Securities and Exchange Commission
                                     
                          Washington, D.C. 20549
                                     
                                     
                                 FORM 10-Q
                                     

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

     For the quarter ended March 31, 1998

     
                      Commission file number 1-12193

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

          Maryland                            9504578533
(State or other jurisdiction of      (I.R.S. EmployerIdentification No.)
 incorporation or organization)

                    11601 Wilshire Boulevard,
                    4th Floor
                    Los Angeles, California 90025-1740
          (Address and zip code of principal executive offices)

Registrant's telephone number, including area code:  (310) 966-2600

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

As of April 30, 1998, there were 62,319,631 shares of the registrant's
Common Stock, $.01 par value, issued and outstanding.
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,
                                          1998           1997
                                       ---------     ------------
   Assets                                     (Unaudited)
   Commercial properties:
      Land                           $  451,641       $  241,440
      Buildings and improvements      1,548,783          975,791
      Tenant improvements                28,059           21,801
                                     ----------       ----------
                                      2,028,483        1,239,032
      Less: accumulated depreciation    (46,763)         (35,860)
                                     ----------       ----------
                                      1,981,720        1,203,172
   Cash and cash equivalents              4,262            5,300
   Restricted cash                        6,223            4,040
   Rent and other receivables             9,927           10,203
   Mortgage notes receivable, net        14,452           14,430
   Deferred rent                         10,064            8,811
   Prepaid financing and leasing 
      costs, net of accumulated
      amortization of $3,420 and 
      $2,649, respectively               14,374           12,680
   Prepaid expenses and other assets     12,713           25,368
                                      ---------         --------
        Total assets                 $2,053,735       $1,284,004
                                     ==========       ==========
   Liabilities
   Mortgage loans payable            $  540,250       $  237,166
   Unsecured lines of credit             38,100          240,400
   Accounts payable and 
      accrued expenses                   24,659           16,458
   Security deposits                      9,871            6,847
   Dividends payable                     25,708           14,177
                                     ----------        ---------
      Total liabilities                 638,588          515,048
                                     ==========        =========
   
   Minority interests                    70,355           95,973
   
   Stockholders' Equity
   Preferred stock, $.01 par value, 
      20,000,000 shares
      authorized, none issued                --               --
   Common Stock, $.01 par value, 
      100,000,000 shares authorized, 
      61,209,499 and 35,796,704
     issued and outstanding, 
     respectively                           612              358
   Additional paid-in capital         1,344,180          672,625
                                    -----------       ---------- 
      Total stockholders' equity      1,344,792          672,983
                                    -----------       ----------
      Total liabilities and 
         stockholders' equity        $2,053,735       $1,284,004
                                    ===========       ==========
</TABLE>
                                     
       See accompanying notes to consolidated financial statements.
                                     
<TABLE>
                                     
                                     
                            Arden Realty, Inc.
                   Consolidated Statements of Operations
                   (in thousands, except per share data)
<S>                                <C>           <C>
                                     Three Months Ended
                                          March 31,
                                    --------------------
                                     1998         1997
                                  ---------     ---------
                                      (Unaudited)             

Revenues                           $54,759       $24,916
Property operating expenses         16,738         7,894
                                   -------       -------
                                    38,021        17,022

General and administrative           1,635           918
Interest                             8,612         3,024
Depreciation and amortization       11,296         3,562
Interest and other income           (1,458)          (54)
                                   -------        ------
Income before minority interests    17,936         9,572

Minority interests                  (1,752)       (1,134)
                                   -------       -------
Net income                         $16,184       $ 8,438
                                   =======       =======

Net income per common share:
   Basic                           $   .34       $   .39
                                   =======       =======
   Diluted                         $   .34       $   .38
                                   =======       =======
Weighted average common shares:
   Basic                            47,617        21,682
                                   =======       =======
   Diluted                          47,834        21,921
                                   =======       =======
</TABLE>
       See accompanying notes to consolidated financial statements.

<TABLE>
                       Arden Realty, Inc.
              Consolidated Statements of Cash Flows
                          (in thousands)
                                
<S>                                          <C>          <C>
                                              Three Months Ended
                                                   March 31,
                                              -------------------
                                                         
OPERATING ACTIVITIES:                           1998       1997
                                              --------    --------
                                                 (Unaudited)
Net income                                    $16,184     $ 8,438
Adjustments to reconcile net 
  income to net cash provided 
  by operating activities:
  Minority interests                            1,752       1,134
  Depreciation and amortization                11,296       3,562
  Amortization of loan costs and fees             378          50
Changes in operating assets and liabilities:
  Rents and other receivables                     254         200
  Deferred rent                                (1,253)       (540)
  Prepaid financing and leasing costs          (2,465)       (745)
  Prepaid expenses and other assets            12,655      (2,887)
  Accounts payable and accrued expenses         8,201       3,065
  Security deposits                             3,024         368
                                              -------     -------
Net cash provided by operating activities      50,026      12,645
                                              -------     -------

