<PAGE>
<PAGE> 1
                                  FORM 10-Q

                      SECURITIES AND EXCHANGE COMMISSION

                            WASHINGTON, D.C. 20549

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

                     For Quarter Ended September 30, 2000
                     ------------------------------------

                        Commission File Number 0-18261
                           TOWER PROPERTIES COMPANY
                           ------------------------
            (Exact name of registrant as specified in its charter)



        Missouri                                                (43-1529759)
------------------------                                    ----------------
(State of incorporation)                                    (IRS tax number)

Suite 100,   911 Main Street,             Kansas City, Missouri        64105
----------------------------------------------------------------------------
(Address of principal executive offices)                            Zip Code

                                (816) 421-8255
             ----------------------------------------------------
             (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
the filing requirements for the past 90 days.
 Yes   X                             No
------------------------------------    ---------------------------------

    Indicate the number of shares outstanding of each of the issuer's classes
of common stock, at the close of the period covered by this report.

                        179,118 shares of common stock
                        ------------------------------
                $1.00 par value per share, at October 15, 2000

<PAGE> 2

<TABLE>
                                    TOWER PROPERTIES COMPANY
                                  CONSOLIDATED BALANCE SHEETS
                            SEPTEMBER 30, 2000 AND DECEMBER 31, 1999

<CAPTION>
                                                                  (UNAUDITED)
                                                                      2000              1999
                                                                 -------------     -------------
<S>                                                              <C>               <C>
ASSETS
Investment in Commercial Properties:
   Rental Property, Net                                           $74,655,089       $76,109,334
   Tenant Leasehold Improvements, Net                               3,055,568         3,871,804
   Equipment and Furniture, Net                                     3,767,621         4,068,565
   Construction in Progress                                         3,606,794         1,266,623
                                                                 -------------     -------------
      Commercial Properties, Net                                   85,085,072        85,316,326

Real Estate Held for Sale                                             396,453           396,453

Cash and Cash Equivalents                                             100,284           145,362
Investments At Market (Related Party)                               4,140,081         3,809,718
Receivables                                                         2,166,392         2,555,254
Prepaid Expenses and Other Assets                                   1,213,895         1,200,207
                                                                 -------------     -------------

            TOTAL ASSETS                                          $93,102,177       $93,423,320
                                                                 =============     =============

LIABILITIES AND STOCKHOLDERS' INVESTMENT
Liabilities:
   Mortgage Notes                                                 $46,245,165       $47,567,080
   Real Estate Bond Issue                                           6,400,000         6,400,000
   Line of Credit (Related Party)                                   5,100,000         5,065,030
   Accounts Payable and Other Liabilities                           3,100,271         2,837,461
   Deferred Income Taxes                                            2,535,437         2,406,595
   Income Taxes Payable                                               112,836                --
                                                                 -------------     -------------
            Total Liabilities                                      63,493,709        64,276,166

Commitments and Contingencies

Preferred Stock, No Par Value
   Authorized 60,000 Shares, None Issued                                   --                --

Stockholders' Investment:
   Common Stock, Par Value $1.00
      Authorized 1,000,000 Shares, Issued
         183,430 Shares                                               183,430           183,430
   Paid-In Capital                                                 18,460,986        18,460,693
   Retained Earnings                                                9,616,084         8,760,535
   Other Comprehensive Income                                       1,998,692         1,797,170
                                                                 -------------     -------------
                                                                   30,259,192        29,201,828
   Less Treasury Stock, At Cost (4,312 and
      516 shares in 2000 and 1999, respectively)                     (650,724)          (54,674)
                                                                 -------------     -------------
   Total Stockholders' Investment                                  29,608,468        29,147,154
                                                                 -------------     -------------

TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT                    $93,102,177       $93,423,320
                                                                 =============     =============

    The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>


<PAGE>
<PAGE> 3

<TABLE>
                                    TOWER PROPERTIES COMPANY
                               CONSOLIDATED STATEMENTS OF INCOME
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND SEPTEMBER 30, 1999
                                          (UNAUDITED)

