<PAGE> 1


                                  FORM 10-Q (A)

                       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
                                                         "RESTATED"                  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                              2,247,401               1,266,623
                                                        -------------           -------------
        Commercial Properties, Net                        83,725,679              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                                  $91,742,784             $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                                   (417,327)                     --
                                                        -------------           -------------

           Total Liabilities                              62,963,546              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                                       8,786,854               8,760,535
   Other Comprehensive Income                              1,998,692               1,797,170
                                                        -------------           -------------
                                                          29,429,962              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                       28,779,238              29,147,154
                                                        -------------           -------------

 TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT          $91,742,784             $93,423,320
                                                        =============           =============

   The accompanying notes are an integral part of these consolidated financial statements.







<PAGE> 3



                                  TOWER PROPERTIES COMPANY
                              CONSOLIDATED STATEMENTS OF INCOME
             FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND SEPTEMBER 30, 1999
                                        (UNAUDITED)
<CAPTION>
                                                         2000
                                                      "Restated"                 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                               4,429,154               4,679,029
  Depreciation and Amortization                         3,253,549               3,004,060
  Taxes Other than Income                               1,239,305               1,282,694
  General, Administrative and Other                       834,512                 840,366
                                                     -------------           -------------
        Total Operating Expenses                       12,571,518              12,353,814

OTHER EXPENSE
  Interest (Including Related Party)                    3,172,338               2,791,389
                                                     -------------           -------------

      Income Before Minority Interest and
       Provision for Income Taxes                          44,427                 304,694

  Minority Interest In Income of Subsidiary                 --                     (7,643)
                                                     -------------           -------------

      Income Before Provision for Income Taxes             44,427                 297,051
                                                     -------------           -------------

PROVISION FOR INCOME TAXES
  Currently Payable                                        18,107                 118,829
                                                     -------------           -------------

NET INCOME                                            $    26,319             $   178,222
                                                     =============           =============

Earnings Per Share:
  Basic                                               $      0.15             $      0.98
                                                     =============           =============
  Diluted                                             $      0.15             $      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.



<PAGE> 4


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

 <S>                                                   <C>                     <C>
 NET INCOME                                             $  26,319               $ 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)                            $ 227,841               $(287,301)
                                                       ===========             ===========

 The accompanying notes are an integral part of these consolidated financial statements.





<PAGE> 5

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

<CAPTION>
                                                                   2000
                                                                "RESTATED"                 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                                        2,113,997               1,560,998
  Depreciation and Amortization                                  1,011,013                 999,313
  Taxes Other than Income                                          413,101                 436,667
  General, Administrative and Other                                297,662                 279,002
                                                               ------------            ------------
        Total Operating Expenses                                 4,853,427               4,183,534

OTHER EXPENSE
  Interest (Including Related Party)                             1,046,476                 906,656
                                                               ------------            ------------

      Net Income (Loss) Before Minority Interest and
       Provision for Income Taxes                                 (515,944)                 92,213

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

      Income (Loss) Before Provision for Income Taxes             (515,944)                 89,040
                                                               ------------            ------------

PROVISION FOR INCOME TAXES
  Currently Payable                                               (200,438)                 35,954
                                                               ------------            ------------

NET INCOME                                                      $ (315,507)             $   53,086
                                                               ============            ============

Earnings Per Share:
  Basic                                                         $    (1.76)             $     0.29
                                                               ============            ============
  Diluted                                                       $    (1.76)             $     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.



<PAGE> 6

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

<CAPTION>
                                                                      2000
                                                                   "Restated"                 1999
                                                                 -------------           -------------
<S>                                                             <C>                      <C>
 CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income                                                     $    26,319             $   178,222
   Adjustments to Reconcile Net Income to Net Cash
     Provided by Operating Activities:
       Depreciation                                                 2,279,581               2,134,885
       Amortization                                                   973,968                 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                              (62,229)               (216,260)
       Accounts Payable and Other Liabilities                         262,811                (770,251)
       Income Taxes Payable                                          (417,327)                 61,405
                                                                 -------------           -------------
 Net Cash Provided by Operating Activities                          3,459,521               1,684,366
                                                                 -------------           -------------

 CASH FLOWS FROM INVESTING ACTIVITIES:
   Increase in Construction in Progress                              (980,778)             (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                             (1,614,361)             (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> 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 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.