INVESTING ACTIVITIES:
Acquisitions and improvements 
   to commercial properties                  (811,151)    (53,677)
                                             --------     -------
FINANCING ACTIVITIES:
Proceeds from mortgage loans                  303,220      33,800
Repayments of mortgage loans                     (136)         --
Proceeds from unsecured lines of credit        85,650       9,000
Repayments of unsecured lines of credit      (287,950)         --
Increase in restricted cash                    (2,183)         --
Proceeds from issuance of Common Stock, 
   net of offering costs                      677,434         267
Distributions to minority interests            (1,771)         --
Dividends paid                                (14,177)     (8,845)
                                             --------     -------
Net cash provided by financing activities     760,087      34,222
                                             --------     -------
Net decrease in cash and cash equivalents      (1,038)     (6,810)
Cash and cash equivalents at beginning
 of period                                      5,300       7,632
                                              -------      ------
Cash and cash equivalents at end of period   $  4,262     $   822
                                             ========     =======
SUPPLEMENTAL DISCLOSURE OF CASH
  FLOW INFORMATION:
Cash paid during the period for interest, 
   net of amount capitalized                 $  8,002     $ 2,860
                                             ========     =======
</TABLE>
                                
  See accompanying notes to consolidated financial statements.

                       Arden Realty, Inc.
           Notes to Consolidated Financial Statements
                         March 31, 1998
                           (Unaudited)


1.  Description of Business

      Arden Realty, Inc. (the "Company"), through its controlling
interest  in  Arden  Realty Limited Partnership  (the  "Operating
Partnership") and its other subsidiaries, is engaged  in  owning,
acquiring,   managing,   leasing,   and   renovating   commercial
properties located in Southern California.  As of March 31,  1998
the  Company's  portfolio of properties included  128  commercial
properties  with approximately 16.5 million rentable square  feet
(the "Properties").

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

      Minority interests for the three month periods ended  March
31,  1998 and 1997 includes limited partnership interests in  the
Operating   Partnership   of   approximately   6.8%   and    12%,
respectively.

2.  Interim Financial Data

     The accompanying consolidated financial statements should be
read in conjunction with the Company's 1997 Annual Report on Form
10-K  as filed with the Securities and Exchange Commission.   The
accompanying financial information reflects all adjustments which
are,  in the opinion of management, of a normal recurring  nature
and  necessary for a fair presentation of the Company's financial
position,  results of operations and cash flows for  the  interim
periods.   Interim  results  of operations  are  not  necessarily
indicative of the results to be expected for the full year.

3.  New Accounting Standards

     In June 1997, the Financial Accounting Standards Board
issued Statement of Financial Accounting Standards No. 131,
"Segment Reporting" ("Statement 131").  Statement 131 is
effective for fiscal years beginning after December 15, 1997 and
requires disclosure of selected information about reportable
segments.  Implementation of Statement 131 will have no impact on
the Company's reporting of results of operations.

     In March 1998, the Financial Accounting Standards Board
Emerging Issues Task Force ("EITF") reached a consensus on Issue
97-11, concluding that internal preacquisition costs related to
the purchase of an operating property should be expensed as
incurred. The Company has adopted the provisions of EITF Abstract
97-11, and management does not believe that the Company's results
of operations will be materially impacted.

4.  Acquisitions

       In   January  1998,  the  Company  purchased  five  office
properties  located  in Southern California  including  a  58,105
square  foot  office property located in Newhall ("Sunset  Pointe
Plaza")  for  approximately $8.5 million, a 167,045  square  foot
office property located in San Diego ("Activity Business Center")
for  approximately  $14.9 million, a 326,227 square  foot  office
property   located  in  Beverly  Hills  ("9100   Wilshire")   for
approximately $65.1 million, a 49,639 square foot office property
located   in   Westlake   Village   ("Westlake   Gardens")    for
approximately  $7.3  million, and a 282,013  square  foot  office
property   located   in   Los  Angeles   ("1100   Glendon")   for
approximately $29.6 million.  These acquisitions were funded with
existing working capital, draws from the Company's Amended Credit
Facility,  proceeds from the Bridge Loan, (as defined below)  and
the  assumption  of  two mortgage loans payable  secured  by  the
Activity Business Center and 1100 Glendon Properties.

     The Company assumed a mortgage note payable of approximately
$8.2  million  in  connection with the  acquisition  of  Activity
Business Center.  The note bears interest at 2.2% per annum  plus
the  yield  to  maturity at the bid price of obligations  of  the
United  States  Treasury  maturing on April  30,  2006  (with  an
effective  rate of 8.85% at March 31, 1998).  The  note  requires
monthly payments of principal, interest, and impound payments for
taxes  and insurance, and matures on May 1, 2006.  This  mortgage
note prohibits prepayment prior to May 1, 2002.

