UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities  Exchange
Act of 1934

For the period ended September 30, 1998
                     ------------------

                                       or

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 [No Fee Required]

For the transition period from               to
                              ---------------  ---------------

Commission File Number 0-16876
                       -------

            PS PARTNERS VIII, LTD., a California Limited Partnership
       ------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


               California                                      95-4029178
-------------------------------------------             ------------------------
    (State or other jurisdiction of                         (I.R.S. Employer
     incorporation or organization)                      Identification Number)


           701 Western Avenue
          Glendale, California                                 91201-2394
-------------------------------------------             ------------------------
(Address of principal executive offices)                       (Zip Code)


Registrant's telephone number, including area code:  (818) 244-8080
                                                     --------------


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
                                       ---  ---

<PAGE>

                                      INDEX




PART I.   FINANCIAL INFORMATION

Condensed balance sheets at September 30, 1998
     and December 31, 1997                                                2

Condensed statements of income for the three
     and nine months ended September 30, 1998 and 1997                    3

Condensed statements of cash flows for the
     nine months ended September 30, 1998 and 1997                        4-5

Notes to condensed financial statements                                   6

Management's discussion and analysis of financial condition
     and results of operations                                            7-10

PART II.  OTHER INFORMATION

(Items 1 through 5 are not applicable)

Item 6 - Exhibits and Reports on Form 8-K                                 11

<PAGE>
                             PS PARTNERS VIII, LTD.,
                        a California Limited Partnership
                            CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                          September 30,    December 31,
                                                                              1998             1997
                                                                         ---------------------------------
                                                                           (Unaudited)

                                     ASSETS
                                     ------

<S>                                                                           <C>             <C>      
Cash and cash equivalents                                                     $ 513,000       $ 249,000

Rent and other receivables                                                       (4,000)         11,000

Real estate facilities, at cost:
   Land                                                                       4,926,000       4,926,000
   Buildings and equipment                                                   12,413,000      12,320,000
                                                                         ---------------------------------
                                                                             17,339,000      17,246,000

   Less accumulated depreciation                                             (5,510,000)     (5,081,000)
                                                                         ---------------------------------
                                                                             11,829,000      12,165,000

Investment in real estate entity                                              5,167,000       5,134,000

Other assets                                                                     31,000          31,000
                                                                         ---------------------------------

                                                                           $ 17,536,000    $ 17,590,000
                                                                         =================================



                        LIABILITIES AND PARTNERS' EQUITY
                        --------------------------------

Accounts payable                                                              $ 257,000       $ 223,000

Advance payments from renters                                                   113,000         121,000

Partners' equity:
   Limited partners' equity,
      $500 per unit, 150,000 units authorized,
      52,751 issued and outstanding                                          16,960,000      17,039,000
   General partners' equity                                                     206,000         207,000
                                                                         ---------------------------------

         Total partners' equity                                              17,166,000      17,246,000
                                                                         ---------------------------------

                                                                           $ 17,536,000    $ 17,590,000
                                                                         =================================
</TABLE>
                            See accompanying notes.
                                       2

<PAGE>

                            PS PARTNERS VIII, LTD.,
                        a California Limited Partnership
                         CONDENSED STATEMENTS OF INCOME
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                               Three Months Ended             Nine Months Ended
                                                                  September 30,                 September 30,
                                                          -------------------------------------------------------------
                                                               1998           1997           1998           1997
                                                          -------------------------------------------------------------

REVENUE:

<S>                                                           <C>            <C>          <C>            <C>        
Rental income                                                 $ 714,000      $ 665,000    $ 2,078,000    $ 1,931,000
Equity in income of real estate entity                           71,000         53,000        201,000        155,000
Interest income                                                   7,000          4,000         17,000         10,000
                                                          -------------------------------------------------------------
                                                                792,000        722,000      2,296,000      2,096,000
                                                          -------------------------------------------------------------

COSTS AND EXPENSES:

Cost of operations                                              178,000        169,000        556,000        517,000
Management fees                                                  42,000         40,000        124,000        116,000
Depreciation and amortization                                   142,000        140,000        429,000        418,000
Administrative                                                   26,000         26,000         66,000         62,000
                                                          -------------------------------------------------------------
                                                                388,000        375,000      1,175,000      1,113,000
                                                          -------------------------------------------------------------

NET INCOME                                                    $ 404,000      $ 347,000    $ 1,121,000      $ 983,000
                                                          =============================================================

Limited partners' share of net income
   ($18.79 per unit in 1998 and
   $16.19 per unit 1997)                                                                    $ 991,000      $ 854,000
General partners' share of net income                                                         130,000        129,000
                                                                                        -------------------------------
                                                                                          $ 1,121,000      $ 983,000
                                                                                        ===============================
</TABLE>
                            See accompanying notes.
                                       3

