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                                                                     EXHIBIT 3.2



                                     BYLAWS

                                       OF

                            AMB PROPERTY CORPORATION


                                   ARTICLE I

                                     OFFICES

      Section 1. The principal executive office of AMB Property Corporation, a
Maryland corporation (the "Corporation"), shall be located at such place or
places as the board of directors may designate.

      Section 2. The Corporation may also have offices at such other places as
the board of directors may from time to time determine or the business of the
Corporation may require.

                                   ARTICLE II

                            MEETINGS OF STOCKHOLDERS

      Section 1. All meetings of the stockholders shall be held in the City of
San Francisco, State of California, at such place as may be fixed from time to
time by the board of directors, or at such other place as shall be designated
from time to time by the board of directors and stated in the notice of the
meeting.

      Section 2. An annual meeting of stockholders shall be held at such date
and time as may be determined from time to time by resolution adopted by the
board of directors, when they shall elect by a plurality vote a board of
directors, and transact such other business as may properly be brought before
the meeting in accordance with these bylaws. To be properly brought before the
annual meeting, business must be either (i) specified in the notice of annual
meeting (or any supplement or amendment thereto) given by or at the direction of
the board of directors, (ii) otherwise brought before the annual meeting by or
at the direction of the board of directors, or (iii) otherwise brought before
the annual meeting by a stockholder. In addition to any other applicable
requirements, for business to be properly brought before an annual meeting by a
stockholder, the stockholder must have given timely notice thereof in writing to
the secretary of the Corporation. To be timely, a stockholder's notice must be
delivered to or mailed and received at the principal executive offices of the
Corporation, not less than fifty (50) days nor more than seventy-five (75) days
prior to the meeting; provided, however, that in the event that less than
sixty-five (65) days' notice or prior public disclosure of the date of the
annual meeting is given or made to stockholders, notice by a stockholder to be
timely must be so received not 


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later than the close of business on the fifteenth (15th) day following the day
on which such notice of the date of the annual meeting was mailed or such public
disclosure was made, whichever first occurs. A stockholder's notice to the
secretary shall set forth (a) as to each matter the stockholder proposes to
bring before the annual meeting (i) a brief description of the business desired
to be brought before the annual meeting and the reasons for conducting such
business at the annual meeting, (ii) the name and record address of the
stockholder proposing such business, (iii) the class, series and number of
shares of capital stock of the Corporation which are beneficially owned by the
stockholder, and (iv) any material interest of the stockholder in such business,
and (b) as to the stockholder giving the notice (i) the name and record address
of the stockholder and (ii) the class, series and number of shares of capital
stock of the Corporation which are beneficially owned by the stockholder.
Notwithstanding anything in these bylaws to the contrary, no business shall be
conducted at the annual meeting except in accordance with the procedures set
forth in this Article II, Section 2. The officer of the Corporation presiding at
an annual meeting shall, if the facts warrant, determine that business was not
properly brought before the annual meeting in accordance with the provisions of
this Article II, Section 2, and if he should so determine, he shall so declare
to the annual meeting and any such business not properly brought before the
meeting shall not be transacted.

      Section 3. A majority of the stock issued and outstanding and entitled to
vote at any meeting of stockholders, the holders of which are present in person
or represented by proxy, shall constitute a quorum for the transaction of
business except as otherwise provided by law, by the Corporation's charter or by
these bylaws. A quorum, once established, shall not be broken by the withdrawal
of enough votes to leave less than a quorum and the votes present may continue
to transact business until adjournment. If, however, such quorum shall not be
present or represented at any meeting of the stockholders, a majority of the
voting stock represented in person or by proxy may adjourn the meeting from time
to time until a date not more than 120 days after the original record date,
without notice other than announcement at the meeting, until a quorum shall be
present or represented. At such adjourned meeting at which a quorum shall be
present or represented, any business may be transacted which might have been
transacted at the meeting as originally notified. If the adjournment is for more
than 120 days, or if after the adjournment a new record date is fixed for the
adjourned meeting, a notice of the adjourned meeting shall be given to each
stockholder of record entitled to vote thereat.

      Section 4. When a quorum is present at any meeting, the vote of the
holders of a majority of the stock having voting power present in person or
represented by proxy shall decide any question brought before such meeting,
unless the question is one upon which by express provision of the Maryland
General Corporation Law ("MGCL") or the rules of any securities exchange on
which the Corporation's capital stock is listed or the Corporation's charter or
these bylaws a different vote is required, in which case such express provision
shall govern and control the decision of such question.