      The  Company  also  assumed  a  mortgage  note  payable  of
approximately $15.4 million in connection with the acquisition of
1100  Glendon.   The  note bears interest  at  8.09%  per  annum,
requires  monthly payments of principal and interest and  matures
on April 30, 2003.

      The  Company  borrowed $60.0 million from  Lehman  Brothers
Realty  Corporation  (the "Bridge Loan") in connection  with  the
acquisition  of  9100 Wilshire.  The Bridge Loan  is  secured  by
three  of the Company's properties, bears interest at LIBOR  plus
 .75%  per  annum (with an effective rate of 6.434% at  March  31,
1998), requires monthly payments of interest, and matures on  May
20, 1998.

      On  March 1, 1998, the Company acquired a portfolio  of  50
primarily   office  and  R&D/industrial  properties   (the   "LBA
Portfolio"),  aggregating  approximately  5.2  million   rentable
square feet for a purchase price of approximately $619.9 million,
including  $1.8  million of closing costs and the estimated  $3.6
million value of warrants to purchase 2.5 million shares  of  the
Company's  Common Stock, at a price of $29.59 per share,  subject
to   adjustment.   The  LBA  Portfolio  consists  of  34   office
properties  containing approximately 3.6 million rentable  square
feet,  15 R&D/industrial properties containing approximately  1.5
million  rentable square feet, and one retail property containing
144,225 rentable square feet, all located in Southern California.
As  partial  consideration for this acquisition,   the  Operating
Partnership  issued  203,420  Operating  Partnership  Units  ("OP
Units")  valued at approximately $5.8 million.  The Company  also
borrowed  $200  million from Lehman Brothers  Realty  Corporation
(the "Lehman Brothers Loan").  The $200 million mortgage loan  is
secured  by 40 properties, bears interest at LIBOR plus 1.0%  per
annum  (with  an  effective rate of 6.684% at  March  31,  1998),
requires  monthly payments of interest, and matures  on  July  1,
1998.  See Note 7.

      On  March  25,  1998, the Company exercised  its  option  to
purchase  the remaining 25% interest in  the World Savings  Center
for  $27.5 million.  In connection with this purchase, the Company
assumed  an  additional $15.0 million of debt  under  an  existing
mortgage note (the "World Savings Note").  See Note  7.

      On  March  31,  1998, the Company acquired the  undeveloped
commercial property portions of the 70-acre Howard Hughes  Center
(the  "Center")  for  approximately $38.6 million.   The  Center,
located  in  El  Segundo, California, is a mixed-use  development
currently containing three office buildings, an executive  health
and  athletic club and entitlements for an additional 1.3 million
square  feet  of office space.  This acquisition was funded  with
existing  working  capital and a draw on  the  Company's  Amended
Credit Facility.

5.  Stockholders Equity

      An OP Unit and a share of Common Stock have essentially the
same  economic characteristics as they share equally in the total
net   income   or   loss  and  distributions  of  the   Operating
Partnership.   OP  Units may be redeemed  for  cash  or,  at  the
election of the Company, for shares of Common Stock on a one-for-
one basis.

     In  January 1998, 226,880 OP Units were exchanged for Common
Stock.

     On  February 23, 1998, the Company completed the most recent
of  three  February  1998 equity offerings  (the  "February  1998
Offerings")  resulting  in  the  issuance  of  an  aggregate   of
25,185,915  shares  of Common Stock with gross proceeds  totaling
approximately $713.2 million. Aggregate proceeds to  the  Company
from  the  February 1998 Offerings, net of underwriters' discount
and  offering costs aggregating approximately $35.7 million, were
approximately  $677.5 million. Of these February 1998  Offerings,
2,185,915  shares of Common Stock were issued to the trustees  of
two unrelated registered unit investment trusts and the remaining
23,000,000 shares were issued in a secondary public offering. The
Company used the net proceeds from the February 1998 Offerings to
fund  the  acquisition of the LBA Portfolio described  above,  to
repay  the  outstanding balances on its lines of credit  and  for
working capital.
     
     On  March 1, 1998, the Operating Partnership issued  203,420
OP  Units valued at approximately $5.8 million in connection with
acquisition of the LBA Portfolio and issued warrants to  purchase
2.5  million  shares  of Common Stock at a price  of  $29.59  per
share, subject to adjustment (see Note 4).
     
     On  March  17,  1998, the Company declared a  first  quarter
dividend of $.42 per share to shareholders of record on March 31, 1998.

