UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                      Washington, DC 20549


                           FORM 10-Q


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

         For the quarterly period ended June 30, 1998
                                
                Commission file number: 1-13762



                 RECKSON ASSOCIATES REALTY CORP.
     (Exact name of registrant as specified in its charter) 


Maryland                                             11-3233650
(State other jurisdiction of incorporation         (IRS. Employer
of organization)                                   Identification Number)

225 Broadhollow Road, Melville, NY                                 11747
(Address of principal executive office)                         (zip code)

                         (516) 694-6900
      (Registrant's telephone number including area code)


     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to
such filing requirements for the past 90 days.

                           Yes  X   No     

The company has only one class of common stock, issued at $.01 par value
per share with 40,011,104 shares outstanding as of August 10, 1998.
                                
<PAGE>
                      RECKSON ASSOCIATES REALTY CORP.
                             QUARTERLY REPORT
                  FOR THE THREE MONTHS ENDED JUNE 30, 1998
                             TABLE OF CONTENTS
                                
                                
                                
INDEX

PART I. FINANCIAL INFORMATION                                      
                                                                  
Item 1.   Financial Statements (unaudited)

          Consolidated Balance Sheets of Reckson Associates Realty Corp.
          as of June 30, 1998 and December 31, 1997 ....................

          Consolidated Statements of Income of Reckson Associates Realty
          Corp. for the three and six months ended June 30, 1998 and
          1997 .........................................................
         
          Consolidated Statements of Cash Flows of Reckson Associates
          Realty Corp. for the six months ended June 30, 1998 and 1997..

          Notes to the Consolidated Financial Statements of Reckson
          Associates Realty Corp .......................................

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

PART II   OTHER INFORMATION ............................................


Item 1.   Legal Proceedings
Item 2.   Changes in Securities
Item 3.   Defaults Upon Senior Securities
Item 4.   Submission of Matters to a Vote of Securities Holders
Item 5.   Other Information
Item 6.   Exhibits and Reports on Form 8-K

SIGNATURES
<PAGE>
PART I. FINANCIAL INFORMATION                                      
Item 1. Financial Statements
<TABLE>
                                          Reckson Associates Realty Corp.
                                            Consolidated Balance Sheets
                                  (Dollar in thousands, except for share amounts)
<CAPTION>
                                                                  June 30,           December 31,
                                                                    1998                 1997
                                                             ------------------   ------------------
                                                                (Unaudited)
<S>                                                         <C>                  <C>
Assets:
Commercial real estate properties, at cost:
     Land                                                   $          191,847   $          138,526
     Building and improvements                                       1,245,715              818,229
Developments in progress:
     Land                                                               16,503               29,309
     Development costs                                                  81,299               25,164
Furniture, fixtures and equipment                                        4,831                4,054
                                                            -------------------  -------------------
                                                                     1,540,195            1,015,282
Less accumulated depreciation                                         (132,399)            (111,068)
                                                            -------------------  -------------------
                                                                     1,407,796              904,214

Investment in real estate joint ventures                                11,628                7,223
Investment in mortgage notes and notes receivable                       84,674              104,509
Cash and cash equivalents                                                3,446               21,828
Tenants receivables                                                      4,062                4,975
Investments in and advances to affiliates                               56,171               26,547
Deferred rent receivable                                                19,098               14,973
Prepaid expenses and other assets                                       15,467                5,248
Contract and land deposits and pre-acquisition costs                     3,088                7,559
Deferred leasing and loan costs                                         19,537               16,181
                                                            -------------------  -------------------
Total Assets                                                $        1,624,967   $        1,113,257
                                                            ===================  ===================
Liabilities:
Mortgage notes payable                                      $          236,776   $          180,023
Credit facilities                                                      298,250              210,250
Senior unsecured notes                                                 150,000              150,000
Accrued expenses and other liabilities                                  36,629               30,987
Affiliate payables                                                       1,877                  807
Dividends and distributions payable                                     20,461                  120
                                                            -------------------  -------------------
Total Liabilities                                                      743,993              572,187
                                                            -------------------  -------------------

Minority interests in consolidated partnerships                         35,685                6,655
Limited partners' minority interest in the operating
  partnership                                                          132,165               85,750
                                                            -------------------  -------------------
                                                                       167,850               92,405
                                                            -------------------  -------------------
Stockholders' Equity:
Preferred Stock, $.01 par value, 25,000,000 shares
   authorized, 9,200,000  issued and outstanding                            92                  ---
Common Stock, $.01 par value, 100,000,000 shares
   authorized, 39,991,745 and 37,770,158 shares  issued
   and outstanding, respectively                                           400                  378
Additional paid in capital                                             712,632              448,287
                                                            -------------------  -------------------
Total Stockholders' Equity                                             713,124              448,665
                                                            -------------------  -------------------
Total Liabilities and Stockholders' Equity                  $        1,624,967   $        1,113,257
                                                            ===================  ===================
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE>
                                                          Reckson Associates Realty Corp.
                                                         Consolidated Statements of Income
                                            (Unaudited and in thousands, except per share and share amounts)
<CAPTION>
                                                              Three Months Ended June 30,      Six Months Ended June 30,
                                                             -----------------------------   -----------------------------
                                                                  1998            1997            1998           1997
                                                             -------------   -------------   -------------   -------------
<S>                                                         <C>             <C>             <C>             <C>
Revenues:
Base rents                                                  $      55,536   $      31,160   $     102,571   $      57,751
Tenant escalations and reimbursements                               7,061           3,340          13,113           6,585
Equity in earnings of real estate joint ventures                      173             105             273             201
Equity in earnings of service companies                               651             ---             392             142
Interest income on mortgage notes and notes receivable              1,773             931           3,453           1,889
Other                                                               1,125             658           1,581           1,318
                                                             -------------   -------------   -------------   -------------
Total Revenues                                                     66,319          36,194         121,383          67,886
                                                             -------------   -------------   -------------   -------------
Expenses:
Property operating expenses                                        12,265           7,069          22,018          12,733
Real estate taxes                                                   9,032           4,806          17,036           9,370
Ground rents                                                          432             306             845             609
Marketing, general and administrative                               3,639           1,858           7,102           3,838
Interest                                                           10,970           3,848          21,497           8,583
Depreciation and amortization                                      12,457           6,317          23,264          11,957
                                                             -------------   -------------   -------------   -------------
Total Expenses                                                     48,795          24,204          91,762          47,090
                                                             -------------   -------------   -------------   -------------
Income before minority interests and extraordinary
items                                                              17,524          11,990          29,621          20,796
                                                             -------------   -------------   -------------   -------------
Minority partners' interests in consolidated
partnerships                                                         (683)           (201)         (1,216)           (444)
                                                             -------------   -------------   -------------   -------------
Distributions to preferred unitholders                               (435)           ----            (435)            ---
                                                             -------------   -------------   -------------   -------------
Limited partners' interest in the operating
   partnership                                                     (2,762)         (1,993)         (4,753)         (3,771)
                                                             -------------   -------------   -------------   -------------
Income before extraordinary item and dividends to
   preferred shareholders                                          13,644           9,796          23,217          16,581
Extraordinary items - (loss) on restatement or
   extinguishment of debt, net of limited partners' share
   of $0, $400, $0 and $400,  respectively                           ----          (1,962)           ----          (1,962)
Dividends to preferred shareholders                                 3,733            ----           3,733             ---
                                                             -------------   -------------   -------------   -------------
Net income available to common shareholders                 $       9,911   $       7,834   $      19,484   $      14,619
                                                             =============   =============   =============   =============
Basic net income per weighted average common
share before extraordinary items                            $        0.25   $        0.29   $        0.50   $        0.54