<CAPTION>
                                                                      2000              1999
                                                                 -------------     -------------
<S>                                                              <C>               <C>
REVENUES
   Rent                                                            $13,631,878      $13,272,059
   Rent, Related Party                                               1,265,576        1,246,996
   Management and Service Fees                                           3,242           19,361
   Management and Services Fees, Related Party                         530,014          549,443
   Real Estate Sales                                                        --           59,840
   Interest and Other Income                                           357,573          302,198
                                                                 -------------     -------------
            Total Revenues                                          15,788,283       15,449,897
                                                                 -------------     -------------
OPERATING EXPENSES
   Operating Expenses                                                2,814,998        2,547,665
   Maintenance and Repairs                                           3,069,761        4,679,029
   Depreciation and Amortization                                     3,205,008        3,004,060
   Taxes Other than Income                                           1,239,305        1,282,694
   General, Administrative and Other                                   883,053          840,366
                                                                 -------------     -------------
            Total Operating Expenses                                11,212,125       12,353,814

OTHER EXPENSE
   Interest (Including Related Party)                                3,172,338        2,791,389
                                                                 -------------     -------------
      Income Before Minority Interest and
         Provision for Income Taxes                                  1,403,820          304,694

   Minority Interest In Income of Subsidiary                                --           (7,643)
                                                                 -------------     -------------
      Income Before Provision for Income Taxes                       1,403,820          297,051
                                                                 -------------     -------------
PROVISION FOR INCOME TAXES
   Currently Payable                                                   548,271          118,829
                                                                 -------------     -------------

NET INCOME                                                         $   855,549      $   178,222
                                                                 =============     =============
Earnings Per Share:
   Basic                                                           $      4.72      $      0.98
                                                                 =============     =============
   Diluted                                                         $      4.72      $      0.98
                                                                 =============     =============
Weighted Average Common Shares Outstanding:
   Basic                                                               181,079          182,711
                                                                 =============     =============
   Diluted                                                             181,079          182,712
                                                                 =============     =============

    The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>


<PAGE>
<PAGE> 4

<TABLE>
                                    TOWER PROPERTIES COMPANY
                     CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND SEPTEMBER 30, 1999
                                          (UNAUDITED)

<CAPTION>
                                                                      2000              1999
                                                                 ------------      ------------
<S>                                                              <C>                <C>
NET INCOME                                                        $  855,549         $ 178,222

Unrealized holding gain (loss) on marketable
equity securities arising during the period                          330,363          (763,152)

Deferred Income tax benefit                                         (128,842)          297,629
                                                                 ------------       -----------

Comprehensive income (loss)                                       $1,057,070         $(287,301)
                                                                 ============       ===========

    The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>


<PAGE>
<PAGE> 5

<TABLE>
                                    TOWER PROPERTIES COMPANY
                               CONSOLIDATED STATEMENTS OF INCOME
              FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND SEPTEMBER 30, 1999
                                          (UNAUDITED)

<CAPTION>
                                                                      2000              1999
                                                                  ------------     ------------
<S>                                                              <C>               <C>
REVENUES
   Rent                                                            $4,625,830       $4,366,214
   Rent, Related Party                                                419,513          450,971
   Management and Service Fees                                            145            3,713
   Management and Service Fees, Related Party                         224,646          252,906
   Real Estate Sales                                                       --               --
   Interest and Other Income                                          113,825          108,599
                                                                  ------------     ------------
            Total Revenues                                          5,383,959        5,182,403
                                                                  ------------     ------------
OPERATING EXPENSES
   Operating Expenses                                               1,017,654          907,554
   Maintenance and Repairs                                          1,129,145        1,560,998
   Depreciation and Amortization                                      994,620          999,313
   Taxes Other than Income                                            413,101          436,667
   General, Administrative and Other                                  314,055          279,002
                                                                  ------------     ------------
            Total Operating Expenses                                3,868,575        4,183,534

OTHER EXPENSE
   Interest (Including Related Party)                               1,046,476          906,656
                                                                  ------------     ------------
      Net Income Before Minority Interest and
         Provision for Income Taxes                                   468,908           92,213

   Minority Interest In Income of Subsidiary                               --           (3,173)
                                                                  ------------     ------------