<TABLE>
6.    Revenue  From  Rental  Operations  and  Property  Operating Expenses
 <S>                                   <C>           <C>
                                        Three Months Ended
                                            March 31,
                                        -------------------
                                         1998         1997
                                      --------      -------
                                           (in thousands)
                                           (Unaudited)
 Revenues From Rental Operations:
   Rental                              $48,689       $21,892
   Tenant reimbursements                 1,883           958
   Parking, net of expense               2,650         1,490
   Other rental operations               1,537           576
                                       -------       -------
     Total rental revenues              54,759        24,916
                                       -------       -------

Property Operating Expenses:
   Repairs and maintenance               5,352         2,841
   Utilities                             4,616         2,423
   Real estate taxes                     4,100         1,378
   Insurance                               806           384
   Ground rent                             178            51
   Marketing and other                   1,686           817
                                        ------        ------
     Total property operating expenses  16,738         7,894
                                        ------        ------
                                       $38,021       $17,022
                                       =======       =======
</TABLE>

7.  Subsequent Events

      In  December 1997, the Company issued 542,382 OP  Units  in
connection  with  its  acquisition of the  World  Savings  Center
office  property.  On April 16, 1998, the Company redeemed  these
OP  Units at a cost of approximately $16.3 million based  on  the
original issuance price of the OP Units.

      In  April  1998, the Company acquired two office properties
located  in  Southern California including a 35,696  square  foot
office  property  located  in  West  Los  Angeles  ("11075  Santa
Monica")  for  approximately $4.9 million, funded  with  proceeds
from  existing working capital and a draw on one of the Company's
lines of credit and a 235,926 square foot office property located
in El Segundo ("Continental Grand Plaza") for approximately $47.5
million,  funded with proceeds from existing working  capital,  a
draw on one of the Company's lines of credit and the issuance  of
10,412 OP Units valued at approximately $300,000.

      On  April 16, 1998, the Company refinanced $100 million  of
the  $200  million Lehman Brothers Loan at a fixed rate of  6.78%
per annum.

     On  April  23, 1998, the Company completed an offering  (the
"April 1998 Offering") of 1,110,132 shares of Common Stock.   The
shares from the April 1998 Offering were issued to the trustee of
a  registered  unit  investment trust at  an  offering  price  of
$28.375  per  share.   Gross proceeds  from  this  offering  were
approximately  $31.5  million.  The  aggregate  proceeds  to  the
Company,  net  of  underwriters'  discount  and  offering   costs
aggregating approximately $1.8 million, were approximately  $29.7
million.
     
     On  May  1, 1998, the $60.0 million World Savings  Note  was
repaid in full with proceeds from a draw on the Company's Amended
Credit Facility.

          
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  should  be  read  in
conjunction  with  the  financial statements  and  related  notes
thereto included in the Company's 1997 Annual Report on Form  10-K.

     Since  its  initial  public offering in  October  1996,  the
Company  has  pursued  a  strategy of  acquiring  underperforming
commercial   properties,  properties  in  need   of   renovation,
properties which provide attractive yields with stable cash flow,
and  more  recently  fully entitled commercial  undeveloped  real
estate,  all in Southern California submarkets where the  Company
can utilize its local market expertise. The Company has also used
its active in-house management, leasing and finance expertise  to
maximize  growth in cash flow.  In particular, during  the  three
months ended March 31, 1998 the Company has:

     . Raised approximately $713.2 million of equity in a series of
       three  public  offerings. Proceeds to the  Company  from  these
       offerings,  net  of underwriters' discount,  advisory  fee  and
       offering  costs aggregating approximately $35.7  million,  were
       approximately $677.5 million.

     . Acquired a total of 56 commercial properties, all located in
       Southern  California, with approximately 6.2  million  rentable
       square feet.
  
     . Acquired the undeveloped commercial property portions of the
       70-acre  Howard Hughes Center (the "Center") for  approximately
       $38.6 million.  The Center, located in El Segundo, California, is
       a  mixed-use  development  currently  containing  three  office
       buildings, an executive health and athletic club and entitlements
       for an additional 1.3 million square feet of office space.
  
     The  Company  intends  to  continue focusing  on  maximizing
growth  in cash flow and enhancing the value of its portfolio  of
commercial properties. These objectives will be pursued by active
management of the Company's existing portfolio, through strategic
acquisitions   and   through  development  of   new   office   or
R&D/industrial properties in submarkets where it has local market
expertise.

     The  Company's financial position and operating results  are
primarily comprised of its portfolio of commercial properties and
income  derived therefrom. Therefore, financial data from  period
to  period  will  be  affected by the timing of  any  significant
property   acquisitions.   Due  to   the   Company's   aggressive
acquisition   program,  the  Company  expects   there   will   be
significant variability in financial data from period to period.

Recent Developments

      On  April  23, 1998, the Company completed an  offering  of
1,110,132  shares of Common Stock.  These shares were  issued  to
the  trustee of a registered unit investment trust at an offering
price  of  $28.375 per share.  Gross proceeds from this  offering
were approximately $31.5 million.  The aggregate proceeds to  the
Company,  net  of  underwriter's  discount  and  offering   costs
aggregating approximately $1.8 million, were approximately  $29.7
million.