Extraordinary items (loss) per common share                          ----           (0.06)           ----           (0.06)
                                                             -------------   -------------   -------------   -------------
Basic net income per weighted average common share          $        0.25   $        0.23   $        0.50   $        0.48
                                                             =============   =============   =============   =============
Weighted average common shares outstanding                     39,636,815      34,298,137      38,913,713      30,455,000
                                                             =============   =============   =============   =============
Diluted net income per weighted average common share        $        0.25   $        0.22   $        0.49   $        0.47
                                                             =============   =============   =============   =============
Diluted weighted average common shares outstanding             40,178,083      34,801,582      39,476,786      30,950,151
                                                             =============   =============   =============   =============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE>
                                  Reckson Associates Realty Corp.
                               Consolidated Statements of Cash Flows
                                   (Unaudited and in thousands)
<CAPTION>
                                                                   Six Months Ended
                                                                       June 30,
                                                             ------------------------------
                                                                 1998              1997
                                                             ------------      ------------
<S>                                                         <C>               <C>
Cash flows from Operating Activities:
Net Income available to common shareholders                 $     19,484      $     14,619
Adjustments to reconcile net income to net cash
   provided by operating activities
   Depreciation and amortization                                  23,264            11,957
   Minority partners' interests in consolidated
      partnerships                                                 1,216               444
   Limited partners' interest in the operating partnership         4,753             3,771
   Extraordinary loss on extinguishment of debt                      ---             1,962
   Gain on sale of interest in Reckson Executive
      Centers, LLC                                                    (9)              ---
   Gain on sale of securities                                        (43)              ---
   Equity in earnings of service companies                          (392)             (142)
   Equity in earnings of real estate joint ventures                 (273)             (201)
   Distributions from real estate joint venture                      217               191
   Interest income on mortgage notes and notes
      receivable                                                    (316)             (374)
Changes in operating assets and liabilities:
   Tenant receivables                                                913              (561)
   Escrow reserves                                                   115                34
   Prepaid expenses and other assets                              (9,832)           (4,301)
   Deferred rents receivable                                      (3,614)           (2,371)
   Accrued expenses and other liabilities                          8,961             3,081
                                                             ------------      ------------
   Net cash provided by operating activities                      44,444            28,109
                                                             ------------      ------------
Cash Flows from Investing Activities:
   Increase in escrow reserves                                      (580)              ---
   Purchase of commercial real estate properties                (422,509)         (171,195)
   Investment in mortgage notes and notes receivable              20,097           (29,124)
   Investment in real estate joint ventures                       (2,970)           (1,385)
   Investment in service companies                                    15                15
   Additions to commercial real estate properties                 (9,754)           (7,608)
   Purchase of furniture, fixtures and equipment                    (776)             (481)
   Payment of leasing costs                                       (3,768)           (3,194)
   Investment in securities                                          809               ---
                                                             ------------      ------------
   Net cash used in investing activities                        (419,436)         (212,972)
                                                             ------------      ------------
Cash Flows from Financing Activities:
   Proceeds from issuance of common stock net of
      issuance costs                                              93,515           212,117
   Proceeds from issuance of preferred stock net
      of issuance costs                                          220,800               ---
   Principal payments on secured borrowings                       (3,118)             (653)
   Payment of loan costs                                             (69)           (2,807)
   Advances to affiliates                                        (25,727)           (1,358)
   Proceeds from unsecured credit facilities                     180,996           126,500
   Repayment of unsecured credit facilities                      (94,000)         (122,000)
   Distribution to minority partners in consolidated
      partnerships                                                (1,289)             (543)
   Distribution to limited partners in the operating
      partnerships                                                (2,352)           (4,036)
   Dividends to common shareholders                              (12,146)          (14,621)
                                                             ------------      ------------
   Net cash provided by financing activities                     356,610           192,599
                                                             ------------      ------------
   Net (decrease) increase in cash and cash
      equivalents                                                (18,382)            7,736
   Cash and cash equivalents at beginning of period               21,828            12,688
                                                             ------------      ------------
   Cash and cash equivalents at end of period               $      3,446            20,424
                                                             ============      ============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
                    Reckson Associates Realty Corp.
              Notes to the Consolidated Financial Statements
                            JUNE 30, 1998
                             (Unaudited)

1.     Organization and Formation of the Company

  Reckson Associates Realty Corp. ("the Company") was incorporated in 
Maryland in September 1994 and is the successor to the operations of the 
Reckson Group.  In June, 1995 the Company completed an initial public 
offering of 7,038,000 shares (pre-split) of $.01 par value common stock 
("the IPO").  The IPO price of $24.25 per common share (pre-split) 
resulted in gross offering proceeds of approximately $170,671,500.  The 
Company also issued 400,000 shares (pre-split) in a concurrent offering to 
the Rechler family resulting in $9,700,000 in additional proceeds.  The 
aggregate proceeds to the Company, net of underwriting discount, advisory
fee and other offering expenses, were approximately $162,000,000.
       
  The Company became the sole general partner of Reckson Operating 
Partnership L.P. (the Operating Partnership) by contributing substantially 
all of the net proceeds of the IPO, in exchange for an approximately 73% 
interest in the Operating Partnership. All properties acquired by the 
Company are held by or through the Operating Partnership.  The Operating 
Partnership executed various option and purchase agreements whereby it 
issued 2,758,960 units (pre-split) in the Operating Partnership ("OP 
Units") to certain continuing investors and assumed approximately 
$163,438,000 (net of Omni mortgages) of indebtedness in exchange for 
interests in certain property partnerships, fee simple and leasehold 
interests in properties and development land, certain business assets of 
the executive center entities and 100% of the non-voting preferred stock 
of the management and construction companies. 
  
  As of June 30, 1998, the Company owned and operated 69 office properties 
comprising approximately 9.6 million square feet, 120 industrial 
properties comprising approximately 9.8 million square feet and two retail 
properties comprising approximately 20,000 square feet, located in the New 
York "Tri-State" area.  In addition, the Company owned or had contracted 
to acquire approximately 914 acres of land (including 400 acres under 
option) in 19 separate parcels of which the Company can develop 1.9 
million square feet of industrial space and 6.8 million square feet of 
office space.  The Company also has invested approximately $47.3 million 
in certain mortgage notes encumbering four Class A office properties 
encompassing approximately 577,000 square feet and a 400 acre parcel
of land and in a note receivable secured by a partnership interest in Omni 
Partners, L.P., owner of the Omni, a 575,000 Class A office property 
located in Uniondale, New York.

  During 1997, the Company formed Reckson Service Industries, Inc. ("RSI") 
and Reckson Strategic Venture Partners, LLC ("RSVP").  The Operating 
Partnership owned a 95% non voting common stock interest in RSI through 
June 10, 1998.  RSI serves as the managing member of RSVP.  RSI invests
in operating companies that generally will provide commercial services 
to properties owned by the Company and its tenants and third parties.  
RSVP was formed to provide the Company with a research and development 
vehicle to invest in alternative real estate sectors.  RSVP invests 
primarily in real estate and real estate related operating companies 
generally outside of the Company's core office and industrial focus.
RSVP's strategy is to identify and acquire interests in established 
entrepreneurial enterprises with experienced management teams in market
sectors which are in the early stages of their growth cycle or offer 
unique circumstances for attractive investments as well as a platform 
for future growth.  On June 11, 1998, the Operating Partnership 
distributed its 95% net non voting common stock interest in RSI of 
approximately $3 million to its partners, including the Company which, 
in turn, distributed the common stock of RSI received from the Operating
Partnership to its stockholders.  At June 30, 1998, the Operating 
Partnership had made loans to RSI and RSVP aggregating approximately
$21.8 million and $7.6 million, respectively in connection with start up
costs and certain initial investments.  Such amounts have been included 
in investments in and advances to affiliates on the accompanying balance
sheet.  Subsequent to June 30, 1998, RSI and RSVP repaid approximately 
$13 million and $6.8 million, respectively of loans to the Operating 
Partnership. 

  In October 1997, the Company entered into an agreement to invest $150 
million in the Morris Companies, a New Jersey developer and owner of "Big
Box" warehouse facilities.  The Morris Companies' properties include 23 
industrial buildings encompassing approximately 4.0 million square feet.
The Company has invested approximately $72 million for an approximate 73%
controlling interest in Reckson Morris Operating Partnership, L.P. ("RMI").
In connection with the transaction the Morris Companies contributed 100%
of their interests in certain industrial properties to RMI in exchange for 
operating partnership units in RMI.

  On July 9, 1998, the Company announced the formation of Metropolitan 
Partners ("Metropolitan"), a strategic joint venture controlled equally by 
the Company and Crescent Real Estate Equities Company ("Crescent") for 
the purpose of creating a platform to invest in the New York City real 
estate market.  Metropolitan has executed a definitive merger agreement in 
which Metropolitan has agreed to purchase Tower Realty Trust, Inc., 
("Tower") a New York City based real estate investment trust that owns and 
operates approximately 4.3 million square feet of office space in 25 
buildings, including 2.3 million square feet in New York City, for a total
transaction value of approximately $733 million, which includes $286 
million of outstanding Tower indebtedness.  Tower stockholders will have
the right to elect to receive for each share of Tower (i) $24.00 in cash or
(ii) .4615 shares of the Company's common stock and .3523 shares of Crescent
common stock (based on the closing price of the Company's and Crescent's 
common stock on July 7, 1998 of $26.00 and $34.0625, per share, 
respectively), for up to an aggregate of 40% of the total consideration 
payable in the transaction.  If the average closing price of the Company's
or Crescent's shares appreciates by more than 7% from the July 7 closing 
prices Tower shareholders will be entitled to benefit only up to 7% of such 
appreciation, and no more.  The transaction will be accounted for as an 
equity investment by the Company and is anticipated to close in the 4th 
quarter of 1998.

2.     Basis of Presentation

  The accompanying consolidated financial statements include the 
consolidated financial position of the Company and the Operating 
Partnership at June 30, 1998 and the results of their operations for the 
three and six months ended June 30, 1998 and 1997 respectively, and, their 
cash flows for the six months ended June 30, 1998 and 1997 respectively.  
The Operating Partnership's investment in RMI is reflected in the 
accompanying financial statements on a consolidated basis with a reduction 
for minority partner interest.  The operating results of the service 
businesses currently conducted by Reckson Management Group, Inc., and 
Reckson Construction Group, Inc., are reflected in the accompanying 
financial statements on the equity method of accounting.  The operating
results of Reckson Executive Centers, L.L.C., ("REC"), a service business 
of the Operating Partnership were reflected in the accompanying financial 
statements on the equity method of accounting through March 31, 1998.  On 
April 1, 1998, the Operating Partnership sold its 9.9% interest in REC to 
RSI for $200,000.  Additionally, the operating results of RSI a service 
business of the Operating Partnership, were reflected in the accompanying 
financial statements on the equity method of accounting through June 10,
1998.  On June 11, 1998 the Operating Partnership distributed its 95% net 
non voting common stock interest in RSI to its partners, including the 
Company which, in turn, distributed the common stock of RSI received from
the Operating Partnership to its stockholders.  The Operating Partnership
also invests in real estate joint ventures where it may own less than a 
controlling interest, such investments are also reflected in the 
accompanying financial statements on the equity method of accounting.  
All significant intercompany balances and transactions have been
eliminated in the consolidated financial statements.

