<PAGE>

-------------------------------------------------------------------------------

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                            WASHINGTON, D.C.  20549

                                   ----------

                                   FORM 10-Q
(MARK ONE)

X    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND
     EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1998, OR

-    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

          FOR THE TRANSITION PERIOD FROM ________ TO ________

                         COMMISSION FILE NUMBER 1-13531

                                   ----------

                             TRAMMELL CROW COMPANY

             (Exact name of registrant as specified in its charter)

                 DELAWARE                             75-2721454
      (State or other jurisdiction of                (IRS Employer
      Incorporation or organization)            Identification Number)
                                       
                               2001 ROSS AVENUE
                                  SUITE 3400
                                DALLAS, TEXAS
                        (Address of principal executive
                                   offices)

                                    75201
                                  (Zip Code)

                                 (214) 863-3000
              (Registrant's Telephone Number, Including Area Code)


     Indicate by check mark whether the registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 
1934 during the preceding 12 months (or for such shorter period that the 
registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days. Yes X  No -

At May 13, 1998, there were 33,911,416 shares of Common Stock outstanding. 

<PAGE>
                                       
                     TRAMMELL CROW COMPANY AND SUBSIDIARIES
                                       
                                     INDEX

<TABLE>
                                                                          Page
                                                                         Number
                                                                         ------
<S>                                                                      <C>
PART I.  Financial Information

   Item 1.  Financial Statements

     Condensed Consolidated Balance Sheets as of March 31, 1998 
          (unaudited) and December 31, 1997                                  1

     Condensed Consolidated Statements of Operations for the three months 
          ended March 31, 1998 and 1997 (unaudited)                          2

     Condensed Consolidated Statements of Cash Flows for the three months 
          ended March 31, 1998 and 1997 (unaudited)                          3

     Notes to Condensed Consolidated Financial Statements (unaudited)        4

   Item 2.  Management's Discussion and Analysis of Financial Condition 
          and Results of Operations                                          7

PART II.  Other Information

    Item 1.  Legal Proceedings                                              10

    Item 6.  Exhibits and Reports on Form 8-K                               10
</TABLE>

<PAGE>

PART I - FINANCIAL INFORMATION 
                                       
                    TRAMMELL CROW COMPANY AND SUBSIDIARIES

                     CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
                                              ASSETS                                                  MARCH 31,    DECEMBER 31,
                                                                                                        1998           1997
                                                                                                    ---------------------------
                                                                                                     (UNAUDITED)
                                                                                                    (IN THOUSANDS, EXCEPT SHARE
                                                                                                        AND PER SHARE DATA)
<S>                                                                                                 <C>            <C>
 Current assets
  Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 65,165       $ 96,747
  Accounts receivable, net of allowance for doubtful accounts of $838 in 1998 and $955 in 1997 . . .    45,871         40,602
  Receivables from affiliates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     1,021            926
  Notes and other receivables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     4,291          4,007
  Income taxes recoverable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     1,596          4,939
  Deferred income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     3,698          3,870
  Real estate held for sale. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   134,982         98,567
  Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    11,329          9,220
                                                                                                      --------       --------
   Total current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   267,953        258,878
 Furniture and equipment, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     7,693          6,309
 Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    14,027         14,397
 Investments in unconsolidated subsidiaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . .    11,279         11,244
 Goodwill, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    44,792         27,111
 Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    14,775          8,297
                                                                                                      --------       --------
                                                                                                      $360,519       $326,236
                                                                                                      --------       --------
                                                                                                      --------       --------