<TABLE>
Results of Operations

      Comparison of the three months ended March 31, 1998 to  the
three months ended March 31, 1997.
<S>                               <C>       <C>      <C>        <C>
                                    Three Months              
                                        Ended         Dollar  Percent
                                      March 31,       Change  Change
                                  ----------------    ------  --------
                                     1998    1997       
                                 --------   -------
                                (in thousands, except percentage data) 
Revenue                                      (Unaudited)           
 Revenues from rental operations:
   Rental                          $48,689  $21,892  $26,797    122%
   Tenant reimbursements             1,883      958      925     97
   Parking, net of expense           2,650    1,490    1,160     78
   Other rental operations           1,537      576      961    167
                                   -------   ------   ------  -----
                                    54,759   24,916   29,843    120
 Other income                        1,458       54    1,404  2,600
                                   -------   ------   ------  -----
     Total revenue                 $56,217  $24,970  $31,247    125%
                                   =======  =======  =======  =====

Expenses
 Property operations:
   Repairs and maintenance         $ 5,352  $ 2,841  $ 2,511     88%
   Utilities                         4,616    2,423    2,193     91
   Real estate taxes                 4,100    1,378    2,722    198
   Insurance                           806      384      422    110
   Ground rent                         178       51      127    249
   Marketing and other               1,686      817      869    106
                                   -------   ------   ------   ----
     Total property expenses        16,738    7,894    8,844    112
 General and administrative          1,635      918      717     78
 Interest                            8,612    3,024    5,588    185
 Depreciation and amortization      11,296    3,562    7,734    217
                                   -------   ------   ------   ----
     Total expenses                $38,281  $15,398  $22,883    149%
                                   =======  =======  =======   ====

</TABLE>

     Rental revenue increased approximately $26.8 million or 122%
for  the  three months ended March 31, 1998 compared to the  same
period  in  1997. Rental revenue from properties  owned  for  the
entire  three  month  periods  ended  March  31,  1998  and  1997
increased  approximately $37,000 in 1998 compared  to  the  prior
year, primarily from an overall increase in rental rates at these
properties, partially offset by the reversing effect of straight-
line  rent adjustments for certain leases in 1998. Rental revenue
from  properties acquired after January 1, 1997 was approximately
$26.7  million higher for the three months ended March  31,  1998
compared to the same period in 1997, primarily due to the  timing
of these acquisitions.

      Tenant  reimbursements increased approximately $925,000  or
97%  for  the three months ended March 31, 1998 compared  to  the
same period in 1997.  Tenant reimbursements from properties owned
for  the entire three month periods ended March 31, 1998 and 1997
decreased approximately $76,000 for the three months ended  March
31,  1998  compared to the same period in 1997,  primarily  as  a
result  of  resetting base years for leases that were retenanted.
Tenant  reimbursements from properties acquired after January  1,
1997  were approximately $1.0 million higher for the three months
ended  March  31,  1998  compared to the  same  period  in  1997,
primarily due to the timing of these acquisitions.

      Parking revenue increased approximately $1.2 million or 78%
for  the  three months ended March 31, 1998 compared to the  same
period  in  1997. Parking revenue from properties owned  for  the
entire  three  month  periods  ended  March  31,  1998  and  1997
increased  approximately  $26,000  in  1998  compared  to   1997,
primarily from increased occupancy in 1998 at certain properties.
Parking  revenue  from the properties acquired after  January  1,
1997  was approximately $1.1 million higher for the three  months
ended  March  31,  1998  compared to the  same  period  in  1997,
primarily due to the timing of these acquisitions.

     Revenues  from other rental operations, consisting primarily
of  miscellaneous  tenant charges such as  after  hours  utility,
heating  and  air conditioning charges, increased by $961,000  or
167%  for the three months ended March 31, 1998 compared  to  the
same  period  in  1997.  Excluding lease buyouts and  other  non-
recurring items of approximately $850,000 in 1998, revenues  from
properties  owned for the entire three month periods ended  March
31,  1998 and 1997 decreased approximately $169,000 for the three
months ended March 31, 1998 compared to the same period in  1997,
primarily  due  to  lower utility, heating and  air  conditioning
charges in 1998.  Revenues from properties acquired after January
1,  1997 were approximately $280,000 higher for the three  months
ended  March  31,  1998  compared to the  same  period  in  1997,
primarily due to the timing of these acquisitions.

      Other  income increased approximately $1.4 million for  the
three months ended March 31, 1998 compared to the same period  in
1997, primarily due to higher interest income from mortgage notes
receivable acquired in September 1997.

