Securities and Exchange Commission

                     Washington, D.C. 20549


                            FORM 10-Q


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

     For the quarterly period ended September 30, 1997

                               or

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

     For the transition period from _____________ to
          ______________

Commission file number 1-12193

                       ARDEN REALTY, INC.
     (Exact name of registrant as specified in its charter)

        Maryland                            95-4578533
(State or other jurisdiction of        (I.R.S. Employer Identification No.)
incorporation or organization)

   9100 Wilshire Boulevard                     90212
  East Tower, Suite 700                      (Zip Code)
Beverly Hills, California
(Address of principal executive offices)

Registrant's telephone number, including area code:  (310) 271-8600

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 number of shares of the registrant's common stock, $.01 par
value, outstanding as of November 10, 1997: 35,442,833 shares.

Part I - Financial Information

ITEM 1.   FINANCIAL STATEMENTS
<TABLE>
                       Arden Realty, Inc.
                   Consolidated Balance Sheets
               (in thousands, except share amounts)
<S>                                    <C>              <C>
                                 September 30, 1997  December 31, 1996
     Assets                           (Unaudited)
Commercial office properties:
   Land                                $ 226,518        $ 116,513
   Buildings and improvements            709,937          417,970
   Tenant improvements                    18,627           12,224
                                         955,082          546,707
   Less: accumulated depreciation        (29,543)         (17,139)
                                         925,539          529,568
Cash and cash equivalents                  6,945            7,632
Restricted cash                            4,000               --
Rent and other receivables                 3,932            2,293
Mortgage notes receivable - net           14,392               --
Deferred rent                              8,033            6,069
Leasing commissions, net of accumulated
  amortization of $1,381 and
  $766, respectively                       5,772            3,160
Prepaid financing costs, net of
   accumulated amortization of
   $591 and $93, respectively              5,224              853
Prepaid expenses and other assets          4,264            1,681
     Total assets                      $ 978,101        $ 551,256
Liabilities
Mortgage loans payable                 $ 180,000        $ 104,000
Unsecured lines of credit                 45,900           51,000
Accounts payable and accrued expenses     17,013            6,178
Security deposits                          5,986            3,590
Dividends and distributions payable       14,177            8,844
   Total liabilities                     263,076          173,612

Minority interests in
   Operating Partnership                  47,178           45,667

Stockholders' Equity
Preferred stock, $.01 par value,
  20,000,000 shares authorized,
  none issued                                 --               --
Common stock, $.01 par value,
   100,000,000 shares authorized,
   35,442,833 and 21,679,500 issued
   and outstanding                           354              217
Additional paid-in capital               667,493          337,432
Accumulated deficit                           --           (5,672)
   Total stockholders' equity            667,847          331,977

   Total liabilities and
      stockholders' equity             $ 978,101        $ 551,256
</TABLE>
                     See accompanying notes.
<TABLE>
     Arden Realty, Inc. Consolidated Statement of Operations
                               and
       Arden Predecessors Combined Statement of Operations
                           (Unaudited)
             (in thousands except per share amounts)

<S>                                 <C>           <C>             <C>           <C>
                                     Arden         Arden        Arden         Arden
                                   Realty, Inc.   Predecessors  Realty, Inc.  Predecessors
                                          For the Three            For the Nine
                                          Months Ended             Months Ended
                                   September 30,  September 30,  September 30, September 30,
                                       1997           1996          1997          1996

Revenues
  Revenues from rental operations:
       Rental                       $ 32,237      $ 11,926        $ 80,740      $ 31,330
       Tenant reimbursements           1,704           834           3,593         2,259
       Parking, net of expenses        2,045         1,087           5,267         2,838
       Other rental operations           445           271           1,451           722
                                      36,431        14,118          91,051        37,149
    Other income                         450           528             563         1,598
        Total revenues                36,881        14,646          91,614        38,747
Expenses
  Property expenses:
      Repairs and maintenance          3,934         1,520          10,309         3,651
      Utilities                        3,956         1,573           9,325         3,459
      Real estate taxes                2,139           716           5,152         2,007
      Insurance                          583           776           1,447         2,279
      Ground rent                         69            45             172           135
      Marketing and other              1,056           437           2,770         1,418
         Total property expenses      11,737         5,067          29,175        12,949
    General and administrative           979           479           2,828         1,309
    Interest                           4,816        12,020          13,723        26,761
    Loss on valuation of derivative    3,111            --           3,111            --
    Depreciation and amortization      5,241         2,064          13,261         5,100
       Total expenses                 25,884        19,630          62,098        46,119