                                           LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
  Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 20,047       $ 18,523
  Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    40,594         56,270
  Payables to affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     4,003          4,466
  Current portion of long-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       826            875
  Notes payable on real estate held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . .    93,039         76,623
  Other current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     2,060          2,185
                                                                                                      --------       --------
   Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   160,569        158,942
 Long-term debt, less current portion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    33,829          1,555
 Deferred compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     3,809          8,391
 Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       673            417
                                                                                                      --------       --------
   Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   198,880        169,305
 Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    18,073         19,859
 Stockholders' equity
  Preferred stock; $0.01 par value; 30,000,000 shares authorized; none issued or outstanding . . . .         -              -
  Common stock; $0.01 par value; 100,000,000 shares authorized; 33,911,416 and 33,892,038 shares 
    issued and outstanding in 1998 and 1997, respectively. . . . . . . . . . . . . . . . . . . . . .       339            339
  Paid-in capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   150,721        150,647
  Retained earnings (deficit). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    (6,405)       (12,734)
  Less: Stockholder loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    (1,089)        (1,180)
                                                                                                      --------       --------
Total stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   143,566        137,072
                                                                                                      --------       --------
                                                                                                      $360,519       $326,236
                                                                                                      --------       --------
                                                                                                      --------       --------
</TABLE>
                                       
                            See accompanying notes.

                                       1
<PAGE>

                          TRAMMELL CROW COMPANY AND SUBSIDIARIES

                     CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                      (UNAUDITED)

<TABLE>
                                                                FOR THE THREE MONTHS   
                                                                    ENDED MARCH 31     
                                                               ----------------------  
                                                                 1998           1997   
                                                                 ----           ----   
                                                             (IN THOUSANDS, EXCEPT SHARE
                                                                   AND PER SHARE DATA)
<S>                                                            <C>             <C>
REVENUES
  Property management services . . . . . . . . . . . . . . .   $24,887         $22,024 
  Brokerage services . . . . . . . . . . . . . . . . . . . .    25,533          16,935
  Infrastructure management services . . . . . . . . . . . .    22,890          14,569
  Development and construction services. . . . . . . . . . .     8,891           5,206
  Retail services. . . . . . . . . . . . . . . . . . . . . .     2,727             325
                                                               -------         ------- 
                                                                84,928          59,059
  Income from investments in unconsolidated subsidiaries . .     2,415              58
  Gain on disposition of real estate . . . . . . . . . . . .       866           1,124
  Other income . . . . . . . . . . . . . . . . . . . . . . .     2,042           1,857
                                                               -------         ------- 
                                                                90,251          62,098
COSTS AND EXPENSES
  Salaries, wages, and benefits. . . . . . . . . . . . . . .    50,516          37,339
  Commissions. . . . . . . . . . . . . . . . . . . . . . . .    10,953           7,003
  General and administrative . . . . . . . . . . . . . . . .    15,097          10,303
  Profit sharing . . . . . . . . . . . . . . . . . . . . . .         -           2,570
  Depreciation . . . . . . . . . . . . . . . . . . . . . . .     1,085             898
  Amortization . . . . . . . . . . . . . . . . . . . . . . .       329               -
  Interest . . . . . . . . . . . . . . . . . . . . . . . . .     1,666             552
  Royalty and consulting fees. . . . . . . . . . . . . . . .         -             528
  Minority interest. . . . . . . . . . . . . . . . . . . . .        37             281
                                                               -------         ------- 
                                                                79,683          59,474
                                                               -------         ------- 
Income before income taxes . . . . . . . . . . . . . . . . .    10,568           2,624
Income tax expense . . . . . . . . . . . . . . . . . . . . .     4,239           1,023
                                                               -------         ------- 
Net income . . . . . . . . . . . . . . . . . . . . . . . . .   $ 6,329         $ 1,601
                                                               -------         ------- 
                                                               -------         ------- 
Earnings per share: 
  Basic. . . . . . . . . . . . . . . . . . . . . . . . . . .   $   .19               *
                                                               ------- 
                                                               ------- 
  Diluted. . . . . . . . . . . . . . . . . . . . . . . . . .   $   .18               *
                                                               ------- 
                                                               ------- 
</TABLE>

-----------

* Information is not relevant due to change in capital structure.

                             See accompanying notes.