      Income Before Provision for Income Taxes                        468,908           89,040
                                                                  ------------     ------------
PROVISION FOR INCOME TAXES
   Currently Payable                                                  183,655           35,954
                                                                  ------------     ------------

NET INCOME                                                         $  285,253       $   53,086
                                                                  ============     ============
Earnings Per Share:
   Basic                                                           $     1.59       $     0.29
                                                                  ============     ============
   Diluted                                                         $     1.59       $     0.29
                                                                  ============     ============
Weighted Average Common Shares Outstanding:
   Basic                                                              179,135          182,869
                                                                  ============     ============
   Diluted                                                            179,135          182,869
                                                                  ============     ============

         The accompanying notes are an integral part of these consolidated statements.
</TABLE>


<PAGE>
<PAGE> 6

<TABLE>
                                    TOWER PROPERTIES COMPANY
                              CONSOLIDATED STATEMENTS OF CASH FLOW
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND SEPTEMBER 30, 1999
                                          (UNAUDITED)

<CAPTION>
                                                                      2000              1999
                                                                 -------------     -------------
<S>                                                              <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income                                                     $   855,549       $   178,222
   Adjustments to Reconcile Net Income to Net Cash
     Provided by Operating Activities:
       Depreciation                                                 2,279,581         2,134,885
       Amortization of Leasehold Improvements                         925,427           869,175
       Gain on Real Estate Sales                                           --           (24,951)
       Net Change in Minority Interest                                     --          (178,705)
       Treasury Shares Issued to Directors                              7,536             9,954
     Change in Assets and Liabilities, Net:
       Receivables                                                    388,862          (379,108)
       Prepaid Expenses and Other Assets                              (13,688)         (216,260)
       Accounts Payable and Other Liabilities                         262,811          (770,251)
       Income Taxes Payable                                           112,836            61,405
                                                                 -------------     -------------
Net Cash Provided by Operating Activities                           4,818,914         1,684,366
                                                                 -------------     -------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Increase in Construction in Progress                            (2,340,171)       (5,818,467)
   Proceeds from Sale of Land                                              --            59,870
   Additions to Real Estate Held for Sale, Net                             --              (655)
   Additions to Equipment & Furniture, Net                           (383,710)         (319,418)
   Additions to Rental Income Property, Net                          (140,682)         (331,623)
   Additions to Leasehold Improvements, Net                          (109,191)         (292,861)
                                                                 -------------     -------------
Net Cash Used In Investing Activities                              (2,973,754)       (6,703,154)
                                                                 -------------     -------------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Principal Payments on Mortgages                                 (1,321,915)       (1,133,566)
   Proceeds from Long Term Borrowings                                      --         7,000,000
   Change in Short Term Borrowings, Net                                34,970        (1,145,000)
   Sale of Treasury Stock                                                  --           312,000
   Purchase of Treasury Stock                                        (603,293)          (44,180)
                                                                 -------------     -------------
Net Cash Provided by (Used in) Financing Activities                (1,890,238)        4,989,254
                                                                 -------------     -------------

NET DECREASE IN CASH                                                  (45,078)          (29,534)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                        145,362           147,928
                                                                 -------------     -------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                          $   100,284       $   118,394
                                                                 =============     =============

    The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>


<PAGE>
<PAGE> 7

                  TOWER PROPERTIES COMPANY AND SUBSIDIARIES
                FOOTNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                 (UNAUDITED)

1.    The consolidated financial statements included herein have been
prepared by Tower Properties Company (the Company) and reflect all
adjustments (consisting only of normal recurring adjustments) which are,
in the opinion of management, necessary for a fair statement of the
results for the interim periods.  Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted,
although the Company believes that the disclosures are adequate to make the
information presented not misleading.  It is suggested that these condensed
financial statements be read in conjunction with the consolidated financial
statements and the notes thereto included in the Company's latest annual
report on Form 10-K as of and for the year ended December 31, 1999.
      The Company is primarily engaged in owning, developing, leasing and
managing real property located in Johnson County, Kansas and Clay, Jackson
and St. Louis County, Missouri. Substantially all of the improved real estate
owned by the Company and its subsidiaries consists of office buildings,
apartment complexes, a warehouse and a warehouse/office facility, parking
facilities and land held for future sales.