      Section 5. At each meeting of the stockholders, each stockholder having
the right to vote may vote in person or may authorize another person or persons
to act for him by proxy appointed by an instrument in writing subscribed by such
stockholder and bearing a date not more than eleven (11) months prior to said
meeting, unless said instrument provides for a longer 


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period. All proxies must be filed with the secretary of the Corporation at the
beginning of each meeting in order to be counted in any vote at the meeting.
Subject to the provisions of the charter of the Corporation, each stockholder
shall have one vote for each share of stock having voting power registered in
his name on the books of the Corporation on the record date set by the board of
directors as provided in Article V, Section 6 hereof. All elections shall be by
and all questions shall be decided by a plurality vote.

      Section 6. Special meetings of the stockholders, for any purpose or
purposes, unless otherwise proscribed by the charter, may be called at any time
by the president, the chairman of the board, or by a majority of the directors,
or by a committee of the board of directors which has been duly designated by
the board of directors and whose powers and authority, as provided in a
resolution of the board of directors or these bylaws, include the power to call
such meetings. In addition, a special meeting of the stockholders of the
Corporation shall be called by the secretary of the Corporation on the written
request of stockholders entitled to cast at least fifty percent (50%) of all
votes entitled to be cast at the meeting, except that, in the case of a special
meeting called to consider any matter which is substantially the same as a
matter voted on at any special meeting for the stockholders held during the
preceding twelve (12) months, the secretary of the Corporation shall not be
required to call any such special meeting unless requested by stockholders
entitled to cast a majority of all of the votes entitled to be cast at the
meeting.

      Section 7. Business transacted at any special meeting of stockholders
shall be limited to the purposes stated in the notice. Where the Company's
notice of meeting specifies that directors are to be elected at such special
meeting, nominations of persons for election to the board of directors may be
made (i) pursuant to the Company's notice of meeting, (ii) by or at the
direction of the board of directors or (iii) by any committee of persons
appointed by the board of directors with authority therefor or by a stockholder
as provided in Section 2 of Article III hereof.

      Section 8. Whenever stockholders are required or permitted to take any
action at a meeting, a written notice of the meeting shall be given which notice
shall state the place, date and hour of the meeting, and, in the case of a
special meeting, the purpose or purposes for which the meeting is called. The
written notice of any meeting shall be given to each stockholder entitled to
vote at such meeting not less than 10 nor more than 90 days before the date of
the meeting. If mailed, notice is given when deposited in the United States
mail, postage prepaid, directed to the stockholder at his address as it appears
on the records of the Corporation.



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      Section 9. Notwithstanding any other provision of the charter of the
Corporation or these bylaws, Subtitle 7 of Title 3 of the MGCL (as the same may
hereafter be amended from time to time) shall not apply to the voting rights of
any shares of stock of the Corporation now or hereafter held by any existing or
future stockholder of the Corporation (regardless of the identity of such
stockholder).

                                  ARTICLE III

                                    DIRECTORS

      Section 1. The board of directors shall consist of a minimum of five (5)
and a maximum of thirteen (13) directors, provided however, that prior to the
consummation of the initial public offering of the Common Stock of the
Corporation, the board of directors shall consist of a minimum of three (3)
directors. The number of directors shall be fixed or changed from time to time,
within the minimum and maximum, by the then elected directors, provided that,
upon and after the consummation of the initial public offering of Common Stock
of the Corporation, at least a majority of the directors shall be Independent
Directors (as defined in the next sentence). An Independent Director is a
director who is not an employee, officer or affiliate of the Corporation or a
subsidiary or division thereof, or a relative of a principal executive officer,
and who is not an individual member of an organization acting as an advisor,
consultant or legal counsel receiving compensation on a continuing basis from
the Company in addition to director's fees. Upon consummation of the initial
public offering of Common Stock of the Corporation, and until increased or
decreased by the directors pursuant to these bylaws, the exact number of
directors shall be ten (10). The directors need not be stockholders. Except as
provided in Section 2 of this Article III with respect to vacancies, the
directors shall be elected as provided in the charter at each annual meeting of
the stockholders, and each director elected shall hold office until his
successor is elected and qualified or until his death, retirement, resignation
or removal.