Equity in net loss of
   noncombined entities                   --          (114)             --          (208)
Income (loss) before
   minority interests                 10,997        (5,098)         29,516        (7,580)
Minority interests' share of
   loss of Arden Predecessors             --         1,228              --         1,572
Minority interests in
   Operating Partnership                (881)           --          (3,105)           --
Net income (loss)                   $ 10,116      $ (3,870)       $ 26,411      $ (6,008)

Net income per common share         $    .31                      $   1.04
Cash dividends declared             $    .40                      $   1.20
Weighted average common
   shares outstanding                 32,401                        25,440
</TABLE>
                     See accompanying notes.
<TABLE>
                       Arden Realty, Inc.
         Consolidated Statements of Stockholders' Equity
              (in thousands, except share amounts)
<S>                          <C>            <C>     <C>          <C>          <C>
                                      Common Stock    Additional               Total
                                                      Paid-in     Accumulated  Stockholders'
                                    Shares   Amounts  Capital     Deficit      Equity
Balance at October 8, 1996            100
  Retirement of originally
     issued shares                   (100)
  Common Stock bonus
     to employees                   5,000
  Sale of Common Stock
     net of offering
     offering costs of
     $36,181                   21,674,500    $217    $397,092                  $397,309
  Distributions paid to
     Arden Predecessors                --      --     (16,554)                  (16,554)
  Allocation of minority
     interests in Operating
     Partnership                       --      --     (35,301)                  (35,301)
  Net loss                             --      --          --     $(5,672)       (5,672)
  Dividends declared and
    payable                            --      --      (7,805)         --        (7,805)
Balance at December 31, 1996   21,679,500     217     337,432      (5,672)      331,977


Common Stock issued in
   connection with the
   exercise of options             13,333      --          267         --           267
   (unaudited)
Stock option compensation
   (unaudited)                         --      --           92         --            92
Sale of Common Stock in
   Secondary Offering net
   of offering costs of
   $18,588 (unaudited)         13,750,000     137      340,494         --       340,631
Net income (unaudited)                 --      --           --     26,411        26,411
Dividend declared and
  payable (unaudited)                  --      --      (10,792)   (20,739)      (31,531)
Balance at September 30,
   1997 (unaudited)            35,442,833    $354     $667,493    $    --      $667,847
</TABLE>
                     See accompanying notes.
<TABLE>
     Arden Realty, Inc. Consolidated Statement of Cash Flows
                               and
       Arden Predecessors Combined Statement of Cash Flows
                           (Unaudited)
                         (in thousands)
<S>                                      <C>            <C>
                                        Arden Realty,      Arden
                                             Inc.        Predecessors
                                          For the Nine Months Ended
                                        September 30,  September 30,
                                             1997           1996
OPERATING ACTIVITIES:
Net income (loss)                        $ 26,411       $ (6,008)
Adjustments to reconcile net income
(loss) to net cash
   provided by operating activities:
  Minority interests in operating
     partnership                            3,105             --
  Equity in net loss of noncombined
     entities                                  --            208
  Loss allocable to minority interests
     of Arden Predecessors                     --         (1,572)
  Loss on valuation of derivative           3,111             --
  Depreciation and amortization            13,261          5,100
  Amortization of loan costs and fees         497            197
  Increase in rents and other receivables (16,031)        (2,337)
  Increase in deferred rent                (1,964)        (1,735)
  Increase in prepaid financing and
     leasing costs                         (8,435)        (1,174)
  Increase in prepaid expenses and
     other assets                          (2,393)        (2,119)
  Increase in accounts payable and
     accrued expenses                       7,724          1,972
  Increase in deferred interest
                                               --         10,362
  Increase in security deposits             2,396            573
Net cash provided by operating
   activities                              27,682          3,467

INVESTING ACTIVITIES:
Acquisitions of and improvements to
   commercial office properties          (407,613)      (119,129)

