SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 11-K


[X]    Annual Report Pursuant to Section 15(d) of the Securities Exchange Act of
       1934

For the fiscal year ended December 31, 2007

                                       OR

[ ]    Transition Report Pursuant to Section 15(d) of the Securities  Exchange
       Act of 1934

For the transition period from  ____________  to  ____________.

Commission File Number:  1-10709


A.  Full title of the plan and the address of the plan,  if different  from that
    of the issuer named below:

                          PS 401(k) PROFIT SHARING PLAN
                               701 Western Avenue
                             Glendale, CA 91201-2349

B.  Name of issuer of the  securities  held pursuant to the plan and the address
    of its principal executive office:

                             PS BUSINESS PARKS, INC.
                               701 Western Avenue
                             Glendale, CA 91201-2349











                          PS 401(k) PROFIT SHARING PLAN

                              FINANCIAL STATEMENTS
                            AND SUPPLEMENTAL SCHEDULE



                                TABLE OF CONTENTS

                                                                         Page



Report of Independent Registered Public Accounting Firm                     1


Financial Statements:

  Statements of Net Assets Available
    for Benefits at December 31, 2007 and 2006                              2

  Statement of Changes in Net Assets
    Available for Benefits for the year ended December 31, 2007             3

  Notes to Financial Statements                                        4 - 10


Supplemental Schedule:

  Schedule I - Schedule of Assets (Held at End of Year)                    11












             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Administrative Committee
PS 401(k) Profit Sharing Plan

We have audited the accompanying statements of net assets available for benefits
of PS 401(k)  Profit  Sharing  Plan as of December  31,  2007 and 2006,  and the
related  statement of changes in net assets  available for benefits for the year
ended December 31, 2007. These financial  statements are the  responsibility  of
the  Plan's  management.  Our  responsibility  is to express an opinion on these
financial statements based on our audits.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  We were not engaged to perform an
audit of the  Plan's  internal  control  over  financial  reporting.  Our audits
included  consideration of internal control over financial  reporting as a basis
for designing audit  procedures that are appropriate in the  circumstances,  but
not for the purpose of expressing an opinion on the  effectiveness of the Plan's
internal  control  over  financial  reporting.  Accordingly,  we express no such
opinion. An audit also includes examining,  on a test basis, evidence supporting
the  amounts  and  disclosures  in  the  financial  statements,   assessing  the
accounting  principles  used and significant  estimates made by management,  and
evaluating the overall  financial  statement  presentation.  We believe that our
audits provide a reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all  material  respects,  the net assets  available  for benefits of the Plan at
December  31,  2007 and 2006,  and the changes in its net assets  available  for
benefits for the year ended December 31, 2007, in conformity with U.S. generally
accepted accounting principles.

Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The  accompanying  supplemental  schedule of assets
(held at end of year) as of December  31,  2007,  is  presented  for purposes of
additional  analysis and is not a required part of the financial  statements but
is  supplementary  information  required by the  Department of Labor's Rules and
Regulations for Reporting and Disclosure  under the Employee  Retirement  Income
Security Act of 1974. This  supplemental  schedule is the  responsibility of the
Plan's management.  The supplemental schedule has been subjected to the auditing
procedures  applied  in our  audits  of the  financial  statements  and,  in our
opinion,  is fairly stated in all material respects in relation to the financial
statements taken as a whole.

                                                           /s/ Ernst & Young LLP


Los Angeles, California
June 25, 2008


                                       1



                          PS 401(k) PROFIT SHARING PLAN

                       STATEMENTS OF NET ASSETS AVAILABLE
                                  FOR BENEFITS




                                                                             At December 31,
                                                                  ----------------------------------
                                                                        2007                2006
                                                                  ----------------    --------------

  Assets
                                                                                  
  Investments at fair value.....................................    $86,520,986         $75,944,310

  Receivables:
     Participant contributions..................................        128,082             110,246
     Employer contributions.....................................        212,573             279,481
     Dividends receivable.......................................        216,994                   -
     Due from broker............................................        164,333                   -
                                                                  ----------------    --------------
  Total receivables.............................................        721,982             389,727
                                                                  ----------------    --------------
  Total assets..................................................     87,242,968          76,334,037

  Liabilities
  Due to broker.................................................         86,828                   -
                                                                  ----------------    --------------
  Total liabilities.............................................         86,828                   -
                                                                  ----------------    --------------
  Net assets available for benefits at fair value...............     87,156,140          76,334,037