      For  the  three months ended March 31, 1998, total property
expenses were $16.7 million, or 31% of total revenues from rental
operations, compared with total property expenses of $7.9 million
or  32%  of  total  revenues  from  rental  operations  in  1997.
Property expenses for properties owned for the entire three month
periods  ended  March  31, 1998 and 1997 decreased  approximately
$404,000  in  1998 compared to 1997, primarily  due  to  benefits
achieved  from  economies  of  scale.   Property  expenses   from
properties  acquired  after January 1,  1997  were  $9.2  million
higher  for the three months ended March 31, 1998, primarily  due
to the timing of these acquisitions.

      General and administrative expenses were approximately $1.6
million  or  2.9%  of total revenues for the three  months  ended
March  31, 1998 as compared to $918,000 or 3.7% of total revenues
for the same period in 1997.  General and administrative expenses
as  a  percentage of total revenues decreased in the first  three
months  of  1998  compared  to 1997  primarily  due  to  benefits
achieved from economies of scale across the entire portfolio.

     Interest  expense increased approximately  $5.6  million  or
185%  for the three months ended March 31, 1998 compared  to  the
same  period in 1997, primarily as a result of higher outstanding
indebtedness to fund property acquisitions.
     
      Depreciation  and amortization increased  $7.7  million  or
217%,  due  to  1997  and 1998 acquisitions and  depreciation  of
capital improvements made to the Company's existing portfolio.

     Following is a comparison of property operating data for  34
properties  which were owned for the entire three  month  periods
ended March 31, 1998 and 1997 (in thousands):
<TABLE>
<S>                              <C>         <C>       <C>          <C>
                                   Three Months Ended
                                        March 31,      
                                   ------------------  Dollar     Percent
                                   1998         1997   Change     Change
                                 -------    --------   -------    -------
                                       (Unaudited)
Revenues from rental operations  $24,627     $24,809   $ (182)      (1)%
Property expenses                  7,480       7,884      404        5%
                                 -------     -------   ------      ---
  Net                            $17,147     $16,925   $  222        1%
                                 =======     =======   ======      ===
</TABLE>

     Revenues from rental operations for the properties owned for
the entire three month periods ended March 31, 1998 and 1997
decreased by approximately $182,000 in 1998 compared to 1997,
primarily due to the reversing effect of straight-line rent
adjustments for certain leases, lower tenant reimbursements from
resetting base years for leases that were retenanted, and lower
miscellaneous tenant charges, partially offset by increases in
rental rates and higher parking income at certain properties in 1998.

Property operating expenses for the properties owned for the
entire three month periods ended March 31, 1998 and 1997
decreased by approximately $404,000 in 1998 compared to 1997,
primarily due to benefits achieved from economies of scale.

Liquidity and Capital Resources

Cash Flows

  Cash  provided  by  operating  activities  increased  by  $37.4
million  or  296%,  to $50.0 million for the three  months  ended
March  31, 1998, as compared to $12.6 million for the same period
in  1997,  primarily  due  to operating results  from  properties
acquired since January 1, 1997. Cash used in investing activities
increased  by  $757.5 million, to $811.2 million  for  the  three
months  ended  March  31,  1998 compared to  approximately  $53.7
million  for  the  same  period in 1997,  primarily  due  to  the
acquisition of 56 properties in the three months ended March  31,
1998 and an increase in capital expenditures on
properties owned. Cash provided by financing activities increased
by approximately $725.9 million to $760.1 million, as compared to
$34.2  million  for  the same period in 1997.  Cash  provided  by
financing  activities for the three months ended March  31,  1998
consisted primarily of net proceeds from mortgage loans  and  the
issuance  of  25,185,915 shares of Common Stock in  a  series  of
three 1998 secondary offerings, partially offset by distributions
to shareholders and minority interest holders.

Available Borrowings, Cash Balance and Capital Resources

  The  Company  has a $300 million unsecured line of credit  (the
"Amended  Credit Facility") from a group of banks  led  by  Wells
Fargo.  The  Amended  Credit Facility bears interest  at  a  rate
ranging  between LIBOR plus 1.2% and LIBOR plus  1.45%  (with  an
effective  rate  of  7.14% at March 31, 1998)  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%. In addition, the Amended Credit Facility  has  a
commitment fee ranging from .125% to .25% on the unused  balance.
The  Amended  Credit  Facility  matures  on  September  1,  2000.
Proceeds  from  the Amended Credit Facility will be  used,  among
other  things,  to  provide  funds for  tenant  improvements  and
capital  expenditures and provide for working capital  and  other
corporate   purposes.  As  of  March  31,  1998,  the   aggregate
outstanding  balance  on the Amended Credit  Facility  was  $33.1
million,   and  $266.9  million  was  available  for   additional
borrowing.