FINANCING ACTIVITIES:
Proceeds from mortgage loans              251,000        120,485
Repayment of mortgage loans              (175,000)        (5,002)
Proceeds from secured line of credit       26,700             --
Repayment of secured line of credit       (26,700)            --
Proceeds from unsecured lines of
   credit                                 233,900          4,839
Repayments of unsecured lines of
   credit                                (239,000)        (2,264)
Proceeds from issuance of Common
   Stock, net of offering costs               267             --
Proceeds from Secondary Offering, net
   of offering costs                      340,631             --
Increase in restricted cash                (4,000)        (3,474)
Contributions from minority interests          --          1,000
Distributions to minority interests        (3,395)           (63)
Owners' contributions                          --          2,700
Owners' distributions                          --         (1,545)
Dividends paid                            (25,159)            --
Net cash provided by financing
   activities                             379,244        116,676
Net (decrease) increase in cash and
   cash equivalents                          (687)         1,014
Cash and cash equivalents at beginning
   of period                                7,632            790
Cash and cash equivalents at end of
   period                                $  6,945       $  1,804
SUPPLEMENTAL DISCLOSURE OF CASH
  FLOW INFORMATION:
Cash paid during the period for
interest, net of interest capitalized    $ 12,668       $ 14,856
</TABLE>
                        See accompanying notes.

                       Arden Realty, Inc.
                               and
                       Arden Predecessors

                  Notes to Financial Statements
                           (Unaudited)

      The consolidated financial statements of Arden Realty, Inc.
(the  "Company")  and the combined financial  statements  of  the
Arden   Predecessors  included  herein  have  been  prepared   in
accordance  with  Securities and Exchange Commission  Regulations
and  therefore  do  not  include all disclosures  required  under
generally accepted accounting principles.  Reference is  made  to
the  audited  financial statements filed with Form 10-K  for  the
period  October 9, 1996 to December 31, 1996 for the Company  and
for  the period January 1, 1996 to October 8, 1996 for the  Arden
Predecessors with respect to significant accounting and financial
reporting policies as well as other pertinent information of  the
Company  and  the  Arden Predecessors.  The financial  statements
reflect  all adjustments which are, in the opinion of management,
of  a  normal recurring nature and necessary for a fair statement
of   the  results  for the interim periods.  Interim  results  of
operations  are not necessarily indicative of the results  to  be
expected for the full year.

1.  Organization and Formation of the Company

      Arden  Realty,  Inc., through its controlling  interest  in
Arden  Realty  Limited Partnership (the "Operating Partnership"),
is engaged in the ownership, acquisition, management, renovation,
operation, and leasing of commercial office properties located in
Southern  California.   As of September 30,  1997  the  Company's
portfolio   of   properties   included   58   office   properties
(collectively the "Properties").

      The  Company was incorporated in Maryland in May  1996  and
formed  to continue and expand the real estate business of  Arden
Realty Group, Inc. and a group of affiliated entities (the "Arden
Predecessors").   On  October 9, 1996, the Company  completed  an
initial public offering (the "Offering") of 18,847,500 shares  of
$.01  par  value common stock (the "Common Stock").  The Offering
price  was  $20.00  per  share, resulting in  gross  proceeds  of
$376,950,000.    Also  on  October  9,  1996,  the   underwriters
exercised  their  overallotment  option  and,  accordingly,   the
Company issued an additional 2,827,000 shares of Common Stock and
received  gross proceeds of $56,540,000.  The aggregate  proceeds
to  the Company, net of underwriters' discount, advisory fees and
offering   costs  aggregating  $36,181,000,  were   approximately
$397,309,000.

      Concurrently  with the consummation of  the  Offering,  the
Company and the Operating Partnership, together with the partners
and   members  of  the  Arden  Predecessors  (collectively,   the
"Participants"),  engaged in certain formation transactions  (the
"Formation Transactions") which, among other things, resulted  in
the acquisition by the Company and Operating Partnership of 24 of
the 58 Properties (the "Initial Properties").
     The Formation Transactions included the following:

     Pursuant   to   separate  option  agreements  (the   "Option
     Agreements"),  the  Company acquired for cash  from  certain
     participants  in  the  Formation  Transactions  (the   "Cash
     Participants") the interests owned by such Cash Participants in
     certain of the Arden Predecessors and in certain of the Initial
     Properties.  The Company paid approximately $26.8  million from
     the  net proceeds of the Offering for such interests,  which
     represented 31.7% of the ownership interests in the  Initial
     Properties acquired by the Company.

     The  Company  contributed (i) the  interests  in  the  Arden
     Predecessors and in the Initial Properties acquired pursuant to
     the Option Agreements and (ii) the net proceeds from the Offering
     (after payment of the cash consideration to the Cash Participants
     as described above) to the Operating Partnership in exchange for
     an 88.2% general partner interest in the Operating Partnership,
     representing the sole general partnership interest.

