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&lt;p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"&gt;&lt;b&gt;1.&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;u&gt;ORGANIZATION AND BASIS OF PRESENTATION&lt;/u&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"&gt;&lt;b&gt; &lt;/b&gt;&amp;nbsp;&lt;/p&gt;
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&lt;p style="text-align: justify; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoBodyText2"&gt;Mack-Cali Realty Corporation, a Maryland corporation, together with its subsidiaries (collectively, the "Company"), is a fully-integrated, self-administered, self-managed real estate investment trust ("REIT") providing leasing, management, acquisition, development, construction and tenant-related services for its properties and third parties.&amp;nbsp; As of September 30, 2010, the Company owned or had interests in 287 properties plus developable land (collectively, the "Properties").&amp;nbsp; The Properties aggregate approximately 32.9 million square feet, which are comprised of 275 buildings, primarily office and office/flex buildings totaling approximately 32.5 million square feet (which include 19 buildings, primarily office buildings aggregating approximately 2.1 million square feet owned by unconsolidated joint ventures in which the Company has investment interests), six industrial/warehouse buildings totaling approximately 387,400 square feet, two retail properties totaling approximately 17,300 square feet, one hotel (which is owned by an unconsolidated joint venture in which the Company has an investment interest) and three parcels of land leased to others.&amp;nbsp; The Properties are located in five states, primarily in the Northeast, plus the District of Columbia.&lt;/p&gt;
&lt;p style="text-align: justify; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"&gt;&amp;nbsp;&lt;/p&gt;
&lt;h3 style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;"&gt;BASIS OF PRESENTATION&lt;/h3&gt;
&lt;p style="text-align: justify; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoBodyText2"&gt;The accompanying consolidated financial statements include all accounts of the Company, its majority-owned and/or controlled subsidiaries, which consist principally of Mack-Cali Realty, L.P. (the "Operating Partnership"), and variable interest entities for which the Company has determined itself to be the primary beneficiary, if any.&amp;nbsp; See Note 2:&amp;nbsp;Significant Accounting Policies &amp;ndash; Investments in Unconsolidated Joint Ventures for the Company's treatment of unconsolidated joint venture interests.&amp;nbsp; Intercompany accounts and transactions have been eliminated.&lt;/p&gt;
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&lt;p style="text-align: justify; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoBodyText2"&gt;The preparation of financial statements in conformity with generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.&amp;nbsp; Actual results could differ from those estimates.&amp;nbsp; Certain reclassifications have been made to prior period amounts in order to conform with current period presentation. &lt;/p&gt;
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&lt;p style="text-align: justify; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"&gt;On July&amp;nbsp;1, 2009, the Financial Accounting Standards Board ("FASB") issued the FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles, also known as FASB Accounting Standards Codification ("ASC") 105-10, General Accepted Accounting Principles, ("ASC 105-10").&amp;nbsp; ASC 105&amp;#8209;10 establishes the FASB Accounting Standards Codification ("Codification") as the single source of authoritative U.S. GAAP recognized by the FASB to be applied by nongovernmental entities.&amp;nbsp; Rules and interpretive releases of the Securities and Exchange Commission ("SEC") under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants.&amp;nbsp; The Codification supersedes all existing non-SEC accounting and reporting standards.&amp;nbsp; All other nongrandfathered, non-SEC accounting literature not included in the Codification will become nonauthoritative.&amp;nbsp; Following the Codification, the FASB will not issue new standards in the form of Statements, FASB Staff Positions or Emerging Issues Task Force Abstracts.&amp;nbsp; Instead, it will issue Accounting Standards Updates, which will serve to update the Codification, provide background information about the guidance and provide the basis for conclusions on the changes to the Codification.&amp;nbsp; GAAP was not intended to be changed as a result of the FASB's Codification project, but it will change the way the guidance is organized and presented.&amp;nbsp; The Company has implemented the Codification by providing references to the Codification topics, as appropriate. &lt;/p&gt; &lt;/div&gt;</NonNumbericText>
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