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 March 31, 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        (I.R.S. Employer Identification No.)
of incorporation or organization)

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

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 May 14, 1997:  21,692,833 
shares. 


Part I - Financial Information

Item 1. Financial Statements
<TABLE>
                             Arden Realty, Inc.
                         Consolidated Balance Sheets
                    (in thousands, except share amounts)

<S>                                 <C>                      <C>
                                       	March 31,	          December 31,
Assets	                                     1997	                  1996
Commercial Office Properties:	       (Unaudited)	

   Land	                              $ 131,238	              $ 116,513
   Buildings and improvements	          456,495	                417,970
   Tenant improvements	                  13,413	                 12,224
                                       	601,146	                546,707
   Less: accumulated depreciation	      (20,510)	               (17,139)
                                       	580,636	                529,568
Cash and cash equivalents	                  822	                  7,632
Rent and other receivables	               2,093	                  2,293
Deferred rent	                            6,609	                  6,069
Leasing commissions, net of
    accumulated amortization of 
    $957 and $766, respectively	          3,680	                  3,160
Prepaid financing costs, net of 
   accumulated amortization of 
   $143, and $93, respectively	             805	                    853
Prepaid expenses and other assets	        4,693	                  1,681
     Total assets	                    $ 599,338	              $ 551,256
		
Liabilities		
Mortgage loans payable	               $ 137,800	               $ 104,000
Unsecured lines of credit	               60,000	                  51,000
Accounts payable and accrued expenses	    9,243	                   6,178
Security deposits	                        3,958	                   3,590
Dividends and distributions payable	      8,677	                   8,844
   Total liabilities	                   219,678	                 173,612
		
Minority interests in 
   Operating Partnership	                47,563	                  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, 
   21,692,833 and 21,679,500
   issued and outstanding	                  217	                     217
Additional paid-in capital	             331,880	                 337,432
Accumulated deficit	                         --	                  (5,672)
   Total stockholders' equity	          332,097	                 331,977
		
   Total liabilities and 
stockholders' equity	                 $ 599,338	             $   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>  

                                         	Arden Realty Inc.	Arden Predecessors
                                         	For the quarter 	 For the quarter
                                            	ended             ended
                                          March 31, 1997    March 31, 1996
Revenues		
  Revenues from rental operations:		
       Rental	                              $   21,892	      $    8,607
       Tenant reimbursements	                      958	             638
       Parking, net of expenses	                 1,490	             879
       Other rental operations	                    576	             280
                                               	24,916	          10,404
    Other income	                                   54	             415
        Total revenues                         	24,970	          10,819
		
Expenses		
  Property expenses:		
      Repairs and maintenance	                   2,841	             930
      Utilities	                                 2,423	             706
      Real estate taxes	                         1,378	             702
      Insurance	                                   384	             781
      Ground rent	                                  51	              44
      Marketing and other 	                        817	             452
         Total property expenses	                7,894	           3,615
    General and administrative	                    918	             364
    Interest	                                    3,024	           6,662
    Depreciation and amortization	               3,562	           1,582
       Total expenses	                          15,398	          12,223
		
Equity in net loss of noncombined entities	         --             	(84)
Income (loss) before minority interests	         9,572	          (1,488)
Minority interests' share of loss of 
   Arden Predecessors	                              --	             187
Minority interests in Operating Partnership    	(1,134)	             --  
Net income (loss)	                         $     8,438       	$  (1,301)
		
  Net income per common share	             $       .38	
		
Weighted average common shares outstanding	 21,921,256	
		
Cash dividends declared	                   $       .40	
</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, Inc.	   Arden Predecessors
                                      	For the quarter      	For the quarter
                                           	ended                 ended
                                       March 31, 1997	       March 31, 1996
OPERATING ACTIVITIES:		
Net income (loss)	                    $      8,438	          $     (1,301)
Adjustments to reconcile net 
   income (loss) to net cash 
   provided by operating activities:		
  Minority interests in 
     operating partnership	                  1,134	                    --
  Equity in net loss of noncombined
     entities	                                  --	                    84
  Loss allocable to minority 
     interests of Arden Predecessors	           --	                  (187)
  Depreciation and amortization	             3,562	                 1,582
  Amortization of loan costs and fees	          50	                    30
  Decrease (increase) in rents and
     other receivables	                        200	                  (640)
  Increase in deferred rent	                  (540)                 	(496)
  (Increase) decrease in prepaid 
     financing and leasing costs	             (745)	                   38
  Increase in prepaid expenses and 
     other assets                          	(2,887)	                 (225)
  Increase in accounts payable and 
     accrued expenses	                       3,065	                   640
  Increase in deferred interest                	--	                 2,046
  Increase in security deposits	               368	                   460
Net cash provided by operating activities	  12,645	                 2,031
		