                                       2

<PAGE>

                            TRAMMELL CROW COMPANY AND SUBSIDIARIES

                        CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                          (UNAUDITED)

<TABLE>
                                                                 FOR THE THREE MONTHS
                                                                    ENDED MARCH 31
                                                               -------------------------
                                                                  1998           1997
                                                                  ----           ----
                                                                    (IN THOUSANDS)
<S>                                                            <C>             <C>
OPERATING ACTIVITIES
Net income . . . . . . . . . . . . . . . . . . . . . . . . .   $  6,329          $1,601
Adjustments to reconcile net income to net cash used in 
  operating activities
  Depreciation . . . . . . . . . . . . . . . . . . . . . . .      1,085             898
  Amortization . . . . . . . . . . . . . . . . . . . . . . .        329               -
  Minority interest. . . . . . . . . . . . . . . . . . . . .         37             281
  Deferred income tax provision. . . . . . . . . . . . . . .        865              10
  Income from investments in unconsolidated subsidiaries . .     (2,415)            (58)
  Gain on disposition of real estate . . . . . . . . . . . .       (866)         (1,124)
  Changes in operating assets and liabilities
    Accounts receivable. . . . . . . . . . . . . . . . . . .     (3,976)          5,526
    Receivables from affiliates. . . . . . . . . . . . . . .        (95)          1,226
    Notes and other assets . . . . . . . . . . . . . . . . .     (5,048)         (3,140)
    Expenditures for real estate held for sale . . . . . . .    (45,758)        (11,045)
    Proceeds from sale of real estate. . . . . . . . . . . .     10,209          13,864
    Proceeds from real estate notes payable. . . . . . . . .     20,815           8,809
    Payments on real estate notes payable. . . . . . . . . .     (4,399)        (11,761)
    Accounts payable and accrued expenses. . . . . . . . . .    (16,609)        (19,081)
    Payables to affiliates . . . . . . . . . . . . . . . . .       (463)         (1,007)
    Income taxes recoverable/payable . . . . . . . . . . . .      3,343          (2,767)
    Deferred compensation. . . . . . . . . . . . . . . . . .     (4,582)          2,501
    Other liabilities. . . . . . . . . . . . . . . . . . . .       (378)           (552)
                                                               --------        -------- 
Net cash used in operating activities. . . . . . . . . . . .    (41,577)        (15,819)
                                                               --------        -------- 
INVESTING ACTIVITIES
Expenditures for furniture and equipment . . . . . . . . . .     (2,089)           (605)
Acquisitions of real estate service companies. . . . . . . .    (20,863)              -
Investments in unconsolidated subsidiaries . . . . . . . . .       (597)         (1,537)
Distributions from unconsolidated subsidiaries . . . . . . .      2,977             564
Contributions from minority interest . . . . . . . . . . . .        171             457
Distributions to minority interest . . . . . . . . . . . . .     (1,994)           (145)
                                                               --------        -------- 
Net cash used in investing activities. . . . . . . . . . . .    (22,395)         (1,266)
                                                               --------        -------- 
FINANCING ACTIVITIES
Principal payments on debt . . . . . . . . . . . . . . . . .     (1,390)         (1,819)
Proceeds from debt . . . . . . . . . . . . . . . . . . . . .     33,615           2,306
Proceeds from exercise of stock options. . . . . . . . . . .         74               -
Collections of stockholder loans . . . . . . . . . . . . . .         91               -
                                                               --------        -------- 
Net cash provided by financing activities. . . . . . . . . .     32,390             487
                                                               --------        -------- 
Net decrease in cash and cash equivalents. . . . . . . . . .    (31,582)        (16,598)
Cash and cash equivalents, beginning of period . . . . . . .     96,747          58,505
                                                               --------        -------- 
Cash and cash equivalents, end of period . . . . . . . . . .   $ 65,165        $ 41,907
                                                               --------        -------- 
                                                               --------        -------- 
</TABLE>

                            See accompanying notes.

                                       3
<PAGE>

                        TRAMMELL CROW COMPANY AND SUBSIDIARIES
                 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                    MARCH 31, 1998
                   (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
                                     (UNAUDITED)

1.   GENERAL

     The consolidated interim financial statements of Trammell Crow Company (the
Company) included herein have been prepared in accordance with the requirements
for interim financial statements and do not include all disclosures required
under generally accepted accounting principles for complete financial
statements.  These financial statements should be read in conjunction with the
consolidated financial statements included in the Company's annual report on
Form 10-K for the year ended December 31, 1997.  In the opinion of management,
all adjustments and eliminations, consisting only of recurring adjustments,
necessary for a fair presentation of the financial statements for the interim
periods have been made.  Interim results of operations are not necessarily
indicative of the results to be expected for the full year.