2.    Rental revenue is recognized on a straight-line basis over the term of
individual leases.

3.    Interest of $69,958 and $158,296 was capitalized during the first nine
months of 2000 and 1999, respectively.

4.    Interest paid during the first nine months of 2000 and 1999 for
long-term mortgages amounted to $2,769,462 and $2,686,960, respectively.
Interest paid to related party was $268,487 and $78,436 for the first nine
months of 2000 and 1999, respectively.  Income taxes paid during the first
nine months of 2000 and 1999 amounted to $435,435 and $57,423, respectively.

5.    Certain prior quarter amounts have been reclassified to conform to the
2000 presentation.

6.    Under SFAS No. 115, the investment in Commerce Bancshares, Inc. common
stock is classified as "available for sale", and is recorded at fair value.
The unrealized gain of $3,276,544 net of tax effects of $1,277,852 is
reflected as a separate component of equity.  There was an increase in the
net unrealized holding gain for the nine months from January 1, 2000 to
September 30, 2000, of $201,521, net of deferred taxes, and an


<PAGE>
<PAGE> 8

increase in the net unrealized holding gain of $484,509, net of deferred
taxes, for the three months from June 30, 2000 to September 30, 2000.

7.    COMMITMENTS AND CONTINGENCIES:

      Congress passed the Americans With Disabilities Act (the Act) of 1990
which became effective January 26, 1992.  The Act contains provisions for
building owners to provide persons with disabilities with accommodations and
access equal to, or similar to, that available to the general public.
Management cannot estimate the eventual impact of the Act on the financial
condition of the Company since certain provisions of the Act are open to
interpretation.  The Company is implementing the requirements of the Act that
are readily achievable and will not constitute an undue burden on the
Company.  During the first nine months of 2000, the Company made
modifications to certain properties at a cost of approximately $9,900.

      Due to governmental regulations regarding asbestos and the uncertainty
surrounding the advantages and disadvantages of asbestos removal, Tower
Properties Company will continue to monitor the status of asbestos in its
commercial office buildings and will take appropriate action when required.

      The cost to remove all asbestos from properties owned by the Company
cannot be determined; however, these removal costs could have a significant
adverse impact on the future operations and liquidity of Tower Properties
Company.

      The Company has outstanding construction commitments of $2,645,000 as
of September 30, 2000 for structural repairs to the 811 Main garage.  There
has been  $1,335,000 paid through September 30, 2000, which is included in
construction in progress, related to the structural repairs.  The Company
also has an extraordinary repair project at Phase II of the New Mark
apartment complex due to sudden termite damage.  $126,000 has been expensed
through September 30, 2000 for repair of the termite damage.  The Company has
agreed to the modernization of the elevators at the 811 Main Building for
approximately $729,000 with a remaining obligation of $134,000 as of
September 30, 2000.  The project began in the fourth quarter of 1999 and will
be completed in November, 2000.

      On Saturday July 22, 2000, the Company incurred fire damage at its
Commerce Tower office building located at 911 Main Street in Kansas City,
Missouri.  Damage was primarily confined to an office suite on the 23rd
floor.  Minor water damage was incurred on the floors above and below.  The
Company is more than adequately insured.  The cause of the fire was tenant
mishandling of smoking devices.  The Company did not incur any significant
financial impact from this event.


<PAGE>
<PAGE> 9

8.    BUSINESS SEGMENTS

      The Company groups its operations into three business segments,
commercial office, apartments, and parking.  The Company's business segments
are separate business units that offer different real estate services.  The
accounting policies for each segment are the same as those described in the
summary of significant accounting policies.