     Pursuant   to   separate   contribution   agreements    (the
     "Contribution   Agreements"),   the   following   additional
     contributions were made by certain other participants in the
     Formation Transactions (the "Unit Participants") to the Operating
     Partnership in exchange for limited partner interests in the
     Operating Partnership ("OP Units"): (i) the remaining interests
     in  the  Arden  Predecessors and in certain of  the  Initial
     Properties (i.e., all interests not acquired by the  Company
     pursuant to the Option Agreements) and (ii) certain  assets,
     including management contracts relating to certain of the Initial
     Properties and the contract rights to purchase two properties
     (303  Glenoaks and 12501 East Imperial Highway).   The  Unit
     Participants  making such contributions (a  total  of  seven
     individuals and entities including Arden Realty Group, Inc.,
     Richard Ziman, Victor Coleman, and Arthur Gilbert), received an
     aggregate of 2,889,071 OP Units, with a value of approximately
     $57.8 million based on the initial public offering price of the
     common stock.

     The  Company,  through the Operating Partnership,  borrowed,
     from an affiliate of Lehman Brothers, a $57 million aggregate
     principal amount under a one year interim loan  (the "Interim
     Financing")  which was non-recourse to the Company  and  the
     Operating Partnership and was secured by cross-collateralized and
     cross-defaulted first mortgage liens on nine of the  Initial Properties.

     Approximately  $33  million  of  the  net  proceeds  of  the
     Offering were used by the Operating Partnership to purchase two
     properties, 303 Glenoaks and 12501 East Imperial Highway.

     The  Company used a portion of the proceeds of the  Offering
     and the Interim Financing to repay approximately $370 million of
     mortgage debt secured by the Initial Properties and indebtedness
     outstanding  under lines of credit assumed by the  Operating
     Partnership in the Formation Transactions.

2.  Basis of Presentation and Summary of Other Significant Accounting Policies

Arden Realty, Inc.

      The  accompanying consolidated financial statements of  the
Company  include  the accounts of the Company and  the  Operating
Partnership.    All   significant   intercompany   balances   and
transactions have been eliminated in consolidation.

      The  minority interests for the nine months ended September
30,   1997  represented  limited  partnership  interests  in  the
Operating Partnership of approximately 10.5%.

Arden Predecessors

     The Arden Predecessors were not a legal entity but rather a
combination of partnerships and an affiliated real estate
management corporation.  The properties and entities were all
managed by Messrs. Ziman and Coleman.  In those instances where
the financial interests held by Messrs. Ziman, Coleman, Gilbert
and their affiliates were also controlling interests, the entities
have been combined in the accompanying financial statements.
Minority interests have been recorded for those entities that the
affiliated Participants controlled but were not wholly-owned.
Where controlling interests were not held by these affiliated
Participants, or the affiliated Participants did not have
unilateral right to refinance the debt on the property, the
entities were accounted for as investments in noncombined entities
utilizing the equity method of accounting.

3.   Mortgage Note Receivable

  In  September  1997,  the Company purchased two  mortgage  notes
receivable,  secured by a single commercial office property,  with
an   aggregate   balance   of   approximately   $17,550,000,   for
approximately  $14,400,000.   The  notes  bear  interest  at   the
Eleventh  District  Cost of Funds plus 3.25%  per  annum,  require
monthly  payments  of principal, interest, and an  additional  net
cash  flow  from the property, and mature on May  31,  2004.   The
Eleventh  District  Cost  of  Funds  at  September  30,  1997  was
approximately 4.9%

4.  Mortgage Loans Payable and Credit Facilities

     On June 11, 1997, the Company refinanced, through a special
purpose subsidiary, its existing $175 million mortgage financing
with a new $175 million mortgage financing (the "Mortgage
Financing") from an affiliate of Lehman Brothers.  The Mortgage
Financing is non-recourse and secured by fully cross-
collateralized and cross-defaulted first mortgage liens on 18 of
the Company's Properties (the "Mortgage Financing Properties") and
has a twenty year term.  The Mortgage Financing bears interest at
a fixed rate of 7.52%, is anticipated to be repaid in seven years
and requires monthly payments of interest only with all principal
due in a balloon payment at maturity.  If the Mortgage Financing
is not repaid or refinanced within seven years, the interest rate
increases by at least 2% and all excess cash flow from the
Mortgage Financing Properties must be used to pay down principal.
The Mortgage Financing documentation requires the Company to
maintain a reserve of $4 million and to comply with certain
customary financial covenants, ongoing operational restrictions,
and certain cash management procedures.  In addition, the Mortgage
Financing prohibits prepayment for approximately three years from
its origination.

