UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549


                                    FORM 10-Q


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

                For the quarterly period ended September 30, 1999

                        Commission file number: 001-14183



                        RECKSON SERVICE INCUSTRIES, INC.
             (Exact name of registrant as specified in its charter)


Delaware                                                              11-3383642
(State other jurisdiction of incorporation                        (IRS. Employer
of organization)                                          Identification Number)

10 East 50th Street, New York, NY                                          10022
(Address of principal executive office)                               (zip code)

                         (212) 931-8000
      (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

The  company  has only one class of common  stock,  issued at $.01 par value per
share with 27,388,431 shares outstanding as of November 5, 1999.

<PAGE>
                        RECKSON SERVICE INDUSTRIES, INC.
                                QUARTERLY REPORT
                  FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999
                                TABLE OF CONTENTS



INDEX

PART I. FINANCIAL INFORMATION

Item 1.   Financial Statements (Unaudited)

          Consolidated  Balance  Sheets of Reckson  Service
          Industries,   Inc.  as  of  September   30,  1999
          (unaudited) and December 31, 1998

          Consolidated  Statement of  Operations of Reckson
          Service  Industries,  Inc. for the three and nine
          months   ended   September   30,  1999  and  1998
          (unaudited)

          Consolidated  Statement  of Cash Flows of Reckson
          Service  Industries,  Inc.  for the  nine  months
          ended September 30, 1999 and 1998 (unaudited)

          Notes  to the  Financial  Statements  of  Reckson
          Service Industries, Inc. (unaudited)

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

Item3.    Quantitative  and Qualitative  Disclosures  about
          Market Risk


PART II   OTHER INFORMATION

Item 1.   Legal Proceedings
Item 2.   Changes in Securities
Item 3.   Defaults Upon Senior Securities
Item 4.   Submission  of  Matters  to a Vote of  Securities
          Holders
Item 5.   Other Information

SIGNATURES
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements

<TABLE>
                             Reckson Service Industries, Inc.
                                Consolidated Balance Sheets
<CAPTION>
                                                            September 30,    December 31,
                                                                 1999            1998
                                                            --------------  --------------
                                                              (Unaudited)      (Note 2)
<S>                                                         <C>             <C>
Assets:
Cash and cash equivalents                                   $     359,699   $   2,025,527
Ownership interests in and advances to Partner
    Companies (Note 3)                                         90,342,393      30,276,815
Ownership interest in RSVP Holdings, LLC (Note 4)              37,792,350      15,560,896
Affiliate receivables (Notes 4 and 6)                           1,968,982       9,396,070
Deferred compensation (Note 5)                                  4,357,635            ----
Equipment (net)                                                   223,782          99,928
Other assets                                                    1,344,407       1,483,427
                                                            --------------  --------------
Total Assets                                                $ 136,389,248   $  58,842,663
                                                            ==============  ==============
Liabilities and Shareholders' Equity:
Accounts payable and accrued expenses                       $   9,375,705   $   1,893,657
Credit facilities with related parties (Note 6)               116,625,383      40,981,500
Note payable to Stockholder (Note 3)                            5,596,572            ----
                                                            --------------  --------------
Total Liabilities                                             131,597,660      42,875,157
                                                            --------------  --------------
Commitments and Contingencies

Shareholders' Equity: (Notes 1 and 5)
Preferred stock, $.01 par value, 25,000,000 shares
    authorized, none issued  and outstanding                         ----            ----
Common stock, $.01 par value, 100,000,000 shares
    authorized, 25,656,834 and 24,685,514 shares
    issued and outstanding, at September 30, 1999
    and December 31,1998, respectively                            256,568         246,855
Additional paid in capital                                     36,471,496      24,126,341
Accumulated deficit                                           (31,936,476)     (8,405,690)
                                                            --------------  --------------
       Total Shareholders' Equity                               4,791,588      15,967,506
                                                            --------------  --------------
Total Liabilities and Shareholders' Equity                  $ 136,389,248   $  58,842,663
                                                            ==============  ==============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE>
                                               Reckson Service Industries, Inc.
                                             Consolidated Statements of Operations
                                                          (Unaudited)
<CAPTION>
                                                            Three Months Ended September 30,   Nine Months Ended September 30,
                                                            --------------------------------  --------------------------------
                                                                  1999             1998             1999             1998
                                                            ---------------  ---------------  ---------------  ---------------
<S>                                                         <C>              <C>              <C>              <C>
Revenues:

Interest income                                             $      464,273   $      411,802   $    1,651,893   $      552,734
Management fee income (Note 6)                                      83,333          125,000          250,000          291,666
                                                            ---------------  ---------------  ---------------  ---------------
Total Revenues                                                     547,606          536,802        1,901,893          844,400
                                                            ---------------  ---------------  ---------------  ---------------
Losses on ownership interests                                   (4,976,680)        (777,125)      (6,511,982)      (1,283,784)
                                                            ---------------  ---------------  ---------------  ---------------
Expenses:
General and administrative expenses                              1,998,388          543,654        4,939,022        1,029,352
Amortization of deferred charges (Note 5)                        2,305,813             ----        7,599,626              ---
Terminated transaction and related costs                              ----             ----          413,908              ---
Interest expense (Note 6)                                        3,006,775          460,024        5,968,141          900,950
                                                            ---------------  ---------------  ---------------  ---------------
Total Expenses                                                   7,310,976        1,003,678       18,920,697        1,930,302
                                                            ---------------  ---------------  ---------------  ---------------
Net Loss                                                    $  (11,740,050)  $   (1,244,001)  $  (23,530,786)  $   (2,369,686)
                                                            ===============  ===============  ===============  ===============
Basic and diluted net loss per weighted average
    common share                                            $        (0.47)  $        (0.05)  $        (0.95)  $        (0.21)
                                                            ===============  ===============  ===============  ===============
Basic and diluted weighted average common
    share outstanding                                           25,163,301       24,685,514       24,855,657       11,097,619
                                                            ===============  ===============  ===============  ===============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE>
                             Reckson Service Industries, Inc.
                           Consolidated Statements of Cash Flows
                                        (Unaudited)
<CAPTION>
                                                             Nine months     Nine months
                                                                ended           ended
                                                             September 30,   September 30,
                                                                 1999            1998
                                                            --------------  --------------

<S>                                                         <C>             <C>
Cash  Flows from Operating Activities:
Net Loss
Adjustments to reconcile net loss to net cash               $ (23,530,786)  $  (2,369,686)
provided by (used in) operating activities:
     Amortization and depreciation                                 35,684          28,592
     Losses on ownership interests in partner companies         6,511,982       1,283,784
     Non-cash compensation                                      8,846,423             ---
Changes in operating assets and liabilities:
     Other assets                                                 139,020        (498,341)
     Equipment                                                   (159,538)        (47,409)
     Organization and pre-acquisition costs                          ----         (90,355)
     Accounts payable and accrued expenses                      3,124,413          76,194
     Affiliate receivables                                      7,427,088      (4,971,553)
                                                            --------------  --------------
Net cash provided by (used in) operating activities             2,394,286      (6,588,774)
                                                            --------------  --------------
Cash Flows From Investing Activities:
Acquisition of ownership interests and advances
    to Partner Companies:
     OnSite Access, Inc., and predecessor entity              (11,083,829)     (4,431,793)
     eSourceOne, Inc.                                          (5,000,000)            ---
     Opus360 Corporation                                       (1,000,000)            ---
     RSVP Holdings, LLC                                       (25,541,334)    (12,607,315)
     VANTAS and predecessor entities                          (36,979,779)     (1,100,009)
     Other                                                           ----        (278,985)
                                                            --------------  --------------
Net cash used in investing activities                         (79,604,942)    (18,418,102)
                                                            --------------  --------------
Cash Flows From Financing Activities:
    Issuance of Common Stock                                      181,445      20,377,465
    Costs of capital                                             (280,500)            ---
Net proceeds from credit facilities with related parties       75,643,883       6,594,318
                                                            --------------  --------------
Net cash provided by financing activities                      75,544,828      26,971,783
                                                            --------------  --------------
Cash and Cash Equivalents:
    Net decrease                                               (1,665,828)      1,964,907
    Beginning of period                                         2,025,527         129,704
                                                            --------------  --------------
    End of period                                           $     359,699   $   2,094,611
                                                            ==============  ==============
Supplemental Disclosure of Cash Flow Information:
    Cash paid during the period for interest                $   2,498,107   $     815,604
                                                            ==============  ==============
<FN>
</FN>
</TABLE>

                          RECKSON SERVICE INDUSTRIES, INC.
                     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 SEPTEMBER 30, 1999
                                     (UNAUDITED)


1.   DESCRIPTION OF THE COMPANY

     Reckson Service  Industries,  Inc. ("RSI" or the "Company"),  was formed on
July 15, 1997.  RSI is a  publicly-traded  operating  company  that  identifies,
acquires  interests in, and develops a network of  business-to-business  ("B2B")
e-commerce and e-services companies (the "Partner Companies") that service small
and medium sized enterprises, independent professionals and the mobile workforce
of larger companies.