  The accompanying interim financial statements have been prepared by the 
Company's management in accordance with generally accepted accounting 
principles for interim financial information and in conjunction with the 
rules and regulations of the Securities and Exchange Commission.  In the 
opinion of management, the interim financial statements presented herein 
reflect all adjustments of a normal and recurring nature which are 
necessary to fairly state the interim financial statements.  The results 
of operations for the interim period are not necessarily indicative of the 
results that may be expected for the year ending December 31, 1998.  These 
financial statements should be read in conjunction with the Company's 
audited financial statements and the notes thereto included in the 
Company's Form 10K for the year ended December 31, 1997.

  The Company intends to qualify as a real estate investment trust 
("REIT") under Section 856 through 869 of the Internal Revenue Code of 
1986, as amended (the "Code").  As a REIT, the Company will not generally 
be subject to corporate Federal income taxes as long as it satisfies 
certain technical requirements of the Code relating to composition of its 
income and assets and requirements relating to distributions of taxable 
income to shareholders.

  In 1997, the Financial Accounting Standards Board issued Statement No. 
128, "Earnings per Share".  Statement 128 replaced the calculation of 
primary and fully diluted earnings per share with basic and diluted 
earnings per share.  Unlike primary earnings per share, basic earnings per 
share excludes any dilutive effects of options, warrants and convertible 
securities.  Diluted earnings per share is very similar to the previously 
reported  fully diluted earnings per share.  All earnings per share 
amounts for all periods have been presented, and where appropriate, 
restated to conform to the Statement 128 requirements.  The conversion of 
Units into common stock would not have a significant effect on per share 
amounts as the Units share proportionately with the common stock in the 
results of the Operating Partnership's operations.  Additionally, during
1997, the Financial Accounting Standards Board also issued statement No.
130 "Reporting Comprehensive Income" ("SFAS 130") which is effective for 
fiscal years beginning after December 15, 1997.  SFAS 130 establishes 
standards for reporting comprehensive income and its components in a full
set of general-purpose financial statements.  SFAS 130 requires that all 
components of comprehensive income be reported in a financial statement 
that is displayed with the same prominence as other financial statements.
The adoption of this standard will not have an impact on the Company's 
financial position or results of operations.

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

3.     Mortgage Notes Payable

  As of June 30, 1998, the Company had approximately $237 million of fixed 
rate mortgage notes which mature at various times between 1999 and 2012.  
The notes are secured by 21 properties and have a weighted average 
interest rate of 7.91%.

  On May 21, 1998, the Company satisfied the mortgage note encumbering one 
property in the amount of approximately $1.9 million.
  
4.     Senior Unsecured Notes

  As of June 30, 1998, the Company had outstanding $150 million of 10-year 
senior unsecured notes(the "Senior Unsecured Notes").  The Senior 
unsecured Notes were priced at par with interest at 110 basis points over 
the 10-year treasury note for an all in coupon of 7.2%.   Interest is 
payable semiannually with principal and unpaid interest due on August 28, 
2007.

5.     Credit Facilities

  As of June 30, 1998, the Company had a three-year $250 million unsecured 
credit facility from Chase Manhattan Bank and Union Bank of Switzerland 
(the "Unsecured Credit Facility").  The Company's ability to borrow 
thereunder is subject to the satisfaction of certain customary financial 
covenants.  In addition, borrowings under the Unsecured Credit Facility 
bear interest at a floating rate equal to one, two, three or six month 
LIBOR (at the Company's election) plus a spread ranging from 1.125% to 
1.5% based on the Company's leverage ratio.  In addition, the Company 
obtained a $200 million unsecured credit facility (the "Bridge Facility") 
which matures on July 15, 1998.  The Bridge Facility was provided by the 
two lead members of the Unsecured Credit Facility bank group and serves as 
interim financing while the Company seeks to expand the availability under 
the Unsecured Credit Facility.

  On July 23, 1998, the Company obtained a $500 million unsecured 
revolving credit facility (the "Credit Facility") with Chase Manhattan 
Bank, Union Bank of Switzerland and PNC Bank as co-managers of the credit 
facility bank group.  This Credit Facility replaces both the Unsecured 
Credit and Bridge Facilities.  Interest rates on borrowings under the 
Credit Facility will be priced off of LIBOR plus a sliding scale ranging
from 112.5 basis points to 137.5 basis points based on the leverage ratio
of the Company.  Upon the Company receiving an investment grade rating on
its senior unsecured debt by two rating agencies, the pricing is adjusted
based off of LIBOR plus a scale ranging from 65 basis points to 90 basis 
points depending upon the rating.

6.     Commercial Real Estate Investments

  In October 1997, the Company entered into an agreement to invest $150 
million in the Morris Companies, a New Jersey developer and owner of "Big 
Box" warehouse facilities.  The Morris Companies' properties include 23 
industrial buildings encompassing approximately 4.0 million square feet.  
The Company's investment will be used to acquire a controlling interest in 
Reckson Morris Operating Partnership, L.P. ("RMI").  In connection with 
the transaction the Morris Companies contributed 100% of their interests 
in certain industrial properties to RMI in exchange for operating 
partnership units in RMI.  At June 30, 1998 the Company had acquired an
approximate 73% interest in RMI for approximately $72 million.  In 
addition, at June 30, 1998, the Company had advanced approximately
$17.7 million to the Morris Companies primarily to fund certain 
construction costs related to development properties to be contributed
to RMI.

  During January, 1998, the Company acquired two office properties and 
five industrial properties encompassing 325,000 and 775,000 square feet, 
respectively for aggregate purchase prices of approximately $27.6 million 
and $32.1 million, respectively.  In addition, the Company acquired 
approximately 99 acres of land for approximately $3.39 million which 
allows for approximately 730,000 square feet of development opportunities.  
These acquisitions were financed with proceeds from the credit facilities 
and the issuance of 513,259 OP Units.

  During February 1998, the Company acquired approximately 25 acres of 
land and a vacant 165,000 square foot building for approximately $3.43 
million.  The Company is currently repositioning these properties which 
will allow for approximately 483,000 square feet of future development 
opportunities.

  Additionally, on February 6, 1998 the Company completed its acquisition 
of a 351,000 square foot office building located in Lake Success, New York 
for approximately $9.3 million.  The Company had previously acquired an 
approximate 68% first mortgage interest in the property for approximately 
$25.7 million for a total acquisition of $35 million.  The acquisition was 
financed with proceeds from a draw under the credit facilities.  On 
February 25, 1998, the Company made an additional investment in RMI of 
approximately $6.6 million for the acquisition of 300-350 Kennedy Drive, 
Sayerville, New Jersey increasing its interest in RMI to approximately 
73%.

  On March 20, 1998, the Company acquired a 250,000 square foot office 
building located in Short Hills, New Jersey for approximately $67 million.  
The acquisition was financed with proceeds from a draw under the credit 
facilities.

  On April 3, 1998, the Company completed its acquisition of approximately 
33.6 acres of vacant land located in Huntington Township, New York, which 
allows for approximately 495,000 square feet of future development 
opportunities for approximately $8.5 million (of which $6.4 million had 
been previously paid).

  On April 21, 1998, the Company acquired a portfolio of six office 
properties encompassing approximately 980,000 square feet in Westchester 
County, New York from Cappelli Enterprises and affiliated entities 
("Cappelli") for a purchase price of approximately $173 million.  The 
Cappelli acquisition includes a five building, 850,000 square foot Class A 
office park in Valhalla and Court House Square, a 130,000 square foot 
Class A office building located in White Plains.  The Company also 
obtained an option from Cappelli to acquire the remaining 50% interest in 
360 Hamilton Avenue, a 365,000 square foot vacant office tower in downtown 
White Plains for $10 million of which $4 million was paid at closing of 
the portfolio acquisition.  In addition, the Company received an option 
from Cappelli to acquire the remaining development parcels within the 
Valhalla office park on which up to 875,000 square feet of office space 
can be developed. During April 1998, the Company made mortgage loans to 
Cappelli totaling $18 million which are secured by the development 
parcels. The loans bear interest at 10% per annum and mature on April 14, 
1999.  Such amounts have been included in investments in mortgage
notes and notes receivable on the accompanying balance sheet.  This 
acquisition was financed in part through proceeds from a draw under the 
credit facilities, the issuance of 36,518 preferred units (Note 7), and 
the assumption of approximately $45.1 million of mortgage debt.  On July 
2, 1998, Cappelli exercised his option to sell the remaining 50% interest 
in 360 Hamilton Avenue located in downtown White Plains, New York to the 
Company for $10 million (of which $4 million had been previously paid) 
plus the return of his capital contributions of approximately $1.5 
million.  As a result, the Company now owns 100% of the property.  The 
acquisition was financed in part through proceeds from a draw under the 
credit facilities, the issuance of 6,000 preferred units (Note 7), and the 
assumption of approximately $2 million of additional mortgage debt.

  Additionally, on April 21, 1998, the Company acquired a 84,500 square 
foot office building located in Fairfield, New Jersey for $3.4 million.  
The acquisition was financed in part with proceeds from a draw under the 
credit facilities and the issuance of 1,979 OP Units (Note 7).

  On May 1, 1998, the Company leased a 120,000 square foot office building 
located in Hicksville, New York.  The lease which expires in the year 2018 
requires fixed monthly rental payments subject to annual increases and for 
the pass through to the Company of all operating expenses and real estate 
taxes relating to the property.

  On June 19, 1998, the Company acquired a 210,000 square foot industrial 
property located in West Caldwell, New Jersey for $9.4 million.  The 
acquisition was financed with proceeds from a draw under the credit 
facilities.