     The Company has experienced and expects to continue to experience 
quarterly variations in revenues and net income as a result of several 
factors, including the timing of transactions, the commencement of new 
contracts, revenue mix and the timing of additional selling, general and 
administrative expenses to support new business activities.  The Company's 
revenues tend to be higher in the last quarter of the year than in the first 
three quarters because its clients have demonstrated a tendency to close 
transactions toward the end of the year, which causes the Company to earn 
more of its revenue under transaction-oriented service contracts in the last 
quarter of the year.  In addition, an increasing percentage of the Company's 
property management and infrastructure management contracts provide for 
incentive payments if the Company achieves certain performance targets.  Such 
incentive payments are generally earned in the fourth quarter.   

USE OF ESTIMATES

     The preparation of the financial statements in accordance with generally
accepted accounting principles requires management 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 TAXES

     The provision for income taxes has been included in the accompanying
financial statements based on an estimated annual effective tax rate.  The
differences between the provisions for income taxes and amounts computed by
applying the statutory federal income tax rates to income are primarily a result
of amortization of goodwill, state income taxes and non-deductible meals and
entertainment expenditures.

EARNINGS PER SHARE

     Weighted average shares outstanding used to calculate basic earnings per
share were 33,899,574. Weighted average shares outstanding of 36,115,203 used to
calculate diluted earnings per share includes employee stock options to purchase
2,215,629 shares of common stock as these options are dilutive.

2.   REAL ESTATE HELD FOR SALE

     During the three months ended March 31, 1998, the Company sold three real
estate projects for an aggregate sales price of $10,209, resulting in a gain on
disposition of $866. During the three months ended March 31, 1997, the Company
sold six real estate projects for an aggregate sales price of $13,864, resulting
in a gain on disposition of $1,124. 

     In March 1997, the Company contributed real estate held for sale of $35,400
and the related $35,400 note payable to a partnership and received a 16% limited
partner interest. No gain was recognized.


                                       4

<PAGE>

                    TRAMMELL CROW COMPANY AND SUBSIDIARIES
           NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                   (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)


3.   INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES

     Operating results for unconsolidated subsidiaries in which the Company has
an investment were as follows:

<TABLE>
                                             FOR THE THREE  
                                             MONTHS ENDED   
                                             MARCH 31, 1998 
                                             -------------- 
               <S>                           <C>
               Total revenues                  $  13,682  
               Total expenses                     (8,128) 
                                               ---------  
                  Net income                   $   5,554  
                                               ---------  
                                               ---------  
</TABLE>


4.   STOCKHOLDERS' EQUITY

     A summary of the Company's stock option activity for the three months ended
March 31, 1998 is as follows: 
    
<TABLE>
                                              EXERCISE PRICE OF $3.85   EXERCISE PRICE OF $17.50 TO
                                                (BELOW MARKET PRICE       $29.44 (AT MARKET PRICE
                                                   AT GRANT DATE)              AT GRANT DATE)          TOTAL    
                                              ----------------------------------------------------------------   
          <S>                                 <C>                       <C>                          <C>
          OPTIONS OUTSTANDING:
          December 31, 1997                          2,423,769                   2,364,277           4,788,046   
          Granted                                            -                     118,943             118,943   
          Exercised                                    (19,378)                          -             (19,378)  
          Forfeited                                    (38,866)                          -             (38,866)  
          Expired                                            -                           -                   -   
                                                     ---------                   ---------           ---------   
          March 31, 1998                             2,365,525                   2,483,220           4,848,745
                                                     ---------                   ---------           ---------   
                                                     ---------                   ---------           ---------   
          OPTIONS EXERCISABLE AT MARCH 31, 1998      2,365,525                      15,822           2,381,347
                                                     ---------                   ---------           ---------   
                                                     ---------                   ---------           ---------   
</TABLE>