<PAGE>

                             PS PARTNERS VIII, LTD.,
                        a California Limited Partnership
                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                      Nine Months Ended
                                                                                        September 30,
                                                                             ------------------------------------
                                                                                    1998               1997
                                                                             ------------------------------------

CASH FLOWS FROM OPERATING ACTIVITIES:

   <S>                                                                           <C>                  <C>      
   Net income                                                                    $ 1,121,000          $ 983,000

   Adjustments to reconcile net income to net cash
       provided by operating activities

       Depreciation and amortization                                                 429,000            418,000
       Decrease in rent and other receivables                                         15,000                  -
       Decrease in other assets                                                            -             19,000
       Increase (decrease) in accounts payable                                        34,000             (9,000)
       Decrease in advance payments from renters                                      (8,000)                 -
       Equity in income of real estate entity                                       (201,000)          (155,000)
                                                                             ------------------------------------

         Total adjustments                                                           269,000            273,000
                                                                             ------------------------------------

         Net cash provided by operating activities                                 1,390,000          1,256,000
                                                                             ------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:

   Distributions from real estate entity                                             168,000                  -
   Investment in real estate entity                                                        -             (2,000)
   Additions to real estate facilities                                               (93,000)           (92,000)
                                                                             ------------------------------------

         Net cash provided by (used in) investing activities                          75,000            (94,000)
                                                                             ------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:

   Distributions to partners                                                      (1,201,000)        (1,201,000)
                                                                             ------------------------------------

         Net cash used in financing activities                                    (1,201,000)        (1,201,000)
                                                                             ------------------------------------

Net increase (decrease) in cash and cash equivalents                                 264,000            (39,000)

Cash and cash equivalents at the beginning of the period                             249,000            209,000
                                                                             ------------------------------------

Cash and cash equivalents at the end of the period                                 $ 513,000          $ 170,000
                                                                             ====================================
</TABLE>
                            See accompanying notes.
                                       4

<PAGE>

                             PS PARTNERS VIII, LTD.,
                        a California Limited Partnership
                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                                   (Continued)

<TABLE>
<CAPTION>
                                                                                      Nine Months Ended
                                                                                        September 30,
                                                                             ------------------------------------
                                                                                    1998              1997
                                                                             ------------------------------------


Supplemental schedule of noncash investing and financing activities:


   <S>                                                                              <C>           <C>          
   Investment in real estate entity                                                 $ -           $ (5,016,000)

   Transfer of real estate facilities for interest in 
     real estate entity, net                                                           -             5,016,000

</TABLE>
                            See accompanying notes.
                                       5

<PAGE>

                             PS PARTNERS VIII, LTD.,
                        a California Limited Partnership
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1998
                                   (UNAUDITED)

1.   The  accompanying   unaudited  condensed  financial  statements  have  been
     prepared  pursuant  to the  rules and  regulations  of the  Securities  and
     Exchange Commission.  Certain information and footnote disclosures normally
     included in financial  statements  prepared in  accordance  with  generally
     accepted  accounting  principles have been condensed or omitted pursuant to
     such  rules  and  regulations,   although   management  believes  that  the
     disclosures contained herein are adequate to make the information presented
     not misleading.  These unaudited condensed  financial  statements should be
     read in  conjunction  with  the  financial  statements  and  related  notes
     appearing in the  Partnership's  Form 10-K for the year ended  December 31,
     1997.

2.   In  the  opinion  of  management,   the  accompanying  unaudited  condensed
     financial  statements  reflect all  adjustments,  consisting of only normal
     accruals,  necessary to present fairly the Partnership's financial position
     at September  30, 1998,  the results of  operations  for the three and nine
     months ended September 30, 1998 and 1997 and cash flows for the nine months
     then ended.

3.   The results of operations for the three and nine months ended September 30,
     1998 are not  necessarily  indicative of the results to be expected for the
     full year.

                                        6

<PAGE>

                             PS PARTNERS VIII, LTD.,
                        a California Limited Partnership
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward Looking Statements
--------------------------

     Management's  Discussion and Analysis of Financial Condition and Results of
Operations   contains  "forward  looking"  statements  that  involve  risks  and
uncertainties  and are based upon a number of  assumptions.  Actual  results and
trends may differ  materially  depending  upon a number of factors.  Information
regarding these factors is contained in the Partnership's  Annual Report on Form
10-K for the fiscal  year ended  December  31,  1997 and in the  reports for the
quarterly  periods on Form 10-Q for the  quarters  ended March 31, 1998 and June
30, 1998.