INVESTING ACTIVITIES:		
Acquisitions and improvements to
    commercial office properties          	(53,677)              	(95,157)

FINANCING ACTIVITIES:		
Proceeds from mortgage loans	               33,800  	             100,036
Repayment of mortgage loans	                    --                	(1,311)
Proceeds from unsecured lines of credit	     9,000	                    26
Repayments of unsecured lines of credit	        --	                  (250)
Proceeds from issuance of common stock,
    net of offering costs	                     267	                    --
Increase in restricted cash	                    --                	(8,018)
Contributions from minority interests	          --	                 1,000
Distributions to minority interests	            --	                   (13)
Owners' contributions	                          --	                 2,500
Owners' distributions	                          --	                  (549)
Dividends and distributions paid	           (8,845)	                   -- 
Net cash provided by financing activities	  34,222                	93,421
Net (decrease) increase in cash and
    cash equivalents                       	(6,810)	                  295
Cash and cash equivalents at 
   beginning of period	                      7,632                   	790
Cash and cash equivalents at
    end of period	                     $       822	           $     1,085
SUPPLEMENTAL DISCLOSURE OF CASH 
  FLOW INFORMATION:		
Cash paid during the period for 
   interest, net of interest 
      capitalized	                       $   2,860	           $    4,260
</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 (defined below) 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

	The Company, through its controlling interest in Arden 
Realty Limited Partnership (the "Operating Partnership"), is 
engaged in the ownership, acquisition, renovation, leasing 
and management of commercial office properties located in 
Southern California.  As of March 31, 1997 the Company's 
portfolio of properties included 37 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 over 
allotment 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 fee 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, 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 37 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, $57 
million aggregate principal amount under a one year 
interim loan  (the "Interim Financing") which is 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 at March 31, 1997 represent a 
limited partnership interest in the Operating Partnership of 
approximately 12%.

Arden Predecessors

	The Arden Predecessors were not a single legal entity 
but rather a combination of partnerships and an affiliated 
real estate management corporation (each an "Arden 
Predecessor entity").  All of the Arden Predecessor entities 
and the properties held by such entities were managed by 
Richard Ziman and Victor Coleman.  The Arden Predecessor 
entities in which Messrs. Ziman, Coleman and Gilbert or 
their affiliates held controlling interests have been 
combined in the accompanying financial statements.  Minority 
interests have been recorded, however, for those Arden 
Predecessor entities that were controlled but not wholly-
owned by Messrs. Ziman, Coleman and Gilbert or their 
affiliates.  The Arden Predecessor entities in which Messrs. 
Ziman, Coleman and Gilbert or their affiliates did not hold 
controlling interests or have the unilateral right to 
refinance the debt on such entities' properties, were 
accounted for as investments in noncombined entities 
utilizing the equity method of accounting.

3.  Mortgage Notes Payable

	The Company has replaced the Interim Financing with a 
new mortgage loan (the "Amended Interim Financing") with a 
total commitment of  $175 million from an affiliate of 
Lehman Brothers.  The Amended New Interim Financing dated 
March 17, 1997 matures on September 30, 1997 and bears 
interest at a floating rate equal to LIBOR plus 1.50% on or 
before March 31, 1997 and LIBOR plus 2.00% for any 
subsequent period through maturity.  The Amended Interim 
Financing is secured by fully cross-collateralized and 
cross-defaulted first mortgage liens on 12 of the Properties 
and requires monthly payments of interest only, with all  
principal due at maturity.  On March 31, 1997, the aggregate 
outstanding balance was $137,800,000 and the undisbursed 
portion was $37,200,000.