5.    ACQUISITION OF TOOLEY & COMPANY

     On March 16, 1998, the Company purchased all of the issued and outstanding
capital stock of Tooley & Company, Inc. (Tooley), a California real estate
services company primarily engaged in office management and leasing.  The
Company paid cash of $23,100 for the capital stock, and paid an additional
$1,000 to two of the principals of Tooley as consideration for non-compete
agreements. The Company also agreed to pay the seller an additional $3,000 of
purchase price if Tooley achieves certain performance standards in the future,
as well as certain payments based upon the future performance of certain of
Tooley's projects. In connection with the acquisition, which was accounted for
using the purchase method of accounting, the Company recorded goodwill of
$17,375. The operations of Tooley are included in the Company's operations from
the date of acquisition. The Company borrowed $23,000 under its credit facility
to fund the purchase.


                                       5

<PAGE>

                    TRAMMELL CROW COMPANY AND SUBSIDIARIES
           NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                   (in thousands, except share and per share data)


6.   CONTINGENCIES

     At March 31, 1998, the Company has guaranteed $3,775 of real estate notes
payable of others. These notes are collateralized by the underlying real estate.
The Company has outstanding letters of credit totaling $12,165 at March 31,
1998, which expire at varying dates through July 1999. 

     In addition, at March 31, 1998, the Company has several completion and
budget guarantees relating to development projects. Management does not expect
to incur any material losses under these guarantees. 

     The Company and its subsidiaries are defendants in lawsuits that arose in
the normal course of business. In management's judgment, the ultimate liability,
if any, from such legal proceedings will not have a material effect on the
Company's financial position. 










                                       6

<PAGE>


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

     The following discussion should be read in conjunction with the Company's
Consolidated Financial Statements and the notes thereto included in Item 1 of
this Quarterly Report on Form 10-Q. 

OVERVIEW

     Trammell Crow Company is one of the largest diversified commercial real
estate service firms in the United States. As a means of addressing the
comprehensive real estate service requirements of its diverse group of clients,
the Company is organized into five principal lines of business. Property
management services include serving the clients' needs with respect to all
aspects of building operations, tenant relations and oversight of building
improvement processes, primarily for building owners who do not occupy the
properties managed by the Company. Brokerage services include advising buyers,
sellers, landlords and tenants in connection with the sale and leasing of
office, industrial and retail space and land. Infrastructure management entails
providing comprehensive day-to-day occupancy related services, principally to
large corporations which occupy commercial facilities in multiple locations.
Specific infrastructure management services include administration, day-to-day
maintenance and repair of client occupied facilities and strategic functions
such as space planning, relocation coordination, facilities management and
portfolio management. The development and construction services provided by the
Company include financial planning, site acquisition, procurement of approvals
and permits, design and engineering coordination, construction bidding and
management and tenant finish coordination, project close-out and user move
coordination, general contracting and project finance advisory services. The
Company's retail services business provides tenant representation, disposition,
development and financial services to national and global retail customers.  

RESULTS OF OPERATIONS - THREE MONTHS ENDED MARCH 31, 1998 COMPARED TO THREE
MONTHS ENDED MARCH 31, 1997

REVENUES.  The Company's total revenues grew $28.2 million, or 45.4%, to
$90.3 million in the first quarter of 1998 from $62.1 million in the first
quarter of 1997. 

     Property management services revenue, which represented 27.6% of the 
Company's total revenue in the first quarter of 1998, increased $2.9 million, 
or 13.2%, to $24.9 million in the first quarter of 1998 from $22.0 million in 
the first quarter of 1997. This increase was partially due to an overall 
increase in the number of square feet under management (resulting primarily 
from the acquisition of Tooley).  In addition, a general increase in market 
rents and decrease in vacancies has resulted in higher revenues for 
properties managed, which in turn results in higher management fees to the 
Company since fees are generally based on a percentage of property revenues.

     Brokerage services revenue, which represented 28.3% of the Company's 
first quarter 1998 total revenue, increased $8.6 million, or 50.9%, to $25.5 
million in the first quarter of 1998 from $16.9 million in the first quarter 
of 1997. The revenue growth resulted from an increase in the number of 
brokerage transactions fueled  by an increase of 48% in the average number of 
brokers employed during the first quarter of 1998, as compared to the first 
quarter of 1997, coupled with a general increase in market rents.
 