  The  Company also has an unsecured line of credit with a  total
commitment  of $10.0 million from City National Bank  (the  "City
National  Bank Credit Facility"). The City National  Bank  Credit
Facility  accrues interest at the City National Bank  Prime  Rate
less 0.875% (with an effective rate of 7.625% at March 31, 1998),
and  is scheduled to mature on August 1, 1998. Proceeds from  the
City  National  Bank Credit Facility will be  used,  among  other
things,  to  provide  funds for tenant improvements  and  capital
expenditures and provide for working capital and other  corporate
purposes. As of March 31, 1998, the aggregate outstanding balance
on the City National Bank Credit Facility was $5.0 million.

  As of March 31, 1998, the Company had $10.5 million in cash and
cash  equivalents, including $6.2 million in restricted  cash  of
which  $4.0  million represents an interest bearing cash  deposit
required by one of the Company's mortgage loans payable.

  On  January 12, 1998, the Company filed a Form S-3 Registration
Statement (the "Registration Statement") with the Securities  and
Exchange Commission to offer in one or more series, shares of its
$.01  par  value  Common Stock with an aggregate public  offering
price  of  up  to  $1.0 billion. The Registration  Statement  was
declared effective on January 21, 1998.

  On  February 23, 1998, the Company completed the most recent of
three  1998 equity offerings (the "1998 Offerings") resulting  in
the issuance of an aggregate of 25,185,915 shares of Common Stock
with   gross  proceeds  totaling  approximately  $713.2  million.
Aggregate  proceeds to the Company from these offerings,  net  of
underwriters'    discount   and   offering   costs    aggregating
approximately  $35.7 million, were approximately $677.5  million.
Of  these  1998 offerings, 2,185,915 shares of Common Stock  were
issued  to  the  trustees'  of  two  unrelated  registered   unit
investment trusts and the remaining 23,000,000 shares were issued
in  a  secondary  public  offering. Net proceeds  from  the  1998
Offerings  were  used to repay the outstanding  balances  on  the
Amended  Credit  Facility and City National Bank Credit  Facility
and  to  fund  a  portion of the LBA Portfolio  acquisition.  The
remaining  proceeds were invested in short-term commercial  paper
and used for working capital.

      On  April  23, 1998, the Company completed an  offering  of
1,110,132  shares of Common Stock.  These shares were  issued  to
the  trustee of a registered unit investment trust at an offering
price  of  $28.375 per share.  Gross proceeds from this  offering
were approximately $31.5 million.  The aggregate proceeds to  the
Company,  net  of  underwriter's  discount  and  offering   costs
aggregating  approximately $1.8 million were approximately  $29.7
million.
  
  As  of April 23, 1998, the Company had the capacity to issue up
to   $255.3  million  of  its  Common  Stock  pursuant   to   the
Registration Statement.

  The   Company  expects  to  continue  meeting  its   short-term
liquidity and capital requirements generally through its  working
capital  and  net  cash  provided by  operating  activities.  The
Company   believes  that  the  net  cash  provided  by  operating
activities   will   continue  to  be  sufficient   to   pay   any
distributions  necessary  to  enable  the  Company  to   continue
qualifying  as a real estate investment trust. 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  and
capital  requirements  such as property  acquisitions,  scheduled
debt  payments,  renovation  costs,  expansions  and  other  non-
recurring  capital  expenditures 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.

Funds from Operations

  The  Company  considers Funds from Operations,  as  defined  by
NAREIT,  to  be  a  useful  financial measure  of  the  operating
performance for an equity REIT. The Company believes  that  Funds
from  Operations provides investors with an additional  basis  to
evaluate the ability of a REIT to incur and
service   debt  and  to  fund  acquisitions  and  other   capital
expenditures. Funds from Operations does not represent net income
or  cash  flows from operations as defined by generally  accepted
accounting principles ("GAAP") and it should not be considered as
an  alternative  to these indicators in evaluating  liquidity  or
operating performance of the Company.

  The following table reflects the calculation of the Company's
Funds from Operations for the three month periods ended March 31,
1998 and 1997:
<TABLE>
      <S>                            <C>         <C>
                                     Three Months Ended
                                           March 31,
                                    --------------------
                                      1998        1997
                                    --------     -------
                                        (unaudited)

    Funds from Operations:
      Net income                     $16,184     $ 8,438
      Minority interests               1,177(a)    1,134
      Depreciation and amortization   11,296       3,562
                                     -------     -------
      Funds from Operations          $28,657     $13,134
                                     =======     =======

      (a) Excludes $575,000 in distributions made to the minority
partner in the World Savings Center office property.
</TABLE>

