Notice of Redemption of 7¾% Series A Convertible Preferred Stock of Glenborough Realty Trust Incorporated

San Mateo, California, October 27, 2006 — Subject to the terms and conditions set forth herein, Glenborough Realty Trust Incorporated, a Maryland corporation (the "Company"), hereby serves written notice pursuant to Section 5(d) of Article FIRST of the Articles Supplementary (the "Articles Supplementary") relating to its 7¾% Series A Convertible Preferred Stock, par value $0.001 per share (the "Preferred Stock"), accepted for record by the State Department of Assessments and Taxation of Maryland (the "SDAT") on January 26, 1998, that, in connection with the merger (the "Merger") of the Company with and into Gridiron Acquisition LLC, a Delaware limited liability company (the "Merger Sub"), pursuant to the Agreement and Plan of Merger, dated as of August 20, 2006 (the "Merger Agreement"), by and among the Company, Glenborough Properties, L.P., a California limited partnership, Gridiron Holdings LLC, a Delaware limited liability company, and the Merger Sub, the Company will redeem (the "Redemption") 3,740,807 shares of Preferred Stock, such number being all of the shares of Preferred Stock issued and outstanding immediately before the Effective Time (as defined below), from the holders thereof. In the Redemption, the Company will redeem all of the shares of Preferred Stock that you own of record immediately before the Effective Time.

The Redemption will be effective as of the time immediately prior to the filing of Articles of Merger effecting the Merger (the "Effective Time") on the date (the "Redemption Date") on which the conditions to the Merger, set forth in Article VIII of the Merger Agreement, are satisfied or waived and the Merger Sub has executed and delivered to the Company Articles of Merger to effect the Merger and authorized such Articles of Merger to be filed with the SDAT. If the date on which the events set forth in the immediately preceding sentence have occurred is after December 26, 2006, this Notice of Redemption shall be cancelled without any further action or documentation, the Redemption will not occur and you will continue to own your shares of Preferred Stock.

As payment in full in redemption of each share of Preferred Stock outstanding immediately before the Effective Time and held of record by you, you will be entitled to receive an amount per share (the "Redemption Price"), in cash, without interest, equal to (i) $25.3875, plus (ii) $0.484375 multiplied by the quotient obtained by dividing (x) the number of days between the last day of the last Dividend Period (as that term is defined in the Articles Supplementary) for which full dividends on the Preferred Stock have been declared and paid and the Redemption Date (including the Redemption Date) by (y) the total number of days in the Dividend Period during which the Redemption Date occurs.

At or before the Effective Time, the Company will deposit or cause to be deposited for the benefit of the holders of the Preferred Stock with Registrar & Transfer Company (the "Paying Agent") the Redemption Price for each share of Preferred Stock outstanding immediately before the Effective Time. Promptly after the Effective Time (but in any event within five business days after the Redemption Date), the Paying Agent will mail a letter of transmittal and instructions for surrendering certificates evidencing shares of Preferred Stock to each holder of record of shares of Preferred Stock outstanding immediately before the Effective Time. The letter of transmittal will tell you how to surrender your Preferred Stock certificates in exchange for the Redemption Price. At or after the Effective Time and in accordance with the instructions accompanying the letter of transmittal, you may surrender any certificates evidencing shares of Preferred Stock owned of record by you immediately before the Effective Time for payment of the Redemption Price at 10 Commerce Drive, Cranford, NJ 07016.

Effective at the Effective Time, dividends on your shares of Preferred Stock will cease to accrue, your shares of Preferred Stock will no longer be deemed to be outstanding and all of your rights as a holder of Preferred Stock will cease except your right to receive the Redemption Price, without interest, for each share of Preferred Stock you owned of record immediately before the Effective Time, upon your surrender of the certificate evidencing each such share in accordance with this Notice of Redemption.

Glenborough Realty Trust Incorporated

By:
Andrew Batinovich
President and Chef Executive Officer