     The Company  acquires  significant,  long-term  stakes in targeted  Partner
Companies,  which it incorporates into a collaborative network of e-commerce and
e-services  companies,  seeking to accelerate  their growth and increasing their
likelihood of success.  RSI has developed an extensive e-  Cooperative  platform
that allows its Partner Companies to benefit from its operational and management
resources and experience, the Company's extensive customer base, as well as gain
significant  synergies  from other existing and future  Partner  Companies.  The
e-Cooperative consists of the:

     enterprise  Development  Group  ("eDG")  and  Advisory  Board - eDG  offers
     strategic guidance,  organizational design, human resources, recruiting and
     technology  assistance  to its Partner  Companies.  The  Advisory  Board of
     independent  industry  professionals will supplement RSI's eDG by providing
     management   guidance  to  Partner  Companies  and  sourcing  new  business
     opportunities

     Collaborative  network of Partner  Companies - Enables Partner Companies to
     share   collective   knowledge   and   benefit   from   cross-selling   and
     cross-marketing opportunities

     The  Company's  strategy  is to  continue  to expand its network of Partner
Companies and its e- Cooperative  platform by pursuing  additional  acquisitions
that  complement and enhance the overall  network.  RSI seeks to add significant
value to its Partner  Companies with the goal of creating  industry leaders that
have the potential to become public companies,  act as industry consolidators or
merge with the proper strategic partners. RSI targets early stage companies that
can benefit from RSI's entire  franchise  and  therefore  have the  potential to
create significant value for RSI.

     RSI  seeks to focus  its  future  acquisitions  in the  Internet  sector by
targeting three types of B2B e-commerce and e-services companies:

     e-commerce and  infrastructure  (i.e.  companies that primarily  deliver or
     enable the delivery of goods and services over the Internet)

     Click and Mortar (i.e.  companies  that  combine a physical  infrastructure
     with an Internet enabled model to enhance the delivery of their services)

     Internet-based  outsourcing  (i.e.  companies  that utilize the Internet to
     enable the outsourcing of non-core business functions)


     Although  the Company  refers to the  companies in which it has acquired an
equity  ownership  interest  as  its  "Partner  Companies"  and  that  it  has a
"partnership  " with  these  companies,  it does  not act as an  agent  or legal
representative  for any of  these  companies,  it does  not  have  the  power or
authority to legally bind any of its Partner  Companies and it does not have the
types of liabilities in relation to its Partner Companies that a general partner
of a partnership would have.

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

     The accompanying  consolidated  financial  statements present the financial
position of the Company at  September  30,  1999,  and December 31, 1998 and the
results of its operations for the three and nine months ended September 30, 1999
and 1998 and its cash flows for the nine  months  ended  September  30, 1999 and
1998.  The  Company  accounts  for  its  investments  of less  than  controlling
interests under the equity method of accounting.  All  significant  intercompany
balances and  transactions  have been eliminated in the  consolidated  financial
statements.

     The  accompanying  unaudited  consolidated  financial  statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the  instructions to Form 10-Q and Article 10 of
Regulation  S-X.  Accordingly,  they do not include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements. In the opinion of management,  all adjustments (consisting
of normal recurring accruals)  considered necessary for a fair presentation have
been included.  Operating  results for the nine month period ended September 30,
1999, is not necessarily  indicative of the results that may be expected for the
year ended December 31, 1999.

     The balance  sheet at December 31, 1998,  has been derived from the audited
financial  statements  at that date but does not include all of the  information
and footnotes required by generally accepted accounting  principles for complete
financial statements.

     For further information, refer to the consolidated financial statements and
footnotes  thereto  included in the Registrant  Company's  annual report on Form
10-K for the year ended December 31, 1998.

Accounting for Ownership Interests in Partner Companies

     The interests that RSI acquires in its Partner  Companies are accounted for
under one of three methods:  consolidation,  equity method and cost method.  The
applicable  accounting  method is generally  determined  based on the  Company's
voting interest in a Partner Company.

     Consolidation.   Partner   Companies  in  which  the  Company  directly  or
indirectly owns more than 50% of the outstanding voting securities are generally
accounted for under the consolidation method of accounting. Under this method, a
Partner  Company's  results of  operations  are  reflected  within the Company's
Consolidated Statements of Operations. All significant intercompany accounts and
transactions have been eliminated.

     Equity Method.  Partner Companies whose results are not  consolidated,  but
over whom the Company exercises significant  influence,  are accounted for under
the  equity  method  of  accounting.   Whether  or  not  the  Company  exercises
significant influence with respect to a Partner Company depends on an evaluation
of several  factors  including,  among  others,  representation  on the  Partner
Company's  Board of Directors and ownership  level,  which is generally a 20% to
50% interest in the voting  securities of the Partner Company,  including voting
rights associated with the Company's holdings in common, preferred and any other
convertible  instruments  in the  Partner  Company.  Under the equity  method of
accounting,  a Partner Company's accounts are not reflected within the Company's
Consolidated  Statements of Operations;  however, RSI's share of the earnings or
losses of the Partner  Company is  reflected  in the caption  "Loss on ownership
interests in Partner Companies" in the Consolidated Statements of Operations.

     The amount by which the Company's  carrying  value exceeds its share of the
underlying net assets of Partner Companies accounted for under the consolidation
or equity  method of  accounting  is  amortized on a  straight-line  basis which
adjusts the Company's share of the Partner Company's earnings or losses.

     Cost Method. Partner Companies not accounted for under the consolidation or
the equity  method of  accounting  are  accounted  for under the cost  method of
accounting.  Under this method, the Company's share of the earnings or losses of
such companies is not included in the Consolidated Statements of Operations. The
Company also  recognizes  income from dividends on  distributed  earnings of its
Partner Companies. However, cost method impairment charges are recognized in the
Consolidated  Statement of Operations  with the new cost basis not written-up if
circumstances  suggest  that the value of the Partner  Company has  subsequently
recovered.

     The Company  records its ownership  interest in debt  securities of Partner
Companies  accounted for under the cost method at cost as it has the ability and
intent  to hold  these  securities  until  maturity.  The  Company  records  its
ownership  interests in equity  securities  of Partner  Companies  accounted for
under the cost method at cost, unless these securities have readily determinable
fair values based on quoted market prices,  in which case these  interests would
be classified as  available-for-sale  securities or some other classification in
accordance with Statement of Financial  Accounting  Standards  ("SFAS") No. 115,
"Accounting for Certain Investments in Debt and Equity Securities".  In addition
to  the  Company's   investments  in  voting  and  non-voting  equity  and  debt
securities,  it also periodically makes advances to its Partner Companies in the
form of promissory  notes which are  accounted  for in accordance  with SFAS No.
114, "Accounting by Creditors for Impairment of a Loan".

     The Company  continually  evaluates  the  carrying  value of its  ownership
interests  in and  advances  to  each  of its  Partner  Companies  for  possible
impairment based on achievement of business plan objectives and milestones,  the
value of each  ownership  interest in the Partner  Company  relative to carrying
value, the financial  condition and prospects of the Partner Company,  and other
relevant  factors.  The business  plan  objectives  and  milestones  the Company
considers include,  among others, those related to financial performance such as
achievement  of planned  financial  results  or  completion  of capital  raising
activities,  and those that are not  primarily  financial  in nature such as the
launching  of a web site or the hiring of key  employees.  The fair value of the
Company's  ownership  interests  in  and  advances  to  privately  held  Partner
Companies is generally  determined based on the value at which independent third
parties have invested or have committed to invest in the Partner Companies.

Use of Estimates

     The  preparation  of financial  statements  in  conformity  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.

Cash and Cash Equivalents

     The Company  considers  highly liquid  investments with a maturity of three
months or less when purchased to be cash equivalents.

Stock Options and Grants

     The Company has elected to follow  Accounting  Principles Board Opinion No.
25,   "Accounting  for  Stock  Issued  to  Employees"  ("APB  25")  and  related
Interpretations  in accounting for its employee stock options and grants because
the alternative  fair value accounting  provided for under Financial  Accounting
Standards  Board  ("FASB ")  Statement  No.  123,  "Accounting  for  Stock-Based
Compensation,"  ("FAS No. 123") requires the use of option valuation models that
were not developed for use in valuing employee stock options.

Income Taxes

     At  inception,  the Company  adopted SFAS No. 109,  "Accounting  for Income
Taxes" ("SFAS No.  109"),  which  prescribes  an asset and  liability  method of
accounting  for  income  taxes.  Under  SFAS No.  109,  deferred  tax assets are
recognized for temporary  difference  that will result in deductible  amounts in
future years and for carry forward. A valuation allowance is recognized if it is
more  likely  than not that  some  portion  or the  deferred  asset  will not be
realized.  At September 30, 1999 and December 31, 1998,  any deferred tax assets
have been  reserved for 100% due to the  uncertainty  as to whether these assets
will have benefit in future periods.

Derivative Instruments and Hedging Activities

     In June 1999, the FASB issued Statement No.137, amending Statement No. 133,
"Accounting for Derivative  Instruments and Hedging Activities",  which extended
the required date of adoption in the years  beginning  after June 15, 2000.  The
Statement permits early adoption as of the beginning of any fiscal quarter after
its issuance.  The Company expects to adopt the new Statement  effective January
1, 2001.  The Company does not  anticipate  that the adoption of this  Statement
will have any effect on its results of operations or financial position.

Reclassifications

     Certain prior year amounts have been reclassified to conform to the current
year presentation.