	The LIBOR rate was 5.8% and 5.6% at March 31, 1997 and 
December 31, 1996, respectively.

	The Company has a line of credit with a total 
commitment of $150,000,000 (the "Credit Facility") from a 
group of banks led by Wells Fargo Bank (the "Lenders").  The 
Credit Facility allows the Company to borrow $75,000,000 on 
an unsecured basis at LIBOR plus 1.75%, and any additional 
draws to the Credit Facility accrue interest at LIBOR plus 
1.5% and must be secured by real property.  On March 31, 
1997, the aggregate outstanding balance under the Credit 
Facility was $51,000,000 (unsecured).

	The Company has accepted a term sheet from Wells Fargo 
Bank for an amendment to its Credit Facility (the "Amended 
Credit Facility").  The Amended Credit Facility will be 
unsecured, with a total commitment of $300,000,000, for a 
term of three years.  The interest rate for the Amended 
Credit Facility will range from LIBOR plus 1.2% to LIBOR 
plus 1.45%, depending upon the Company's leverage ratio as 
defined in the Amended Credit Facility documentation.  The 
amendment to the Credit Facility is contingent upon the 
execution of loan documents, which will be based upon the 
existing Credit Facility documentation and will contain 
indemnities, financial and other covenants, representations 
and warranties, events of default and other provisions that 
are customary for facilities of this type.

	As of May 5, 1997, the Company entered into a revolving 
credit agreement with Wells Fargo Bank (the "Bridge 
Facility").  The Bridge Facility is unsecured, with a total 
commitment of $110,000,000, with a maturity date of the 
earlier to occur of June 30, 1997 or completion of 
documentation of the Amended Credit Facility.  The interest 
rate for the Bridge Facility ranges from LIBOR plus 1.2% to 
LIBOR plus 1.45%, depending upon the Company's leverage 
ratio as defined in the Bridge Facility agreement.  The 
initial interest rate is LIBOR plus 1.3%.  The Bridge 
Facility documentation contains indemnities, financial and 
other covenants, representations and warranties, events of 
default and other provisions that are customary for 
facilities of this type.

	The Company also has an unsecured line of credit with a 
total commitment of $10,000,000 from City National Bank (the 
"City National Credit Facility").  On March 31, 1997 the 
aggregate outstanding balance thereunder was $9,000,000.  
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 is used, among other things, to provide funds for 
tenant improvements and capital expenditures and provide for 
working capital and other corporate purposes.

	The City National Bank Prime Rate was 8.5% at March 31, 
1997.

4.  Commercial Office Properties and Furniture, Fixtures and 
Equipment

	In March 1997, the Company completed a series of 
transactions to acquire four office properties located in 
California, including a 109,187 square foot building located 
in Glendale from a related party for $10.0 million, an 
80,014 square foot building in Woodland Hills for $7.5 
million, a 135,415 square foot building in Whittier for 
$14.3 million, and a 155,189 square foot building in 
Bakersfield for $19.5 million.  The Company plans to spend 
approximately $4.0 million on renovations over the next 15 
months on the property located in Glendale.  These 
acquisitions were funded with existing working capital, 
proceeds from the Amended Interim Financing and the 
unsecured lines of credit.  In addition, 26,880 OP Units 
valued at approximately $763,000 were issued in 
conjunction with the purchase of the property located in 
Bakersfield. 

	In April 1997, the Company purchased an additional four 
office properties located in California, including a 43,063 
square foot building located in Woodland Hills for $5.2 
million, a 51,828 square foot building in Sherman Oaks for 
approximately $6.7 million, a 92,486 square foot building in 
West Los Angeles for approximately $10.6 million and a 
202,830 square foot building in Gardena for $19.1 million.  
These acquisitions were funded with proceeds from the 
Amended Interim Financing and draws from the unsecured lines 
of credit.

	In May 1997, the Company purchased a 417,463 square 
foot office building in Beverly Hills, California for $59.0 
million.  This acquisition was funded with proceeds from the 
Bridge Facility.

5.  Stockholders Equity

	In March 1997, options to purchase 13,333 shares of 
Common Stock were exercised.