      Section 2. (a) Nominations of persons for election to the board of
directors of the Corporation at the annual meeting of stockholders may be made
(i) pursuant to the Corporation's notice of meeting; (ii) by or at the direction
of the board of directors or (iii) by any committee of persons appointed by the
board of directors with authority therefor or by any stockholder of the
Corporation entitled to vote for the election of directors at the meeting who
complies with the notice procedures set forth in this Article III, Section 2(a).
Such nominations by any stockholder shall be made pursuant to timely notice in
writing to the Secretary of the Corporation. To be timely, a stockholder's
notice shall be delivered to or mailed and received at the principal executive
offices of the Corporation not less than 50 days nor more than 75 days prior to
the meeting; provided, however, that in the event that less than 65 days notice
or prior public disclosure of the date of the meeting is given or made to
stockholders, notice by the stockholder to be timely must be so received not
later than the close of business of the fifteenth (15th) day following the day
on which such notice of the date of the meeting was mailed or such public


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disclosure was made, whichever first occurs. Such stockholder's notice to the
Secretary shall set forth (i) as to each person whom the stockholder proposes to
nominate for election or re-election as a director, (a) the name, age, business
address and residence address of the person, (b) the principal occupation or
employment of the person, (c) the class, series and number of shares of capital
stock of the Corporation which are beneficially owned by the person, and (d) any
other information relating to the person that is required to be disclosed in
solicitations for proxies for election of directors pursuant to the Rules and
Regulations of the Securities and Exchange Commission under Section 14 of the
Securities Exchange Act of 1934, as amended; and (ii) as to the stockholder
giving the notice (a) the name and record address of the stockholder and (b) the
class, series and number of shares of capital stock of the Corporation which are
beneficially owned by the stockholder. The Corporation may require any proposed
nominee to furnish such other information as may reasonably be required by the
Corporation to determine the eligibility of such proposed nominee to serve as a
director of the Corporation. Except as may otherwise be provided in these bylaws
or any other agreement relating to the right to designate nominees for election
to the board of directors, no person shall be eligible for election as a
director of the Corporation unless nominated in accordance with the procedures
set forth herein. The officer of the Corporation presiding at an annual meeting
shall, if the facts warrant, determine that a nomination was not made in
accordance with the foregoing procedure, and if he should so determine, he shall
so declare to the meeting and the defective nomination shall be disregarded.

      (b)   Except as may otherwise be provided pursuant to Article IV of the
Corporation's charter with respect to any rights of holders of preferred stock
to elect additional directors and any other requirement in these bylaws or other
agreement relating to the right to designate nominees for election to the board
of directors, should a vacancy in the board of directors occur or be created
(whether arising through death, retirement or resignation), such vacancy shall
be filled by the affirmative vote of a majority of the remaining directors, even
though less than a quorum of the board of directors or, in the case of a vacancy
resulting from an increase in the number of directors, by a majority of the
entire board of directors. In the case of a vacancy created by the removal of a
director, the vacancy shall be filled by the stockholders of the Company
entitled to elect the director who was removed at the next annual meeting of
stockholders or at a special meeting of stockholders called for such purpose,
provided, however, that such vacancy may be filled by the affirmative vote of a
majority of the remaining directors, subject to approval by the stockholders
entitled to elect the director who was removed at the next annual meeting of
stockholders or at a special meeting of stockholders called for such purpose. A
director so elected to fill a vacancy shall serve for the remainder of the term.

      Section 3. The property and business of the Corporation shall be managed
by or under the direction of its board of directors. In addition to the powers
and authorities by these bylaws expressly conferred upon it, the board may
exercise all such powers of the Corporation and do all such lawful acts and
things as are not by statute or by the Corporation's charter or by these bylaws
directed or required to be exercised or done by the stockholders.

                       MEETINGS OF THE BOARD OF DIRECTORS

      Section 4. The directors may hold their meetings and have one or more
offices, and keep the books of the Corporation, outside the State of Maryland.


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      Section 5. Regular meetings of the board of directors may be held at such
time and place as shall from time to time be determined by resolution of the
board, and no additional notice shall be required.

      Section 6. Special meetings of the board of directors may be called by the
President or the Chairman of the board of directors on forty-eight hours' notice
to each director, either personally or by mail or by telegram; special meetings
shall be called by the President or the Secretary in like manner and on like
notice on the written request of two directors unless the board consists of only
one director, in which case special meetings shall be called by the President or
Secretary in like manner and on like notice on the written request of the sole
director.

      Section 7. Unless otherwise restricted by the Corporation's charter or
these bylaws, any action required or permitted to be taken at any meeting of the
board of directors or of any committee thereof may be taken without a meeting,
if all members of the board or committee, as the case may be, consent thereto in
writing, and the writing or writings are filed with the minutes of proceedings
of the board or committee.

      Section 8. Unless otherwise restricted by the Corporation's charter or
these bylaws, members of the board of directors, or any committee designated by
the board of directors, may participate in a meeting of the board of directors,
or any committee, by means of conference telephone or similar communications
equipment by means of which all persons participating in the meeting can hear
each other, and such participation in a meeting shall constitute presence in
person at such meeting.