  On June 24, 1998, the Company acquired approximately 19.3 acres of land 
located in Melville, New York for approximately $5.5 million.  The Company 
has entered into contract negotiations to sell this parcel during the 
third calendar quarter of 1998.  The acquisition was financed with 
proceeds from a draw under the credit facilities.  

  On July 1, 1998, the Company acquired Stamford Towers located in 
Stamford, Connecticut for approximately $61.3 million. Stamford Towers is 
a Class A office complex consisting of two eleven story towers totaling 
approximately 325,000 square feet. 

  During July, 1998, RMI purchased two industrial properties encompassing 
approximately 426,000 square feet for approximately $24.75 million.  These 
acquisitions were financed through draws under the credit facilities.
  
7.     Stockholders' Equity

  On January 6, 1998, the Operating Partnership issued 513,259 OP Units in 
connection with the acquisition of an office building located in 
Uniondale, New York.

  On February 18, 1998, the Company completed a common stock offering and 
sold 791,152 common shares at a price of $25.44 per share.  Net proceeds 
from the offering of approximately $19.1 million were used to repay 
borrowings under the credit facilities.

  On March 23, 1998, the Company sold approximately $5.9 million of common 
stock to RSI at the market closing price of $25 per share.  The Operating 
Partnership loaned RSI the $5.9 million to execute this transaction.  Such 
amount was repaid to the Operating Partnership by RSI subsequent to June 
30, 1998.

  During April 1998, the Company completed a preferred stock offering and 
sold 9,200,000 shares (including 1,200,000 shares related to the exercise 
of the underwriters over allotment option) of 7.625% Series A Convertible 
Cumulative Preferred Stock at a price of $25.00 per share.  The preferred 
stock is convertible to the Company's common stock at a conversion rate of 
 .8738 shares of common stock for each share of preferred stock.  Net 
proceeds from the offering of approximately $221 million were used to 
repay borrowings under the credit facilities.

  On April 21, 1998, the Operating Partnership issued 25,000 Series B 
preferred units at a stated value of $1,000 per unit and 11,518 Series C 
preferred units at a stated valued of $1,000 per unit in connection with 
the acquisition of the Cappelli portfolio.  The Series B preferred units 
have a current coupon rate of 6.25% and are convertible to common units at 
a conversion price of approximately $32.51 for each preferred unit.  The 
Series C preferred units have a current coupon rate of 6.25% and are 
convertible to common units at a conversion price of approximately $29.39 
for each preferred unit.

  On April 29, 1998, the Company completed a common stock offering and 
sold 1,093,744 common shares at a price of $24.38 per share.  Net proceeds 
from the offering were approximately $25.3 million and were used to repay 
borrowings under the credit facilities.

  On May 27, 1998, the Board of Directors declared a dividend of $.3375 
per share of common stock payable on July 21, 1998 to its shareholders of 
record as of July 10, 1998.  The dividend declared, which related to the 
three months ended June 30, 1998, is based upon an annual distribution of 
$1.35 per share.

  On May 29, 1998, the Board of Directors declared a dividend on its 
Series A Convertible Cumulative Preferred Stock of $.5719 per share 
payable on July 31, 1998 to stockholders of record on July 15, 1998.  The 
dividend declared, which relates to the period from April 13, 1998 through 
July 31, 1998 is based on an annual distribution of $1.906 per share.

  On July 2, 1998, the Operating Partnership issued 6,000 Series D 
preferred units at a stated value of $1,000 per unit in connection with 
the acquisition of the remaining 50% interest in 360 Hamilton Avenue 
located in White Plains, New York.  The Series D preferred units have a 
current coupon of 6.25% and are convertible to common units at a 
conversion price of approximately $29.12 for each preferred unit.

  Basic net income per share was calculated using the weighted average 
number of shares outstanding of 39,636,815 and 34,298,137 for the three 
months ended June 30, 1998 and 1997, respectively and 38,913,713 and 
30,455,000 for the six months ended June 30, 1998 and 1997, respectively.

  The following is the Company's reconciliation of the numerators and 
denominators of the basic and diluted net income per weighted average 
common share computations and other related disclosures required by FAS 
Statement 128 (in thousands except share amounts).

  The following table set forth the computation of basic and diluted 
earnings per share:
<TABLE>
<CAPTION>
                                                           Three Months Ended June 30,       Six Months Ended June 30,
                                                           ----------------------------    -----------------------------
                                                                1998            1997            1998            1997
                                                           -------------   -------------   -------------   -------------
<S>                                                       <C>             <C>             <C>             <C>
Numerator:
   Income before extraordinary item and dividends to
      preferred shareholders                              $      13,644   $       9,796   $      23,217   $      16,581
   Preferred stock dividends                                     (3,733)           ----          (3,733)           ----
                                                           -------------   -------------   -------------   -------------
   Numerator for basic earnings per share                         9,911           9,796          19,484          16,581

   Effect of dilutive securities:
     Preferred stock dividends                                      ---             ---             ---             ---
                                                           -------------   -------------   -------------   -------------
   Numerator for diluted earnings per share               $       9,911   $       9,796   $      19,484   $      16,581
                                                           =============   =============   =============   =============
Denominator:
   Denominator for basic earnings per share-
      weighted-average shares                                    39,637          34,298          38,914          30,455
                                                           -------------   -------------   -------------   -------------
   Effect of dilutive securities:
     Employee stock options                                         541             504             563             495
     Convertible preferred stock                                    ---             ---             ---             ---
                                                           -------------   -------------   -------------   -------------
   Dilutive potential common shares                                 541             504             563             495
                                                           -------------   -------------   -------------   -------------
   Denominator for diluted earnings per share-
      adjusted weighted-average shares and
      assumed conversions                                        40,178          34,802          39,477          30,950
                                                           =============   =============   =============   =============
Basic earnings per common share:
   Income before extraordinary item                       $        0.25   $        0.29   $        0.50   $        0.54
   Extraordinary item                                               ---           (0.06)            ---           (0.06)
                                                           -------------   -------------   -------------   -------------
   Net income per common share                            $        0.25   $        0.23   $        0.50   $        0.48
                                                           =============   =============   =============   =============
Diluted earnings per common share:
   Income before extraordinary item                       $        0.25   $        0.28   $        0.49   $        0.54
   Extraordinary item                                               ---           (0.06)            ---           (0.07)
                                                           -------------   -------------   -------------   -------------
   Diluted net income per common share                    $        0.25   $        0.22   $        0.49   $        0.47
                                                           =============   =============   =============   =============
</TABLE>
8.     Supplemental Disclosure of Cash Flow Information (in thousands)
<TABLE>
<CAPTION>
                                                       Six Months Ended June 30,
                                                         ---------------------
                                                            1998       1997
                                                         ---------   ---------
<S>                                                     <C>         <C>
Cash paid during the period for interest                $  17,869   $   9,956
                                                         =========   =========
Interest capitalized during the period                  $   1,739   $     869
                                                         =========   =========
</TABLE>
   
  On January 2, 1998, the Company issued an additional 18,752 OP Units 
in connection with the acquisition of a 92,000 square foot industrial 
building located in Elmsford, New York for an additional non cash 
investment of approximately $.48 million. 

     On January 6, 1998, the Company acquired 51 Charles Lindbergh 
Boulevard in Uniondale, New York which included the issuance of 513,259 OP 
Units for a total non cash investment of $12 million. Additionally, in 
connection with the Company's investment in the Morris Companies, the 
Company assumed approximately $10.8 million of indebtedness net of 
minority partners interest.

     On March 23, 1998, the Company sold 235,480 shares of its common 
stock to RSI for approximately $5.9 million which is payable to the 
Company at June 30, 1998.

     On April 21, 1998, in connection with the acquisition of the Cappelli 
portfolio, the Company assumed approximately $45.1 million of 
indebtedness.  Additionally, in connection with the acquisition of 155 
Passaic Avenue in Fairfield, New Jersey, the Company issued 1,979 OP Units 
for a total non cash investment of approximately $50,000.

     On June 11, 1998, the Operating Partnership distributed its 95% net 
non voting common stock interest in RSI of approximately $3 million to its
partners, including the Company which, in turn, distributed the common stock
of RSI received from the Operating Partnership to its stockholders.

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

The following discussion should be read in conjunction with the 
accompanying Consolidated Financial Statements of Reckson Associates 
Realty Corp. (the "Company") and related notes thereto.

Overview and Background

  The Company is a self-administered and self managed real estate 
investment trust (REIT) specializing in the acquisition, leasing, 
financing, management and development of office and industrial properties.  
The Company's growth strategy is focused on the suburban markets 
surrounding New York City.  Since completion of its initial public 
offering in May 1995, the Company has acquired or contracted to acquire 
approximately $1.3 billion of properties comprising approximately 15.7 
million square feet of space.

  On February 18, 1998, the Company completed a common stock offering and 
sold 791,152 common shares at a price of $25.44 per share. Net proceeds 
from the offering of approximately $19.1 million were used to repay 
borrowings under the credit facilities.

  During April 1998, the Company completed a preferred stock offering and 
sold 9,200,000 shares (including 1,200,000 shares related to the exercise 
of the underwriters over allotment option) of 75/8%  Series A Convertible 
Cumulative Preferred Stock at a price of $25.00 per share.  The preferred 
stock is convertible to the Company's common stock at a conversion rate of 
 .8738 shares of common stock for each share of preferred stock.  Net 
proceeds from the offering were approximately $221 million and were used 
to repay borrowings under the credit facilities.

  On April 29, 1998, the Company completed a common stock offering and 
sold 1,093,744 common shares at a price of $24.38 per share.  Net proceeds 
from the offering were approximately $25.3 million and were used to repay 
borrowings under the credit facilities.