	On March 28, 1997, the Operating Partnership issued 
26,880 OP Units valued at approximately $763,000 in 
connection with the acquisition of the property located in 
Bakersfield, California.

	Net income per share was calculated using the weighted 
average number of shares of Common Stock outstanding of 
21,921,256 for the three months ended March 31, 1997.

	In February 1997, the Financial Accounting Standards 
Board (FASB), issued Statement of Financial Accounting 
Standards No. 128 "Earnings Per Share" which is required to 
be adopted on December 31, 1997.  At that time the Company 
will be required to change the method currently used to 
compute earnings per share and to restate all prior periods.  
Under the new requirements for calculating primary earnings 
per share, the dilutive effect of stock options will be 
excluded.  This will not have a material impact on primary 
earnings per share for the first quarter ended March 31, 
1997. The Company has not yet determined what the impact of 
Statement 128 will be on the calculation of fully diluted 
earnings per share. 

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL 
CONDITION AND RESULTS OF OPERATIONS

Overview
	The following discussion relates to the consolidated 
financial statements of the Company and the combined 
financial statements of the Arden Predecessors, and should 
be read in conjunction with the financial statements and 
related notes thereto included in the Form 10-K of  the 
Company for the year ended December 31, 1996.

	During the first three months of 1997, the Company 
acquired four office properties for approximately $51.3 
million, encompassing approximately 480,000 square feet.  
Through these acquisitions, the Company increased total 
assets to $599.3 million, including real estate assets of 
$580.6 million (net of accumulated depreciation) at March 
31, 1997.

	Income is derived primarily from rental revenue 
(including tenant reimbursements) and parking revenue from 
commercial office properties, and to a lesser extent, from 
the management of certain properties owned by third parties.  
As a result of the Company's and the Arden Predecessors' 
aggressive acquisition program, the financial data shows 
significant increases in total revenue from quarter to 
quarter, largely attributable to the acquisitions made 
during 1996 and 1997, and the benefit of a full period of 
effective rental and other revenue for properties acquired 
in the preceding year.  For the foregoing reasons, 
management does not believe the year to year and quarter to 
quarter financial data are comparable.

	The Company expects that the more significant part of 
its revenue growth in the next one to two years will come 
from additional acquisitions rather than from occupancy and 
market rent increases in its current portfolio.  On the 
other hand, the Company believes that if the Southern 
California office rental market continues to improve, then 
rental rate increases will become a more substantial part of 
its revenue growth over time.

Results of Operations

	Comparison of the three months ended March 31, 1997 to 
the three months ended March 31, 1996.  The Company's 
management believes that in order for a meaningful analysis 
of the financial statements to be made, certain transactions 
which occurred in 1996 should be considered in a manner 
which makes each accounting period comparable.  Accordingly, 
the revenue and expenses for the noncombined entities for 
the three months ended March 31, 1996 have been included as 
though they were combined, with intercompany management fees  
relating to the noncombined entities of $203,000 eliminated 
in 1996 in the following discussion.  The following section 
discusses the results of operations, as adjusted and in 
thousands.

Three months ended March 31, 1997 Compared to three months 
ended March 31, 1996

                                    	Three Months Ended March 31,
                                        	1997	             1996
Revenue		
   Rental	                            $ 21,892	         $ 12,471
   Tenant reimbursements	                  958	              758
   Parking, net of expense	              1,490	            1,142
   Other	                                  630	              557
     Total revenues	                    24,970	           14,928
		
Expenses		
   Repairs and maintenance	              2,841	            1,440
   Utilities	                            2,423	            1,137
   Real estate taxes	                    1,378	              957
   Insurance	                              384	              872
   Ground rent	                             51	               47
   Marketing and other                    	817	              732
     Total property expenses	            7,894	            5,185
   General and administrative	             918	              364
   Interest	                             3,024	            8,832
   Depreciation and amortization	        3,562	            2,396
     Total expenses	                  $ 15,398	         $ 16,777

	Rental revenue increased by $9.4 million or 76% for the 
three months ended March 31, 1997 compared to the three 
months ended March 31, 1996.  The increase in rental revenue 
resulted principally from a full three months of rental 
revenue from properties acquired during 1996.  Rental 
revenue from the properties acquired in 1996 increased to 
$11.2 million for the three months ended March 31, 1997, 
representing a full three months of rental revenue, from 
$2.2 million in the prior period.  Rental revenue associated 
with properties acquired in the first three months of 1997 
added an additional $123,000 to rental revenue for the three 
months ended March 31, 1997.  The remaining increase in 
revenue resulted primarily from an increase in occupancy.