<PAGE> 8

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  $1,359,000 paid through September 30, 2000, which is included in
maintenance and  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.

8.    The Company has filed this amended Form 10-Q to correct accounting
errors related to an extensive repair project at the 811 Main garage.  In its
previously filed Form 10-Q, expenditures aggregating $1,359,393 for the nine
months ended September 30, 2000 ($984,852 for the three months ended
September 30, 2000) were recorded as construction in progress.  However, it
was subsequently determined that such amounts should have been recorded as
maintenance and repairs expense.  As a result, the accompanying



<PAGE> 9

financial statements for the nine and three months ended September 30, 2000
have been revised as set forth below:

<TABLE>
<CAPTION>

                                            Nine months Ended September 30, 2000
                                            ------------------------------------
                                       As Previously Reported            As Adjusted
                                       ----------------------            -----------
<S>                                               <C>                    <C>
Maintenance and Repairs Expense                    $3,069,761             $4,429,154

Income Before Provision for Income Taxes           $1,403,820                $44,427

Net Income                                           $855,549                $26,319

Earnings Per Share                                      $4.72                  $0.15

Retained Earnings                                  $9,616,084             $8,786,854


<CAPTION>

                                           Three months Ended September 30, 2000
                                           -------------------------------------
                                       As Previously Reported            As Adjusted
                                       ----------------------            -----------
<S>                                               <C>                    <C>
Maintenance and Repairs Expense                    $1,129,145             $2,113,997

Income (Loss) Before Provision for Income Taxes      $468,908              $(515,944)

Net Income (Loss)                                    $285,253              $(315,507)

Earnings Per Share                                      $1.59                 $(1.76)

Retained Earnings                                  $9,616,084             $8,786,854

</TABLE>



<PAGE> 10

9.    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                       PARKING        CORPORATE
                                      OFFICE        APARTMENTS     "RESTATED"       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         1,802,900         922,005       276,534         252,110          3,253,549

SEGMENT INCOME (LOSS) BEFORE TAX      1,350,149         289,534    (1,482,953)       (112,304)            44,427

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

IDENTIFIABLE SEGMENT ASSETS          38,657,686      26,395,737    10,561,501      16,127,860         91,742,784




<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> 11

      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                       PARKING        CORPORATE
                                      OFFICE        APARTMENTS     "RESTATED"       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         392,496        84,660         142,696          1,046,476

DEPRECIATION AND AMORTIZATION           530,180         301,755        95,345          83,733          1,011,013

SEGMENT INCOME (LOSS) BEFORE TAX        365,048         163,044    (1,130,196)         86,159           (515,944)

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

IDENTIFIABLE SEGMENT ASSETS          38,657,686      26,395,737    10,561,501      16,127,860         91,742,784





<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> 12
                      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 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



<PAGE> 13

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 increased primarily
due to the 811 Main garage repairs, the completion of the New Mark Phase IV
and the Tower Garage, offset by the 1999 termite repair at New Mark Phase I &
II and the 1999 repairs of the 710 Main parking facility.  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.

      Management and service fees decreased in 2000 primarily due to the
decrease in rentable income in preparation of the Commerce Trust commercial
office building



<PAGE> 14

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 increased primarily
due to 811 Main garage repairs, the completion of the New Mark Phase IV and
the Tower Garage, offset by the 1999 termite repair at New Mark Phase I & II
and the 1999 repairs of the 710 Main parking facility.

      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> 15

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:  March 28, 2001