     Infrastructure management services revenues, which represented 25.4% of the
Company's first quarter 1998 total revenue, increased $8.3 million, or 56.8%, to
$22.9 million in the first quarter of 1998 from $14.6 million in the first
quarter of 1997. The revenue growth resulted primarily from the addition of
three significant new customers in the financial services industry, and
expansion of services provided to another major customer. 

     On a combined basis, development and construction service fees, gain on 
disposition of real estate and income from unconsolidated subsidiaries 
totalled $12.2 million in the first quarter of 1998, which represented 13.5% 
of the Company's first quarter 1998 total revenue. These combined revenues 
increased $5.8 million, or 90.1%, from $6.4 million in the first quarter of 
1997. This revenue growth was primarily due to incentive development fees 
earned on a significant transaction in the first quarter of 1998, and income 
from unconsolidated subsidiaries resulting from sale of the underlying real 
estate.

     Retail services revenue, which represented 3.0% of the Company's first
quarter 1998 total revenue, increased $2.4 million, or 800%, to $2.7 million in
the first quarter of 1998 from $.3 million in the first quarter of 1997,
primarily as a result of the acquisition of Doppelt & Company in August 1997. 


OPERATING COSTS AND EXPENSES.  The Company's operating costs and expenses
increased by $20.2 million, or 33.9%, to $79.7 million in the first quarter of
1998 from $59.5 million in the first quarter of 1997. A 35.3% increase in
salaries, wages, and benefits is primarily due to the increased staffing
required for the infrastructure management services business, as well as
increases in staffing in other parts of the Company to support growth.
Additionally, compensation increased in the first quarter of 1998 from the
comparable period in 1997 due to the impact of the new compensation structure
adopted in connection with the Company's initial public offering (the
"Offering") in the 


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<PAGE>

fourth quarter of 1997. The increase in commissions of 56.4% corresponds to 
the growth in the Company's brokerage services revenues. The increase in 
general and administrative expenses is primarily due to a $2 million increase 
in rent, travel and overhead costs of the infrastructure management services 
business to accommodate the growth in the number of employees, coupled with a 
company-wide increase in administrative costs resulting from the overall 
increase in number of employees. The Company had no profit sharing expense in 
the first quarter of 1998 as compared to $2.6 million in the first quarter of 
1997 as the future profits participation under the Company's Profit Sharing 
Plan were terminated in conjunction with the Offering. Additionally, the 
Company had no royalty or consulting expenses in the first quarter of 1998 as 
compared to $.5 million in the first quarter of 1997, because certain royalty 
and consulting arrangements to which the Company was a party were terminated 
concurrent with the Offering.  Interest expense increased in the first 
quarter of 1998 as a result of interest expensed on real estate development 
projects that were completed and operated in 1998.

INCOME BEFORE INCOME TAXES.  The Company's income before income taxes increased
$8.0 million, to $10.6 million in the first quarter of 1998 from $2.6 million in
the first quarter of 1997 due to the increases in revenues and expenses
described above.

NET INCOME.  Net income increased $4.7 million, to $6.3 million in the first
quarter of 1998 from $1.6 million in the first quarter of 1997. 

SEASONALITY

     The Company has experienced and expects to continue to experience 
quarterly variations in revenues and net income as a result of several 
factors, including the timing of transactions, the commencement of new 
contracts, revenue mix and the timing of additional selling, general and 
administrative expenses to support new business activities.  The Company's 
revenues tend to be higher in the last quarter of the year than in the first 
three quarters because its clients have demonstrated a tendency to close 
transactions toward the end of the year, which causes the Company to earn 
more of its revenue under transaction-oriented service contracts in the last 
quarter of the year.  In addition, an increasing percentage of the Company's 
property management and infrastructure management contracts provide for 
incentive payments if the Company achieves certain performance targets.  Such 
incentive payments are generally earned in the fourth quarter.   