	Tenant reimbursements and other revenue increased by 
$273,000 or 21% for the three months ended March 31, 1997, 
compared to the three months ended March 31, 1996.  The 
increase in tenant reimbursements and other revenue resulted 
principally from a full three months of tenant 
reimbursements from properties acquired during 1996.  Tenant 
reimbursements associated with the properties acquired in 
1996 increased to approximately $442,000 for the three 
months ended March 31, 1997 from approximately $141,000 for 
the three months ended March 31, 1996.  This increase was 
partially offset by the decrease in tenant reimbursements 
resulting from a reset in the base year for leases that were 
renewed or retenanted.  Other revenue, consisting primarily 
of interest income and miscellaneous tenant charges, such as 
after hours utility and HVAC charges, increased by 13.6% for 
the three months ended March 31, 1997 compared to the prior 
year.

	Parking revenue increased by $348,000 or 30% for the 
three months ended March 31, 1997 compared to the three 
months ended March 31, 1996.  The increase resulted 
principally from a full three months of parking revenue  
from properties acquired during 1996. Parking revenue 
associated with the properties acquired in 1996 increased to 
approximately $374,000 for the three months ended March 31, 
1997 from approximately $77,000 for the three months ended 
March 31, 1996.

	The following is a comparison of certain expenses for 
the three months ended March 31, 1997 and March 31, 1996:
<TABLE>
<S>                         <C>         <C>     <C>               <C>
                         	   Three Months Ended
                                  March 31,	       Dollar	      Percent
                              	1997	    1996	      Change	      Change
Certain expenses:				
 Repairs and maintenance	   $  2,841	$  1,440	  $  1,401	         97%
  Utilities	                   2,423	   1,137	     1,286	        113%
  Real estate taxes	           1,378	     957	       421	        4.4%
  Insurance	                     384	     872	      (488)      	 (56)%
  Ground rent	                    51	      47	         4	          9%
  Marketing and other           	817	     732	        85	         12%
    Total certain expenses	$   7,894	 $ 5,185	  $  2,709	       52.2%
</TABLE>
	For the three months ended March 31, 1997 and 1996, 
total certain expenses were $7.9 million, or 35% of rental 
revenue and tenant reimbursements, and $5.2 million or 39% 
of rental revenue and tenant reimbursements, respectively.  
The increase in total certain expenses is primarily 
attributable to the properties acquired during 1996 and 1997 
and the expenses associated with the absorption of vacant 
rentable space.  The increase in total certain expenses from 
the three months ended March 31, 1996 to the three months 
ended March 31, 1997 resulting from the properties acquired 
during 1996 was approximately $2.7 million.

	General and administrative expenses increased by 
$554,000 or 152% for the three months ended March 31, 1997 
compared to the three months ended March 31, 1996.  The 
increase resulted principally from the increase in portfolio 
size and the increase in management and administration costs 
associated with the Company's infrastructure relative to the 
Arden Predecessors'.

	Interest expense includes interest at the contractual 
current pay rate of the mortgage loans, amortization of the 
loan fees paid at origination, and accrual of additional 
interest due upon the retirement of the debt.  Interest 
expense for the three months ended March 31, 1997 was 
approximately $3.0 million.  Interest expense decreased by 
approximately $5.8 million or 66% for the three months ended 
March 31, 1997 compared to the three months ended March 31, 
1996, primarily as a result of the decrease in mortgage 
loans payable during the applicable periods.

	Depreciation and amortization increased by 
approximately $1.2 million or 49% primarily due to 1996 
acquisitions.

