AmeriVest Properties Announces Occupancy Information for the Fourth Qu

    Business Editors

    DENVER--(BUSINESS WIRE)--Jan. 18, 2005--AmeriVest Properties Inc. (AMEX:AMV) today announced property occupancy information as of December 31, 2004. Overall portfolio occupancy was 88.3% at December 31, 2004, compared to 86.2% at September 30, 2004, and 84.2% at December 31, 2003. Same store occupancy (buildings owned for the entire year) was 87.5% compared to 89.8% at September 30, 2004, and 84.7% at the end of 2003.
    "We increased our portfolio occupancy in the fourth quarter," said Charles Knight, President and Chief Operating Officer, "reflecting continued activity in all our markets. During the quarter we completed 56 lease transactions involving more than 142,250 square feet, including 26 leases with new tenants. The average transaction size was 2,541 square feet, ranging from 336 to 9,323 square feet. Although same-store occupancies declined slightly from last quarter, this is primarily the result of adding three buildings to the same-store portfolio, one of which, Greenhill Park, which was acquired in December 2003, had an occupancy rate of approximately 77% at December 31, 2004. We are extremely pleased with our activity during the year, leasing more than 472,700 square feet, or 21% of our total rentable area at the beginning of the year in 179 transactions. We are seeing more activity in all our markets and expect this trend to continue into 2005."

    Company Information

    AmeriVest Properties Inc., with its principal office in Denver, Colorado, provides Smart Space for Small Business(TM) in Denver, Phoenix, Dallas, and Indianapolis through the acquisition, repositioning and operation of multi-tenant office buildings in those markets. To receive AmeriVest's latest news and information, visit our website at www.amvproperties.com.

    In addition to historical information, this press release contains forward-looking statements and information under federal securities laws. These statements are based on expectations, estimates and projections about the industry and markets in which AmeriVest operates, management's beliefs and assumptions made by management. While AmeriVest management believes the assumptions underlying its forward-looking statements and information are reasonable, such information is necessarily subject to uncertainties and may involve certain risks, many of which are difficult to predict and are beyond management's control. As such, these statements and information are not guarantees of future performance, and actual operating results may differ materially from what is expressed or forecasted in this press release. In particular, the factors that could cause actual operating results to differ materially include, without limitation, continued qualification as a real estate investment trust, the effects of general and local economic and market conditions, competition, regulatory changes, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants' financial condition, the uncertainties of real estate development and acquisition activity, development and construction costs, insurance risks, the costs and availability of financing, potential liability relating to environmental matters and liquidity of real estate investments and other risks and uncertainties detailed in AmeriVest's 2003 Annual Report on Form 10-KSB and from time to time in the Company's filings with the Securities and Exchange Commission.

    Property Occupancy Information

December 31, 2004 December 31, 2003 ----------------- ----------------- Average Average Building/ Year Rentable Occupancy Rent Per Occupancy Rent Per Location Acquired Area(1) Rate(2) SF(3) Rate(2) SF(3) ---------------------------------------------------------------------- Same Store- Southwest Gas Building Phoenix, AZ 2003 146,048 87.1% $22.64 80.4% $22.10

Chateau Plaza Dallas, TX 2002 171,294 99.5% 23.42 100.0% 22.70

Centerra Denver, CO 2002 186,582 85.2% 18.09 72.9% 19.89

Parkway Centre II Plano, TX 2002 151,968 94.8% 19.01 95.4% 20.61

Kellogg Building Littleton, CO 2001 110,852 93.0% 19.56 85.8% 21.04

Arrowhead Fountains Peoria, AZ 2001 96,090 100.0% 21.85 100.0% 21.85

AmeriVest Plaza at Inverness Englewood, CO 2001 118,720 93.9% 21.03 91.3% 23.10

Sheridan Center Denver, CO 2000 139,578 82.0% 15.94 82.7% 16.36

Keystone Office Park Indianapolis, IN 1999/2003 114,822 76.8% 17.69 86.4% 17.71

Greenhill Park Addison, TX 2003 247,264 77.0% 17.71 76.7% 18.84

Scottsdale Norte Scottsdale, AZ 2003 78,811 94.4% 20.64 80.9% 23.16

Financial Plaza, Mesa, AZ 2003 310,838 83.0% 23.51 80.5% 23.02 ------- ---- ----- ---- ----- Subtotal 1,872,867 87.4% $20.35 84.7% $20.93 --------- ---- ----- ---- -----

2004 Acquisitions- Hackberry View of Las Colinas Irving, TX 2004 114,598 100.0% $19.78 N/A N/A

Camelback Lakes Phoenix, AZ 2004 203,179 98.9% 21.97 N/A N/A

Parkway Centre III Plano, TX 2004 152,027 93.8% 20.94 N/A N/A

Hampton Court Dallas, TX 2004 108,183 100.0% 21.13 N/A N/A ------- ----- ----- --- --- Subtotal 577,987 98.0% $21.11 N/A N/A ------- ---- ----- --- ---

Joint Ventures- Panorama Falls(4) Englewood, CO 2000 59,561 64.8% $19.84 78.0% $19.01 ------ ---- ----- ---- ----- Subtotal 59,561 64.8% $19.84 78.0% $19.01 ------ ---- ----- ---- -----

Non-Core- Texas Bank Buildings(5) Texas 1998 N/A N/A N/A 100.0% $15.88

Texas State Buildings(6) Texas 1997/1998 222,542 77.1% $9.06 76.8% $9.00 ------- ---- ---- ---- ---- Subtotal 222,542 77.1% $9.06 81.7% $10.79 ------- ---- ---- ---- -----

Total 2,732,957 88.3% $19.71 84.2% $19.63 ========= ==== ===== ==== =====

    (1) Includes office space but excludes storage, telecommunications and garage space.
    (2) Includes approximately 73,000 square feet (2.7% of total rentable area) that has been leased but is not yet occupied and approximately 28,000 square feet (1.0% of total rentable area) that is leased but has been vacated. Excludes approximately 9,000 square feet (0.3% of total rentable area) that expired on or about December 31, 2004.
    (3) Annualized cash basis revenue divided by leased area.
    (4) 20% of the property is owned by AmeriVest and 80% of the property is owned by one other investor as tenants in common. Beginning March 31, 2004, the balance sheet and results of operations for this joint venture are included in the Company's consolidated financial statements.
    (5) These buildings were sold March 16, 2004.
    (6) 11 of 13 buildings are leased primarily to various agencies of the State of Texas. The Clint and Paris, Texas, buildings are currently vacant.

--30--AMM/dx*

CONTACT: AmeriVest Properties Inc. Kim P. Boswood, 303-297-1800 Investor Relations (ext. 118) 303-296-7353 (fax) kimb@amvproperties.com www.amvproperties.com

KEYWORD: COLORADO INDUSTRY KEYWORD: REAL ESTATE BUILDING/CONSTRUCTION SOURCE: AmeriVest Properties Inc.

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