  Adjustment from fair value to contract value for fully
     benefit- responsive investment contracts...................         27,544             142,222
                                                                  ----------------    --------------
  Net assets available for benefits.............................    $87,183,684         $76,476,259
                                                                  ================    ==============



                            See accompanying notes.
                                       2





                          PS 401(k) PROFIT SHARING PLAN

                       STATEMENT OF CHANGES IN NET ASSETS
                             AVAILABLE FOR BENEFITS

                      For the Year Ended December 31, 2007

     ADDITIONS TO NET ASSETS ATTRIBUTED TO:




           Investment income (loss):
                                                                             
             Net depreciation in fair value of investments....................  $   (4,518,477)
             Interest income..................................................         727,841
             Dividend income..................................................       1,748,153
                                                                                -----------------
                                                                                    (2,042,483)
                                                                                -----------------
           Contributions:
             Participant......................................................       4,703,160
             Participant rollovers............................................         923,226
             Employer.........................................................       2,433,843
                                                                                -----------------
                                                                                     8,060,229
                                                                                -----------------

           Other..............................................................          13,770
           Net transfers......................................................      26,319,279
                                                                                -----------------
           Total additions....................................................      32,350,795

     DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:

           Benefits paid to participants......................................      21,602,782
           Administrative expenses............................................          40,588
                                                                                -----------------
           Total deductions...................................................      21,643,370
                                                                                -----------------

       Increase in net assets available for benefits..........................      10,707,425
       Net assets available for benefits - beginning of year..................      76,476,259
                                                                                -----------------
       Net assets available for benefits - end of year........................  $   87,183,684
                                                                                =================



                             See accompanying notes.
                                       3



                          PS 401(k) PROFIT SHARING PLAN
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2007

1.       Description of the Plan
         -----------------------

         General
         -------

         The PS 401(k)  Profit  Sharing  Plan (the  "Plan")  encompasses  Public
         Storage,  PS Business  Parks,  Inc. and certain of their majority owned
         subsidiaries,  collectively, (the "Company"). The following description
         of the Plan  provides  only general  information.  Participants  should
         refer to the Plan documentation for a more complete  description of the
         Plan's provisions.

         The  Plan  is a  defined  contribution  plan  for  the  benefit  of all
         permanent  employees of the Company who have completed at least 30 days
         of service and are at least 21 years of age. The Plan is subject to the
         provisions of the Employee  Retirement  Income Security Act of 1974, as
         amended  ("ERISA").  Although it has not  expressed the intention to do
         so, the Company has the right to  terminate  the Plan  subject to ERISA
         provisions.   The  Plan   allows   interim   allocations   of   Company
         contributions  and  earnings  or  losses  of trust  fund  assets  among
         participants.

         The Company  appoints a committee to  administer  the Plan. At December
         31,  2007,  the Plan  Administrative  Committee  is  comprised of seven
         officers  of the Company  with Wells Fargo Bank acting as Trustee  (the
         "Trustee").

         Prior to  January  1, 2007,  Union  Bank of  California  served as Plan
         trustee.

         On August  22,  2006,  Public  Storage  merged  with  Shurgard  Storage
         Centers,  Inc.   ("Shurgard").   Shurgard  was  the  plan  sponsor  and
         administrator  of the Shurgard  Employee  Retirement  Savings Plan (the
         "Shurgard Plan").  Effective January 1, 2007,  pursuant to an amendment
         of the  Plan,  the  Shurgard  Plan  was  merged  into  the Plan and all
         participants  active  in the  Shurgard  Plan  as of  that  date  became
         eligible employees of the Plan on that date. Through December 31, 2006,
         Fidelity  Management  Trust  Company  served as trustee of the Shurgard
         Plan.  On  January  1,  2007,  net  assets  of  the  Shurgard  Plan  of
         $26,319,279 were merged into the Plan.

         The  Shurgard  Plan  allowed  that  loans  may  be  granted  to  active
         participants of the Shurgard Plan for any reason and are limited to 50%
         of their vested account  balance,  not to exceed $50,000.  The interest
         rate  charged on the loans is prime plus 1%.  Such loans must be repaid
         over a period  of five  years;  however,  loans for the  purchase  of a
         primary residence can be repaid over a period not longer than 30 years.
         The entire loan balance must be repaid within 60 days of termination of
         the participant's  employment.  Effective January 1, 2007, no new loans
         were  permitted.  At December  31,  2007,  the loans  outstanding  earn
         interest at fixed rates  ranging from 5.0% to 8.75%.  Payments on loans
         outstanding  are due through  October 2015.  Principal and interest are
         received through payroll deductions.