3.   OWNERSHIP INTERESTS IN PARTNER COMPANIES

     Partner Companies at September 30, 1999 and December 31, 1998 included:

                                             Voting Ownership on Diluted Basis
                                              --------------------------------
                                  Partner
                                  Company     September 30,      December 31,
                                   Since           1999               1998
                               -------------- -------------      -------------
CommerceInc Corporation            1999                33 % *        N/A
eSourceOne, Inc.                   1999                45 %          N/A
Giftcertificates.com               1999       less than 1 % *        N/A
OnSite Access, Inc.                1997                29 %           1%
OnSite Commerce and Content,LLC    1998               100 %          59%
Opus360 Corporation                1999       less than 1 %          N/A
VANTAS Incorporated                1998                29 %          21%

* Ownership interest acquired in November 1999.


     The Company's  ownership interests in and advances to Partner Companies are
summarized as follows:

<TABLE>
<CAPTION>
                                              September 30, 1999  December 31, 1998
                                               ------------------ -----------------
<S>                                            <C>                <C>
VANTAS and predecessor entities                $     69,781,904         23,175,485
OnSite Access, Inc. and predecessor entity           15,379,701          7,101,330
eSourceOne, Inc.                                      4,180,788               ----
Opus360 Corporation                                   1,000,000               ----
                                               -----------------  -----------------
Total ownership interests                      $     90,342,393         30,276,815
                                               =================  =================
</TABLE>

     The following are the Company's  summarized  earnings/(losses) on ownership
interests:
<TABLE>
<CAPTION>
                                                            Three Months Ended September 30,  Nine Months Ended September 30,
                                                            --------------------------------  --------------------------------
                                                                 1999             1998             1999             1998
                                                            ---------------  ---------------  ---------------  ---------------
<S>                                                         <C>              <C>              <C>              <C>
VANTAS and predecessor entities                             $      (65,742)  $        9,250   $      422,568   $        6,739
OnSite Access, Inc. and predecessor entity                      (2,735,551)         (15,411)      (2,805,458)         (20,144)
eSourceOne, Inc.                                                  (819,212)            ----         (819,212)            ----
Other investments                                                     ----             ----             ----          119,059
                                                            ---------------  ---------------  ---------------  ---------------
Net income (loss) on ownership interests                    $   (3,620,505)  $       (6,161)  $   (3,202,102)  $      105,654
                                                            ===============  ===============  ===============  ===============
</TABLE>

     The  Company's  significant  ownership  interests in Partner  Companies are
summarized as follows:

Executive  Office Suites and Virtual  Office  Services  (VANTAS and  Predecessor
Entities)

     On January 8, 1999, Interoffice Superholdings  Corporation  ("Interoffice")
(36  executive  office  suite  centers)  and  Reckson  Executive  Centers,  Inc.
("Reckson  Executive") (8 executive  office suite centers)  merged with Alliance
National Incorporated,  a holding company which owned and operated approximately
90  nationally  located  executive  office  suite  centers  (the  "Merger").  To
effectuate the merger, the Company  contributed  approximately  $21.4 million of
assets.  The merged entity changed its name to VANTAS  Incorporated  ("VANTAS").
The  stockholders  of  Interoffice  and  Reckson  Executive  received  Series  C
Preferred Stock of VANTAS representing  approximately 40% of the equity interest
in VANTAS of which  approximately  23% of VANTAS was owned by the  Company as of
the  merger.  The  holders  of the  Series C  Preferred  Stock have the right to
appoint four of the ten members of the board of  directors of VANTAS,  including
Chairman  of the Board  and  specified  preemptive  rights  and other  specified
rights.  RSI and the  other  stockholders  of  Interoffice  hold  the  Series  C
Preferred  Stock received in respect of the Merger  through a limited  liability
company of which RSI is the sole manager.

     RSI acquired  certain  ownership  rights  related to the Series C Preferred
Stock of VANTAS from a stockholder  of  Interoffice  which  provided the Company
with enhanced governance rights for approximately $6.5 million. In addition, the
Company paid $3.5 million to another stockholder of Interoffice for an option to
purchase that  stockholder's  effective interest in the Series C Preferred Stock
for a  purchase  price of $6.75  million.  If the option is not  exercised,  the
stockholder  has the right to sell such  interests to the Company at fair value,
as determined in accordance with the applicable agreement.  A significant number
of items presented to the Board of Directors  require the separate approval of a
majority of the  representatives of the Series C Preferred Stock on the Board of
Directors,  including  significant  acquisitions,  sale or  leasing  of  assets,
approval of VANTAS'  annual  operating  budget,  certain  borrowings and capital
expenditures by VANTAS, the hiring or termination of senior executives and other
matters.  The holders of Series C Preferred Stock also have the right to appoint
half of the  members  of the  executive  and  audit  committees  of the Board of
Directors.  The  preferred  stockholders  of VANTAS  (including  the  holders of
VANTAS' Class A Preferred  Stock,  Class B Preferred Stock and Class C Preferred
Stock)  were  granted  super-majority  voting  rights  with  respect  to certain
corporate actions,  including the issuance of equity securities,  changes to the
harter documents of VANTAS and other matters.

     During the third quarter,  the Company increased its ownership in VANTAS to
approximately  29%, on a fully diluted basis with a $23 million equity ownership
interest.  This  ownership  interest was made as a part of a $30 million  VANTAS
financing.

     The Company has entered  into stock  purchase  agreements  to increase  its
ownership  to  between  approximately  67%  and 87% on a  fully  diluted  basis,
depending upon whether certain shareholders exercise their contractual tag along
rights to sell their  shares.  The Company's  terms to acquire these  additional
shares are to pay 70% of the purchase  price in cash and the  remaining 30% will
be  comprised  of the  Company's  issuance  of its stock at $19 per share.  As a
result,  the Company has expended  approximately  $14.2  million,  consisting of
260,000  shares of issued stock,  $5 million in deposits,  and a short term note
payable for approximately $5.6 million. The closing for additional  transactions
is estimated to be between  November 1999 and February  2000.  RSI's  additional
ownership  interest  will range from  approximately  $82 million of cash and 2.0
million  shares of RSI  common  stock to $123  million  of cash and 3.0  million
shares of RSI common stock,  depending on the level of  participation of the tag
along shareholders and other potential selling shareholders.

     As of  September  30,  1999,  the excess of RSI's equity in VANTAS over its
ownership  interest  ("Investment  Basis  Adjustment")  was  approximately  $9.8
million.  The Investment  Basis Adjustment is being amortized as income over the
life of the ownership interest estimated at 30 years.

     VANTAS and RSI have also entered into an intercompany agreement pursuant to
which RSI has the opportunity to be the exclusive  provider of certain  business
services  to VANTAS,  provided  certain  third party and  "most-favored  nation"
conditions are satisfied.

     Summarized  financial  information  of VANTAS and the  Company's  ownership
interest in and advances to and share of income from VANTAS is as follows:

<TABLE>
Balance Sheet
<CAPTION>
                                                          September 30, 1999
                                                            ----------------
<S>                                                         <C>
Assets:
     Current assets                                         $    53,766,888
     Property & Equipment, net of accumulated
         depreciation                                            62,912,816
     Intangibles, net of accumulated amortization               187,813,495
     Other Assets                                                16,764,851
                                                            ----------------
Total Assets                                                $   321,258,050
                                                            ================
Liabilities and Stockholders' Equity
     Current liabilities                                    $    33,019,026
     Long-term liabilities                                      161,716,606
                                                            ----------------
Total Liabilities                                               194,735,632
                                                            ----------------
Stockholders' Equity
     Non RSI Common and Preferred Stock                          60,138,471
     Preferred Stock Accretion                                    6,345,464
                                                            ----------------

     RSI net ownership interest in VANTAS                        69,781,904
     Less:  RSI purchase option                                  (3,500,000)
     RSI advance to Shareholder                                  (5,000,000)
     RSI payments to ISC Shareholder, net                       (11,113,042)
     Add:  Investment Basis Adjustment                            9,869,621
                                                            ----------------
     Net RSI basis in VANTAS Preferred Stock                     60,038,483
                                                            ----------------
Total Stockholders' Equity                                      126,522,418
                                                            ----------------
Total Liabilities and Stockholders' Equity                  $   321,258,050
                                                            ================
</TABLE>
<TABLE>
Statements of Operations
<CAPTION>
                                                                        For the period
                                                    For the three       January 8,
                                                    months ended        1999 to
                                                    September 30,       September 30,
                                                    1999                1999
                                                   ------------------  ------------------
<S>                                                <C>                 <C>
Revenues
Rental income                                      $      33,702,534   $      91,339,391
Services income                                           24,151,543          65,441,289
Other income                                                 197,439             633,904
                                                   ------------------  ------------------
Total Revenues                                            58,051,516         157,414,584
                                                   ------------------  ------------------
Expenses
Rent                                                      22,644,701          60,119,132
Services                                                   8,430,709          22,824,340
General and administrative                                19,400,787          52,404,552
Depreciation and amortization                              4,068,277          10,321,950
Interest expense                                           2,887,939           7,133,228
Other expense                                              1,083,126           3,799,107
                                                   ------------------  ------------------
Total Expenses                                            58,515,539         156,602,309
                                                   ------------------  ------------------
Net income (loss) as reported by VANTAS                     (464,023)            812,275
Less:  Non-RSI share                                        (313,925)           (642,775)
                                                   ------------------  ------------------
RSI's share of net income (loss)                            (150,098)            169,500
Add:  Investment Basis Adjustment                             84,356             253,068
                                                   ------------------  ------------------
Net income (loss) from VANTAS                      $         (65,742)  $         422,568
                                                   ==================  ==================
</TABLE>

e-Services (OnSite Access, Inc. and Predecessor Entity)

     In 1998,  the Company had owned a 1%  interest  in On-Site  Ventures,  LLC,
("On-Site"),  a company that provides  advanced  telecommunications  systems and
services within commercial buildings and/or building complexes.  The Company had
also advanced  On-Site $6.5 million through  December 31, 1998 to fund operating
costs under the terms of a 12% subordinated convertible note.

