Pennsylvania Real Estate Investment Trust Announces Major Lease with the Commonwealth of Pennsylvania

Pennsylvania Real Estate Investment Trust (NYSE: PEI) announced today that it has come to terms on a 224,000 square foot office lease with the Commonwealth of Pennsylvania for space located on the fourth, fifth and sixth floors in the historic Strawbridge & Clothier building at 8th and Market Streets in Philadelphia, Pennsylvania. The nearly 20-year lease, execution of which is subject to legal review and final approval, also includes two 5-year renewal options. The tenant plans to occupy the space in the summer of 2009.

The office space, located at 801 Market Street, will serve as the new Philadelphia regional office for the Commonwealth of Pennsylvania. The lease brings 12 state agencies and approximately 750 employees to work, shop and dine in the Market East section of Center City, a prime retail district that includes Market East Station, Reading Terminal Market, and The Gallery at Market East, PREIT’s one million square foot, four-level mall.

The Strawbridge & Clothier Department Store building is listed in the Philadelphia Register of Historic Places and is a contributing resource to the East Center City Commercial Historic District. The District is listed in the National Register of Historic Places. In 1868, Strawbridge & Clothier selected this location to open its first store. The original building has since been replaced by two buildings, as they stand today, constructed in 1902 and 1928, respectively. In 1977, the buildings joined The Gallery as an anchor department store for the mall.

PREIT has registered the renovation of the property with the United States Green Building Council and is seeking LEED Silver Certification for the project. Renovation of the interior space has begun and the exterior elevation and many interior features will undergo necessary repairs and rehabilitation to preserve the historic character of the building. The remaining lower floors will be renovated to accommodate large and junior-size retail stores to anchor The Gallery.

About Pennsylvania Real Estate Investment Trust

Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first equity REITs in the U.S., has a primary investment focus on retail shopping malls and power centers. Currently, the Company's retail portfolio is approximately 34 million square feet and consists of 55 properties, including 38 shopping malls, 13 strip and power centers, and four properties under development. The Company's properties are located in 13 states in the eastern half of the United States, primarily in the Mid-Atlantic region. PREIT is headquartered in Philadelphia, Pennsylvania. The Company's website can be found at www.preit.com. PREIT is publicly traded on the NYSE under the symbol PEI.

This press release contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect PREIT’s current views about future events and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. More specifically, PREIT’s business might be affected by uncertainties affecting real estate businesses generally as well as the following, among other factors: general economic, financial and political conditions, including credit market conditions, changes in interest rates or the possibility of war or terrorist attacks; changes in local market conditions or other competitive or retail industry factors in the regions where our properties are concentrated; PREIT’s ability to maintain and increase property occupancy and rental rates, and risks relating to development or redevelopment activities, including execution of the above referenced lease with the Commonwealth of Pennsylvania. Investors are also directed to consider the risks and uncertainties discussed in documents PREIT has filed with the Securities and Exchange Commission and, in particular, PREIT's Annual Report on Form 10-K for the year ended December 31, 2007. PREIT does not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

** Additional information about PREIT is available on www.preit.com **