  At June 30, 1998, the Company's portfolio of real estate properties 
included 69 office buildings containing approximately 9.6 million square 
feet, 120 industrial buildings containing approximately 9.8 million square 
feet and two retail properties containing approximately 20,000 square 
feet.

  During the six months ended June 30,1998, the Company acquired seven 
industrial properties encompassing approximately 1.1 million square feet 
of space for an aggregate purchase price of approximately $45 million and 
11 office properties encompassing approximately 1.9 million square feet of 
space for an aggregate purchase price of approximately $308 million.

  In October 1997, the Company entered into an agreement to invest $150 
million in the Morris Companies, a New Jersey developer and owner of "Big 
Box" warehouse facilities.  The Morris Companies properties include 23 
industrial buildings encompassing approximately 4.0 million square feet.  
As of June 30, 1998, the Company has invested approximately $72 million 
for an approximate 73% controlling interest in Reckson Morris Operating 
Partnership, L.P. ("RMI").  In connection with the transaction the Morris 
Companies contributed 100% of their interests in certain industrial 
properties to RMI in exchange for operating partnership units in RMI.

  On July 9, 1998, the Company announced the formation of Metropolitan 
Partners ("Metropolitan"), a strategic joint venture controlled equally by 
the Company and Crescent Real Estate Equities Company ("Crescent") for 
the purpose of creating a platform to invest in the New York City real 
estate market.  Metropolitan has executed a definitive merger agreement in 
which Metropolitan has agreed to purchase Tower Realty Trust, Inc., 
("Tower") a New York City based real estate investment trust that owns and 
operates approximately 4.3 million square feet of office space in 25 
buildings, including 2.3 million square feet in New York City, for a total
transaction value of approximately $733 million, which includes $286 
million of outstanding Tower indebtedness.  Tower stockholders will have
the right to elect to receive for each share of Tower (i) $24.00 in cash or
(ii) .4615 shares of the Company's common stock and .3523 shares of Crescent
common stock (based on the closing price of the Company's and Crescent's 
common stock on July 7, 1998 of $26.00 and $34.0625, per share, 
respectively), for up to an aggregate of 40% of the total consideration 
payable in the transaction.  If the average closing price of the Company's
or Crescent's shares appreciates by more than 7% from the July 7 closing 
prices Tower shareholders will be entitled to benefit only up to 7% of such 
appreciation, and no more.  The transaction will be accounted for as an 
equity investment by the Company and is anticipated to close in the 4th 
quarter of 1998.

  The market capitalization of the Company at June 30, 1998 was 
approximately $2.1 billion.  The Company's market capitalization is based 
on the market value of the Company's common stock and OP units (assuming 
conversion) of $23.625 per share/unit, the Company's preferred stock of 
$25 per share, the Company's preferred units of $1,000 per unit and, the 
$668.7 million (including its share of joint venture debt and net of 
minority partners' interests) of debt outstanding at June 30, 1998.  As a
result, the Company's total debt to total market capitalization ratio at 
June 30, 1998 equaled approximately 32.4%.

Results  of Operations

  The Company's total revenues increased by $30.1 million or 83% for the 
three months ended June 30, 1998 as compared to the 1997 period.  The 
growth in total revenues is substantially attributable to the Company's 
acquisition of 68 properties comprising approximately 9.8 million square 
feet.  Property operating revenues, which include base rents and tenant 
escalations and reimbursements ("Property Operating Revenues") increased 
by $28.1 million or 81% for the three months ended June 30, 1998 as
compared to the 1997 period.  The 1998 increase in Property Operating 
Revenues is comprised of $0.4 million attributable to increases in rental 
rates and changes in occupancies and $27.7 million attributable to 
acquisitions of properties. The remaining balance of the increase in total 
revenues in 1998 is primarily attributable to interest income on the 
Company's investments in mortgage notes and notes receivable.  The 
Company's base rent was increased by the impact of the straight-line rent 
adjustment by $2.1 million for the three months ended June 30, 1998 as 
compared to $1.2 million for the 1997 period.

  Property operating expenses, real estate taxes and ground rents 
("Property Expenses") increased by $9.5 million for the three months ended 
June 30, 1998 as compared to the 1997 period.  These increases are 
primarily due to the acquisition of properties.  Gross operating margins 
(defined as Property Operating Revenues less Property Expenses, taken as a 
percentage of Property Operating Revenues) for 1998 and 1997 were 65.3% 
and 64.7%, respectively.  The increase in gross operating margins reflects 
increases realized in rental rates, the Company's ability to realize 
certain operating efficiencies as a result of operating a larger portfolio 
of properties with concentrations of properties in office and industrial 
parks or in its established sub-markets, and increased ownership of net 
leased properties including the impact of the RMI properties.

  Marketing, general and administrative expenses increased by $1.8 million 
for the three months ended June 30, 1998 as compared to the 1997 period.  
The increase is due to the increased costs of managing the acquisition 
properties, the costs of opening the Company's Northern New Jersey 
division, costs associated with the management of the RMI assets, and the 
increase in corporate management and administrative costs associated with 
the growth of the Company.  Marketing, general and administrative expenses
as a percentage of total revenues were 5.5% for the three months ended 
June 30, 1998 as compared to 5.1% for the 1997 period.

  Interest expense increased by $7.1 million for the three months ended 
June 30, 1998 as compared to the 1997 period. The increase is attributable
to an increase in mortgage debt including the refinancing of the Omni in
the amount of $58 million in August 1997, the assumption of approximately
$14.8 million of mortgage indebtedness in connection with the Company's 
investment in RMI, the assumption of approximately $45.1 million of mortgage
indebtedness in connection with the Cappelli acquisition, increased cost
attributable to an increased average balance on the Company's credit 
facilities and interest on the Company's $150 million of senior unsecured
notes.  The weighted average balance outstanding on the Company's credit 
facilities was $307 million for the three months ended June 30, 1998 as 
compared to $82.5 million for the 1997 period.

  The Company's total revenues increased by $53.5 million or 79% for the 
six months ended June 30, 1998 as compared to the 1997 period.  The growth
in total revenues is substantially attributable to the Company's acquisition
of 81 properties comprising approximately 10.6 million square feet.  
Property Operating Revenues increased by $51.3 million or 80% for the six 
months ended June 30, 1998 as compared to the 1997 period.  The 1998 increase
in Property Operating Revenues is comprised of $1.4 million attributable to 
increases in rental rates and changes in occupancies and $49.9 million 
attributable to acquisitions of properties.  The remaining balance of the 
increase in total revenues in 1998 is primarily attributable to interest 
income on the Company's investments in mortgage notes and notes receivable.
The Company's base rent was increased by the impact of the straight-line rent 
adjustment by $3.6 million for the six months ended June 30, 1998 as compared
to $2.3 million for the 1997 period.

  Property Expenses increased by $17.2 million for the six months ended 
June 30, 1998 as compared to the 1997 period.  These increases are 
primarily due to the acquisition of properties.  Gross operating margins 
for 1998 and 1997 were 65.5% and 64.7%, respectively.  The increase in gross
operating margins reflects increases realized in rental rates, the Company's
ability to realize certain operating efficiencies as a result of operating a
larger portfolio of properties with concentration of properties in office 
and industrial parks or in its established sub-markets and increased ownership
of net leased properties including the impact of the RMI properties.

  Interest expense increased by $12.9 million for the six months ended June 30,
1998 as compared to the 1997 period.  The increase is attributable to an 
increase in mortgage debt including the refinancing of the Omni in the amount
of $58 million in August 1997, the assumption of approximately $14.8 million of
mortgage indebtedness in connection with the Company's investment in RMI, the 
assumption of approximately $45.1 million of mortgage indebtedness in connection
with the Cappelli acquisition, increased cost attributable to an increased 
average balance on the Company's credit facilities and interest on the Company's
$150 million of senior unsecured notes.  The weighted average balance outstand-
ing on the Company's credit facilities was $311.5 million for the six months 
ended June 30, 1998 as compared to $92.5 million for the 1997 period.  

Liquidity and Capital Resources
 
  In June 1995, the Company completed an initial public offering of 7,438,000 
shares (pre-split) of its common stock at $24.25 per share (pre-split).  Net 
proceeds to the Company were approximately $162 million. During 1996 and 1997
the Company completed four add-on offerings aggregating 22,421,200 shares 
(split-adjusted) of its common stock (the "Add-on Offerings") resulting in net
proceeds to the Company of approximately $437 million.  Proceeds from the Add-On
Offerings were primarily used to repay borrowings under the credit facilities
and to fund the purchase of commercial real estate properties.

  On January 6, 1998, the Operating Partnership issued 513,259 OP Units in 
connection with the acquisition of one office property, located in 
Uniondale, New York.

  On February 18, 1998, the Company completed a common stock offering and 
sold 791,152 common shares at a price of $25.44 per share.  Net proceeds 
from the offering of approximately $19.1 million were used to repay 
borrowings under the credit facilities.

  During April 1998, the Company completed a preferred stock offering and 
sold 9,200,000 shares (including 1,200,000 shares related to the exercise 
of the underwriters over allotment option) of 75/8%  Series A Convertible 
Cumulative Preferred Stock at a price of $25.00 per share.  The preferred 
stock is convertible to the Company's common stock at a conversion rate of 
 .8738 shares of common stock for each share of preferred stock.  Net 
proceeds from the offering of approximately $221 million were used to 
repay borrowings under the credit facilities.