         Other significant provisions of the Plan are as follows:

         Contributions
         -------------

         Employee  contributions  to  the  Plan  (voluntary  contributions)  are
         deferrals  of  the  employee's   compensation  made  through  a  direct
         reduction of  compensation  in each payroll  period.  During 2007, each
         eligible  participant could elect a pretax contribution rate from 1% to
         100% of their compensation, as defined in the Plan document, subject to
         the maximum annual elective deferral amount set by the Internal Revenue
         Code.   Participants   may   also   contribute   amounts   representing
         distributions  from other  qualified  benefit  or defined  contribution
         plans.

         The Company  contributes one dollar ($1.00) for each dollar deferred by
         a participant up to three percent (3%) of compensation,  as defined and
         subject to certain  limitations as described in the Plan document.  The
         Company  also  contributes  an  additional  fifty cents ($.50) for each

                                       4




                          PS 401(k) PROFIT SHARING PLAN
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2007

         dollar that each participant  defers in excess of three percent (3%) of
         compensation  up to five percent (5%) of  compensation.  The  Company's
         aggregate   contributions   are  limited  to  four   percent   (4%)  of
         compensation,   as  defined  and  subject  to  certain  limitations  as
         described in the Plan document.  Additional  amounts may be contributed
         at the discretion of the Company. No such additional contributions were
         made in 2007.

         Vesting
         -------

         Since January 1, 2005,  employee  deferrals and the Company's  matching
         contribution  are 100%  vested  and  non-forfeitable.  With  respect to
         Company  contributions  before  January  1,  2005,  each  participant's
         account became 10 percent vested  (non-forfeitable)  after two years of
         service (as  defined),  20 percent  after three years of service and an
         additional 20 percent for each additional year of service thereafter.

         Participants in the Shurgard Plan were always 100% vested in both their
         contributions and Shurgard's and the Company's matching contributions.

         Participants  in the Shurgard Plan vest in the Shurgard  profit sharing
         contributions in accordance with the following schedule:

                                                            Vesting
                           Years of Service                Percentage
                  ------------------------------------     ----------
                  Less than 1 year....................        -%
                  1 year, but less than 2.............      33-1/3
                  2 year, but less than 3.............      66-2/3
                  3 or more years.....................        100

         Shurgard  employees  terminated  as a  result  of  the  merger  between
         Shurgard and Public  Storage had their  vesting in the Shurgard  profit
         sharing contributions accelerated to 100%.

         Effective January 1, 2007, pursuant to an amendment of the Plan, future
         non-elective  employer  contributions  will  become 20  percent  vested
         (non-forfeitable)  after two years of service (as defined),  40 percent
         after  three  years of service  and an  additional  20 percent for each
         additional year of service thereafter.  No such contributions were made
         in 2007.

         Upon death, severance by reason of disability, or the attainment of the
         participant's sixty-fifth birthday, a participant automatically becomes
         fully  vested to the  extent of the  balance in their  account.  In the
         event  the  Plan  is  terminated  or   contributions   are   completely
         discontinued, each participant becomes fully vested.

         Investment Options
         ------------------

         Since December 19, 2005, upon enrollment in the Plan, a participant may
         direct  their  contributions  and  holdings  in any  of  the  following
         investment options:

                                       5




                          PS 401(k) PROFIT SHARING PLAN
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2007