     On May 5, 1997, the Company entered into a revolving credit
agreement with Wells Fargo Bank (the "Bridge Facility").  The
Bridge Facility was unsecured, with a total commitment of
$110,000,000.  The Company repaid the entire balance on the Bridge
Facility with a draw on the Amended Credit Facility.

     On June 11, 1997, the Company amended its then-existing
credit facility (the "Credit Facility") with a $300 million
unsecured line of credit (the "Amended Credit Facility") from a
group of banks led by Wells Fargo Bank (the "Lenders").  The
interest rate of the Amended Credit Faptember 30, 1996.  Tenant 
reimbursements from the properties
acquired in 1996 increased approximately $740,000 for the nine
months ended September 30, 1997 compared to the prior year.
Tenant reimbursements from the properties acquired in the first
nine months of 1997 were $334,000 for the nine months ended
September 30, 1997.  Tenant reimbursements from the properties
owned for all of 1996 and 1997 decreased approximately $193,000
for the nine months ended September 30, 1997 compared to the prior
year, as a result of resetting base years for leases that were
renewed or retenanted, offset in part by 1996 tenant reimbursement
revenue recognized in 1997.

     Parking revenue increased approximately $1.7 million or 47%
for the nine months ended September 30, 1997 compared to the nine
months ended September 30, 1996.  Parking revenue from the
properties acquired in 1996 increased approximately $801,000 for
the nine months ended September 30, 1997 compared to the prior
year.  Parking revenue from the properties acquired in the first
nine months of 1997 was $625,000 for the nine months ended
September 30, 1997.  Parking revenue from the properties owned for
all of 1996 and 1997 increased approximately $267,000 for the nine
months ended September 30, 1997 compared to the prior year,
primarily resulting from increased occupancy.

     Other rental operations, consisting primarily of
miscellaneous tenant charges such as after hours utility and HVAC
charges, increased by $470,000 or 48% for the nine months ended
September 30, 1997 compared to the prior year.  The increase in
other rental operations associated with the properties acquired in
1996 was $376,000.  Other rental operations revenues from the
properties purchased in the first nine months of 1997 were
$178,000.  Other rental operations revenues from the properties
owned for all of 1996 and 1997 decreased approximately $84,000 due
to a decrease in non-recurring tenant charges for the nine months
ended September 30, 1997 compared to the prior year.

     Other income decreased $499,000 due to decreases in
management fees from third party-owned properties and interest
income from restricted cash balances.

     For the nine months ended September 30, 1997, total property
expenses were $29.2 million, or 32% of revenues from rental
operations, compared with total property expenses of $18.1 million
or 35% of revenues from rental operations for the nine months
ended September 30, 1996.  The increase in total property expenses
associated with the properties acquired in 1996 was $7.2 million,
reflecting a full nine months of property expenses from such
properties.  Property expenses from properties acquired in the
first nine months of 1997 were $4.8 million.  Property expenses
from the properties owned for all of 1996 and 1997 decreased
approximately $875,000 for the nine months ended September 30,
1997 compared to the prior year. This decrease in total property
expenses resulted from a decrease in insurance costs due to a more
favorable insurance policy.

     General and administrative expenses increased approximately
$1.5 million or 116% for the nine months ended September 30, 1997
compared to the prior year, resulting from increased management
and administrative costs associated with the increased portfolio
size and the operations of the Company as a public real estate
investment trust.

     Interest expense decreased approximately $19.6 million or 59%
for the nine months ended September 30, 1997 compared to the nine
months ended September 30, 1996, primarily as a result of the
decrease in mortgage loans payable during the fourth quarter of
1996.
     
     Depreciation and amortization increased $5.5 million or 72%,
primarily due to 1996 and 1997 acquisitions.

     The following is a comparison of property operating data for
17 of the properties which were owned for the nine months ended
September 30, 1997 and September 30, 1996 ("Same Store
Properties") (in thousands):
<TABLE>
<S>                                 <C>       <C>        <C>          <C>
                                    Nine months Ended
                                      September 30,      Dollar    Percent
                                      1997       1996    Change    Change

Revenues from rental operations     $38,148   $37,266    $  882       2%
Property expenses                    12,270    13,145      (875)     (7)
Net                                 $25,878   $24,121    $1,757       7%
</TABLE>

     Comparison of the three months ended September 30, 1997 to
the three months ended September 30, 1996.  In order for a
meaningful analysis of the financial statements to be made, the
revenues and expenses for the noncombined entities for the three
months ended September 30, 1996 have been included as though they
were combined in the following analysis.  Intercompany management
fees relating to the noncombined entities of $184,000 have been
eliminated.
<TABLE>
  Three months ended September 30, 1997 compared to three months
                     ended September 30, 1996
               (in thousands except percentage data)
                                 