     On April 16, 1999, the Company  contributed  approximately $5.25 million to
On-Site as part of a $60.0  million  private  equity  financing  agreement  (the
"Financing  Transaction")  which  included RSI and several  third party  private
equity  investors.  The equity agreement  requires the Company to fund up to $15
million of which RSI has funded  approximately  $10.5 million.  On July 1, 1999,
On-Site  merged  into  OnSite  Access,   Inc.,  ("OnSite  Access"),  a  Delaware
corporation whereby,  closings were completed for approximately $20.5 million of
additional equity in connection with the Financing  Transaction.  The investors,
including  RSI,  in the  Financing  Transaction  are  committed  to  invest  the
remaining  $39.5 million,  subject only to satisfaction of the conditions of the
Financing  Transaction and the  corporation's  call for funds.  In addition,  in
connection with the merger, the principal and accrued interest outstanding under
the $6.5 million  subordinated  RSI loan was converted into 5,869,000  shares of
Preferred  Stock issued to RSI. Upon fully funding its capital  commitment,  RSI
will own an approximate 34% fully diluted interest in OnSite Access.

     On October 15, 1999,  the Company  increased its ownership in OnSite Access
by 7% to 36% on a fully  diluted  basis by issuing  1,731,597 of common stock at
$19.50 per share to another Onsite Access shareholder.

e-Commerce (eSourceOne, Inc.)

     On August 11, 1999, RSI acquired a 45% interest on a fully diluted basis in
eSourceOne,  Inc.,  ("eSourceOne")  for a purchase  price of $15  million  which
includes a $10 million  note.  eSourceOne  is a recently  formed  Internet-based
employee benefits and human  administration  outsourcing company targeting small
and medium-size businesses.

     RSI acquired  Series A Preferred  Stock of eSourceOne  which is convertible
into shares of common  stock of  eSourceOne.  The  preferred  stock will convert
automatically  in the event  eSourceOne  completes  an initial  public  offering
within certain  parameters.  RSI is also committed to invest an additional  $7.5
million in  connection  with a future  equity  funding.  RSI also entered into a
Stockholders'  Agreement  and a  Registration  Rights  Agreement  in  respect of
certain governance, voting and stockholder rights, including rights with respect
to board representation,  rights of first offer with respect to their eSourceOne
stock, pre-emptive rights, registration rights and other matters.

     In September, 1999, the Company invested $1 million for a minority interest
in Opus360  Corporation,  a leading  provider  of an  Internet-based  e-commerce
platform for managing the supply chain of knowledge workers.

     In November 1999,  the Company  invested  approximately  $15 million for an
interest of 33% in  Commercelnc  Corporation,  an  Internet-based  publisher  of
detailed  "Supplier  Cards" on more than 11 million  small and medium sized U.S.
businesses that enable customers and suppliers to make informed  decisions about
prospective e-commerce business partners.

     In   November    1999,    the   Company    invested    $0.2    million   in
Giftcertificates.com,  a web site that offers corporate customers the ability to
purchase gift certificates from numerous top branded merchants.

4.   OWNERSHIP INTEREST IN RSVP Holdings, LLC

     Reckson Strategic Venture Partners, LLC ("Reckson Strategic") was formed on
March  5,  1998 to  invest  in real  estate  and real  estate-related  operating
companies with  experienced  management teams in market sectors which are in the
early stages of their growth cycle or offer unique  circumstances for attractive
investments,  as well as platforms for future growth. Through RSVP Holdings, LLC
("Holdings"),  the  Company  is a  managing  member and 100% owner of the common
equity of Reckson  Strategic.  New World  Realty,  LLC,  an entity  owned by two
individuals  retained by Holdings,  (the "RSVP Managing  Directors"),  acts as a
managing member of Holdings,  and have a carried interest which provides for the
RSVP Managing  Directors to receive a share in the profits of Reckson  Strategic
after the  Company  and Paine  Webber  Real  Estate  Securities,  Inc.,  ("Paine
Webber") have received  certain minimum  returns and a return of capital.  Paine
Webber is a  non-managing  member and  preferred  equity owner who has committed
$200 million in capital (the "Preferred  Equity Facility") and shares in profits
and losses of Reckson Strategic with the Company,  subject to a maximum internal
rate of return of 16% of  invested  capital.  On April 24,  1998,  Paine  Webber
assigned 25% of its preferred equity interest in Reckson Strategic, representing
an  unfunded  capital  commitment  of $50  million to Stratum  Realty  Fund,  LP
("Stratum"). The assignment provided Stratum with similar rights and priorities.
On March  17,  1999,  Paine  Webber  transferred  all of its  rights,  title and
interest in its initial invested capital to Stratum.  This transfer included the
right to distributions based upon the amount of funded capital contributions. As
a result of this transfer,  Stratum has funded its entire $50 million commitment
as of June 30, 1999.

     Summarized  financial  information of RSVP Holdings,  LLC and the Company's
ownership interest in, advances to and share of loss is as follows:

<TABLE>
Balance Sheets
<CAPTION>
                                                               September 30,        December 31,
                                                                   1999                1998
                                                            ------------------  ------------------
<S>                                                         <C>                 <C>
Investment in Dominion Venture Group, LLC                   $      43,191,404   $      29,288,973
Other equity investments                                           31,320,529           5,970,983
Deferred compensation                                               4,055,489           4,938,539
Other assets                                                       10,637,528           4,552,917
                                                            ------------------  ------------------
     Total Assets                                           $      89,204,950   $      44,751,412
                                                            ==================  ==================
Liabilities and Members' Equity:

Due to affiliates                                           $       1,591,459   $       1,591,459
Other liabilities                                                   1,709,722           1,397,412
                                                            ------------------  ------------------
      Total Liabilities                                             3,301,181           2,988,871
                                                            ------------------  ------------------
Minority Interest                                                  54,376,598          31,201,645
Preferred capital offering costs                                   (6,265,179)         (5,000,000)

RSI's ownership interest in and advances to Holdings               37,792,350          15,560,896
                                                            ------------------  ------------------
     Total Liabilities and Members' Equity                  $      89,204,950   $      44,751,412
                                                            ==================  ==================
</TABLE>

     In connection with the Preferred  Equity  Facility,  Reckson  Strategic has
paid commitment fees of approximately $6.3 million.

<TABLE>
Statement of Operations
<CAPTION>
                                                                                                              For the period
                                                            For the three    For the three    For the nine     from February
                                                            months ended     months ended     months ended     26, 1998 to
                                                            September 30,    September 30,    September 30,    September 30,
                                                            1999             1998             1999             1998
                                                           ---------------  ---------------  ---------------  ---------------
<S>                                                        <C>              <C>              <C>              <C>
Revenues:
Other income                                               $          ---   $          ---   $          ---   $      254,746
Interest income                                                   143,199           71,469          290,781          124,016
                                                           ---------------  ---------------  ---------------  ---------------
Total Revenues                                                    143,199           71,469          290,781          378,762
                                                           ---------------  ---------------  ---------------  ---------------
Equity in earnings/(loss) on equity investments

Dominion Venture Group, LLC                                       785,576             ----          869,951             ----
Other equity investments                                       (2,268,419)        (967,048)      (4,900,023)      (1,084,196)
                                                           ---------------  ---------------  ---------------  ---------------
       Net loss on equity investments                          (1,482,843)        (967,048)      (4,030,072)      (1,084,196)
                                                           ---------------  ---------------  ---------------  ---------------
Expenses:
Operating expenses                                                177,781          181,390          547,220          581,586
General and administrative expenses                               997,151          973,120        2,896,600        2,265,769
Interest expense                                                  378,089           44,647          683,810          323,171
Depreciation and amortization                                      24,859           31,637           49,662          105,838
                                                           ---------------  ---------------  ---------------  ---------------
     Total Expenses                                             1,577,880        1,230,794        4,177,292        3,276,364
                                                           ---------------  ---------------  ---------------  ---------------
Minority Interest share of loss                                (1,561,349)      (1,355,409)      (4,606,703)      (2,592,360)
                                                           ---------------  ---------------  ---------------  ---------------
RSI's share of net loss of RSVP Holdings, LLC              $   (1,356,175)  $     (770,964)  $   (3,309,880)  $   (1,389,438)
                                                           ---------------  ---------------  ---------------  ---------------
</TABLE>

Dominion Venture Group

     On August 27, 1998,  the Company  formed a joint  venture  between  Reckson
Strategic and Dominion,  an  Oklahoma-based,  privately owned group of companies
that  focuses  on the  development,  acquisition  and  ownership  of  government
occupied office buildings and correctional facilities. The new venture, Dominion
Venture Group, LLC (the "Dominion  Venture"),  is owned by RSVP-Dominion  LLC, a
subsidiary of Reckson  Strategic and by Burgess  Services,  LLC, an entity owned
and  controlled  by Calvin  Burgess,  President and Chief  Executive  Officer of
Dominion. The Dominion Venture engages primarily in acquiring, developing and/or
owning government occupied office buildings and privately operated  correctional
facilities  and  related  activities.  Under the  operating  agreement,  Reckson
Strategic  is to invest up to $100  million,  some of which may be  invested  by
Reckson Operating Partnership,  LP ("Reckson") for capital requirements approved
by Reckson Strategic. Reckson Strategic funded its total capital contribution of
approximately $8.5 million through draws under its $200 million Preferred Equity
Facility and a $100 million Reckson Strategic Facility with Reckson. Reckson has
contributed approximately $17.6 million in connection with the Dominion Venture.