      Following is information for each segment as of and for the nine months
ended September 30, 2000 and 1999:

<TABLE>
<CAPTION>

                                                -----------------------------------------------------------------------
                                                                           SEPTEMBER 30, 2000
                                                -----------------------------------------------------------------------
                                                 COMMERCIAL                                  CORPORATE
                                                   OFFICE      APARTMENTS       PARKING      AND OTHER         TOTAL
                                                -----------    ----------     ----------     ---------      -----------
<S>                                             <C>            <C>            <C>            <C>            <C>
REVENUE FROM EXTERNAL CUSTOMERS                 $ 8,962,720     4,738,955      1,063,711      1,022,897      15,788,283

LAND SALES                                               --            --             --             --              --

INTEREST EXPENSE                                  1,291,625     1,191,986        232,049        456,678       3,172,338

DEPRECIATION AND AMORTIZATION                     1,785,973       903,469        269,805        245,761       3,205,008

SEGMENT INCOME (LOSS) BEFORE TAX                  1,350,149       289,534       (123,560)      (112,304)      1,403,820

CAPITAL EXPENDITURES BY SEGMENT                     203,380       362,416         55,544         14,863         636,203

IDENTIFIABLE SEGMENT ASSETS                      38,657,686    26,395,737     11,920,894     16,127,860      93,102,177

<CAPTION>
                                                -----------------------------------------------------------------------
                                                                           SEPTEMBER 30, 1999
                                                -----------------------------------------------------------------------
                                                 COMMERCIAL                                  CORPORATE
                                                   OFFICE      APARTMENTS       PARKING      AND OTHER         TOTAL
                                                -----------    ----------     ----------     ---------      -----------
<S>                                             <C>            <C>            <C>            <C>            <C>
REVENUE FROM EXTERNAL CUSTOMERS                 $ 9,375,684     4,451,512      1,162,562        460,139      15,449,897

LAND SALES                                               --            --             --         59,840          59,840

INTEREST EXPENSE                                  1,286,205     1,190,501             --        314,683       2,791,389

DEPRECIATION AND AMORTIZATION                     1,811,815       876,915         90,412        224,918       3,004,060

SEGMENT INCOME (LOSS) BEFORE TAX                  2,273,623    (1,134,956)      (365,776)      (468,197)        304,694

CAPITAL EXPENDITURES BY SEGMENT                     393,491       256,571        250,000         58,841         958,903

IDENTIFIABLE SEGMENT ASSETS                      37,013,316    26,650,586     12,269,515     12,693,335      88,626,752
</TABLE>


<PAGE>
<PAGE> 10

Following is information for each segment as of and for the three months
ended September 30, 2000 and 1999:

<TABLE>
<CAPTION>

                                                -----------------------------------------------------------------------
                                                                           SEPTEMBER 30, 2000
                                                -----------------------------------------------------------------------
                                                 COMMERCIAL                                   CORPORATE
                                                   OFFICE      APARTMENTS       PARKING       AND OTHER        TOTAL
                                                -----------    ----------     ----------      ---------     -----------
<S>                                             <C>            <C>            <C>             <C>           <C>
REVENUE FROM EXTERNAL CUSTOMERS                  $3,002,744     1,645,507        329,723         405,985     5,383,959

LAND SALES                                               --            --             --              --            --

INTEREST EXPENSE                                    426,622       392,497         84,661         142,696     1,046,476

DEPRECIATION AND AMORTIZATION                       524,533       295,375         93,063          81,649       994,620

SEGMENT INCOME (LOSS) BEFORE TAX                    365,048       163,044       (145,343)         86,159       468,908

CAPITAL EXPENDITURES BY SEGMENT                     109,823       224,333         44,083           4,079       382,318

IDENTIFIABLE SEGMENT ASSETS                      38,657,686    26,395,737     11,920,894      16,127,860    93,102,177

<CAPTION>
                                                -----------------------------------------------------------------------
                                                                           SEPTEMBER 30, 1999
                                                -----------------------------------------------------------------------
                                                 COMMERCIAL                                   CORPORATE
                                                   OFFICE      APARTMENTS       PARKING       AND OTHER        TOTAL
                                                -----------    ----------     ----------      ---------     -----------
<S>                                             <C>            <C>            <C>             <C>           <C>
REVENUE FROM EXTERNAL CUSTOMERS                  $3,100,030     1,488,903        351,570         241,900     5,182,403