<S>                             <C>      <C>         <C>          <C>
                              Three Months Ended                   
                                  September 30,       Dollar     Percent
                                 1997       1996      Change     Change
Revenue                                                  
  Revenues from                                          
rental operations:
    Rental                      $ 32,237 $ 16,396    $ 15,841     97%
    Tenant reimbursements          1,704      980         724     74
    Parking, net of          
       expense                     2,045    1,313         732     56
    Other rental operations          445      414          31      7
                                  36,431   19,103      17,328     91
  Other income                       450      376          74     20
     Total revenues               36,881   19,479      17,402     89%
                                                         
Expenses                                                 
  Property expenses:                                     
    Repairs and maintenance        3,934    2,159       1,775     82%
    Utilities                      3,956    2,287       1,669     73
    Real estate taxes              2,139      949       1,190    125
    Insurance                        583      861        (278)   (32)
    Ground rent                       69       48          21     44
    Marketing and other            1,056      638         418     66
      Total property expenses     11,737    6,942       4,795     69
  General and aministrative          979      479         500    104
  Interest                         4,816   14,221      (9,405)   (66)
  Loss on derivative       
     valuation                     3,111       --       3,111     --
  Depreciation and          
     amortization                  5,241    3,015       2,226     74
     Total expenses              $25,884  $24,657     $ 1,227      5%
</TABLE>
                                 
     Rental revenue increased approximately $15.8 million or 97%
for the three months ended September 30, 1997 compared to the
three months ended September 30, 1996.  Rental revenue from the
properties acquired in 1996 increased approximately $5.5 million
for the three months ended September 30, 1997 compared to the
prior year, reflecting a full three months of rental revenue from
such properties.  Rental revenue from properties acquired in the
first nine months of 1997 was $10.2 million for the three months
ended September 30, 1997.  Rental revenue from the properties
owned for all of 1996 and 1997 increased approximately $90,000 for
the three months ended September 30, 1997 compared to the prior
year, primarily resulting from increased occupancy and rental
rates at certain properties.
                                 
     Tenant reimbursements increased $724,000 or 74% for the three
months ended September 30, 1997 compared to the three months ended
September 30, 1996.  Tenant reimbursements from the properties
acquired in 1996 increased approximately $311,000 for the three
months ended September 30, 1997 compared to the prior year.
Tenant reimbursements from the properties acquired in the first
nine months of 1997 were $265,000 for the three months ended
September 30, 1997.  Tenant reimbursements from the properties
owned for all of 1996 and 1997 increased approximately $148,000
for the three months ended September 30, 1997 compared to the
prior year, due to additional 1996 tenant reimbursement income
recognized in 1997, partially offset by the resetting of base
years for leases that were renewed or retenanted.
                                 
        Parking revenue increased $732,000 or 56% for the three
months ended September 30, 1997 compared to the three months ended
September 30, 1996.  Parking revenue from the properties acquired
in 1996 increased approximately $238,000 for the nine months ended
September 30, 1997 compared to the prior year.  Parking revenue
from the properties acquired in the first nine months of 1997 was
$413,000 for the three months ended September 30, 1997.  Parking
revenue from the properties owned for all of 1996 and 1997
increased approximately $81,000 for the three months ended
September 30, 1997 compared to the prior year primarily resulting
from increased occupancy.
                                 
     Other rental operations, consisting primarily of
miscellaneous tenant charges such as after hours utility and HVAC
charges, increased $31,000 or 7% for the three months ended
September 30, 1997 compared to the prior year.  The decrease in
other rental operations associated with the properties acquired in
1996 was $22,000.  Other rental operations revenues from the
properties purchased in the first nine months of 1997 were
$149,000.  Other rental operations revenues from the properties
owned for all of 1996 and 1997 decreased approximately $96,000
primarily due to a decrease in non-recurring tenant charges for
the three months ended September 30, 1997 compared to the prior year.
                                 
     Other income increased $74,000 due to increases in interest
income from the mortgage note receivable and increased cash
balances from the Company's Secondary Offering, offset in part by
decreases in management fees from third party-owned properties.
                                 