Other

     On April 26, 1999,  Reckson Strategic  acquired interests in joint ventures
in two lodging and golf resorts.  Reckson Strategic invested  approximately $5.7
million for interests in both properties.  The objective of these investments is
to participate in the economic revitalization of Sullivan County, New York which
includes the Catskill Mountains area.

     As of September 30, 1999,  Reckson  Strategic's  investment in the assisted
living  industry,  which has a carrying value of approximately  $.9 million,  is
currently being held for sale.

5. SHAREHOLDERS' EQUITY

     In June 1999, the shareholders  approved the 1999 Stock Option Plan for the
purpose of attracting and retaining executive officers,  directors and other key
employees.  Pursuant to the plan,  1,750,000 of the Company's  authorized common
shares have been reserved for issuance,  of which 550,000  shares were issued in
August,  1999.  At  September  30,  1999,  the Company has  recognized  deferred
compensation of approximately $4.4 million, net of amortization.

     As  a  part  of  the  Company's   ongoing   investment  in   organizational
infrastructure  and the  retention of high quality  senior  management,  certain
incentive  stock and stock option awards were granted on March 24, 1999 when the
closing stock price was $4.625. These incentive compensation awards were subject
to stockholder approval of the 1999 Stock Option Plan which occurred on June 24,
1999,  when  the  closing  stock  price  was  $14.9375.  Pursuant  to  financial
accounting  guidelines the date for measuring  compensation  costs would be June
24,  1999.  These awards vest over  various  periods  ranging from six months to
three years and include  tax loans which will be forgiven  one year  thereafter.
During the nine month period ended  September  30,  1999,  results  include $7.6
million or $.31 per basic and diluted share,  associated with these awards,  the
majority, of which is non-cash in nature.

6.  TRANSACTIONS WITH RELATED PARTIES

     On June 15, 1998,  the Company  established  a RSI Facility with Reckson in
the amount of $100 million ("RSI Facility") for their service sector  operations
and  other  general  corporate  purposes.   Reckson  has  advanced  the  Company
approximately  $83.6 million at September 30, 1999. These advances bear interest
at 12% per annum.  Additionally,  RSI  established  a $100 million RSVP Facility
with Reckson for funding the Reckson Strategic investments. The amount available
under  RSVP  Facility  is reduced  by any  amount  invested  by Reckson in joint
ventures with Reckson Strategic.  As of September 30, 1999, Reckson has advanced
RSI  approximately  $32.9  million  under  the RSVP  Facility  and has  invested
approximately $21.7 million in joint ventures with Reckson Strategic.  The total
outstanding at September 30, 1999, owed by RSI under both credit  facilities was
approximately $116.5 million.  Interest accrued on these facilities at September
30, 1999 was approximately $4.2 million.  Currently, the Company has three short
term  letters of credit  totaling  $14.6  million,  which have been  utilized as
consideration  for future RSI investment  acquisitions.  These letters of credit
decrease the availability on the RSI Facility.

     The Board of Directors of both RSI and Reckson have approved  amendments to
the credit  facilities  which are  necessary  in order for RSI to  proceed  with
certain proposed acquisition financing. As consideration for such approvals, RSI
will pay a fee to Reckson  in the form of  approximately  176,000  shares of RSI
common stock.

     The Company is entitled to a cumulative annual management fee of $2 million
with respect to Reckson Strategic, of which $1.5 million is subordinate to Paine
Webber  receiving  an annual  minimum  rate of return of 16% and a return of its
capital. The unsubordinated amount for the three and nine months ended September
30, 1999 was $125,000 and $375,000, respectively.

     The Company  reimburses  Reckson with respect to general and administrative
expenses (including payroll expenses) incurred by Reckson for the benefit of the
Company.  For the three and nine months ended  September  30, 1999,  the Company
reimbursed Reckson $85,609 and $386,499, respectively, for such activities.

SEGMENT DISCLOSURE

     Each of the  segments has a managing  director who reports  directly to the
Board of  Directors/Executive  Committees who have been  identified as the Chief
Operating  Decision  Makers  ("CODM")  because  of their  final  authority  over
resource allocation decisions and performance assessment.

     The CODM  evaluate the operating  performance  of these  segments  based on
sectors.

     RSI's governance and control rights are generally  exercised  through Board
of Directors seats and through representation on the executive committees of the
various segment entities.

     The following  table sets forth the Company's  segments and their  revenues
and  expenses  and  other  related  disclosures  as  required  by SFAS No.  131,
"Disclosure  about  Segments of an Enterprise and Related  Information",  ("SFAS
131"), for the three months ended September 30, 1999 and 1998.

<TABLE>
September 30, 1999
<CAPTION>
                                                 Executive
                                                 Office
                                                 Suites
                                                 and
                                                 Virtual
                                                 Office                                              RSVP
                                                 Services          e-Services       e-Commerce       Holdings           Total
                                               ---------------  ---------------  ---------------  ---------------  ---------------
<S>                                            <C>              <C>              <C>              <C>              <C>
Ownership interest                             $   69,781,904   $   15,379,701   $    5,180,788   $   37,792,350   $  128,134,743
                                               ---------------  ---------------  ---------------  ---------------  ---------------
Revenues and losses on ownership interests         58,051,516          972,022           97,697      (1,339,644)
                                               ---------------  ---------------  ---------------  ---------------
Expenses                                           58,515,539        7,041,159          916,909        1,577,880
                                               ---------------  ---------------  ---------------  ---------------
Net Income (loss)                                   (464,023)      (6,069,137)         (819,212)     (2,917,524)
                                               ---------------  ---------------  ---------------  ---------------
RSI/equity in income (loss)                    $      (65,742)  $   (2,735,551)  $     (819,212)  $   (1,356,175)  $   (4,976,680)
                                               ---------------  ---------------  ---------------  ---------------  ---------------
</TABLE>
<TABLE>
September 30, 1998
<CAPTION>
                                                 Executive
                                                 Office
                                                 Suites
                                                 and
                                                 Virtual
                                                 Office                             RSVP
                                                 Services         e-Services        Holdings           Total
                                               --------------  ----------------  ---------------  ---------------
<S>                                            <C>              <C>              <C>              <C>
Revenues and losses on ownership interests     $    1,575,801   $      260,766   $     (895,579)
                                               ---------------  ---------------  ---------------
Expenses                                            1,482,372        1,801,819        1,230,794
                                               ---------------  ---------------  ---------------
Net income (loss)                                      93,429       (1,541,053)      (2,126,373)
                                               ---------------  ---------------  ---------------
RSI/equity in income (loss)                    $        9,250   $      (15,411)  $     (770,964)  $     (777,125)
                                               ---------------  ---------------  ---------------  ---------------
</TABLE>

     The following  table sets forth the Company's  segments and their  revenues
and expenses and other related  disclosures as required by SFAS 131 for the nine
months ended September 30, 1999 and 1998.

<TABLE>
September 30, 1999
<CAPTION>
                                                 Executive
                                                 Office
                                                 Suites
                                                 and
                                                 Virtual
                                                 Office                                              RSVP
                                                 Services         e-Services       e-Commerce        Holdings           Total
                                               ---------------  ---------------  ---------------  ---------------  ---------------
<S>                                            <C>              <C>              <C>              <C>              <C>
Revenues and losses on ownership interests     $  157,414,584   $    2,255,014   $       97,697   $   (3,739,291)
                                               ---------------  ---------------  ---------------  ---------------
Expenses                                          156,602,309       14,669,888          916,909        4,177,292
                                               ---------------  ---------------  ---------------  ---------------
Net Income (loss)                                     812,275      (12,414,874)        (819,212)      (7,916,583)
                                               ---------------  ---------------  ---------------  ---------------
RSI/equity in income (loss)                    $      422,568   $   (2,805,458)  $     (819,212)  $   (3,309,880)  $   (6,511,982)
                                               ---------------  ---------------  ---------------  ---------------  ---------------
</TABLE>
<TABLE>
September 30, 1998
<CAPTION>
                                                 Executive
                                                 Office
                                                 Suites
                                                 and
                                                 Virtual
                                                 Office                                               RSVP
                                                 Services          e-Services      e-Commerce         Holdings         Total
                                               ---------------  ---------------  ---------------  ---------------  ---------------
<S>                                            <C>              <C>              <C>              <C>              <C>
Revenues and losses on ownership interests     $    3,054,227   $      332,841   $    4,057,583   $     (705,434)
                                               ---------------  ---------------  ---------------  ---------------
Expenses                                            2,986,160        2,347,230        3,529,668        3,276,364
                                               ---------------  ---------------  ---------------  ---------------
Net income (loss)                                      68,067       (2,014,389)         527,915       (3,981,798)
                                               ---------------  ---------------  ---------------  ---------------
RSI/equity in income (loss)                    $        6,739   $      (20,144)  $      119,059   $   (1,389,438)  $   (1,283,784)
                                               ---------------  ---------------  ---------------  ---------------  ---------------
</TABLE>

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

     The  following   discussion   should  be  read  in  conjunction   with  the
accompanying  consolidated  Financial  Statements of Reckson Service Industries,
Inc. (the "Company" or "RSI") and related notes thereto.