LIQUIDITY AND CAPITAL RESOURCES

     The Company's liquidity and capital resources requirements include
expenditures for real estate held for sale and payments on notes payable
associated with its development and construction activities; the funding of
working capital needs, primarily accounts receivable from its clients and
affiliates; and the funding of capital investments. Historically, the Company
has financed its operations, investments and acquisitions with internally
generated funds, and additional liquidity has been available to the Company
through deferred compensation arrangements under its Profit Sharing Plan. The
Company terminated future profits participation under the Profit Sharing Plan in
connection with the Offering, and the Company expects that its cash flow from
operations in 1998 and future periods will be greater than in prior years as a
result of this change. In addition, the Company has historically financed its
development and construction services activities with construction loans secured
by underlying real estate. 

     Net cash flow used in operating activities totaled $41.6 million for the 
three months ended March 31, 1998, compared to $15.8 million in the same 
period in 1997. The increased use of cash in operating activities is 
primarily due to a significant increase in development activity and related 
expenditures for real estate held for sale, and payment in 1998 of profit 
sharing distributions totaling $8.9 million. 

     Net cash flow used in investing activities totaled $22.4 million for the 
three months ended March 31, 1998, compared to $1.3 million for the same 
period in 1997. This change is primarily attributable to the acquisition of 
Tooley & Company in March 1998. 

     Net cash flow provided by financing activities totaled $32.4 million for
the three months ended March 31, 1998, compared to $.5 million for the same
period in 1997.  The increase in cash provided by financing activities is
primarily due to borrowings of $33 million as described below. 

     On December 1, 1997, the Company obtained a $150 million master line of
credit from NationsBank of Texas, N.A., a national banking association (the
"NationsBank Facility"). The Company has borrowed, and expects to continue to
borrow, under the NationsBank Facility to finance future strategic acquisitions,
fund its co-investment activities and provide the Company with an additional
source of working capital. The NationsBank Facility contains various covenants
such as the maintenance of minimum equity and liquidity and covenants relating
to certain key financial data. The NationsBank Facility also includes
limitations on payment of cash dividends or other distributions of assets and
certain restrictions on investments and acquisitions that can be made by the
Company. The covenants contained in the NationsBank Facility and the amount of
the Company's other borrowings and contingent liabilities may have the effect of
limiting the credit available to the Company under the NationsBank Facility to
an amount less than the $150 million commitment. As of March 31, 1998, the
Company had borrowed $33.0 million under the NationsBank Facility, including
$10.0 million to fund its co-investment activities and $23.0 million for the
acquisition of Tooley, and the amount available thereunder was approximately
$113.8 million. In January and April 1998, the  Company amended the NationsBank
Facility to change limitations imposed by certain of the covenants. The shares
of certain wholly-owned subsidiaries having 5% or more of the consolidated
assets, revenues or earnings of the Company, and 


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<PAGE>

subsidiaries which are engaged primarily in the business of real estate 
development and ownership, whose assets are not subject to any financing, 
having more than 5% of the consolidated assets, revenues or earnings of the 
Company, are pledged as security for this credit facility. 

     The Company intends to retain earnings to finance its growth and,
therefore, does not anticipate paying any dividends in the foreseeable future.
The Company believes that funds generated from operations, together with
existing cash and available credit under the NationsBank Facility will be
sufficient to finance its current operations, planned capital expenditure
requirements, payment obligations for development purchases and internal growth
for the foreseeable future. The Company's need, if any, to raise additional
funds to meet its working capital and capital requirements will depend upon
numerous factors, including the success and pace of its implementation of its
growth strategy. The Company regularly monitors capital raising alternatives to
be able to take advantage of available avenues to supplement its working
capital, including strategic corporate partnerships or other alliances, bank
borrowings and the sale of equity and/or debt securities. 

IMPACT OF YEAR 2000

     The Company has begun to assess the impact of the Year 2000 issue on its
operations, including the processing of its own transactions and the processing
of transactions for customers under both property management contracts and
infrastructure management services contracts. 

     Based on preliminary assessments, commenced in 1997, of the systems and
software used to process its own transactions, the Company believes that such
systems and software are Year 2000 compliant, or can be modified or replaced on
a timely basis to be compliant, without material cost to the Company. The
Company has recently begun assessments of the systems and software used to
process certain of its customers' transactions. Until the Company completes a
thorough assessment of its systems and software (including systems and software
used to process its customers' transactions), the Company cannot estimate the
costs and time period that will be required for any indicated modifications or
replacements of such systems and software. The Company expects to finish such
assessment, design an action plan (which will include specific remediation steps
and timetables, expected costs, and identification of the resources required for
implementation) and begin implementation of such action plan during 1998. 