      Section 9. By virtue of resolutions adopted by the Board of Directors
prior to or at the time of adoption of these Bylaws and designated irrevocable,
any business combination (as defined in Section 3-601(e) of the MGCL) between
the Corporation and any of its present or future stockholders, or any affiliates
or associates of the Corporation or any present or future stockholder of the
Corporation, or any other person or entity or group of persons or entities, is
exempt from the provisions of Subtitle 6 of Title 3 of the MGCL entitled
"Special Voting Requirements," including, but not limited to, the provisions of
Section 3-602 of such Subtitle. The Board of Directors may not revoke, alter or
amend such resolution, or otherwise elect to have any business combination of
the Corporation be subject to the provisions of Subtitle 6 of Title 3 of the
MGCL without the approval of the holders of the issued and outstanding shares of
Common Stock of the Company by the affirmative vote of a majority of all votes
entitled to be cast in respect of such shares of Common Stock.

                    RESIGNATION FROM THE BOARD OF DIRECTORS

      Section 10. A director may resign at any time upon written notice to the
Corporation's board of directors, chairman of the board, president or secretary.
Any such resignation shall take effect at the time specified therein or, if the
time is not specified, upon receipt thereof, and the acceptance of such
resignation, unless required by the terms thereof, shall not be necessary to
make such resignation effective.

                             COMMITTEES OF DIRECTORS

      Section 11. The board of directors may, by resolution passed by a majority
of the whole board, designate one or more committees, each such committee to
consist of not less than the minimum number of directors required for committees
of the board of directors under the MGCL. The board may designate one or more
directors as alternate members of any committee, who may replace any absent or
disqualified member at any meeting of the committee. Any such committee, to the
extent provided in the resolution of the board of directors, and to the maximum
extent permitted under the MGCL, shall have and may exercise all the powers and
authority of the board of directors in the management of the business and
affairs of the Corporation, and may authorize the seal of the Corporation to be
affixed to all papers which may require it; but no such committee shall have the
power or authority in reference to amending the charter (except that a committee
may, in accordance with a general formula or method specified by the board of


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directors, and to the extent authorized in the resolution or resolutions
providing for the issuance of shares of stock adopted by the board of directors,
fix the designations and any of the preferences or rights of such shares
relating to dividends, redemption, dissolution, any distribution of assets of
the Corporation or the conversion into, or the exchange of such shares for,
shares of any other class or classes or any other series of the same or any
other class or classes of stock of the Corporation or fix the number of shares
of any series of stock or authorize the increase or decrease of the shares of
any series), adopting an agreement of merger or consolidation, recommending to
the stockholders the sale, lease or exchange of all or substantially all of the
Corporation's property and assets, recommending to the stockholders a
dissolution of the Corporation or a revocation of a dissolution or any other
matter requiring the approval of the stockholders of the Corporation, or
amending the bylaws of the Corporation; and no such committee shall have the
power or authority to authorize or declare a dividend, to authorize the issuance
of stock (except that, if the board of directors has given general authorization
for the issuance of stock, a committee of the board, in accordance with a
general formula or method specified by the board by resolution or by adoption of
a stock option or other plan, may fix the terms of stock subject to
classification or reclassification and the terms on which any stock may be
issued, including the price and consideration for such stock) or to approve any
merger or share exchange which does not require stockholder approval.

      Section 12. The Corporation shall from and after the incorporation have
the following committees, the specific authority and members of which shall be
as designated herein or by resolution of the board of directors:

            (i)   An Executive Committee, which shall have such authority as
   granted by the board of directors, including the power to acquire, dispose
   and finance investments for the Corporation (including the issuance by AMB
   Property, L.P., a Delaware limited partnership, in the Corporation's capacity
   as such partnership's general partner, of additional units or other equity
   interests) and approve the execution of contracts and agreements, including
   those related to the borrowing of money by the Corporation, and generally
   exercise all other powers of the board except as prohibited by law;
   provided, however, that the issuance of additional units or other equity
   interests of AMB Property, L.P., to the extent that such interests are
   exchangeable into shares of the Corporation's capital stock, may be issued
   only if the Corporation has reserved for issuance such shares of capital
   stock issuable upon the exchange of such units or other equity interests.

            (ii)  An Audit Committee, which will consist solely of Independent
   Directors and which shall make recommendations concerning the engagement of
   independent public accountants, review with the independent public
   accountants the plans and results of the audit engagement, approve
   professional services provided by the independent public accountants, review
   the independence of the independent public accountants, consider the range of
   audit and non-audit fees and review the adequacy of the Corporation's
   internal accounting controls.