  On April 21, 1998, the Operating Partnership issued 25,000 Series B 
preferred units at  a stated value of $1,000 per unit and 11,518 Series C 
preferred units at a stated value of $1,000 per unit in connection with 
the acquisition of the Cappelli Portfolio.  The Series B preferred units 
have a current coupon rate of 6.25% and are convertible to common units at 
a conversion price of approximately $32.51 for each preferred unit.  The 
Series C preferred units have a current coupon rate of 6.25% and are 
convertible to common units at a conversion price of approximately $29.39 
for each preferred unit.

  Additionally, on April 21, 1998, in connection with the acquisition of 
155 Passaic Avenue in Fairfield, New Jersey, the company issued 1,979 OP 
Units.

  On April 29, 1998, the Company completed a public stock offering and 
sold 1,093,744 common shares at a price of $24.38 per share.  Net proceeds 
from the offering of approximately $25.3 million were used to repay 
borrowings under the credit facilities.

  On July 2, 1998, the Operating Partnership issued 6,000 Series D 
preferred units at a stated value of $1,000 per unit in connection with 
the acquisition of the remaining 50% interest in 360 Hamilton Avenue 
located in White Plains, New York.  The Series D preferred units have a 
current coupon of 6.25% and are convertible to common units at a 
conversion price of approximately $29.12 for each preferred unit.

 As of June 30, 1998, the Company had a three-year $250 million unsecured 
credit facility from a bank group led by Chase Manhattan Bank and Union 
Bank of Switzerland (the "Unsecured Credit Facility").  The Company's 
ability to borrow thereunder is subject to the satisfaction of certain 
financial covenants, including covenants relating to limitations on 
unsecured and secured borrowings, minimum interest and fixed charge 
coverage ratios, a minimum equity value and a maximum dividend payout 
ratio.  In additional, borrowings under the Unsecured Credit Facility bear 
interest at a floating rate equal to one, two, three or six month
LIBOR (at the Company's election) plus a spread ranging from 1.125% to 
1.50%, based on the Company's leverage ratio.  The Company utilizes the 
Unsecured Credit Facility primarily to finance the acquisitions of 
properties and other real estate investments, fund its development 
activities and for working capital purposes.  At June 30, 1998, the 
Company had availability under the Unsecured Credit Facility to borrow an 
additional $96.3 million (net of $7.7 million of outstanding undrawn 
letters of credit).  In addition, the Company obtained a $200 million 
unsecured credit facility (the "Bridge Facility") which matures on July 
15, 1998. The Bridge Facility was provided by the two lead members of the 
Unsecured Credit Facility bank group and serves as interim financing
while the Company seeks to expand the availability under the Unsecured 
Credit Facility.  At June 30, 1998, the Company had availability under the 
Bridge Facility to borrow an additional $47.75 million.

 On July 23, 1998, the Company obtained a $500 million unsecured revolving 
credit facility (the "Credit Facility") with Chase Manhattan Bank, Union 
Bank of Switzerland and PNC Bank as co-managers of the credit facility 
bank group.  This Credit Facility replaces both the Unsecured Credit and 
Bridge Facilities.  Interest rates on borrowings under the Credit Facility
will be priced off of LIBOR plus a sliding scale ranging from 112.5 basis 
points to 137.5 basis points based on the leverage ratio of the Company.  
Upon the Company receiving an investment grade rating on its senior 
unsecured debt by two rating agencies, the pricing is adjusted based off of
LIBOR plus a scale ranging from 65 basis points to 90 basis points 
depending upon the rating.

 The Company's indebtedness at June 30, 1998 totaled $668.7 million 
(including its share of joint venture debt and net of the minority 
partners' interests) and was comprised of $146 million outstanding under 
the Unsecured Credit Facility, $152.25 million outstanding under the 
Bridge Facility, $150 million of unsecured notes and approximately $220.45 
million of mortgage indebtedness.  Based on the Company's total market 
capitalization of approximately $2.1 billion at June 30, 1998, (calculated 
based on the market value of the Company's common stock and OP units, 
assuming conversion, the stated value of the Company's preferred stock and
preferred units), the Company's debt represented approximately 32.4% of 
its total market capitalization.

 Historically, rental revenue has been the principal source of funds to pay 
operating expenses, debt service and capital expenditures, excluding non-
recurring capital expenditures of the Company.  In addition, construction, 
management, maintenance, leasing and property management fees have 
provided sources of cash flow.  The Company expects to meet its short term 
liquidity requirements generally through its net cash provided by 
operating activities along with the Unsecured Credit Facility previously
discussed.  The Company expects to meet certain of its financing 
requirements through long-term secured and unsecured borrowings and the 
issuance of debt securities and additional equity securities of the 
Company.  The Company will refinance existing mortgage indebtedness or 
indebtedness under the Unsecured Credit Facility at maturity or retire 
such debt through the issuance of additional debt securities or additional 
equity securities.  The Company anticipates that the current balance of 
cash and cash equivalents and cash flows from operating activities, 
together with cash available from borrowings and equity offerings, will be
adequate to meet the capital and liquidity requirements of the Company in 
both the short and long-term.

 In order to qualify as a REIT for federal income tax purposes, the 
Company is required to make distributions to its stockholders of at least 
95% of REIT taxable income.  The Company expects to use its cash flow from 
operating activities for distributions to stockholders and for payment of 
recurring, non-incremental revenue-generating expenditures.  The Company
intends to invest amounts accumulated for distribution in short-term 
investments.

 The following table summarizes the expenditures incurred for capital 
expenditures, tenant improvements and leasing commissions for the 
Company's office and industrial properties for the six month period ended 
June 30, 1998 and the historical average of such capital expenditures, 
tenant improvements and leasing commissions for the years 1994 through 
1997.

Non-Incremental Revenue Generating Capital Expenditures
<TABLE>
<CAPTION>
                                                                                       1994-1997
                                       1994        1995         1996        1997        Average        1998
                                    ----------  ----------  ----------  ------------  ------------  ----------
<S>                                 <C>         <C>         <C>         <C>           <C>           <C>
Capital Expenditures
Long Island Office Properties
Total                               $ 158,340   $ 364,545   $ 375,026   $ 1,108,675   $   501,646   $ 962,709
Per square foot                          0.10        0.19        0.13          0.22          0.16        0.12
Industrial Properties
Total                               $ 524,369   $ 290,457   $ 670,751   $   733,233   $   554,702   $ 461,474
Per square foot                          0.18        0.08        0.18          0.15          0.15        0.05
</TABLE>
Non-Incremental Revenue Generating Tenant Improvement and Leasing Commissions
<TABLE>
<CAPTION>
                                                                                       1994-1997
                                       1994        1995         1996        1997        Average        1998
                                    ----------  ----------  ----------  ------------  ------------  ----------
<S>                                 <C>         <C>         <C>         <C>           <C>           <C>
Long Island Office Properties
Tenant Improvements                 $ 902,312   $ 452,057   $ 523,574   $   784,044   $   665,497   $ 666,305
Per square foot improved                 5.13        4.44        4.28          7.00          5.21        8.41
Leasing Commissions                 $ 341,253   $ 144,925   $ 119,047   $   415,822   $   255,262   $ 224,269
Per square foot leased                   1.94        1.42        0.97          4.83          2.29        2.83
                                    ----------  ----------  ----------  ------------  ------------  ----------
Total per square foot               $    7.07   $    5.86   $    5.25   $     11.83   $      7.50   $   11.24
                                    ==========  ==========  ==========  ============  ============  ==========
Westchester Office Properties
Tenant Improvements                       N/A         N/A   $ 834,764   $ 1,211,665   $ 1,023,215   $ 593,809
Per square foot improved                  N/A         N/A        6.33          9.00          7.61        8.09
Leasing Commissions                       N/A         N/A   $ 264,388   $   266,257   $   315,323   $ 192,515
Per square foot leased                    N/A         N/A        2.00          2.69          2.35        2.63
                                    ----------  ----------  ----------  ------------  ------------  ----------
Total per square foot                     N/A         N/A   $    8.33   $     11.59   $      9.96   $   10.72
                                    ==========  ==========  ==========  ============  ============  ==========
Connecticut Office Properties <F1>
Tenant Improvements                       N/A         N/A   $  58,000   $ 1,022,421   $   864,337   $ 122,155
Per square foot improved                  N/A         N/A       12.45         13.39         12.92        7.13
Leasing Commissions                       N/A         N/A   $       0   $   256,615   $   205,292   $  85,857
Per square foot leased                    N/A         N/A        0.00          3.36          1.68        5.01
                                    ----------  ----------  ----------  ------------  ------------  ----------
Total per square foot                     N/A         N/A   $   12.45   $     16.75   $     14.60   $   12.14
                                    ==========  ==========  ==========  ============  ============  ==========
New Jersey Office Properties
Tenant Improvements                       N/A         N/A         N/A           N/A           N/A   $ 430,155
Per square foot improved                  N/A         N/A         N/A           N/A           N/A        4.07
Leasing Commissions                       N/A         N/A         N/A           N/A           N/A   $ 156,867
Per square foot leased                    N/A         N/A         N/A           N/A           N/A        1.30
                                    ----------  ----------  ----------  ------------  ------------  ----------
Total per square foot                     N/A         N/A         N/A           N/A           N/A   $    5.37
                                    ==========  ==========  ==========  ============  ============  ==========