     For the three months ended September 30, 1997, total property
expenses were $11.7 million, or 32% of revenues from rental
operations, compared with total property expenses of $6.9 million
or 36% of revenues from rental operations for the three months
ended September 30, 1996.  The increase in total property expenses
associated with the properties acquired in 1996 was $2.2 million,
reflecting a full three months of property expenses from such
properties.  Property expenses from properties acquired in the
first nine months of 1997 were $3.3 million.  Property expenses
from the properties owned for all of 1996 and 1997 decreased
approximately $667,000 for the three months ended September 30,
1997 compared to the prior year.  This decrease in total property
expenses resulted from a decrease in insurance costs due to a more
favorable insurance policy.
                                 
     General and administrative expenses increased by
approximately $500,000 or 104% for the three months ended
September 30, 1997 compared to the prior year, resulting from
increased management and administrative costs associated with the
increased portfolio size and the operations of the Company as a
public real estate investment trust.
                                 
     Interest expense decreased approximately $9.4 million or 66%
for the three months ended September 30, 1997 compared to the
three months ended September 30, 1996, primarily as a result of
the decrease in mortgage loans payable during the fourth quarter of 1996.
                                 
     Depreciation and amortization increased $2.2 million or 74%,
primarily due to 1996 and 1997 acquisitions.
                                 
     The following is a comparison of property operating data for
17 of the properties which were owned for the nine months ended
September 30, 1997 and September 30, 1996 ("Same Store Properties") 
(in thousands):
<TABLE>
                                 
<S>                                    <C>      <C>         <C>        <C>
                                       Three Months Ended
                                        September 30,       Dollar   Percent
                                        1997       1996     Change   Change
Revenue from rental operations         $13,020  $12,797     $223       2%
Property expenses                        4,137    4,804     (667)    (14)
Net                                    $ 8,883  $ 7,993     $890      11%
</TABLE>
                                 

Liquidity and Capital Resources
                                 
      On June 11, 1997, the Company refinanced, through a special
purpose subsidiary, its existing $175 million mortgage financing
with the new $175 million Mortgage Financing from an affiliate of
Lehman Brothers.  The Mortgage Financing is non-recourse and
secured by fully cross-collateralized and cross-defaulted first
mortgage liens on 18 Mortgage Financing Properties and has a
twenty year term.  The Mortgage Financing bears interest at a
fixed rate of 7.52%, is anticipated to be repaid in seven years
and requires monthly payments of interest only with all principal
due in a balloon payment at maturity.  If the Mortgage Financing
is not repaid or refinanced within seven years, the interest rate
increases by at least 2% and all excess cash flow from the
Mortgage Financing Properties must be used to pay down principal.
The Mortgage Financing documentation requires the Company to
comply with certain customary financial covenants, ongoing
operational restrictions, and certain cash management procedures.
In addition, the Mortgage Financing prohibits prepayment for
approximately three years from its origination.
                                 
      On May 5, 1997, the Company entered into its Bridge Facility
with Wells Fargo Bank.  The Bridge Facility was unsecured, with a
total commitment of $110,000,000.  The Company repaid the entire
balance on the Bridge Facility with a draw from the Amended Credit
Facility.  On June 11, 1997, the Company amended its then existing
credit facility with the Amended Credit Facility from a group of
banks led by Wells Fargo (the "Lenders").  The interest rate of
the Amended Credit Facility ranges between LIBOR plus 1.2% and
LIBOR plus 1.45% depending on the leverage ratio of the Company.
Once the Company achieves an investment grade unsecured debt
rating,  the interest rate may be lowered to between LIBOR plus
0.9% and LIBOR plus 1.15% depending on such debt rating.  Under
certain circumstances, the Company has the option to convert the
interest rate from LIBOR to the prime rate plus 0.5%. The Amended
Credit Facility has been and will be used, among other things, to
finance the acquisition of properties, provide funds for tenant
improvements  and capital expenditures and provide for working
capital and other corporate purposes.  The outstanding principal
balance is due on September 1, 2000.  In  July 1997, proceeds of
$212,600,000 from the Company's Secondary Offering were used to
pay down the aggregate outstanding balance on the Amended Credit Facility.
                                 
     The Amended Credit Facility is subject to customary
conditions to borrowing, contains representations and warranties
and defaults customary in REIT financings, and contains financial
covenants, including requirements for a minimum tangible net
worth, maximum liabilities to asset values, and minimum interest,
unsecured interest and fixed charge coverage ratios (all
calculated as defined in the Amended Credit Facility
documentation) and requirements to maintain a pool of unencumbered
properties which meet certain defined characteristics and are
approved by the Lenders.  The Amended Credit Facility also
contains restrictions on, among other things, indebtedness,
investments, distributions, liens and mergers.
                                 
