

 

 

 

Canyon Value Realization MAC 18 Ltd.

 

58,224

 

*

 

58,224

 

 

 

Canyon Value Realization Fund, L.P.

 

297,253

 

*

 

297,253

 

 

 

Citigroup Global Markets Inc.

 

937,727

 

*

 

937,727

 

 

 

CMH Strategies

 

1,389

 

*

 

1,389

 

 

 

Credit Suisse Europe Ltd.

 

423,918

 

*

 

423,918

 

 

 

Double Black Diamond Offshore LDC

 

116,020

 

*

 

116,020

 

 

 

Empyrean Capital Fund, LP

 

115,305

 

*

 

115,305

 

 

 

Empyrean Capital Overseas Benefit Plan, Ltd.

 

24,536

 

*

 

24,536

 

 

 

Empyrean Capital Overseas Fund, Ltd.

 

217,679

 

*

 

217,679

 

 

 

Florida Fruit & Vegetable Association

 

1,797

 

*

 

1,797

 

 

 

Fore Convertible Master Fund, Ltd.

 

46,110

 

*

 

46,110

 

 

 

Fore ERISA Fund, Ltd.

 

4,964

 

*

 

4,964

 

 

 

Georgia Municipal Employee Benefit System

 

27,416

 

*

 

27,416

 

 

 

Highbridge Convertible Arbitrage Master Fund LP

 

10,214

 

*

 

10,214

 

 

 

Highbridge International LLC

 

91,934

 

*

 

91,934

 

 

 

Institutional Benchmark Series (Master Feeder) Limited in respect of Electra Series c/o Quattro Fund

 

14,300

 

*

 

14,300

 

 

 

IIU Convertible Arbitrage Fund Limited

 

3,207

 

*

 

3,207

 

 

 

IIU Convertible Fund, plc

 

46,477

 

*

 

46,477

 

 

 

John Deere Pension Trust

 

20,429

 

*

 

20,429

 

 

 

LDG Limited

 

3,779

 

*

 

3,779

 

 

 

Lydian Global Opportunities Master Fund Ltd.

 

61,289

 

*

 

61,289

 

 

 

Lydian Overseas Partners Master Fund, L.T.D.

 

245,157

 

*

 

245,157

 

 

 

Lyxor/Canyon Value Realization Fund Ltd.

 

51,074

 

*

 

51,074

 

 

 

Lyxor/Canyon Capital Arbitrage Fund Ltd.

 

143,008

 

*

 

143,008

 

 

 

 

2




 

Mohican VCA Master Fund, Ltd.

 

20,429

 

*

 

20,429

 

 

 

Old Lane HMA Master Fund LP

 

158,739

 

*

 

158,739

 

 

 

Old Lane Cayman Master Fund LP

 

672,487

 

*

 

672,487

 

 

 

Old Lane US Master Fund LP

 

241,337

 

*

 

241,337

 

 

 

Partners Group Alternative Strategies PCC Limited, Red Delta Cell c/o Quattro Fund

 

20,429

 

*

 

20,429

 

 

 

Peoples Benefit Life Insurance Company Teamsters

 

81,719

 

*

 

81,719

 

 

 

Plexus Fund Limited

 

510,745

 

*

 

510,745

 

 

 

Polygon Global Opportunities Master Fund

 

204,298

 

*

 

204,298

 

 

 

Quattro Fund Ltd.

 

155,266

 

*

 

155,266

 

 

 

Quattro Multistrategy Masterfund LP

 

14,300

 

*

 

14,300

 

 

 

Redbourn Partners Ltd.

 

245,157

 

*

 

245,157

 

 

 

Royal Bank of Canada

 

91,934

 

*

 

91,934

 

 

 

S.A.C. Arbitrage Fund, LLC

 

204,298

 

*

 

204,298

 

 

 

SRI Fund, L.P.

 

50,053

 

*

 

50,053

 

 

 

Susquehanna Capital Group

 

357,521

 

*

 

357,521

 

 

 

Tamalpais Asset Management L.P.

 

204,298

 

*

 

204,298

 

 

 

TQA Master Fund, Ltd.

 

24,209

 

*

 

24,209

 

 

 

TQA Master Plus Fund, Ltd.

 

13,871

 

*

 

13,871

 

 

 

UBS Securities LLC

 

81,719

 

*

 

81,719

 

 

 

Vicis Capital Master Fund

 

40,859

 

*

 

40,859

 

 

 

Waterstone Market Neutral Master Fund, Ltd.

 

132,589

 

*

 

132,589

 

 

 

Waterstone Market Neutral MAC51 Fund, Ltd.

 

71,708

 

*

 

71,708

 

 

 

Yield Strategies Fund I, L.P.

 

40,859

 

*

 

40,859

 

 

 

Zurich Institutional Benchmarks Master Fund, Ltd. c/o TQA Investors, LLC

 

9,213

 

*

 

9,213

 

 

 

Any other holder of common stock issuable upon exchange of notes or future transferee, pledgee, donee or successor of any holder

 

2,807,493

 

2.05

%

2,807,493

 

 

 

TOTAL(4)

 

11,747,135

(5)

8.58

%

11,747,135

(5)

 

 


*                    Less than 1%.

(1)             Assumes conversion of the notes into shares of common stock at a conversion rate of 20.4298 shares of common stock per each $1,000 principal amount of notes.

(2)             Based on a total of 136,905,323 shares of our common stock outstanding as of April 12, 2007.

(3)             We do not know when or in what amounts a selling shareholder may offer shares of our common stock for sale. The selling shareholders might not sell any or all of the shares of our common stock offered by this prospectus. Because the selling shareholders may offer all or some of the shares of our common stock pursuant to this prospectus, and because there are currently no agreements, arrangements or understandings with respect to the sale of any of the shares of our common stock, we cannot estimate the number of shares of our common stock that will be held by the selling shareholders after completion of this offering. However, for purposes of this table, we have assumed that, after completion of the offering pursuant to this prospectus, none of the shares of our common stock covered by this prospectus will be held by the selling shareholders

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(4)             Additional selling shareholders not named in the prospectus will not be able to use the prospectus for resales until they are named in the selling shareholder table by prospectus supplement or post-effective amendment. Transferees, successors and donees of identified selling shareholders will not be able to use this prospectus for resales until they are named in the selling shareholders table by prospectus supplement or post-effective amendment. If required, we will add transferees, successors and donees by additional prospectus supplement in instances where the transferee, successor or donee has acquired its shares from holders named in the prospectus or prospectus supplement after the effective date of this prospectus.

(5)             We will issue cash for all fractional shares of our common stock based on the closing sale price of our common stock on the trading day immediately preceding the exchange date.

 

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