          1.   Dodge & Cox International Stock Fund
          2.   American Funds EuroPacific Growth Fund/R5
          3.   American Funds Growth Fund of America/R5
          4.   Oakmark Equity & Income I Fund
          5.   PIMCO Total Return Institutional Fund
          6.   Selected American Shares D
          7.   T. Rowe Price Equity Income Fund
          8.   T. Rowe Price Real Estate Fund (since October 31, 2006)
          9.   Vanguard Explorer Admiral Fund
         10.   Vanguard Extended Market Index Admiral Fund
         11.   Vanguard Short Term Federal Admiral Fund
         12.   Vanguard Windsor II Admiral Fund
         13.   Vanguard 500 Index Admiral Fund (until January 1, 2007)
         14.   Fidelity Contrafund (since January 1, 2007)
         15.   Fidelity Diversified International Fund (since January 1, 2007)
         16.   Fidelity Low Priced Stock Fund (since January 1, 2007)
         17.   Fidelity Mid-Cap Stock Fund (since January 1, 2007)
         18.   Fidelity Managed Income Portfolio Fund (from January 1, 2007
                 through December 4, 2007)
         19.   Wells Fargo Stable Return Fund S (since January 1, 2007)
         20.   Wells Fargo S&P 500 Index Fund HBP (since January 1, 2007)
         21.   UBOC Stable Value B Fund (until December 4, 2007)
         22.   Individually Directed Account

         Prior to  December  19,  2005,  participants  had the  option to direct
         contributions to the Company's securities. Effective December 19, 2005,
         participants  no longer  have that  option.  Existing  holdings  of the
         Company's  securities  on  December  19,  2005,  were  either  held  or
         transferred to other Plan investment alternatives at the option of each
         participant (see Note 5).

         Distributions from the Trust Fund
         ---------------------------------

         Distributions  of  each  participant's   vested  account  balance  upon
         severance or death are made in a single lump sum payment; however, upon
         severance if the  participant's  vested account balance exceeds $5,000,
         payment may be deferred at the election of the participant  until April
         1st of the calendar year in which the participant  reaches 70 1/2 years
         of age.

         Additionally, the Plan provides for hardship distributions (as defined)
         at the discretion of the Plan Administrative Committee.

         Generally, distributions are made no later than 60 days after the close
         of the Plan year in which the  participant  becomes  eligible  for such
         distributions.  Under certain  circumstances,  participants enrolled in
         the Plan prior to and including December 31, 1983 may elect alternative
         distribution methods.

         Forfeited Accounts
         ------------------

         Forfeitures  of  profit  sharing  contributions  may be  used  (i) as a
         non-elective  allocation  to all eligible  Plan  participants,  (ii) to
         reduce the Company's safe harbor matching  contribution or (iii) reduce
         Plan expenses.  During 2007, a total of $168,000 in non-vested  amounts
         was forfeited,  of which $26,000 was used to restore amounts previously
         forfeited  by former  Shurgard  employees.  The  remaining  $142,000 in
         non-vested  forfeiture  amounts  from  2007 is  expected  to be used to
         reduce  to Plan  administrative  fees for  eligible  Plan  participants
         during 2008 and 2009.

         During  2007,  forfeitures  of profit  sharing  contributions  totaling
         $106,000 were  allocated to eligible Plan  participants  based upon the

                                       6



                          PS 401(k) PROFIT SHARING PLAN
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2007

         extent  an  individual  participant's  compensation  bears to the total
         eligible  compensation  of all such eligible  participants  in the Plan
         year the amounts were forfeited.  These amounts  represent  forfeitures
         during 2006.

2.       Summary of Significant Accounting Principles
         --------------------------------------------

         Basis of Accounting
         -------------------

         The accompanying financial statements of the Plan have been prepared on
         the  accrual  basis  of  accounting  and are in  conformity  with  U.S.
         generally accepted accounting principles.

         Estimates
         ---------

         The  preparation  of  financial  statements  in  conformity  with  U.S.
         generally   accepted   accounting    principles   requires   the   Plan
         administrator to make estimates and assumptions that affect the amounts
         reported in the financial  statements and  accompanying  notes.  Actual
         results could differ from those estimates.

         Income Tax Status
         -----------------

         The Plan has received a determination  letter from the Internal Revenue
         Service dated March 13, 2003,  stating that the Plan is qualified under
         Section  401(a)  of  the  Internal   Revenue  Code  (the  "Code")  and,
         therefore,  the related  trust is exempt from  taxation.  Subsequent to
         this  determination  by the  Internal  Revenue  Service,  the  Plan was
         amended and restated.  Once qualified,  the Plan is required to operate
         in  conformity  with the Code to maintain its  qualification.  The plan
         administrator  believes the Plan is being  operated in compliance  with
         the applicable  requirements of the Code and, therefore,  believes that
         the Plan, as amended and restated is qualified and the related trust is
         tax exempt. The Company has indicated it will take the necessary steps,
         if any, to maintain the Plan's qualified status.