The following is a comparison of property operating data for 
the properties ("Same Store Properties") that were owned for 
the entire three months ended March 31, 1997 and March 31, 
1996 (in thousands):

                            								March 31,
	                              					1997				1996
 	Revenue:
	Rental                         	$10,561	$10,242
	Tenant reimbursements	              516	    617
	Parking                     	     1,116	  1,064
	Other	                              298	    170
	   Total revenue	               $12,491	$12,093

	Expenses:
		Property operating, taxes, 
		   insurance, and ground rent$  4,122	$ 4,064

	Rental revenues increased slightly during the first 
three months of 1997 compared to 1996 primarily due to an 
increase in occupancy.  Tenant reimbursements decreased by 
$101,000 during the same period, primarily resulting from a 
reset in the base year for leases that were renewed or 
retenanted.  For the three months ended March 31, 1997, 
parking income increased by $52,000 over the same period in 
1996.  Other income increased by $128,000 in 1997 compared 
to 1996 due to increased recurring and non-recurring income 
relating to miscellaneous tenant charges.  Property 
operating expenses, taxes, and ground rent, increased 
slightly in the three months ended March 31, 1997 compared 
to the three months ended March 31, 1996 primarily due to an 
increase in occupancy.  This was partially offset by a 
decrease in insurance due to a more favorable insurance 
policy.

Liquidity and Capital Resources 

	Amended Interim Financing.  The Company has replaced 
the Interim Financing with the Amended Interim Financing 
with a total commitment of $175 million from an affiliate of 
Lehman Brothers.  The Amended Interim Financing, dated March 
17, 1997 matures on September 30, 1997 and bears interest at 
a floating rate equal to LIBOR plus 1.50% on or before March 
31, 1997 and LIBOR plus 2.00% for any subsequent period 
through maturity. The Amended Interim Financing is secured 
by fully cross-collateralized and cross-defaulted first 
mortgage liens on 12 of the Properties and requires monthly 
payments of interest only, with all  principal due at 
maturity. As of March 31, 1997, the aggregate outstanding 
balance was $137,800,000 and the undisbursed portion was 
$37,200,000.  Currently, the aggregate outstanding balance 
is $175,000,000.

	The Company intends to refinance the Amended Interim 
Financing through an offering of commercial mortgage-backed 
securities (the "CMBS Offering") to be made by a financing 
subsidiary which the Company intends to form for that 
purpose in an amount of approximately $175 million with a 
term of seven years.  The CMBS Offering is expected to bear 
interest at a floating rate based on LIBOR plus a fixed 
spread.  Effective January 2, 1997, the Company entered into 
interest rate floor and cap transactions with a notional 
amount of $155 million.  The Company entered into these 
agreements to convert floating rate liabilities to fixed 
rate liabilities.  These agreements fix the LIBOR portion of 
the interest rate at 6.6% through March 2004.  The CMBS 
Offering is expected to require monthly payments of interest 
only with all principal due in a balloon payment at 
maturity.  The Company expects to pursue the CMBS Offering 
during 1997, although there can be no assurance that the 
Company will complete the CMBS Offering.

	Credit Facilities.  The Company's current Credit Facility, with 
a total commitment of $150,000,000 from a group of banks led 
by Wells Fargo Bank (the "Credit Facility"), allows the 
Company to borrow $75,000,000 on an unsecured basis at LIBOR 
plus 1.75% and any additional draws on the Credit Facility 
will accrue interest at LIBOR plus 1.5% and must be secured 
by real property.  On March 31, 1997, the aggregate 
outstanding balance under the Credit Facility was 
$51,000,000 (unsecured).  Currently, the aggregate 
outstanding balance is $54,200,000.

	The Company has accepted a term sheet from Wells Fargo 
Bank for an amendment to its Credit Facility (the "Amended 
Credit Facility").  The Amended Credit Facility will be 
unsecured, with a total commitment of $300,000,000, for a 
term of three years.  The interest rate for the Amended 
Credit Facility will range from LIBOR plus 1.2% to LIBOR 
plus 1.45%, depending upon the Company's leverage ratio as 
defined in the Amended Credit Facility documentation.  The 
amendment to the Credit Facility is contingent upon the 
execution of loan documents, which will be based upon the 
existing Credit Facility documentation and will contain 
indemnities, financial and other covenants, representations 
and warranties, events of default and other provisions that 
are customary for facilities of this type.