            (iii) A Compensation Committee, which shall consist solely of
   Independent Directors and which shall determine compensation for the
   Corporation's executive officers, and will review and make recommendations
   concerning proposals by management with respect to compensation, bonus,
   employment agreements and other benefits and policies respecting such matters
   for the executive officers of the Corporation.


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      Section 13. Each committee shall keep regular minutes of its meetings and
report the same to the board of directors when required. The presence of a
majority of the total membership of any committee shall constitute a quorum for
the transaction of business at any meeting of such committee and the act of a
majority of those present shall be necessary and sufficient for the taking of
any action thereat.

                            COMPENSATION OF DIRECTORS

      Section 14. Unless otherwise restricted by the charter of the Corporation
or these bylaws, the board of directors shall have the authority to fix the
compensation of non-employee directors. The non-employee directors may be paid
their expenses, if any, of attendance at each meeting of the board of directors
and may be paid a fixed sum for attendance at each meeting of the board of
directors or a stated salary as director. Officers of the Corporation who are
also members of the board of directors shall not be paid any director's fees.

                                 INDEMNIFICATION

      Section 15. The Corporation shall indemnify, in the manner and to the
maximum extent permitted by law, any person (or the estate of any person) who is
or was a party to, or is threatened to be made a party to, any threatened,
pending or completed action, suit or proceeding, whether or not by or in the
right of the Corporation, and whether civil, criminal, administrative,
investigative, or otherwise, by reason of the fact that such person is or was a
director or officer of the Corporation or that such person while a director or
officer of the Corporation, is or was serving at the request of the Corporation
as a director, officer, trustee, partner, member, agent or employee of another
corporation, partnership, limited liability company, association, joint venture,
trust or other enterprise. To the maximum extent permitted by law, the
indemnification provided herein shall include expenses (including attorneys'
fees), judgments, fines and amounts paid in settlement, and any such expenses
may be paid by the Corporation in advance of the final disposition of such
action, suit or proceeding.

      Neither the amendment nor repeal of this Section 14 of this Article III,
nor the adoption or amendment of any other provision of the charter or bylaws of
the Corporation inconsistent with this Section, shall apply to or affect in any
respect the applicability of the preceding paragraph with respect to any act or
failure to act which occurred prior to such amendment, repeal or adoption.

      The indemnification and reimbursement of expenses provided herein shall
not be deemed to limit the right of the Corporation to indemnify any other
person against any liability and expenses to the fullest extent permitted by
law, nor shall it be deemed exclusive of any other rights to which any person
seeking indemnification from the Corporation may be entitled under any
agreement, the charter or bylaws of the Corporation, a vote of stockholders or
Independent Directors, or otherwise, both as to action in such person's official
capacity as an officer or director and as to action in another capacity, at the
request of the Corporation, while acting as an officer or director of the
Corporation.


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                                   ARTICLE IV

                                    OFFICERS

      Section 1. The officers of this Corporation shall be chosen by the board
of directors and shall include a president, a vice president, a secretary and a
treasurer. The Corporation may also have at the discretion of the board of
directors such other officers as are desired, including a chairman of the board,
additional vice presidents, a chief executive officer, a chief financial
officer, a chief operating officer, one or more managing directors, one or more
assistant secretaries and one or more assistant treasurers, and such other
officers as may be appointed in accordance with the provisions of Section 3 of
this Article IV. In the event there are two or more vice presidents, then one or
more may be designated as executive vice president, senior vice president, vice
president/acquisitions or other similar or dissimilar title. At the time of the
election of officers, the directors may by resolution determine the order of
their rank. Any number of offices may be held by the same person, unless the
charter or these bylaws otherwise provide, except that one individual may not
simultaneously hold the office of president and vice president.

      Section 2. The board of directors, at its first meeting after each annual
meeting of stockholders, shall choose the officers of the Corporation.

      Section 3. The board of directors may appoint such other officers and
agents as it shall deem necessary who shall hold their offices for such terms
and shall exercise such powers and perform such duties as shall be determined
from time to time by the board.

      Section 4. The salaries of all officers and agents of the Corporation
shall be fixed by the board of directors, provided, however, that the
compensation of the Corporation's executive officers shall be determined by the
Compensation Committee.

      Section 5. The officers of the Corporation shall hold office until their
successors are chosen and qualify in their stead. Any officer elected or
appointed by the board of directors may be removed at any time, with or without
cause, by the affirmative vote of a majority of the board of directors. If the
office of any officer or officers becomes vacant for any reason, the vacancy
shall be filled by the board of directors.