LAND SALES                                               --            --             --              --            --

INTEREST EXPENSE                                    441,944       389,275             --          75,437       906,656

DEPRECIATION AND AMORTIZATION                       603,693       292,305         29,008          74,307       999,313

SEGMENT INCOME (LOSS) BEFORE TAX                    637,563      (569,963)         3,003          21,610        92,213

CAPITAL EXPENDITURES BY SEGMENT                      55,107       142,954        250,000          16,890       464,951

IDENTIFIABLE SEGMENT ASSETS                      37,013,316    26,650,586     12,269,515      12,693,335    88,626,752
</TABLE>


<PAGE>
<PAGE> 11

                     MANAGEMENT'S DISCUSSION AND ANALYSIS
                          OF FINANCIAL CONDITION AND
                            RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES:

    The Company's principal assets consist of real estate holdings which are
not liquid assets.  Real estate holdings include office buildings, apartment
complexes, a warehouse and a warehouse/office facility, parking facilities
and land held for future sale.  The principal source of funds generated
internally is income from operations.  The principal source of external funds
is long-term debt and line of credit with Commerce Bank, N.A.  The Company
has not experienced liquidity problems during the nine months ended September
30, 2000.  In April, 1999 the Company secured a $7,000,000 twenty-year
mortgage loan on the UMB Bank commercial office building from Business Men's
Assurance at a fixed rate of 6.9%.  The proceeds of this loan were used to
pay off the line of credit and the balance invested in short-term money
market accounts.  In December, 1999, the Company secured a $1,045,000
eighteen-year mortgage loan for Phase IV of the New Mark apartments from Ohio
National Life Insurance at a fixed rate of 7.78%.  The proceeds were used to
pay for the major repairs at the New Mark apartments and the construction of
the Tower garage.

    Cash and cash equivalents on hand at September 30, 2000 totaled $100,284,
a decrease of $45,078 from December 31, 1999.  The decrease in cash and cash
equivalents is due to changes in the level of capital expenditures and
financing activities in the respective quarters, as well as an increase in
cash flows from operating activities, primarily due to changes in accounts
receivable and current liabilities.  Cash from operations in 2000 has
exceeded capital expenditures and substantially all of the remaining cash has
been used to repay indebtedness.  At September 30, 2000, available borrowings
under the line of credit totaled $5,977,519.  Management believes the
Company's current cash position, available borrowings, and the properties'
ability to provide operating cash flow should enable the Company to fund
anticipated capital expenditures and service debt in 2000 and 2001.


                     NINE MONTHS ENDED SEPTEMBER 30, 2000
            COMPARED WITH THE NINE MONTHS ENDED SEPTEMBER 30, 1999

RESULTS OF OPERATIONS:

    Total revenue increased $338,386.  The completion of the Tower Garage and
Phase IV New Mark Apartments, an increase in occupancy at the New Mark Phase
III and the Hillsborough apartment complexes, an increase in occupancy at the
Barkley Place commercial office building, an


<PAGE>
<PAGE> 12

increase in rent at the 9200 Cody warehouse/office facility and the pass
through of an increase in real estate taxes as additional rent at the UMB
Bank commercial office building offset by the loss of parking revenue due to
the 1999 exchange of the 710 Main parking garage for the 700 Baltimore lot,
the loss of revenue due to the structural repairs at the 811 Main garage and
the decrease in occupancy at the Commerce Tower commercial office building
primarily resulted in a $378,399 increase in rental income.

    Management and service fees decreased in 2000 primarily due to the
decrease in rentable income in preparation of the Commerce Trust commercial
office building renovation, the 1999 lease commission earned on a new lease
at the Commerce Bank commercial office building, offset by the 2000 increase
in construction fees earned.

    A real estate commission earned on the leasing of a non-company owned
warehouse accounts for the increase in interest and other income. The
decrease in real estate sales is due to the 1999 sale of 7.48 acres of
undeveloped land in the New Mark subdivision.

    The change in operating expenses and general, administrative and other
are a direct result of the completion of the New Mark Phase IV apartments,
the completion of the Tower Garage and the contract management fee of our
parking facilities. Salaries and employee benefits, which are included in
operating expenses, have increased primarily due to the leasing commission
earned on the leasing of the non-company warehouse and the salaries of the
contracted parking management.  Maintenance and repairs decreased primarily
due to the termite repair at New Mark Phase I & II and the 1999 repairs of
the 710 Main parking facility, offset by the completion of the New Mark Phase
IV and the Tower Garage.