         Recently Issued Accounting Standards
         ------------------------------------

         In December  2005,  the  Financial  Accounting  Standards  Board (FASB)
         issued FASB Staff Position AAG INV-1 and SOP 94-4-1, Reporting of Fully
         Benefit-Responsive  Investment  Contracts  Held by  Certain  Investment
         Companies   Subject  to  the  AICPA   Investment   Company   Guide  and
         Defined-Contribution  Health and Welfare  and Pension  Plans (the FSP).
         The FSP defines the  circumstances  in which an investment  contract is
         considered fully benefit  responsive and provides certain reporting and
         disclosure   requirements  for  fully   benefit-responsive   investment
         contracts in defined contribution health and welfare and pension plans.
         The financial statement  presentation and disclosure  provisions of the
         FSP were effective for financial  statements  issued for annual periods
         ending after  December 15, 2006. The Plan adopted the provisions of the
         FSP at December 31, 2006.

         As required by the FSP,  investments in the accompanying  Statements of
         Net Assets  Available for Benefits  include  fully  benefit  responsive
         investment  contracts  recognized at fair value. SOP 94-4- 1, Reporting
         of Investment  Contracts  Held by Health and Welfare  Benefit Plans and
         Defined  Contribution   Pension  Plans,  as  amended,   requires  fully
         benefit-responsive investment contracts to be reported at fair value in
         the  Plan's  Statement  of Net Assets  Available  for  Benefits  with a
         corresponding  adjustment  to reflect  these  investments  at  contract
         value.

         In 2006, the FASB issued  Statement of Financial  Accounting  Standards
         No. 157, Fair Value  Measurement  (SFAS No. 157). SFAS No. 157 provides
         guidance for using fair value to measure  assets and  liabilities.  The
         standard  expands  required  disclosures  about the extent to which the
         Plan measures  assets and  liabilities at fair value,  the  information
         used to measure fair value, and the effect of fair value measurement on
         earnings.  SFAS No. 157 applies  whenever other  standards  require (or
         permit) assets or  liabilities  to be measured at fair value.  SFAS No.
         157 does not  expand  the use of fair  value in any new  circumstances.
         SFAS No. 157 will be effective for the Plan's financial  statements for
         the year ending  December  31,  2008.  The Company  does not expect the
         adoption  of SFAS  No.  157 to have a  material  impact  on the  Plan's
         financial statements.

                                       7



                          PS 401(k) PROFIT SHARING PLAN
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2007

         Investment Valuation and Income Recognition
         -------------------------------------------

         The Plan's  investments  in Company  common  stock and mutual funds are
         recorded at fair value as  determined by the quoted market price on the
         last  business  day of the plan  year.  Common  collective  trusts  are
         recorded  at fair  value  based on the fair  values  of the  underlying
         investments.  The fair  value of  fully  benefit-responsive  investment
         contracts  included in common  collective  trust funds is calculated by
         discounting  the related cash flows based on current  yields of similar
         instruments with comparable  durations.  Participant loans are recorded
         at their outstanding balance which approximates fair value.

         Purchases and sales of securities  are recorded on a trade-date  basis.
         Interest  income  is  recorded  on the  accrual  basis.  Dividends  are
         recorded on the payment date.

3.       Investments
         -----------

         Effective  January  1,  2007,  Wells  Fargo  Bank  has  custody  of the
         investments under a non-discretionary trust agreement with the Plan.

         The following  presents the fair value of  investments  at December 31,
         2007 and 2006 that  represent  five  percent (5%) or more of the Plan's
         net assets available for benefits:

                                                        2007             2006
                                                   -------------    ------------

         UBOC Stable Value B Fund                  $          -     $  8,365,985
         Wells Fargo Stable Return Fund               9,153,640                -
         Mutual Funds:
              Oakmark Equity & Income I              12,952,359        8,889,270
              Vanguard Index 500                          -            8,909,086
              Wells Fargo S&P 500                     9,116,758                -
              The Growth Fund of America              7,955,821        6,439,719
         Public Storage Common Shares                19,491,603       24,675,221
         Public Storage Equity Shares, Series A           *            3,867,503

         * Investment was less than 5% of the Plan's net assets available for
           benefits.