      Section 6. Any officer may resign at any time upon written notice to the
Corporation's board of directors, chairman of the board, president or secretary.
Any such resignation shall take effect at the time specified therein or, if the
time is not specified, upon receipt thereof, and the acceptance of such
resignation, unless required by the terms thereof, shall not be necessary to
make such resignation effective. Any such resignation will not prejudice the
rights, if any, of the Corporation under any contract to which the officer is a
party.


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                              CHAIRMAN OF THE BOARD

      Section 7. The chairman of the board, if such an officer be elected,
shall, if present, preside at all meetings of the board of directors and
exercise and perform such other powers and duties as may be from time to time
assigned to him by the board of directors or prescribed by the bylaws. If there
is no president, the chairman of the board shall in addition be the chief
executive officer of the Corporation and shall have the powers and duties
prescribed in Section 8 of this Article IV.

                            CHIEF EXECUTIVE OFFICER

      Section 8. Subject to such supervisory powers, if any, as may be given by
the board of directors to the chairman of the board, if there be such an
officer, the chief executive officer shall, subject to the control of the board
of directors, have general supervision, direction and control of the business
and officers of the Corporation. He shall have the general powers and duties of
management usually vested in the office of chief executive officer of
corporations, and shall have such other powers and duties as may be prescribed
by the board of directors or these bylaws.

                                    PRESIDENT

      Section 9. Subject to such supervisory powers, if any, as may be given by
the board of directors to the chairman of the board, if there be such an
officer, the president shall, subject to the control of the board of directors,
have general supervision, direction and control of the business and officers of
the Corporation. He shall preside at all meetings of the stockholders and, in
the absence of the chairman of the board, or if there be none, at all meetings
of the board of directors. He shall have the general powers and duties of
management usually vested in the office of president of corporations, and shall
have such other powers and duties as may be prescribed by the board of directors
or these bylaws.


                            CHIEF OPERATING OFFICER

      Section 10. Subject to such supervisory powers, if any, as may be given
by the board of directors to the chairman of the board, chief executive officer
or the president, if there be such an officer, the chief operating officer
shall, subject to the control of the board of directors, have the supervision,
direction and control of the day to day operations of the Corporation. He shall
have the general powers and duties of management usually vested in the office
of chief operating officer of corporations, and shall have such other powers
and duties as may be prescribed by the board of directors or these bylaws.     

                               MANAGING DIRECTORS

      Section 11.  Subject to such supervisory powers, if any, as may be
given by the board of directors to the chairman of the board, chief executive
officer or the president, if there be such an officer, the managing director
shall, subject to the control of the board of directors, have the supervision,
direction and such duties as from time to time may be prescribed by the board
of directors or these bylaws.

                                VICE PRESIDENTS

      Section 12. In the absence or disability of the president, the vice
presidents, in order of their rank as fixed by the board of directors, or if not
ranked, the vice president designated by the board of directors, shall perform
all the duties of the president, and when so acting, shall have all the powers
of and be subject to all the restrictions upon the president. The vice
presidents shall have such other duties as from time to time may be prescribed
by the board of directors or these bylaws.

                        SECRETARY AND ASSISTANT SECRETARY

      Section 13. The secretary shall attend all sessions of the board of
directors and all meetings of the stockholders and record all votes and the
minutes of all proceedings in a book to be kept for that purpose; and shall
perform like duties for the standing committees when required by the board of
directors. He shall give, or cause to be given, notice of all meetings of the
stockholders and of the board of directors, and shall perform such other duties
as may be prescribed by the board of directors or the bylaws. He shall keep in
safe custody the seal of the Corporation, and when authorized by the board,
affix the same to any instrument requiring it, and when so affixed it shall be
attested by his signature or by the signature of an assistant secretary. The
board of directors may give general authority to any other officer to affix the
seal of the Corporation and to attest the affixing by his signature.

      Section 14. The assistant secretary, or if there be more than one, the
assistant secretaries in the order determined by the board of directors, or if
there be no such determination, 


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the assistant secretary designated by the board of directors, shall, in the
absence or disability of the secretary, perform the duties and exercise the
powers of the secretary and shall perform such other duties and have such other
powers as the board of directors may from time to time prescribe.