  The  White Paper on Funds from Operations approved by the Board
of   Governors  of  the  National  Association  of  Real   Estate
Investment  Trusts ("NAREIT") in March 1995 (the  "White  Paper")
defines  Funds from Operations as net income (loss) (computed  in
accordance  with  GAAP), excluding gains (or  losses)  from  debt
restructuring  and  unusual  items,  plus  real  estate   related
depreciation   and   amortization  and  after   adjustments   for
unconsolidated   partnerships  and  joint  ventures.   Management
considers  Funds  from  Operations  an  appropriate  measure   of
performance  of an equity REIT because it is predicated  on  cash
flow  analyses.  The  Company computes Funds from  Operations  in
accordance  with standards established by the White  Paper  which
may  differ  from  the  methodology for  calculating  Funds  from
Operations  utilized by other equity REITs and, accordingly,  may
not  be  comparable  to such other REITs. Funds  from  Operations
should  not  be  considered  as  an  alternative  to  net  income
(determined  in  accordance with GAAP) as  an  indicator  of  the
Company's  financial performance or to cash flow  from  operating
activities  (determined in accordance with GAAP) as a measure  of
the  Company's liquidity, nor is it indicative of funds available
to  fund the Company's cash needs, including its ability to  make
distributions.

PART II - Other Information

Item 1.  Legal Proceedings - None

Item 2.   Changes in Securities -

     In March 1998, the Operating Partnership issued 203,420 OP
Units as partial consideration in the acquisition of a portfolio
of 50 primarily office and R&D/industrial properties.  The holder
of the OP Units may redeem part or all of its OP Units issued in
this acquisition for cash or at the election of the Company,
exchange such OP Units for shares of Common Stock on a one-for-
one basis.

     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 1993,
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.

10.3      Warrant  Agreement dated as of March  2,  1998  by  and
          among  Arden  Realty, Inc., a Maryland corporation  and
          AEW/LBA  Acquisition Co. II, LLC, a California  limited
          liability  company as filed as an exhibit to  Form  8-K
          filed  on  March  16, 1998 and incorporated  herein  by
          reference.

27        Financial Data Schedule

     (b) Reports on Form 8-K

     A  report  on  Form 8-K/A dated January 23, 1998  was  filed
which  included information on Item 7.  Item 7 contained exhibits
related   to   financial  statements  and  pro  forma   financial
information regarding the acquisitions of four office properties.

      A report on Form 8-K dated February 2, 1998 was filed which
included  information on Items 2, 5, and 7. Item  2  contained  a
description  on  the  acquisition of six  commercial  properties.
Item  5  contained  a description of the filing  of  a  Form  S-3
Registration  Statement to offer one or  more  series  of  Common
Stock  with an aggregate public offering price of up $1.0 billion
and  a  description of a contract to purchase a portfolio  of  50
primarily office and R&D/industrial properties ("LBA Portfolio").
Item  7  contained  financial  statements  of  the  six  acquired
properties,  financial statements of the LBA Portfolio,  and  pro
forma financial statements.

      A  report  on Form 8-K/A dated February 13, 1998 was  filed
which  included information on Items 5 and 7. Item 5 contained  a
description  of  the  filing  of a supplement  to  the  Form  S-3
Registration  Statement (filed on January 12, 1998  and  declared
effective  on  January 21, 1998).  This supplement was  initially
filed  on February 2, 1998, offering 17,000,000 shares of  Common
Stock and was amended on February 13, 1998 to increase the number
of  shares  of Common Stock offered to 20,000,000.  Item  5  also
contained a description of the filing of an additional supplement
to  the Form S-3 Registration Statement described above, offering
881,950 shares of Common Stock to an institutional buyer,  and  a
description of the Company entering into a contract to purchase a
portfolio  of 50 primarily office and R&D/industrial  properties.
Item 7 contained pro forma financial statements.

     A report on Form 8-K dated February 19, 1998 was filed which
included  information under Items 5 and 7.   Item 5  contained  a
description of the issuance of 881,950 shares of Common Stock  on
February  18,  1998  and 23,000,000 shares  of  Common  Stock  on
February  19, 1998.  Item 7 contained exhibits related  to  these
issuances of Common Stock.

     A report on Form 8-K dated February 23, 1998 was filed which
included  information under Items 5 and 7.  Item  5  contained  a
description  of the issuance of 1,303,965 shares of Common  Stock
on  February 23, 1998.  Item 7 contained exhibits related to this
issuance of Common Stock.

      A  report on Form 8-K dated March 16, 1998 was filed  which
included  information  on  Item 7.  Item  7  contained  financial
statements, pro forma information and exhibits.  The Form 8-K was
filed  in  connection with the acquisition of a portfolio  of  50
commercial 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.

Date: May 15, 1998        By:  /s/ Diana M. Laing
                              -------------------------
                              Diana M. Laing
                              Executive Vice President
                              Chief Financial Officer and Secretary


Date: May 15, 1998        By:  /s/ Richard S. Davis
                              --------------------------
                              Richard S. Davis
                              Chief Accounting Officer