Results of Operations:
----------------------

THREE MONTHS ENDED  SEPTEMBER 30, 1998 COMPARED TO THREE MONTHS ENDED  SEPTEMBER
30, 1997:

     The  Partnership's net income for the three months ended September 30, 1998
was $404,000  compared to $347,000 for the same period in 1997,  representing an
increase of  $57,000,  or 16%.  The  increase is  primarily  attributable  to an
increase in the Partnership's mini-warehouse operations.

     Rental income for the Partnership's  mini-warehouse operations was $714,000
compared to $665,000  for the three months  ended  September  30, 1998 and 1997,
respectively, representing an increase of $49,000, or 7%. The increase in rental
income was primarily attributable to increased rental rates at the Partnership's
mini-warehouse  facilities,  partially  offset by  decreased  average  occupancy
levels. The monthly average realized rent per square foot for the mini-warehouse
facilities  was $.88  compared to $.80 for the three months ended  September 30,
1998 and  1997,  respectively.  The  weighted  average  occupancy  levels at the
mini-warehouse  facilities  decreased from 95% to 93% for the three months ended
September  30,  1997  and  1998,  respectively.  Cost of  operations  (including
management  fees)  increased  $11,000,  or 5%, to $220,000 from $209,000 for the
three months ended September 30, 1998 and 1997, respectively.  This increase was
primarily  attributable  to increases in payroll and  advertising  and promotion
(due  primarily  to the PSI national  telephone  reservation  center)  expenses.
Accordingly,  for the  Partnership's  mini-warehouse  operations,  property  net
operating  income  increased  $38,000,  or 8%, from $456,000 to $494,000 for the
three months ended September 30, 1997 and 1998, respectively.

NINE MONTHS ENDED SEPTEMBER 30, 1998 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30,
1997:

     The  Partnership's  net income for the nine months ended September 30, 1998
was $1,121,000 compared to $983,000 for the same period in 1997, representing an
increase of  $138,000,  or 14%. The  increase is  primarily  attributable  to an
increase in the Partnership's mini-warehouse operations.

                                       7

<PAGE>

     Rental  income  for  the   Partnership's   mini-warehouse   operations  was
$2,078,000  compared to $1,931,000 for the nine months ended  September 30, 1998
and 1997,  respectively,  representing  an  increase  of  $147,000,  or 8%.  The
increase in rental income was primarily  attributable to increased  rental rates
at the  Partnership's  mini-warehouse  facilities.  The monthly average realized
rent per square foot for the mini-warehouse facilities was $.85 compared to $.80
for the nine  months  ended  September  30,  1998 and  1997,  respectively.  The
weighted average  occupancy  levels at the  mini-warehouse  facilities  remained
stable at 93% for the nine months  ended  September  30, 1997 and 1998.  Cost of
operations  (including  management fees) increased  $47,000,  or 7%, to $680,000
from  $633,000  for  the  nine  months  ended   September  30,  1998  and  1997,
respectively.   This  increase  was  primarily   attributable  to  increases  in
advertising  and  promotion  (due  primarily  to  the  PSI  national   telephone
reservation center),  property tax, and payroll expenses.  Accordingly,  for the
Partnership's mini-warehouse operations, property net operating income increased
$100,000,  or 8%,  from  $1,298,000  to  $1,398,000  for the nine  months  ended
September 30, 1997 and 1998, respectively.

Liquidity and Capital Resources
-------------------------------

     The  Partnership  has adequate  sources of cash to finance its  operations,
both on a short-term and long-term  basis,  primarily from internally  generated
cash from property operations and cash reserves.  Cash generated from operations
($1,390,000 for the nine months ended September 30, 1998) has been sufficient to
meet all current obligations of the Partnership.

     During 1998, the Partnership anticipates  approximately $188,000 of capital
improvements.  Total capital improvements were $93,000 for the nine months ended
September 30, 1998.

     The  Partnership  paid  distributions  to the limited and general  partners
totaling  $1,070,000  ($20.28 per unit) and $131,000,  respectively,  during the
first nine months of 1998. Future  distribution  rates may be adjusted to levels
which are supported by operating  cash flow after capital  improvements  and any
other necessary obligations.

Impact of the Year 2000 Issue
-----------------------------

     Public Storage, Inc. ("PSI"), the general partner and property manager, has
completed an  assessment  of all of its hardware  and software  applications  to
identify  susceptibility  to what is  commonly  referred  to as the "Y2K  Issue"
whereby certain computer programs have been written using two digits rather than
four to define the applicable  year. Any of PSI's computer  programs or hardware
with the Y2K Issue that have  date-sensitive  applications or embedded chips may
recognize  a date  using  "00" as the year  1900  rather  than  the  year  2000,
resulting  in   miscalculations   or  system  failure  causing   disruptions  of
operations.