     Pursuant to a separate agreement, Wells Fargo advanced $28.7
million, of which $2 million was advanced subsequent to June 30,
1997, to the Company. This advance, which was secured by two
Properties, accrued interest at the Wells Fargo Prime Rate and
matured on July 10, 1997 at which time the Company repaid the
advance with a $28.7 million draw on the Amended Credit Facility.
                                
     The Company also has an unsecured line of credit with a total
commitment of $10,000,000 from City National Bank.  On September
30, 1997 the aggregate outstanding balance was $8,100,000.  The
City National Credit Facility accrues interest at the City
National Bank Prime Rate less 0.875%, and is scheduled to mature
on August 1, 1998.  The City National Credit Facility has and will
be used, among other things, to provide funds for tenant
improvements and capital expenditures and provide for working
capital and other corporate purposes. On July 23, 1997 the Company
repaid the outstanding balance of $10,000,000 on the City National
Credit Facility with proceeds from the Company's Secondary Offering.
                                 
         On July 23, 1997, the Company completed the Secondary
Offering of 12,000,000 shares of Common Stock.  The Secondary
Offering price was $26.125 per share resulting in gross proceeds
of $313,500,000.  Also, on July 23, 1997, the underwriters
exercised their overallotment option and, accordingly, the Company
issued an additional 1,750,000 shares of Common Stock and received
gross proceeds of $45,718,750.  The aggregate proceeds to the
Company, net of underwriters' discount and offering costs
aggregating $18,588,000 were approximately $340,631,000.  Proceeds
 from the Company's Secondary Offering were used to pay down the
Company's Amended Credit Facility, City  National Credit Facility,
and to acquire additional office properties.
                                 
     The Company expects to continue meeting its short-term
liquidity requirements generally through its working capital and
net cash provided by operating activities.  The Company believes
that its net cash provided by operating activities will continue
to be sufficient to allow the Company to make any distributions
necessary to enable the Company to continue quality as a REIT.
The Company also believes that the foregoing sources of  liquidity
will be sufficient to fund its short-term liquidity needs for the
foreseeable future, including recurring non-revenue enhancing
capital expenditures, tenant improvements and leasing commissions.
                                 
     The Company expects to meet certain long-term liquidity
requirements such as property acquisitions, scheduled debt
maturates, renovations, expansions and other non-recurring capital
improvements through long-term secured and unsecured indebtedness
and the issuance of additional equity securities.  The Company
also expects to use the remaining funds available under the
Amended Credit Facility to fund acquisitions, development
activities and capital improvements on an interim basis.
                                 
PART II - Other Information
                                 
Item 1.  Legal Proceedings - None
                                 
Item 2.   Changes in Securities - None
                                 
Item 3.  Defaults Upon Senior Securities - None
                                 
Item 4.  Submission of Matters to a vote of Securities Holders:
                                 
        On July 8, 1997, the Company held its annual meeting of
shareholders.  The following directors were elected to serve until
the annual meeting of shareholders in the year 2000:  Carl D.
Covitz, Larry S. Flax, and Kenneth B. Roath.  Directors whose
terms of office as a director continued after the meeting are as
follows:  Richard S. Ziman, Victor J. Coleman, Steven C. Good.
                                 
Item 5.  Other Information - None
                                 
Item 6.  Exhibits and Reports on Form 8-K
         (a)  Exhibits
                                 
Exhibit
Number    Description
                                 
                                 
3.1       Amended and Restated Articles of Incorporation as filed
          as an exhibit to Registration Statement on Form S-11
          (No. 333-8163) and incorporated herein by reference.
                                 
3.2       By-Laws of Registrant as filed as an exhibit to
          Registration Statement on Form S-11 (No. 333-8163) and
          incorporated herein by reference.
                                 
11.1      Computation of Fully-Diluted Earnings Per Share.
                                 
27        Financial Data Schedule
                                 
         (b) Reports on Form 8-K
                                 
       A report on Form 8-K dated August 13, 1997 was filed which
included information regarding Items 2 and 7.  Included in Item 7
were financial statements, pro forma information and exhibits.
The Form 8-K was filed in connection with the Company's
acquisition of eight suburban office properties.
                                 
                                 
                            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.

                          ARDEN REALTY, INC.

                          By:  /s/ Diana M. Laing
                               Diana M. Laing
                               Chief Financial Officer
                               (Principal Financial and Accounting Officer)

Date:  November 12, 1997