Industrial Properties
Tenant Improvements                 $ 585,981   $ 210,496   $ 380,334   $   230,466   $   351,819   $ 207,996
Per square foot improved                 0.88        0.90        0.72          0.55          0.76        0.60
Leasing Commissions                 $ 176,040   $ 107,351   $ 436,213   $    81,013   $   200,154   $ 130,285
Per square foot leased                   0.27        0.46        0.82          0.19          0.44        0.37
                                    ----------  ----------  ----------  ------------  ------------  ----------
Total per square foot               $    1.15   $    1.36   $    1.54   $      0.74   $      1.20   $    0.97
                                    ==========  ==========  ==========  ============  ============  ==========
<FN>
<F1>
1994 - 1997 average weighted to reflect October 1996 acquistion date.
</FN>
</TABLE>
LEASE EXPIRATIONS

The following tables sets forth scheduled lease expirations for executed
leases as of June 30, 1998.
<TABLE>
Long Island Office Properties (excluding Omni):
<CAPTION>
                                             Total        % of         Per
                                             Rentable     Total        Square      Per
                                             Square       Rentable     Foot        Square
                                  Number     Feet         Feet         S/L         Foot
Year of Lease Expiration          of Leases  Expiring     Expiring     Rent <F1>   Rent <F2>
--------------------------------  ---------  -----------  -----------  ----------  ----------
<S>                               <C>        <C>          <C>          <C>         <C>
1998                                    17       70,210          2.8%  $   21.25   $   23.22
1999                                    37      128,715          5.1%  $   19.89   $   20.94
2000                                    50      288,025         11.3%  $   21.71   $   22.90
2001                                    39      237,226          9.3%  $   22.19   $   23.99
2002                                    35      272,699         10.7%  $   21.99   $   23.50
2003                                    51      318,142         12.5%  $   21.69   $   20.80
2004 and thereafter                     70    1,230,159         48.3%        ---         ---
                                  ---------  -----------   ----------
                                       299    2,545,176        100.0%
                                  =========  ===========   ==========
<FN>
<F1>
Per square foot rental rate represents annualized straight line rent as of the lease
expiration date.
<F2>
Per square foot rental rate represents annualized base rent as of the lease expiration
date plus non-recoverable expense pass-throughs.
</FN>
</TABLE>
<TABLE>
Omni:
<CAPTION>
                                             Total        % of         Per
                                             Rentable     Total        Square      Per
                                             Square       Rentable     Foot        Square
                                  Number     Feet         Feet         S/L         Foot
Year of Lease Expiration          of Leases  Expiring     Expiring     Rent <F1>   Rent <F2>
--------------------------------  ---------  -----------  -----------  ----------  ----------
<S>                               <C>        <C>          <C>          <C>         <C>
1998                                   ---          ---          ---         ---         ---
1999                                   ---          ---          ---         ---         ---
2000                                     4       60,316         10.8%  $   32.49   $   34.52
2001                                     4       32,680          5.8%  $   28.22   $   33.00
2002                                     4      129,351         23.0%  $   25.55   $   27.69
2003                                     5       72,530         12.9%  $   29.52   $   29.88
2004 and thereafter                     10      267,013         47.5%        ---         ---
                                  ---------  -----------   ----------
                                        27      561,890        100.0%
                                  =========  ===========   ==========
<FN>
<F1>
Per square foot rental rate represents annualized straight line rent as of the lease
expiration date.
<F2>
Per square foot rental rate represents annualized base rent as of the lease expiration
date plus non-recoverable expense pass-throughs.
</FN>
</TABLE>
<TABLE>
Industrial Properties
<CAPTION>
                                             Total        % of         Per
                                             Rentable     Total        Square      Per
                                             Square       Rentable     Foot        Square
                                  Number     Feet         Feet         S/L         Foot
Year of Lease Expiration          of Leases  Expiring     Expiring     Rent <F1>   Rent <F2>
--------------------------------  ---------  -----------  -----------  ----------  ----------
<S>                               <C>        <C>          <C>          <C>         <C>
1998                                    22      148,244          2.9%  $    6.59   $    6.58
1999                                    37      792,561         15.3%  $    5.61   $    5.54
2000                                    32    1,131,940         21.8%  $    4.96   $    5.09
2001                                    32      899,619         17.4%  $    5.82   $    6.29
2002                                    24      145,046          2.8%  $    6.41   $    6.45
2003                                    23      579,416         11.2%  $    4.85   $    5.02
2004 and thereafter                     34    1,485,035         28.6%        ---         ---
                                  ---------  -----------   ----------
                                       204    5,181,861        100.0%
                                  =========  ===========   ==========
<FN>
<F1>
Per square foot rental rate represents annualized straight line rent as of the lease
expiration date.
<F2>
Per square foot rental rate represents annualized base rent as of the lease expiration
date plus non-recoverable expense pass-throughs.
</FN>
</TABLE>
<TABLE>
Research and Development Properties
<CAPTION>
                                             Total        % of         Per
                                             Rentable     Total        Square      Per
                                             Square       Rentable     Foot        Square
                                  Number     Feet         Feet         S/L         Foot
Year of Lease Expiration          of Leases  Expiring     Expiring     Rent <F1>   Rent <F2>
--------------------------------  ---------  -----------  -----------  ----------  ----------
<S>                               <C>        <C>          <C>          <C>         <C>
1998                                     4      170,839         13.5%  $   10.34   $   11.96
1999                                     8       44,324          3.5%  $    8.89   $    9.40
2000                                     8      118,169          9.4%  $    8.58   $    8.27
2001                                     7       96,120          7.6%  $   11.62   $   11.78
2002                                     3       67,967          5.4%  $   10.75   $   12.66
2003                                     4      258,354         20.5%  $    5.38   $    5.80
2004 and thereafter                     11      505,394         40.1%        ---         ---
                                  ---------  -----------   ----------
                                        45    1,261,167        100.0%
                                  =========  ===========   ==========
<FN>
<F1>
Per square foot rental rate represents annualized straight line rent as of the lease
expiration date.
<F2>
Per square foot rental rate represents annualized base rent as of the lease expiration
date plus non-recoverable expense pass-throughs.
</FN>
</TABLE>
<TABLE>
Westchester Office Properties:
<CAPTION>
                                             Total        % of         Per
                                             Rentable     Total        Square      Per
                                             Square       Rentable     Foot        Square
                                  Number     Feet         Feet         S/L         Foot
Year of Lease Expiration          of Leases  Expiring     Expiring     Rent <F1>   Rent <F2>
--------------------------------  ---------  -----------  -----------  ----------  ----------
<S>                               <C>        <C>          <C>          <C>         <C>
1998                                    17      121,781         4.3%   $   18.21   $   18.82
1999                                    36      142,952         5.1%   $   19.58   $   19.81
2000                                    45      511,409        18.2%   $   22.31   $   22.98
2001                                    50      650,193        23.1%   $   23.86   $   24.26
2002                                    44      385,133        13.7%   $   18.94   $   20.05
2003                                    32      229,346         8.1%   $   21.15   $   21.06
2004 and thereafter                     39      775,970        27.5%         ---         ---
                                  ---------  -----------   ----------
                                       263    2,816,784        100.0%
                                  =========  ===========   ==========
<FN>
<F1>
Per square foot rental rate represents annualized straight line rent as of the lease
expiration date.
<F2>
Per square foot rental rate represents annualized base rent as of the lease expiration
date plus non-recoverable expense pass-throughs.
</FN>
</TABLE>
<TABLE>
Stamford Office Properties
<CAPTION>
                                             Total        % of         Per
                                             Rentable     Total        Square      Per
                                             Square       Rentable     Foot        Square
                                  Number     Feet         Feet         S/L         Foot
Year of Lease Expiration          of Leases  Expiring     Expiring     Rent <F1>   Rent <F2>
--------------------------------  ---------  -----------  -----------  ----------  ----------
<S>                               <C>        <C>          <C>          <C>         <C>
1998                                     6       11,248          1.6%  $   15.75   $   16.25
1999                                    15       39,980          5.7%  $   21.27   $   21.65
2000                                    23       99,904         14.1%  $   21.68   $   22.45
2001                                    19       96,633         13.7%  $   23.96   $   24.85
2002                                    13       43,739          6.2%  $   22.82   $   24.38
2003                                    12       89,975         12.7%  $   31.17   $   30.33
2004 and thereafter                     26      325,084         46.0%        ---         ---
                                  ---------  -----------   ----------
                                       114      706,563        100.0%
                                  =========  ===========   ==========
<FN>
<F1>
Per square foot rental rate represents annualized straight line rent as of the lease
expiration date.
<F2>
Per square foot rental rate represents annualized base rent as of the lease expiration
date plus non-recoverable expense pass-throughs.
</FN>
</TABLE>
<TABLE>
New Jersey Office Properties:
<CAPTION>
                                             Total        % of         Per
                                             Rentable     Total        Square      Per
                                             Square       Rentable     Foot        Square
                                  Number     Feet         Feet         S/L         Foot
Year of Lease Expiration          of Leases  Expiring     Expiring     Rent <F1>   Rent <F2>
--------------------------------  ---------  -----------  -----------  ----------  ----------
<S>                               <C>        <C>          <C>          <C>         <C>
1998                                     6       28,864          1.9%  $   23.01   $   19.15
1999                                    19      206,163         13.5%  $   20.97   $   21.25
2000                                    28      304,437         20.0%  $   22.89   $   23.76
2001                                    17      234,193         15.4%  $   18.27   $   18.66
2002                                    14      138,167          9.1%  $   19.80   $   20.57
2003                                    10      275,642         18.1%  $   18.90   $   19.03
2004 and thereafter                     15      335,665         22.0%        ---         ---
                                  ---------  -----------   ----------
                                       109    1,523,131        100.0%
                                  =========  ===========   ==========
<FN>
<F1>
Per square foot rental rate represents annualized straight line rent as of the lease
expiration date.
<F2>
Per square foot rental rate represents annualized base rent as of the lease expiration
date plus non-recoverable expense pass-throughs
</FN>
</TABLE>
<TABLE>
Reckson/Morris Industrial:
<CAPTION>
                                             Total        % of         Per
                                             Rentable     Total        Square      Per
                                             Square       Rentable     Foot        Square
                                  Number     Feet         Feet         S/L         Foot
Year of Lease Expiration          of Leases  Expiring     Expiring     Rent <F1>   Rent <F2>
--------------------------------  ---------  -----------  -----------  ----------  ----------
<S>                               <C>        <C>          <C>          <C>         <C>
1998                                   ---          ---         ---    $     ---   $     ---
1999                                    10      776,973         31.5%  $    5.29   $    5.64
2000                                     5      133,893          5.4%  $    5.06   $    6.37
2001                                   ---          ---         ---    $     ---   $     ---
2002                                     1      610,949         24.8%  $    3.75   $    4.27
2003                                     2       96,656          3.9%  $    4.64   $    4.97
2004 and thereafter                      8      850,084         34.4%        ---         ---
                                  ---------  -----------   ----------
                                        26    2,468,555        100.0%
                                  =========  ===========   ==========
<FN>
<F1>
Per square foot rental rate represents annualized straight line rent as of the lease
expiration date.
<F2>
Per square foot rental rate represents annualized base rent as of the lease expiration
date plus non-recoverable expense pass-throughs.
</FN>
</TABLE>
Inflation