         During  2007,  the Plan's  investments  (including  gains and losses on
         investments  bought  and  sold,  as  well  as  held  during  the  year)
         appreciated (depreciated) in value as follows:

                                                          2007
                                                    ---------------
            Mutual funds........................    $    3,288,638
            Common and equity stock.............        (7,807,115)
                                                    ---------------
                Total                               $   (4,518,477)
                                                    ===============

4.       Administration Fees
         -------------------

         For the Plan year ended December 31, 2007, the Plan paid to the Trustee
         a  quarterly  participant  fee of $2.50 per  eligible  participant  and
         certain transaction related expenses incurred for the administration of
         the Plan. The Company  directly paid for all other Trustee fees and all
         other expenses related to the Plan.

5.       Related Party Transactions
         --------------------------

         Prior to December  19, 2005,  participants  had the option of directing
         contributions  to the  Company's  securities.  The  Company is the Plan
         sponsor as defined by the Plan document.  While  participants no longer

                                       8



                          PS 401(k) PROFIT SHARING PLAN
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2007

         have the option of directing contributions to the Company's securities,
         participants  can continue to hold such  investments  and the Plan held
         the following  shares in the Company's  securities  from  contributions
         prior to December 19, 2005:



                                                        At December 31, 2007          At December 31, 2006
                                                     ---------------------------   ---------------------------
                                                       Shares          Amount        Shares          Amount
                                                     -----------   -------------   ----------    -------------
                                                                                     
         Public Storage Common Shares                   265,517    $  19,491,603     253,305     $  24,697,256
         Public Storage Equity Shares, Series A         155,641        3,891,015     147,221         3,867,503
         PS Business Parks Common Stock                   8,864          465,803      10,112           715,020
                                                     -----------   -------------   ----------    -------------
         Totals                                         430,022    $  23,848,421     410,638     $  29,279,779
                                                     ===========   =============   ==========    =============



         Ronald L. Havner Jr., the  Vice-Chairman,  Chief Executive  Officer and
         President  of Public  Storage and  Chairman of the Board of PS Business
         Parks,  Inc.,  is a Plan  participant  and is a member  of the Board of
         Directors of Union BanCal Corporation,  which was the parent company of
         the Plan's previous trustee, Union Bank of California,  at December 31,
         2006.

         UBOC  Stable  Value B, is a money  market  fund  offered  by the Plan's
         previous  trustee.  At  December  31,  2006,  Plan  participants'  held
         $8,365,985,  in this  investment  selection.  During  2007,  the Plan's
         investments  in the UBOC Stable  Value B Fund were  liquidated  and the
         proceeds were invested into the other  remaining Plan  investments.  At
         December 31, 2007,  the Plan had no investment in the UBOC Stable Value
         B Fund.

         Wells Fargo Stable Return Fund S and Wells Fargo Short Term  Investment
         Fund G, are money  market  funds  offered  by the  Plan's  Trustee.  At
         December 31, 2007,  Plan  participants  held  $9,153,640  and $512,625,
         respectively, in these investment selections. Wells Fargo S&P 500 Index
         Fund N, is an index fund offered by the Plan's  Trustee that invests in
         equity  securities  of companies  that  comprise the S&P 500 Index.  At
         December 31, 2007, Plan participants held $9,116,758 in this investment
         selection.

6.       Risks and Uncertainties
         -----------------------

         The Plan  provides for  investment  in various  investment  securities.
         Investment  securities are exposed to various  risks,  such as interest
         rate,  market,  and credit risks.  Due to the level of risk  associated
         with certain investment securities,  it is at least reasonably possible
         that changes in the values of investment  securities  will occur in the
         near term and that such changes could materially  affect  participants'
         account balances and the amounts reported in the financial statements.

7.       Concentrations
         --------------

         Investments in the Company's securities comprised  approximately of 28%
         and 38% of the Plan's  total  investments  as of December  31, 2007 and
         2006, respectively.

8.       Plan Amendments
         ---------------

         Effective  January 1, 2007,  the Plan was  amended to  incorporate  the
         following change:

           o   Participants  may  designate  all  or a  portion  of  his  or her
               elective  contributions  as  "Roth  Contributions",   subject  to
               certain  limitations  and other specific terms  delineated in the
               Plan document.