     The Company  considers certain  statements set forth to be  forward-looking
statements  within the meaning of Section 27A of the  Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, with respect to
the  Company's   expectations  for  future  periods.   Certain   forward-looking
statements, including, without limitation, statements relating to the ability to
identify and acquire interest in commercial services companies, the financing of
the Company's  operations,  the timing and success of such  acquisitions and the
ability to integrate and manage  effectively its various  acquisitions,  involve
certain  risks  and  uncertainties.  Although  the  Company  believes  that  the
expectation reflected in such forward-looking statements are based on reasonable
assumptions,  the actual results may differ  materially  from those set forth in
the  forward-looking  statements  and the Company can give no assurance that its
expectations  will be achieved.  Certain factors that might cause the results of
the Company to differ  materially from those  indicated by such  forward-looking
statements include, among other factors,  general economic conditions, a lack of
attractive  business  opportunities  or  suitable  acquisitions,  the  Company's
dependence upon financing from Reckson Operating Partnership,  L.P., ("Reckson")
conflicts of interest of management,  competition for targeted  acquisitions and
the ability to otherwise  finance  business  opportunities.  Consequently,  such
forward-looking  statements  should be  regarded  solely as  reflections  of the
Company's current operating and development plans and estimates. These plans and
estimates are subject to revision  from time to time as  additional  information
becomes  available,  and actual  results may differ from those  indicated in the
referenced statements.

OVERVIEW AND BACKGROUND

     RSI was formed on July 15, 1997 and is a publicly-traded  operating company
that   identifies,   acquires   interests   in,   and   develops  a  network  of
business-to-business  ("B2B") e-commerce and e-services  companies (the "Partner
Companies")  that  service  small  and  medium  sized  enterprises,  independent
professionals and the mobile workforce of larger companies.

     The Company  acquires  significant,  long-term  stakes in targeted  Partner
Companies,  which it  incorporates  into a  collaborative  network of companies,
seeking to accelerate  their growth and increasing  their likelihood of success.
RSI has  developed an extensive  e-Cooperative  platform that allows its Partner
Companies  to  benefit  from  its  operational  and  management   resources  and
experience, as well as gain significant synergies from other existing and future
Partner Companies. The e-Cooperative consists of the:

     enterprise  Development  Group  ("eDG")  and  Advisory  Board - eDG  offers
     strategic guidance,  organizational design, human resources, recruiting and
     technology  assistance  to its Partner  Companies.  The  Advisory  Board of
     independent  industry  professionals will supplement RSI's eDG by providing
     management   guidance  to  Partner  Companies  and  sourcing  new  business
     opportunities

     Collaborative  network of Partner  Companies - Enables Partner Companies to
     share   collective   knowledge   and   benefit   from   cross-selling   and
     cross-marketing opportunities

     The  Company's  strategy  is to  continue  to expand its network of Partner
Companies and its  e-Cooperative  platform by pursuing  additional  acquisitions
that  complement and enhance the overall  network.  RSI seeks to add significant
value to its Partner  Companies with the goal of creating  industry leaders that
have the potential to become public companies,  act as industry consolidators or
merge with the proper strategic partners. RSI targets early stage companies that
can benefit from RSI's entire  franchise  and  therefore  have the  potential to
create significant value for RSI.

     RSI  seeks to focus  its  future  acquisitions  in the  Internet  sector by
targeting three types of B2B e-commerce and e-services companies:

     e-commerce and  infrastructure  (i.e.  companies that primarily  deliver or
     enable the delivery of goods and services over the Internet)

     Click and Mortar (i.e.  companies  that  combine a physical  infrastructure
     with an Internet enabled model to enhance the delivery of their services)

     Internet-based  outsourcing  (i.e.  companies  that utilize the Internet to
     enable the outsourcing of non-core business functions)

     Because RSI acquires  significant  interests in B2B  e-commerce  companies,
many of which generate net losses,  RSI has experienced,  and expect to continue
to experience,  significant volatility in the quarterly results. Management does
not know if the Company  will  report net income in any  period,  and expects to
report  net  losses in many  quarters  for the  foreseeable  future.  While most
Partner Companies have consistently  reported losses, the Company may experience
significant  volatility from period to period due to one-time  transactions  and
other events  incidental to the  ownership  interests in and advances to Partner
Companies. On a continuous basis, but no less frequently than at the end of each
quarterly  reporting  period,  management  evaluates  the carrying  value of the
ownership  interests  in and  advances  to each  of the  Partner  Companies  for
possible  impairment  based on  achievement  of  business  plan  objectives  and
milestones, the fair value of each ownership interest and advance in the partner
company relative to carrying value, the financial condition and prospects of the
partner company,  and other relevant  factors.  The business plan objectives and
milestones  that are taken  into  consideration  include,  among  others,  those
related to  financial  performance  such as  achievement  of  planned  financial
results or  completion  of capital  raising  activities,  and those that are not
primarily  financial in nature such as the launching of a web site or the hiring
of key employees.  The fair value of the ownership  interests in and advances to
privately held Partner  Companies is generally  determined based on the value at
which  independent  third parties have  invested or have  committed to invest in
Partner Companies.

     The  presentation  and content of the  Company's  financial  statements  is
largely a function of the presentation  and content of the financial  statements
of  the  Partner   Companies.   To  the  extent  Partner  Companies  change  the
presentation or content of their financial  statements,  as may be required upon
review by the  Securities  and  Exchange  Commission  or changes  in  accounting
literature,  the presentation and content of the Company's financial  statements
may also change.

Effect of Various Accounting Methods on Results of Operations

     The various  interests that RSI acquires in Partner Companies are accounted
for under one of three  methods:  consolidation,  equity method and cost method.
The applicable  accounting method is generally determined based on the Company's
voting interest in a Partner Company.

     Consolidation.   Partner   Companies  in  which  the  Company  directly  or
indirectly own more than 50% of the outstanding  voting securities are generally
accounted for under the consolidation method of accounting. Under this method, a
Partner  Company's  results of  operations  are  reflected  within the Company's
Consolidated  Statements of Operations.  As a result of certain  commitments the
Company has made to acquire the ownership  held by certain  VANTAS  Incorporated
("VANTAS")  shareholders (See Note 3 to the Consolidated  Financial Statements),
management  expects to consolidate  VANTAS commencing with the fourth quarter of
1999.  Participation  of other Partner  Company  shareholders in the earnings or
losses  of a  consolidated  Partner  Company  will  be  reflected  in a  caption
"Minority  interest" in the  Consolidated  Statements  of  Operations.  Minority
interest  adjusts the  consolidated  net results of  operations  to reflect only
RSI's share of the earnings or losses of the consolidated Partner Company.

     The effect of a Partner  Company's  net results of  operations on RSI's net
results of  operations  is  generally  the same under  either the  consolidation
method of accounting and the equity method of accounting,  because under each of
these methods only RSI's share of the earnings or losses of a Partner Company is
reflected in the net results of  operations  in the  Consolidated  Statements of
Operations.

     Equity Method.  Partner Companies whose results are not  consolidated,  but
over whom the Company exercises significant  influence,  are generally accounted
for under the equity method of accounting.  Whether or not the Company exercises
significant influence with respect to a Partner Company depends on an evaluation
of several  factors  including,  among  others,  representation  on the  Partner
Company's  board of directors and ownership  level,  which is generally a 20% to
50% interest in the voting  securities of the Partner Company,  including voting
rights  associated  with the Company's  holdings in common,  preferred and other
convertible  instruments  in the  Partner  Company.  Under the equity  method of
accounting,  a Partner Company's accounts are not reflected within the Company's
Consolidated  Statements of Operations;  however, RSI's share of the earnings or
losses of the Partner  Company is  reflected  in the caption  "Loss on ownership
interests in Partner Companies" in the Consolidated Statements of Operations.

     Partner  Companies  accounted  for under the equity method of accounting at
September 30, 1999 and December 31, 1998 included:

                                               Voting Ownership on Diluted Basis
                                                --------------------------------
                                     Partner
                                     Company    September 30,     December 31,
                                     Since          1999              1998
                                   ------------ -------------     --------------
Commercelnc Corporation (*)            1999               33 %         N/A
eSourceOne, Inc.                       1999               45 %         N/A
OnSite Access, Inc.                    1997               29 %          1%
OnSite Commerce and Content LLC        1998              100 %         59%
VANTAS Incorporated                    1998               29 %         21%

*In  November  1999,  the Company  acquired  an  interest of 33% in  Commercelnc
Corporation,  an Internet-based  publisher of detailed  "Supplier Cards" on more
than11 million small and medium sized U.S.  businesses that enable customers and
suppliers to make  informed  decisions  about  prospective  e-commerce  business
partners.