    Interest expense, including related party from September 30, 1999 to
September 30, 2000, increased due to the following factors:  the mortgage
loan on the UMB Bank commercial office building in April, 1999, the mortgage
loan on New Mark Phase IV in December, 1999, the increase in the related
party line of credit and a reduction in the capitalized interest on
construction of $69,958 as compared to $158,296 in 1999.

                    THREE MONTHS ENDED SEPTEMBER 30, 2000
           COMPARED WITH THE THREE MONTHS ENDED SEPTEMBER 30, 1999

RESULTS OF OPERATIONS:

    The completion of the Tower Garage and Phase IV New Mark Apartments, an
increase in occupancy at the New Mark Phase III and the Hillsborough
apartment complexes, an increase in occupancy at the Barkley Place
commercial office building, an increase in rent at the 9200 Cody
warehouse/office facility and the pass through of an increase in real
estate taxes as additional rent at the UMB Bank commercial office building
offset by the loss of parking revenue due to the 1999 exchange of the
710 Main parking garage for the 700 Baltimore lot, the loss of revenue due
to the structural repairs at the 811 Main garage and the decrease in
occupancy at the Commerce Tower commercial office building primarily
resulted in a $228,158 increase in rental income.


<PAGE>
<PAGE> 13

    Management and service fees decreased in 2000 primarily due to the
decrease in rentable income in preparation of the Commerce Trust commercial
office building renovation, the 1999 lease commission earned on a new lease
at the Commerce Bank commercial office building, offset by the 2000 increase
in construction fees earned.

    The change in operating expenses and general, administrative and other
are a direct result of the completion of the New Mark Phase IV apartments,
the completion of the Tower Garage and the contract management fee of our
parking facilities. Salaries and employee benefits, which are included in
operating expenses, have increased primarily due to the leasing commission
earned on the leasing of the non-company warehouse and the salaries of the
contracted parking management.  Maintenance and repairs decreased primarily
due to the termite repair at New Mark Phase I & II and the 1999 repairs of
the 710 Main parking facility, offset by the completion of the New Mark Phase
IV and the Tower Garage.

    Interest expense, including related party, increased due to the mortgage
loan on New Mark Phase IV in December, 1999 and the increase in the related
party line of credit.

                            MARKET RISK DISCLOSURE

    The Company is exposed to various market risks, including equity
investment prices and interest rates.

    The Company has $4,140,081 of equity securities as of September 30, 2000.
These investments are not hedged and are exposed to the risk of changing
market prices.  The Company classifies these securities as
"available-for-sale" for accounting purposes and marks them to fair value on
the balance sheet at the end of each period.  Management estimates that the
value of its investments will generally move consistently with trends and
movements of the overall stock market excluding any unusual situations.  An
immediate 10% change in the fair value of the Company's equity securities
would have a $252,545 effect on comprehensive income.

    The Company has approximately $11,500,000 of variable rate debt as of
September 30, 2000.  A 100 basis point change in each debt series benchmark
would impact net income on an annual basis by approximately $70,150.

                 PRONOUNCEMENTS ISSUED BUT NOT YET EFFECTIVE

    In June 1998, the FASB issued Statement of Financial Accounting
Standards  No. 133, "Accounting for Derivative Instruments and Hedging
Activities" (SFAS 133).  This statement establishes accounting and reporting
standards requiring that every derivative instrument, including certain
derivative instruments embedded in other contracts, be recorded in the
balance sheet at its fair value.  SFAS 133, effective January 1, 2001,
requires that changes in the derivative's fair value be recognized currently
in earnings unless specific hedge accounting criteria are met.  The Company
is currently evaluating the impact of adopting SFAS 133, however, it is not
expected to have a material impact on the Company's financial position and
results of operations.


<PAGE>
<PAGE> 14

                                  SIGNATURES

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

TOWER PROPERTIES COMPANY




/s/ Thomas R. Willard
Thomas R. Willard
President




/s/ Robert C. Harvey, III
Robert C. Harvey, III
Vice President and Chief Financial Officer




Date:  November 15, 2000