     The office leases generally provided for fixed base rent increases or 
indexed escalations.  In addition, the office leases provide for separate 
escalations of real estate taxes and electric costs over a base amount.  
The industrial leases generally provide for fixed base rent increases, 
direct pass through of certain operating expenses and separate real estate 
tax escalations over a base amount.  The Company believes that inflationary 
increases in expenses will be offset by contractual rent increases 
described above.  The Unsecured Credit Facility and the Bridge Facility 
bear interest at a variable rate, which will be influenced by changes in 
short-term interest rates, and is sensitive to inflation.

Funds from Operations

     Management believes that funds from operations ("FFO") is an 
appropriate measure of performance of an equity REIT. FFO is defined by the 
National Association of Real Estate Investment Trusts (NAREIT) as net 
income or loss, excluding gains or losses from debt restructuring and sales 
of properties plus depreciation and amortization, and after adjustments for
unconsolidated partnerships and joint ventures.  FFO does not represent 
cash generated from operating activities in accordance with generally 
accepted accounting principals and is not indicative of cash available to 
fund cash needs.  FFO should not be considered as an alternative to net 
income as an indicator of the Company's operating performance or as an 
alternative to cash flow as a measure of liquidity.   In March, 1995, 
NAREIT issued a "White Paper" analysis to address certain interpretive 
issues under its definition of FFO.  The White Paper provides that 
amortization of deferred financing costs and depreciation of non-
rental real estate assets are no longer to be added back to net income to 
arrive at FFO.

     Since all companies and analysts do not calculate FFO in a similar 
fashion, the Company's calculation of FFO presented herein may not be 
comparable to similarly titled measures as reported by other companies.

     The following table presents the Company's FFO calculation (unaudited 
and in thousands, except per share/unit data):
<TABLE>
<CAPTION>
                                                                Three Months Ended      Six Months Ended
                                                                     June 30,                June 30,
                                                              ----------------------  ----------------------
                                                                 1998        1997        1998       1997
                                                              ----------  ----------  ----------  ----------
<S>                                                           <C>         <C>         <C>         <C>
Net income available to common shareholders                   $   9,911   $   7,834   $  19,484   $  14,619
Adjustments for Funds from Operations
Add:
Depreciation and Amortization                                    12,181       6,262      22,787      11,836
Minority interests in consolidated partnerships                     683         201       1,216         444
Limited partners' interest in the Operating
Partnership                                                       2,762       1,993       4,753       3,771
Extraordinary items-loss on restatement or
   extinguishment of debt, net of limited partners'
   share of $0, $400, $0, and $400,  respectively                   ---       1,962         ---       1,962
                                                              ----------  ----------  ----------  ----------
                                                                 25,537      18,252      48,240      32,632
Subtract:
Amount distributable to minority partners
in consolidated partnerships                                        987         597       1,775       1,132
                                                              ----------  ----------  ----------  ----------
Funds from Operations (FFO)                                      24,550      17,655      46,465      31,500

Subtract:
Straight line rents                                               2,024       1,194       3,488       2,284
Non-Incremental Capitalized tenant
   improvements and leasing commissions                           1,592         890       2,815       1,753
Non-Incremental Capitalized improvements                            848         426       1,473         791
                                                              ----------  ----------  ----------  ----------
Cash available for distribution (CAD)                         $  20,086   $  15,145   $  38,689   $  26,672
                                                              ==========  ==========  ==========  ==========
   Basic FFO and CAD calculations:
   Weighted average shares/units                                 47,331      41,273      46,615      37,423
                                                              ==========  ==========  ==========  ==========
   FFO per weighted average share/unit                        $    0.52   $    0.43   $    1.00   $    0.84
                                                              ==========  ==========  ==========  ==========
   CAD per weighted average share/unit                        $    0.42   $    0.37   $    0.83   $    0.71
                                                              ==========  ==========  ==========  ==========
   Dividends per share/unit                                   $    0.34   $    0.31   $    0.65   $    0.61
                                                              ==========  ==========  ==========  ==========
   FFO payout ratio                                                64.9%       72.7%       65.0%       72.9%
                                                              ==========  ==========  ==========  ==========
   CAD payout ratio                                                80.4%       84.4%       78.3%       86.3%
                                                              ==========  ==========  ==========  ==========
Fully diluted FFO and CAD calculations:
   Diluted weighted average shares/units                         47,872      41,776      47,179      37,918
                                                              ==========  ==========  ==========  ==========
   FFO per diluted weighted average share/unit                $    0.51   $    0.42   $    0.98   $    0.83
                                                              ==========  ==========  ==========  ==========
   CAD per diluted weighted average share/unit                $    0.42   $    0.36   $    0.82   $    0.70
                                                              ==========  ==========  ==========  ==========
   Dividends per share/unit                                   $    0.34   $    0.31   $    0.65   $    0.61
                                                              ==========  ==========  ==========  ==========
   Diluted FFO payout ratio                                        66.2%       74.4%       66.3%       73.8%
                                                              ==========  ==========  ==========  ==========
   Diluted CAD payout ratio                                        80.4%       86.8%       79.3%       87.5%
                                                              ==========  ==========  ==========  ==========
</TABLE>
PART II - OTHER INFORMATION

Item 1.  Legal Proceedings - None
Item 2.  Changes in Securities

             On March 23, 1998, the Company sold 235,480 shares of its
          common stock, par value $0.01, to RSI at a price of $25 per share
         (representing the closing price on the date of issuance) for 
         aggregate sales proceeds of $5,887,000.  Such transaction was 
         exempt from registration under the Securities Act of 1933 pursuant
         to Section 4 (2) of such Act.

Item 3.  Defaults Upon Senior Securities - None
Item 4.  Submission of Matters to a Vote of Securities Holders

             On May 21, 1998, the Company held its annual meeting of 
         stockholders.  The matters on which the stockholders voted, in 
         person or by proxy, were (1) the election of three nominees as 
         class III directors to serve until the 2001 annual meeting of 
         stockholders, or until their respective successors are duly 
         elected and qualified, (2) to ratify the selection of the 
         independent auditors of the Company and (3) to approve the 
         Company's 1998 Stock Option Plan.  The three nominees were 
         elected, the auditors were ratified and the 1998 Stock Option
         Plan was approved.  The results of the voting are set forth 
         below:

                Election of Directors            Votes Cast For
                ---------------------            --------------
                Roger Rechler                       33,300,492
                Harvey R. Blau                      33,300,914
                John V.N. Klein                     33,300,914


                             Ratification of Auditors
                    -----------------------------------------
                    Votes Cast For         Votes Cast Against
                    --------------         ------------------
                        33,336,037                     21,008

                     
                       Approval of 1998 Stock Option Plan
                    -----------------------------------------
                    Votes Cast For         Votes Cast Against
                    --------------         ------------------
                        20,648,321                 12,574,506


Item 5.  Other information - None
Item 6.  Exhibits and Reports on Form 8-K

         a)   Exhibits 27 Financial Data Schedule
         b)   During the three months ended June 30, 1998, the
              registrant filed the following reports:

              Form 8-K, dated April 6, 1998.  Regarding the contract 
              to acquire the Cappelli Portfolio and the remaining 50%
              interest in 360 Hamilton Avenue for approximately $177
              million.  Additionally, the Form 8-K disclosed that 
              Louis Cappelli would have the right to be nominated to 
              the Company's Board of Directors.

              Form 8-K/A No. 2, dated April 6, 1998.  Relating to Form
              8-K filed on January 26, 1998 and Form 8-K/A filed on or
              about February 12, 1998 relating to RSI entering into an
              intercompany agreement and plans to enter into two $100 
              million credit facilities with Reckson Operating 
              Partnership, L.P..

SIGNATURES

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

                            RECKSON ASSOCIATES REALTY CORP.
                            Registrant

August 10, 1998             /s/   Scott H. Rechler
Date                        Scott H. Rechler, Chief Operating Officer
                            and Director

August 10, 1998             /s/   Michael Maturo
Date                        Michael Maturo, Executive Vice President,
                            Treasurer and Chief Financial Officer