     RSI has  representation  on the  board  of  directors  of all of the  above
Partner  Companies,  and  as of  September  30,  1999,  generally  owned  voting
convertible  preferred stock in all of them.  With the exception of VANTAS,  the
equity method  Partner  Companies are in a very early stage of  development  and
have not  generated  significant  revenues.  In addition,  with the exception of
VANTAS,  the equity method Partner Companies  incurred  substantial losses since
their  inception  and are  expected to continue to incur  substantial  losses in
1999.

     Cost  Method.   Partner  Companies  not  accounted  for  under  either  the
consolidation  or the equity  method of  accounting  are accounted for under the
cost  method of  accounting.  Under  this  method,  the  Company's  share of the
earnings  or losses  of these  companies  is not  included  in the  Consolidated
Statements of Operations.  The Companies  first Partner  Company to be accounted
for under  the cost  method  resulted  from an  interest  of less than 1% of the
voting ownership of Opus360 Corporation  ("Opus360"),  being acquired during the
third  quarter  of  1999.  This  Partner  Company  is in a very  early  stage of
development,  has not generated significant  revenues,  has incurred substantial
losses in 1999, and is expected to continue to incur substantial  losses for the
remainder  of 1999.  Opus360  has not paid  dividends  during  RSI's  period  of
ownership  and is  generally  not expected to pay  dividends in the  foreseeable
future.

     In   November    1999,    the   Company    invested    $0.2    million   in
Giftcertificates.com,  a web site that offers corporate customers the ability to
purchase gift certificates from numerous top branded merchants.

RESULTS OF OPERATIONS

     The  Company  commenced  operations  on  July  15,  1997  and  had  minimal
activities through September 30, 1998; therefore,  the following periods are not
comparable.

Summary of Operations by Business  Segment for the Three Months ended  September
30, 1999

Operations

     Net loss for the three months ended  September  30, 1999 was  approximately
$11.7 million due to higher general and administrative  expenses associated with
the Company's  elevated  level of operating  activity and include  certain third
quarter  non-cash charges  attributable to incentive stock  compensation for key
members of senior management.

Executive  Office Suites and Virtual  Office  Services  (VANTAS and  Predecessor
Entities)

     For the three months ended  September 30, 1999,  VANTAS  reported losses of
approximately  $0.5  million.  RSI's  share  after  adjustments  was a  loss  of
approximately $0.1 million.  VANTAS reported $58.1 million in revenues primarily
due to occupancy and service revenue.

e-Services (OnSite Access, Inc. and Predecessor Entity)

     For the three months ended September 30, 1999, OnSite Access, Inc. ("OnSite
Access")  reported losses of approximately  $6.0 million.  OnSite Access' losses
were  generally  attributable  to interest  expense and  start-up  costs such as
staffing.  The Company's share of these losses was  approximately  $2.7 million,
after adjustments.

e-Commerce (eSourceOne, Inc.)

     With  development  stage  operations  commencing  during the third quarter,
eSourceOne Inc.  ("eSource One") reported losses of  approximately  $0.8 million
primarily  due to  start  up costs of the  business.  RSI  recognized  a loss of
approximately $0.8 million on its equity interest, after adjustments.

RSVP Holdings, LLC ("Holdings")

     For the three  months  ended  September  30,  1999,  Holdings had losses of
approximately $2.9 million. These losses are attributable to the start-up nature
of the businesses in which Holdings has invested.  Operating  expenses consisted
primarily  of  interest,  payroll  and other  operating  costs.  RSI's  share of
Holdings loss for the three months ended  September 30, 1999, was  approximately
$1.4 million.

Summary of  Operations by Business  Segment for the Nine Months ended  September
30, 1999

Operations

     Net loss for the nine months ended  September 30, 1999,  was  approximately
$23.5 million, including general and administrative expenses associated with the
Company's elevated level of operating activity and non-cash charges attributable
to incentive stock compensation for key members of senior management.

Executive  Office Suites and Virtual  Office  Services  (VANTAS and  Predecessor
entities)

     For the nine months ended September 30, 1999, VANTAS reported net income of
approximately  $0.8 million.  RSI's share after  adjustments  was income of $0.4
million.  VANTAS reported $157.4 million in revenues  primarily due to occupancy
and  service  revenues.  Merger  expenses of  approximately  $1.6  million  were
incurred in connection with various acquisitions consummated during the period.

e-Services (OnSite Access, Inc. and Predecessor Entity)

     For the nine months ended September 30, 1999, OnSite Access reported losses
of   approximately   $12.4   million.   OnSite  Access'  losses  were  generally
attributable  to interest  expense and start-up  costs.  The Company's  share of
losses was approximately $2.8 million after adjustments.

e-Commerce (eSourceOne, Inc.)

     With  development  stage  operations  commencing  during the third quarter,
eSourceOne  reported losses of approximately $0.8 million during the nine months
ended  September  30,  1999,  primarily  due to start up  costs  related  to the
business.  RSI  recognized  a loss of  approximately  $0.8 million on its equity
interest, after adjustments.

RSVP Holdings, LLC

     For the nine  months  ended  September  30,  1999,  Holdings  had losses of
approximately $7.9 million. These losses are attributable to the start-up nature
of the businesses in which Holdings has invested.  Operating  expenses consisted
primarily  of  interest,  payroll  and other  operating  costs.  RSI's  share of
Holdings loss for the nine months ended  September 30, 1999,  was  approximately
$3.3 million.

Summary of Operations for the three and nine months ended September 30, 1998

     For the three months ended  September 30, 1998, the Company  reported a net
loss of  approximately  $1.2 million.  Total revenues  included  interest income
relating to loans made to certain affiliates. The Company also reported expenses
primarily related to interest, payroll and office costs.

     For the nine months  ended  September  30, 1998 the Company  reported a net
loss of  approximately  $2.4 million.  Total  revenues  included  management fee
income and interest  income  relating to loans made to certain  affiliates.  The
Company also  reported  total  expenses of  approximately  $1.9  million,  which
substantially represented interest, payroll and office costs.

LIQUIDITY AND CAPITAL RESOURCES

Summary of Cash Flows

     Net cash  totaling  approximately  $2.4  million was  provided by operating
activities  for the nine months ended  September 30, 1999,  and $6.6 million was
used for operating activities for the nine months ended September 30, 1998. Cash
provided by operations in 1999 were  primarily  attributable  to  collections of
affiliate   receivables.   Cash  used  in   operations  in  1998  was  primarily
attributable  to the  start-up  losses  incurred by the  Company  and  Holdings,
advances to affiliates and general and administrative operating costs.

     Net cash used in investing  activities totaled  approximately $79.6 million
for the nine months ended  September  30, 1999,  and $18.4  million for the nine
months ended  September  30, 1998.  Cash used in  investing  activities  related
primarily to  acquisitions  of ownership  interests in and advances to Holdings,
VANTAS, OnSite Access and eSourceOne.

     Net cash  provided by  financing  activities  totaled  approximately  $75.5
million for the nine months ended  September 30, 1999, and $27.0 million for the
nine months ended  September  30, 1998.  Cash  provided by financing  activities
during 1999 is primarily  attributable to draws on both the RSI Facility and the
RSVP Facility.

Financing Activities

     On June 15, 1998,  RSI  established  the RSI  Facility  with Reckson in the
amount of $100 million for RSI's  service  sector  operations  and other general
corporate  purposes.  On the same date, RSI  established  the RSVP Facility with
Reckson  for funding of  investments  of up to $100  million  with or in Reckson
Strategic  through (i) Reckson  Strategic  controlled  joint venture Real Estate
Investment Trust ("REIT")-qualified  Investments,  or (ii) advances made to RSI.
Advances  under the RSVP  Facility  in excess of $25  million  in respect of any
single platform are subject to approval by Reckson's  board of directors,  while
advances  under the RSI  Facility  in excess of $10  million  in  respect of any
single  investment  in a business  service  platform,  as well as  advances  for
investments in opportunities in non-commercial services, are subject to approval
by  Reckson's  board of  directors,  or a  committee  thereof.  The RSI and RSVP
Facilities (the "Credit Facilities") each have a term of five years and advances
thereunder are recourse  obligations of RSI.  Interest  accrues on advances made
under the Credit Facilities at a rate equal to the greater of (i) the prime rate
plus 2% or (ii) 12% per annum,  with the rate on balances  outstanding  for more
than one year  increasing  annually  at a rate of 4% of the prior  year's  rate.
Prior to maturity,  interest is payable  quarterly but only to the extent of net
cash flow and on an  interest-only  basis and is pre-payable  without penalty at
the option of RSI. As long as there are  outstanding  advances  under the Credit
Facilities, RSI is prohibited from paying dividends on any shares of its capital
stock.  The Credit  Facilities  are subject to certain other  covenants and will
prohibit  advances  thereunder  to  the  extent  such  advances  could,  in  the
determination  of  Reckson,  endanger  Reckson's  status  as a REIT.  Additional
indebtedness  may be incurred by  subsidiaries of RSI. As of September 30, 1999,
approximately   $83.6  million  was  outstanding  under  the  RSI  Facility  and
approximately  $54.6  million  was  advanced  under the RSVP  Facility  of which
approximately  $21.7  million  represented  investments  by  Reckson  in Reckson
Strategic joint ventures and approximately $32.9 million represented outstanding
borrowings.