9.       Reconciliation of Financial Statements to Form 5500
         ---------------------------------------------------

         The following is a reconciliation  of net assets available for benefits
         per the financial statements to the Form 5500 as of December 31:

                                       9




                         PS 401(k) PROFIT SHARING PLAN
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2007




                                                                    2007            2006
                                                                -------------   -------------
         Net assets available for benefits per the
                                                                          
           financial statements...............................  $ 87,183,684    $ 76,476,259

         Plus: Adjustment from fair value to contract value
           for fully benefit-responsive investment contracts..       (27,544)       (142,222)
                                                                -------------   -------------
         Net assets available for benefits per the Form 5500..  $ 87,156,140    $ 76,334,037
                                                                =============   =============







                                       10




                            SUPPLEMENTAL INFORMATION

                                   SCHEDULE I

                          PS 401(k) PROFIT SHARING PLAN
                              SCHEDULE H, LINE 4i -
                    SCHEDULE OF ASSETS (HELD AT END OF YEAR)
                                December 31, 2007

                   Employer Identification Number: 95-3551121
                                Plan Number: 001



 (a)                 (b)                                               (c)                                (e)

                                                          Description of investment including
          Identity of issue, borrower, lessor, or           maturity date, rate of interest,             Current
                       similar party                        collateral, par or maturity date              Value
        -----------------------------------------    -------------------------------------------    ---------------
                                                                                             
*       Wells Fargo                                  Wells Fargo Stable Return Fund S                 $ 9,153,640
*       Wells Fargo                                  Wells Fargo Short Term Investment Fund G             512,625
*       Wells Fargo                                  Wells Fargo S&P 500 Index Fund N                   9,116,758
        Dodge & Cox Funds                            Dodge & Cox International Stock Fund               2,825,435
        American Funds                               EuroPacific Growth Fund                              971,728
        American Funds                               The Growth Fund of America                         7,955,821
        Fidelity Investments                         Fidelity Contra Fund                                 656,321
        Fidelity Investments                         Fidelity Diversified International Fund            1,264,742
        Fidelity Investments                         Fidelity Low Price Stock Fund                        466,697
        Fidelity Investments                         Fidelity Mid-Cap Stock Fund Spartan                  882,373
        The Oakmark Funds                            Equity & Income I Fund                            12,952,359
        PIMCO Funds                                  PIMCO Total Return Institutional Fund              1,635,593
        Selected American Funds                      Selected American D Fund                           2,443,294
        T. Rowe Price                                T. Rowe Price Equity Income Fund                     701,574
        T. Rowe Price                                T. Rowe Price Real Estate Fund                       968,460
        The Vanguard Group Mutual Funds              Explorer Admiral Fund                              3,142,195
        The Vanguard Group Mutual Funds              Extended Market Index Admiral Fund                   461,899
        The Vanguard Group Mutual Funds              Short Term Federal Admiral Fund                    3,144,902
        The Vanguard Group Mutual Funds              Windsor II Admiral Fund                            2,486,562
*       Public Storage                               Company common shares                             19,491,603
*       Public Storage                               Company equity shares                              3,891,015
*       PS Business Parks, Inc.                      Company common stock                                 465,803
        Individually Directed Accounts               Various investment securities                        879,697
*       Participant loans                            Interest rates from 5.0% to 8.75%, due
                                                     through October 2015                                  49,890
                                                                                                    ---------------
        Total Investments                                                                             $86,520,986
                                                                                                    ===============



  *     Indicates a party-in-interest of the Plan.

        Note:  As all Plan  investments  are  participant  directed,  column (d)
        providing certain participant  directed  transaction cost information is
        not applicable and has been omitted.


                                       11






            CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


We consent to the incorporation by reference in the Registration Statement (Form
S-8  No.  333-50274)  pertaining  to the PS  401(k)  Profit  Sharing  Plan of PS
Business  Parks,  Inc. of our report  dated June 25,  2008,  with respect to the
financial  statements and schedule of the PS 401(k) Profit Sharing Plan included
in this Annual Report (Form 11-K) for the year ended December 31, 2007.


                                                           /s/ Ernst & Young LLP



Los Angeles, California
June 25, 2008



                                       12





                                   SIGNATURES



Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
trustees (or other persons who administer the Plan) have duly caused this annual
report to be signed on its behalf by the undersigned hereunto duly authorized.

                                          PS 401(k) PROFIT SHARING PLAN

Date: June 27, 2008

                                          By: /s/ Candace Krol
                                             -----------------
                                             Candace Krol
                                             Chairman, Administrative Committee