     The Company also recognizes that Year 2000 issues could have an extensive
impact on the physical operation of buildings managed by the Company, such as
operation of elevators and energy management and security access systems.
Included in the Company's plans for addressing Year 2000 issues is a program to
assist the Company's customers with the identification and remediation of Year
2000 issues associated with critical systems at the customers' properties. 

     In addition, the Company has begun discussions with its vendors regarding
the need to be Year 2000 compliant. Although the Company has no reason to
believe that its vendors are not Year 2000 compliant (or will not be compliant
on a timely basis), the Company is unable to determine at this time the effect
that non-compliance by vendors would have on the Company's operations. 

FORWARD-LOOKING STATEMENTS

     Certain statements contained or incorporated by reference in this 
Quarterly Report on Form 10-Q, including without limitation statements 
containing the words "believes" "anticipates," "expects" and words of similar 
import, are forward-looking statements. Such forward-looking statements 
involve known and unknown risks, uncertainties and other matters which may 
cause the actual results, performance or achievements of the Company or 
industry results to be materially different from any future results, 
performance or achievements expressed or implied by such forward-looking 
statements. Such risks, uncertainties and other matters include, but are not 
limited to, (i) the fact that a significant portion of the Company's historic 
revenues have been derived from significant business activities with certain 
entities which are affiliated with a significant stockholder, (ii) the 
conduct of investment or development activities by affiliates that are 
directly competitive with the Company's activities, (iii) confusion that may 
be created in the market place between the Company and such affiliates, (iv) 
the control over the affairs and policies of the Company that could be 
exercised by the Company's directors, officers, employees and affiliates due 
to their significant stock ownership, (v) the Company's ability to continue 
to pursue an aggressive growth strategy (including through acquisitions), 
(vi) the ability of the Company to manage fluctuations in the Company's net 
earnings and cash flow which could result from the Company's increased 
participation as a principal in real estate investments, (vii) the Company's 
ability to compete in highly competitive national and local business lines 
and (viii) the Company's ability to attract and retain qualified personnel in 
all areas of its business (particularly management). In addition, the 
Company's ability to achieve certain anticipated results will be subject to 
other factors affecting the Company's business that are beyond the Company's 
control, including but not limited to general economic conditions and the 
effect of government regulation on the conduct of the Company's business. 
Given these uncertainties, readers are cautioned not to place undue reliance 
on such forward-looking statements. The Company disclaims any obligation to 
update any such statements or publicly announce any updates or revisions to 
any of the forward-looking statements contained herein to reflect any change 
in the Company's expectation with regard thereto or any change in events, 
conditions, circumstances or assumptions underlying such statements. 

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<PAGE>

PART II - OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

     From time to time, the Company is involved in litigation incidental to its
business. In the Company's opinion, no litigation to which the Company is
currently a party, if decided adversely to the Company, is likely to have a
material adverse effect on the Company's results of operation or financial
condition.

Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)  Exhibits:
     10.1  First Amendment of Credit Agreement dated as of December 1, 1997
           among the Company, NationsBank of Texas, N.A. and Bankers Trust
           Company - January 29, 1998
               
     10.2  Second Amendment of Credit Agreement dated as of December 1, 1997
           among the Company, NationsBank of Texas, N.A. and Bankers Trust
           Company - April 27, 1998     

     27    Financial Data Schedule
     
(b)  none  











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<PAGE>

                                    SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the 
registrant has duly caused this report to be signed on its behalf by the 
undersigned, thereunto duly authorized. 



                       TRAMMELL CROW COMPANY
                       By:

                                          /s/  Asuka Nakahara
                            ----------------------------------------------------
                                               Asuka Nakahara
                            EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
                                   (Principal Financial Officer and duly 
                                     authorized to sign this report on 
                                        behalf of the Registrant)

Date: May 15, 1998






















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