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                                                                  Rule 424(b)(3)
                                                                   No. 333-34186

                             CAPITAL AUTOMOTIVE REIT

                  DIVIDEND REINVESTMENT AND SHARE PURCHASE PLAN

       This prospectus supplement (the "Supplement") is part of, and should be
read in conjunction with, the prospectus dated April 14, 2000, as supplemented
by the prospectus supplement dated February 27, 2001 (the "Prospectus") relating
to the Capital Automotive REIT Dividend Reinvestment and Share Purchase Plan.

       The changes described in this Supplement will become effective on March
2, 2001 for the April 15, 2001 investment date.

       -      The discount applicable to common shares purchased using optional
              cash payments of $10,000 or less per month has been reduced from
              3% to 0%. As a result, the purchase price for common shares
              purchased using optional cash payments of $10,000 or less will be
              100% of the market price of the common shares (if purchased
              directly from us) or 100% of the average price per share actually
              paid (if purchased from parties other than us).

       -      The discount applicable to common shares acquired through
              reinvestment of dividends and distributions has not changed.

       -      The following paragraph is inserted as the fourth paragraph under
              the caption "Tax Consequences of Dividend Reinvestment Program" in
              the response to Question 29 under the heading "Terms and
              Conditions of the Plan":

              "There is no clear legal authority regarding the income tax
              treatment of a holder of units in the Partnership who invests cash
              distributions from the Partnership in common shares of another
              entity (such as the Company) that is a partner in the Partnership.
              The treatment described above may vary in the case of holders of
              units whose Partnership distributions are being reinvested."

       Information on the cover page of the Prospectus and in the Prospectus
under the captions "Summary of the Plan -- Initial Investment if You Do Not Own
Shares or Units," "Summary of the Plan -- Optional Cash Payments" and "Summary
of the Plan -- Purchase Price" and the responses to Questions 1, 4, 15, 20 and
29 under the heading "Terms and Conditions of the Plan" should be read in light
of the information contained in this Supplement.




March 6, 2001                                    Prospectus Dated April 14, 2000