           CHIEF FINANCIAL OFFICER, TREASURER AND ASSISTANT TREASURERS

      Section 15. The chief financial officer of the Corporation shall have the
custody of the corporate funds and securities and shall keep full and accurate
accounts of receipts and disbursements in books belonging to the Corporation and
shall deposit all moneys, and other valuable effects in the name and to the
credit of the Corporation, in such depositories as may be designated by the
board of directors. He shall disburse the funds of the Corporation as may be
ordered by the board of directors, taking proper vouchers for such
disbursements, and shall render to the board of directors, at its regular
meetings, or when the board of directors so requires, an account of all his
transactions as chief financial officer and of the financial condition of the
Corporation. If required by the board of directors, he shall give the
Corporation a bond, in such sum and with such surety or sureties as shall be
satisfactory to the board of directors, for the faithful performance of the
duties of his office and for the restoration to the Corporation, in case of his
death, resignation, retirement or removal from office, of all books, papers,
vouchers, money and other property of whatever kind in his possession or under
his control belonging to the Corporation. If no other person then be appointed
to the position of treasurer of the Corporation, the person holding the office
of chief financial officer shall also be the treasurer of the Corporation.

      Section 16. The treasurer or assistant treasurer, or if there shall be
more than one, the assistant treasurers in the order determined by the board of
directors, or if there be no such determination, the treasurer or assistant
treasurer designated by the board of directors, shall, in the absence or
disability of the chief financial officer, perform the duties and exercise the
powers of the chief financial officer and shall perform such other duties and
have such other powers as the board of directors may from time to time
prescribe.

                                   ARTICLE V

                              CERTIFICATES OF STOCK

      Section 1. Every holder of stock of the Corporation shall be entitled to
have a certificate signed by, or in the name of the Corporation by, the chairman
of the board of directors, or the president or a vice president, and
countersigned by the secretary or an assistant secretary, or the treasurer or an
assistant treasurer of the Corporation, certifying the number of shares of
capital stock represented by the certificate owned by such stockholder in the
Corporation.

      Section 2. Any or all of the signatures on the certificate may be a
facsimile. In case any officer, transfer agent, or registrar who has signed or
whose facsimile signature has been placed upon a certificate shall have ceased
to be such officer, transfer agent or registrar before 


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<PAGE>   12
such certificate is issued, it may be issued by the Corporation with the same
effect as if he were such officer, transfer agent or registrar at the date of
issue. Such certificates need not be sealed with the corporate seal of the
Corporation.

      Section 3. If the Corporation shall be authorized to issue more than one
class of stock or more than one series of any class, the powers, designations,
preferences and relative, participating, optional or other special rights of
each class of capital stock or series thereof and the qualification, limitations
or restrictions of such preferences and/or rights shall be set forth in full or
summarized on the face or back of the certificate which the Corporation shall
issue to represent such class or series of stock, provided that, in lieu of the
foregoing requirements, there may be set forth on the face or back of the
certificate which the Corporation shall issue to represent such class or series
of stock, a statement that the Corporation will furnish without charge to each
stockholder who so requests the powers, designations, preferences and relative,
participating, optional or other special rights of each class of stock or series
thereof and the qualifications, limitations or restrictions of such preferences
and/or rights. In addition, in the event that any stock issued by the
Corporation is subject to a restriction on its transferability, the stock
certificate shall on its face or back contain a full statement of the
restriction or state that the Corporation will furnish information about the
restriction to the stockholder on request and without charge.

                     LOST, STOLEN OR DESTROYED CERTIFICATES

      Section 4. The board of directors may direct a new certificate or
certificates to be issued in place of any certificate or certificates
theretofore issued by the Corporation alleged to have been lost, stolen or
destroyed, upon the making of an affidavit of that fact by the person claiming
the certificate of stock to be lost, stolen or destroyed. When authorizing such
issue of a new certificate or certificates, the board of directors may, in its
discretion and as a condition precedent to the issuance thereof, require the
owner of such lost, stolen or destroyed certificate or certificates, or his
legal representative, to advertise the same in such manner as it shall require
and/or to give the Corporation a bond in such sum as it may direct as indemnity
against any claim that may be made against the Corporation with respect to the
certificate alleged to have been lost, stolen or destroyed.

                               TRANSFERS OF STOCK

      Section 5. Upon surrender to the Corporation, or the transfer agent of the
Corporation, of a certificate for shares duly endorsed or accompanied by proper
evidence of succession, assignment or authority to transfer, it shall be the
duty of the Corporation to issue a new certificate to the person entitled
thereto, cancel the old certificate and record the transaction upon its books,
subject, however, to the Ownership Limit (as defined in the charter of the
Corporation) and other restrictions on transferability applicable thereto from
time to time.