                                        8

<PAGE>

     Many of PSI's critical  applications,  relative to the direct management of
properties,  have  recently been replaced and PSI believes they are already Year
2000 compliant.  PSI has an implementation in process on the remaining  critical
applications,  including  its  general  ledger  and  related  systems,  that are
believed to have Y2K Issues.  PSI expects the  implementation  to be complete by
June  1999.  Contingency  plans  have  been  developed  for  use in  case  PSI's
implementations  are not  completed  on a  timely  basis.  While  PSI  presently
believes  that the impact of the Y2K Issue on its systems can be  mitigated,  if
the plan for ensuring Year 2000  compliance  and the related  contingency  plans
were  to  fail,  be  insufficient,  or not be  implemented  on a  timely  basis,
operations of the Partnership could be materially impacted.

     Certain of PSI's other non-computer related systems that may be impacted by
the Y2K Issue, such as security systems, are currently being evaluated,  and PSI
expects  the   evaluation  to  be  completed  by  June  1999.  PSI  expects  the
implementation  of any required  solutions to be complete in advance of December
31, 1999. PSI has not fully evaluated the impact of lack of Year 2000 compliance
on these  systems,  but has no reason to believe that lack of  compliance  would
materially impact the operations of the Partnership.

     The Partnership  exchanges  electronic data with certain outside vendors in
the banking and payroll  processing areas. PSI has been advised by these vendors
that their systems are or will be Year 2000 compliant,  but has requested a Year
2000 compliance certification from these entities. PSI is not aware of any other
vendors,  suppliers,  or other  external  agents  with a Y2K  Issue  that  would
materially impact the Partnership's results of operations, liquidity, or capital
resources.  However,  PSI has no means of ensuring that external  agents will be
Year 2000  compliant,  and there can be no assurance  that the  Partnership  has
identified  all such  external  agents.  The  inability  of  external  agents to
complete their Year 2000 compliance process in a timely fashion could materially
impact the Partnership.  The effect of  non-compliance by external agents is not
determinable.

     The total cost of PSI's Year 2000 compliance  activities  (which  primarily
consists of the costs of new systems) will be allocated to all entities that use
the PSI  computer  systems.  The amount to be allocated  to the  Partnership  is
estimated at approximately $20,000. These costs are capitalized.

     The costs of the projects  and the date on which PSI believes  that it will
be Year 2000  compliant are based upon  management's  best  estimates,  and were
derived  utilizing  numerous  assumptions  of  future  events.  There  can be no
assurance that these estimates will be achieved, and actual results could differ
materially  from  those  anticipated.  There  can be no  assurance  that PSI has
identified all potential Y2K Issues either within PSI and the  Partnership or at
external  agents.  In  addition,  the  impact of the Y2K  Issue on  governmental

                                        9

<PAGE>

entities and utility  providers and the resultant impact on the Partnership,  as
well as  disruptions  in the  general  economy,  may be  material  but cannot be
reasonably determined or quantified.

                                       10

<PAGE>

                           PART II. OTHER INFORMATION

Items 1 through 4 are not applicable.

Item 5   Other Information

     The Partnership has entered into an Agreement and Plan of Reorganization by
and among PSI, PS Partners VIII Merger Co., Inc. and the  Partnership,  dated as
of September 28, 1998 (the  "Agreement and Plan of  Reorganization").  Under the
Agreement and Plan of Reorganization,  each of the Partnership units held by the
public  limited  partners will be converted into the right to receive a value of
$449 in PSI common stock or, at the limited  partner's  election,  in cash.  The
Agreement  and Plan of  Reorganization  is referenced as Exhibit 2 hereto and is
incorporated herein by this reference.

Item 6 Exhibits  and  Reports  on Form 8-K 
     (a) The  following  Exhibits  are included herein:

              (27) Financial Data Schedule

     (b) Form 8-K

              The Partnership filed a Current Report on Form 8-K dated September
28,  1998  (filed  September  30,  1998),  pursuant  to Item 5,  relating to the
Agreement and Plan of Reorganization referenced above.

Item 7   Financial Statements and Exhibits

     (c) Exhibits.

              (2)Agreement  and  Plan  of  Reorganization  by and  among  Public
Storage,  Inc.,  PS Partners VIII Merger Co.,  Inc. and PS Partners  VIII,  Ltd.
Dated as of September 28, 1998. Filed with the  Partnership's  Current Report on
Form 8-K dated September 28, 1998 and incorporated herein by reference.

              
                                   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.

                                DATED: November 13, 1998

                                       PS PARTNERS VIII, LTD.,
                                       a California Limited Partnership

                                BY:    Public Storage, Inc.
                                       General Partner

                                BY:    /s/ John Reyes
                                       -------------------------------------
                                       John Reyes
                                       Senior Vice President and Chief Financial
                                         Officer of Public Storage, Inc.
                                         (principal financial and accounting
                                         officer)

                                       11