     Additionally,  as of September 30, 1999,  the Company has three  short-term
letters of credit  totaling $14.6 million,  which have been utilized as deposits
for future  acquisitions  of  ownership  interests in Partner  Companies.  These
letters of credit decrease the availability on the RSI Facility.

     Additionally, Reckson Strategic has obtained the Preferred Equity Facility,
which  provides  for the  investment  by Paine  Webber of up to $200  million in
Reckson  Strategic  in  the  form  of  preferred  equity,   subject  to  certain
conditions. Amounts available under the Preferred Equity Facility have been used
by Reckson Strategic to make investments consistent with its business objectives
and to fund working  capital.  Under the terms of the Preferred Equity Facility,
Reckson  Strategic  is subject to various  covenants  and events of default  and
related remedies. Such remedies include increased control rights of Paine Webber
over the operation of Reckson  Strategic under certain  circumstances.  Advances
under the Preferred  Equity Facility were partially funded by an investment fund
that is  jointly  sponsored  by  financier  George  Soros and Paine  Webber.  In
addition, Paine Webber and such investment fund are entitled to receive priority
or preferred  distributions from Reckson Strategic prior to the distributions of
cash to RSI. On March 17,  1999,  Paine  Webber  transferred  all of its rights,
title and interest on its initial  invested capital of $50.0 million to Stratum.
As  of  September   30,  1999,   Paine  Webber  and  Stratum  have   contributed
approximately $67.2 million.

     The Company  utilizes  the  advances  under the RSI  Facility  primarily to
acquire  ownership  interests  in  operating  companies  that  provide  business
services.  The Company  may  acquire  additional  interests  in these  operating
companies  to  accommodate   their   respective   growth  plans.  The  Company's
acquisitions  of ownership  interests in operating  companies are anticipated to
produce net cash flow as a result of their  operating  activities  over the long
term,  although the level and timing of net cash flow for each investment in the
short-and  long-term may vary based upon the stage of the  respective  operating
company's growth cycle and the level of the Company's  ownership  interest.  The
Company  targets  operating  companies  that will  produce  net cash flow in the
long-term. It is expected that certain of the Company's investments will be made
in  companies  which it does  not  fully  control.  Thereby  cash  flow of these
companies  will be used for growth  opportunities  at such companies and not for
distribution  to  its  owners.  The  Company  expects  that  it  will  refinance
indebtedness  under the RSI Facility at maturity or retire such debt through the
issuance  of debt  securities  or equity  securities,  although  there can be no
assurance   that  the  Company   will  be  able  to  refinance  or  retire  such
indebtedness.

     In order to finance the acquisition of the additional ownership interest in
VANTAS, the terms of the RSI Facility are currently being renegotiated,  a $75.0
million  facility is being  negotiated  with an  affiliate  of  Holdings,  and a
facility  for up to an  additional  $60.0  million  is being  negotiated  with a
significant investment banking institution.  These cash resources in conjunction
with  between 2.0 and 3.0 million RSI shares,  will be adequate to finance  this
VANTAS  transaction  and provide  resources  for the  acquisition  of  ownership
interests  in other  existing  or new  Partner  Companies.  Prior to the Company
entering into any new debt facilities,the RSI Facility with Reckson will need to
be modified,  this  modification  has been approved by the Board of directors of
both RSI and Reckson.  Additionally,  the Company is currently exploring options
for the sale of equity  securities  either in a  private  placement  or a public
offering, and thus enabling significant new acquisitions of interests in Partner
Companies, as well as funding working capital needs.

     The Company  anticipates  that cash on hand,  net cash flows from operating
activities,  together with cash available from borrowings under the RSI Facility
and other  facilities  that are being  negotiated,  will be adequate to meet the
capital  and  liquidity  requirements  of the  Company  in  both  the  short-and
long-term.

IMPACT OF YEAR 2000

     Some of the Company's older computer programs were written using two digits
rather than four to define the  applicable  year.  As a result,  those  computer
programs have  time-sensitive  software that recognizes a date using "00" as the
year 1900  rather  than the year  2000.  This  could  cause a system  failure or
miscalculation causing disruptions of operations, including, among other things,
a  temporary  inability  to process  transactions,  or engage in similar  normal
business activities.

     The Company has completed an  assessment  to modify or replace  portions of
its software so that its computer systems will function properly with respect to
dates in the year 2000 and thereafter.  Since the Company's  accounting software
is maintained  and supported by a third party,  the total year 2000 project cost
was minimal.  The Company has expended  approximately $0.1 million in connection
with year 2000 issues.

     The year 2000 project has been completed to date on its operating  systems.
Additionally,  the Company has received  assurances from its significant service
providers  that all their systems are currently  year 2000  compliant or will be
made compliant prior to any impact on those systems. However, the Company cannot
guarantee  that  all  significant  service  providers  will  comply  with  their
assurances  and  therefore,  the Company may not be able to determine  year 2000
compliance of those  significant  service  providers.  At that time, the Company
will  determine  the  extent  to  which  the  Company  will be  able to  replace
non-compliant  significant  service  providers.  The Company  believes that with
modifications  to existing  software and  conversions to new software,  the year
2000 issue  will not pose  significant  operational  problems  for its  computer
systems. However, if such modifications and conversions are not made, or are not
complete timely,  costs associated with the year 2000 issue could be significant
and have a material impact on the operations of RSI.

     In a "worst case scenario" of the failure of the third party to deliver to,
on a timely  basis,  the  necessary  upgrades to the  accounting  software,  the
Company  would be  required  to process  transactions,  such as the  issuance of
disbursements, manually until an alternative system was implemented.

     If the Company is not successful in  implementing  its year 2000 compliance
plan,  the  Company  may suffer a material  adverse  impact on their  results of
operations and financial condition.  Because of the importance of addressing the
year 2000 issue,  the Company has developed  contingency  plans if it determines
that the compliance plans will not be implemented.

INFLATION

     The Credit  Facilities  bear interest at the greater of the prime rate plus
2% or 12% (on balances outstanding more than one year increasing 4% per year, as
described  above).  The  rate  of  interest  on the  Credit  Facilities  will be
influenced  by changes in the prime rate and is sensitive to inflation and other
economic factors.  A significant  increase in interest rates may have a negative
impact on the earnings of the Company due to the variable  interest  rates under
the Credit Facilities.

     The  Company  believes  that  higher  revenues  will  offset   inflationary
increases.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     The primary  market  risk  facing the Company is interest  rate risk on its
Credit Facilities. The Company does not hedge interest rate risk using financial
instruments.  The Credit  Facilities  bear  interest at the greater of the prime
rate plus 2% or 12% (with balances  outstanding more than one year increasing 4%
per year,  as described  above).  The rate of interest on the Credit  Facilities
will be  influenced  by changes in the prime rate and is  sensitive to inflation
and other economic factors. A significant  increase in interest rates may have a
negative  impact on the  earnings of the Company  due to the  variable  interest
rates under the Credit Facilities.

     The following table sets forth the Company's Credit Facilities obligations,
principal cash flows by scheduled maturity,  weighted average interest rates and
estimated fair market value ("FMV") at September 30, 1999.

<TABLE>
<CAPTION>
                      1999     2000     2001     2002        2003        Thereafter     Total             FMV
                    -------  -------  -------  -------  --------------  -----------  --------------  --------------
<S>                 <C>      <C>      <C>      <C>      <C>             <C>          <C>             <C>
  Variable rate     $  ---   $  ---   $  ---   $  ---   $ 116,625,383   $      ---   $ 116,625,383   $ 116,625,383
  Average interest
    rate               ---      ---      ---      ---             12%          ---             12%
</TABLE>


PART II - OTHER INFORMATION

Item 1. Legal Proceedings - None

Item 2. Changes in Securities and Use of Proceeds

        On  September  29,  1999 and  October 15,  1999,  the Company  issued an
        aggregate   of   1,991,597   shares  of  its  common  stock  as  partial
        consideration for the purchase of an entity which indirectly owns shares
        of VANTAS Incorporated,  and membership interests in OnSite Commerce and
        Content LLC and OnSite Access,  Inc., from certain  affiliates of Jon L.
        Halpern.  The transaction  increased the Company's ownership interest in
        each of these  companies and was  previously  reported by the Company in
        Current  Reports on Form 8-K.  The  offering  was made  pursuant  to the
        exemption from registration  under Section 4(2) of the Securities Act of
        1933 and involved only accredited investors.

Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Securities Holders - None
Item 5. Other information - None
Item 6. Exhibits and Reports on Form 8-K

        Form 8-K  dated  July 16,  1999.  Relating  to the  Company's  ownership
        interest in OnSite Access, Inc.


        Form 8-K dated  August 13,  1999  Relating  to the  Company's  ownership
        interest in VANTAS


        Form 8-K dated  September 1, 1999  Relating to the  Company's  ownership
        interest in eSourceOne, Inc.


        Form 8-K/A dated September 20, 1999 Relating to the Company's  ownership
        interest in VANTAS



SIGNATURES

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

                            RECKSON SERVICE INDUSTRIES, INC.
                            Registrant

November 10, 1999             /s/  Scott H. Rechler
Date                        Scott H. Rechler, President and
                            Chief Executive Officer
                            (Principal Executive Officer)

November 10, 1999             /s/  Michael Maturo
Date                        Michael Maturo, Executive Vice President
                            and Chief Financial Officer
                            (Principal Financial and Accounting
                             Officer)