	As of May 5, 1997, the Company entered into a revolving 
credit agreement with Wells Fargo Bank (the "Bridge 
Facility").  The Bridge Facility is unsecured, with a  total 
commitment of $110,000,000, with a maturity date of the 
earlier to occur of June 30, 1997 or completion of 
documentation of the Amended Credit Facility.  the interest 
rate for the Bridge Facility ranges from LIBOR plus 1.2% to 
LIBOR plus 1.45%, depending upon the Company's leverage 
ratio as defined in the Bridge Facility agreement.  The 
initial interest rate is LIBOR plus 1.3%.  The Bridge 
Facility documentation contains indemnities, financial and 
other covenants, representations and warranties, events of 
default and other provisions that are customary for 
facilities of this type.

	The Company also has an unsecured line of credit with a 
total commitment of $10,000,000 from City National Bank (the 
"City National Credit Facility").  On March 31, 1997 the 
aggregate outstanding balance thereunder was $9,000,000.  
Currently, the aggregate outstanding balance is $10,000,000  
The City National Credit Facility accrues interest at the 
Prime Rate of City National Bank less 0.875%, and is 
scheduled to mature on August 1, 1998.  The City National 
Credit Facility is used, among other things, to provide 
funds for tenant improvements and capital expenditures and 
provide for working capital and other corporate purposes.

PART II - Other Information

Item 1.  Legal Proceedings - None

Item 2.	  Changes in Securities

	In March 1997, the Operating Partnership issued 26,880 
OP Units as partial consideration in the acquisition of the 
property located in Bakersfield, California. The holder of 
the OP Unitsissued in this acquisition may redeem part or 
all of its OP Units for 
cash, or at the election of the Company, exchange such OP 
Units for shares of Common Stock on a one-for-one basis; 
however, such redemption/exchange right may not be exercised 
prior to the first anniversary of the date such OP Units 
were issued.

	The issuance of OP Units in the above described 
acquisition constitutes a private placement of securities 
which is exempt from the registration requirements of the 
Securities Act of 1933, as amended, pursuant to Section 4(2) 
and Rule 506 of Regulation D promulgated thereunder.

Item 3.  Defaults Upon Senior Securities -  None

Item 4.  Submission of Matters to a vote of Securities 
Holders - None

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.

10.1	Amended and Restated Agreement of Limited 
Partnership of the Operating Partnership as filed 
as an exhibit to Registration Statement on Form S-
11 (No. 333-8163) and incorporated herein by 
reference.

10.2	1996 Stock Option and Incentive Plan as filed as 
an exhibit to Registration Statement on Form S-11 
(No. 333-8163) and incorporated herein by 
reference.

10.3	Form of Officers and Directors Indemnification 
Agreement as filed as an exhibit to Registration 
Statement on Form S-11 (No. 333-8163) and 
incorporated herein by reference.

10.4	Employment Agreement between the Company and Mr. 
Ziman as filed as an exhibit to Registration 
Statement on Form S-11 (No. 333-8163) and 
incorporated herein by reference.

10.5	Employment Agreement between the Company and Mr. 
Coleman as filed as an exhibit to Registration 
Statement on Form S-11 (No. 333-8163) and 
incorporated herein by reference.

10.6	Employment Agreement between the Company and Ms. 
Laing as filed as an exhibit to Registration 
Statement on Form S-11 (No. 333-8163) and 
incorporated herein by reference.

10.7	Miscellaneous Rights Agreement among the Company, 
the Operating Partnership, NAMIZ, Inc. and Mr. 
Ziman as filed as an exhibit to Registration 
Statement on Form S-11 (No. 333-8163) and 
incorporated herein by reference.

10.8	Second Loan Modification Agreement, Modification 
to Deed of Trust, Assignment of Rents and Leases, 
Security Agreement and Fixture Filing and 
Modification to Assignment of Leases and Rents 
between Arden Realty Limited Partnership and 
Lehman Brothers Holdings, Inc.

10.9	Revolving Credit Agreement Between Arden Realty 
Limited Partnership as Borrower and Wells Fargo 
Bank as Lender

11.1 	Computation of Fully-Diluted Earnings Per Share.

27	Financial Data Schedule


	(b) Reports on Form 8-K

	None


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:  May 15, 1997
25