EXHIBIT 10.21




November 18, 1997



Mr. Dennis Klimmek
85 Danbury Court
Alamo, CA 94507

Dear Dennis:

On behalf of Bedford Property Investors, Inc., I am pleased to confirm
our agreement for employment.

The position you will hold is Senior Vice President of Bedford
Property Investors, Inc., and Senior Vice President of Bedford
Acquisitions, Inc., and you will report directly to me.  You will be
responsible for legal work in connection with property acquisitions,
general corporate legal work, managing escrow, and other work as I
direct.

The effective date of your employment will be October 1, 1997.  The
terms of your employment are as follows:

     *    Your commencing salary will be at the rate of $12,500 per
          month, payable in two installments.  Any increase to this
          base salary will be based on the results of a review of
          your performance at intervals commencing October 1, 1998,
          December 31, 1998, and every December 31st thereafter.  (The
          December 31, 1998, performance review will cover a period
          of less than one year and therefore any adjustments will be
          prorated.)

     *    Your annual incentive bonus potential will be $100,000,
          with a guaranty of a bonus as follows.  With the exception
          of the minimum guaranteed bonus, the annual incentive bonus
          will be payable in accordance with directives issued by the
          CEO and approved by the Board of Directors.  Your
          guaranteed minimum bonus will be payable (1) $25,000 on
          January 2, 1998 and (2) $100,000 on January 2, 1999.

     *    You will be eligible to participate in the standard Bedford
          Property Investors, Inc., benefits programs, once the
          specific program standards are met, including the Company's
          401(k) program, and health, dental and other insurance
          benefits as may be offered by the company from time to
          time.

     *    You will be entitled to a monthly automobile allowance of
          $550.00 per month.

     *    You will be granted 7,500 restricted shares of Bedford
          Property Investors, Inc., common stock on November 17,
          1997.  This includes 2,500 shares to compensate you for the
          reduction in the value of the stock options from the date
          of the attached letter.  It is intended that you will be
          granted 5,000 restricted shares on each annual performance
          review (on each date thereafter subject to any changes in
          the company's Restricted Stock Agreement as adopted by the
          CEO and approved by the Board of Directors).  The
          restricted share grants will be subject to the terms and
          conditions of a Restricted Stock Agreement between the
          company and you.  Notwithstanding anything contained
          therein to the contrary, it is intended that 20% of the
          restricted shares granted to you shall vest and become non-
          forfeitable upon each anniversary of the grant.  In this
          manner, you will be 100% vested in each grant of restricted
          shares upon the fifth anniversary of each grant date.

     *    You will be granted 60,000 stock options on November 17,
          1997.  This will entitle you to acquire 60,000 shares of
          Bedford Property Investors, Inc., common stock in
          accordance with the terms of the Company's Stock Option
          Plan.

     *    You will be eligible for four weeks vacation each year to
          accrue according to the rules of the Company.

     *    You will be guaranteed employment until October 1, 1998. 
          Further, if at any time during the first three (3) years of
          your employment, there occurs a Change in Control of the
          Company (as such term is defined in the Restricted Stock
          Agreement) which results in your termination, relocation to
          more than 20 miles from your home or any reduction in your
          total compensation; or you are terminated without cause,
          then you will be guaranteed the following:

        1.   The payment of one year's base salary and minimum
             annual bonus on the date of such Change in Control or
             termination, and

        2.   The immediate grant and vesting of the amount of
             restricted stock previously granted to you, and the
             stock options previously granted to you.
   


   *    You will remain "of counsel" to your current law firm
        through the end of 1997 to finish matters for existing
        clients.  It is anticipated that the work will generally be
        done in the evenings or on weekends and will not interfere
        with your performance of your duties for the Company.


It is understood that this is not an employment contract but is
employment at will, and either Bedford Property Investors, Inc., or
you may terminate this employment at any time without further
obligation except as above indicated.  If you elect to terminate your
employment, you will not be entitled to any of the severance benefits
set forth in this letter.

Please sign and date a copy of this letter in the space provided below
and return it to me.

Sincerely,


/s/ Peter B. Bedford
Peter B. Bedford
Chairman and
Chief Executive Officer



Agreed to and Accepted.



/s/ Dennis Klimmek
Dennis Klimmek