Bedford Property Investors Expands Tucson Real Estate Holdings.

LAFAYETTE, Calif.--(BUSINESS WIRE)--Nov. 4, 1997--Bedford Property Investors Inc. (NYSE:BED)(PSE:BED) announced today the purchase of a 95,746 sq. ft. industrial building in the Butterfield Business Center in Tucson, Ariz. for $5,159,000 or $53.88 PSF.

The building is currently 100% leased to four tenants: Max Serv, a wholly owned subsidiary of Sears; Blue Coral, a wholly owned subsidiary of Quaker State; DHL; and Eiger Sportswear. The initial going-in yield was 10.88%. Included with the purchase, BPI acquired an adjacent parcel of approximately 2.3 acres upon which they plan to construct a 25,000 sq. ft. distribution building.

"The acquisition of this property has allowed us to expand our Tucson portfolio with an excellent complementary asset and developable parcel, located in a premier business park," stated Peter B. Bedford, Chairman of the Board of Bedford Property Investors.

Year to date, BPI has acquired a total of sixteen properties for approximately $183MM, with an additional $31MM of acquisitions presently under contract or in the due diligence phase. In addition, the company has four projects under construction, which will be completed in the 4th quarter of this year, with a total cost basis of $23MM. BPI currently owns seven properties in Arizona.

Bedford Property Investors is a self-administered equity real estate investment trust (REIT) with investments in suburban office buildings and industrial properties concentrated in the western United States. It is traded on the New York and Pacific Exchanges under the symbol "BED".

CONTACT: Bedford Property Investors

Peter B. Bedford, 510/283-8910

Scott R. Whitney, 510/283-8910