                               FIXING RECORD DATE

      Section 6. In order that the Corporation may determine the stockholders
entitled to notice of or to vote at any meeting of the stockholders, or any
adjournment thereof, or to express consent to corporate action in writing
without a meeting, or entitled to receive payment 


                                       12
<PAGE>   13
of any dividend or other distribution or allotment of any rights, or entitled to
exercise any rights in respect of any change, conversion or exchange of stock or
for the purpose of any other lawful action, the board of directors may fix a
record date which shall not be more than 90 nor less than 10 days before the
date of such meeting, nor more than 90 days prior to any other action. A
determination of stockholders of record entitled to notice of or to vote at a
meeting of stockholders shall apply to any adjournment of the meeting; provided,
however, that the board of directors may fix a new record date for the adjourned
meeting. A meeting of stockholders convened on the date for which it was called
may be adjourned from time to time without further notice to a date not more
than 120 days after the original record date.

                             REGISTERED STOCKHOLDERS

      Section 7. The Corporation shall be entitled to treat the holder of record
of any share or shares of stock as the holder in fact thereof and accordingly
shall not be bound to recognize any equitable or other claim or interest in such
share on the part of any other person, whether or not it shall have express or
other notice thereof, save as expressly provided by the laws of the State of
Maryland.

                                   ARTICLE VI

                               GENERAL PROVISIONS

                                    DIVIDENDS

      Section 1. Dividends upon the capital stock of the Corporation, subject to
the provisions of the Corporation's charter, if any, may be authorized and
declared by the board of directors at any regular or special meeting, pursuant
to law. Dividends may be paid in cash, in property, or in shares of the capital
stock, subject to the provisions of the Corporation's charter and the MGCL.

      Section 2. Before payment of any dividend there may be set aside out of
any funds of the Corporation available for dividends such sum or sums as the
directors from time to time, in their absolute discretion, think proper as a
reserve fund to meet contingencies, or for equalizing dividends, or for
repairing or maintaining any property of the Corporation, or for such other
purpose as the directors shall think conducive to the interests of the
Corporation, and the directors may abolish any such reserve.

                                     CHECKS

      Section 3. All checks or demands for money and notes of the Corporation
shall be signed by such officer or officers as the board of directors may from
time to time designate.

                                   FISCAL YEAR

      Section 4. The fiscal year of the Corporation shall be fixed by resolution
of the board of directors.


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<PAGE>   14
                                      SEAL

      Section 5. The corporate seal shall have inscribed thereon the name of the
Corporation, the year of its organization and the words "Corporate Seal,
Maryland." Said seal may be used by causing it or a facsimile thereof to be
impressed or affixed or reproduced or otherwise.

                                     NOTICES

      Section 6. Whenever, under the provisions of the MGCL or of the charter of
the Corporation or of these bylaws, notice is required to be given to any
director or stockholder, it shall not be construed to mean personal notice, but
such notice may be given in writing, by mail, addressed to such director or
stockholder, at his address as it appears on the records of the Corporation,
with postage thereon prepaid, and such notice shall be deemed to be given at the
time when the same shall be deposited in the United States mail. Notice to
directors may also be given by telegram, telecopy or cable.

      Section 7. Whenever any notice is required to be given under the
provisions of the MGCL or of the charter of the Corporation or of these bylaws,
a waiver thereof in writing, signed by the person or persons entitled to said
notice, whether before or after the time stated therein, shall be deemed
equivalent thereto.

                                ANNUAL STATEMENT

      Section 8. The board of directors may present at each annual meeting of
stockholders, and when called for by vote of the stockholders shall present to
any annual or special meeting of the stockholders, a full and clear statement of
the business and condition of the Corporation.

                                  ARTICLE VII

                                   AMENDMENTS

      Section 1. These bylaws may be altered, amended or repealed or new bylaws
may be adopted by the vote of a majority of the board of directors or by the
affirmative vote of a majority of all votes entitled to be cast by the holders
of the issued and outstanding shares of Common Stock of the Corporation.
Notwithstanding anything to the contrary herein, this Section 1 of Article VII,
Section 9 of Article III and Section 10 of Article II hereof may not be altered,
amended or repealed except by the affirmative vote of a majority of all votes
entitled to be cast by the holders of the issued and outstanding shares of
Common Stock of the Corporation.


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<PAGE>   15
      The undersigned, Secretary of AMB Property Corporation, a Maryland
corporation (the "Corporation"), hereby certifies that the foregoing is a full,
true and correct copy of the Bylaws of the Corporation with all amendments to
the date of this Certificate.

      WITNESS the signature of the undersigned and the seal of the Corporation
this __ day of November, 1997.


                                       ----------------------------
                                       S. Davis Carniglia
                                       Secretary
