Eight Acquisitions Year-to-Date Total $41.6 Million

    Banyan Strategic Realty Trust Highlights

    *  First Quarter Funds From Operations (FFO) of $2.4 million, or 0.18 per
       share, nearly double same period last year
    *  Revenues of $8.6 million, up 45 percent from year earlier period
    *  Average occupancy of portfolio 94 percent at 3-31-98
    *  Quarterly cash distribution of $0.12 per share declared, increased by
       20 percent
    *  $53.5 million permanent financing commitment and $25 million revolving
       credit facility
    *  Year to date acquisitions of $41.6 million, or 569,000 net rentable
       square feet, a 19 percent increase in square footage from Dec. 31, 1997

    CHICAGO, May 12 /PRNewswire/ -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS) a real estate investment trust, today announced first quarter
1998 funds from operations (FFO) of $2.4 million, or $0.18 per share, nearly
double total FFO per share in the previous year's first quarter.  The
improvement in FFO and other operating results reflect the improving
performance of the Trust's portfolio, which increased 27 percent from the
previous year's first quarter, as well as the continued strong office and
flex/industrial markets the Trust serves in the eastern half of the U.S.
Occupancy rates at the Trust's 24 properties as of March 31, 1998 averaged
94 percent.
    Since the beginning of 1998, the Trust has announced a total of
$41.6 million in new acquisitions, totaling 569,000 net rentable square feet,
for a 19 percent square footage increase from year-end 1997.

    Consolidated Financial Results
    Banyan reported significantly higher first quarter 1998 results compared
to the previous year's period.  Net income more than tripled to $1.4 million
in the recent quarter, compared to $409,000 in the previous year's first
quarter.  Earnings increased to $0.10 per share, from $0.04 per share in the
first quarter last year.  Revenues grew 46 percent to $8.6 million, compared
to $5.9 million during the 1997 first quarter.  FFO of $2.4 million, or
$0.18 per share, was nearly double FFO of $1.1 million, or $0.10 per share a
year ago.
    "We exceeded expectations with our first quarter results and continue to
show substantial financial and operating improvement from a year ago due to
our strong portfolio growth and consistently high occupancy rates of over
94 percent," said Leonard G. Levine, President of Banyan.  "With $43 million
worth of new property acquisitions already accomplished this year, and our
improved ability to finance new acquisitions, we are on target for our goal of
up to $100 million in new acquisition growth by year end, which bodes well for
continued FFO growth."
    Two New Acquisitions Announced in First Quarter
    During the first quarter, Banyan acquired two new properties in Norcross,
Georgia, a suburb of Atlanta, in separate transactions valued at approximately
$9.6 million.
    The Trust acquired Peachtree Pointe Office Park, a 71,000 net rentable
square foot, multi-tenant office property consisting of five one-story office
buildings for approximately $4.5 million.  The property is currently 92
percent occupied with 23 tenants.
    In a second transaction, Banyan acquired Avalon Center Office Park, a
multi-tenant office property in Norcross, for $5.1 million.  Avalon Center
consists of two one-story office buildings containing approximately 53,300 net
rentable square feet and is currently 92 percent leased to a total of four
tenants.  The property was 65 percent leased upon acquisition.
    "The Peachtree Point and Avalon Center Office Park, significantly increase
our presence in the very strong suburban Atlanta market," said Mr. Levine.
"Both acquisitions are consistent with our strategy of carefully selecting
properties in markets where job growth is high and demand for office space is
strong, allowing for additional occupancy and rental rate growth.  We expect
occupancy rates at both properties to reach close to full occupancy by year
end."

    Portfolio Performance - First  Quarter Rental Income Up 49 Percent
    Rental income from the Trust's portfolio increased 49 percent to $7.6
million, compared to $5.1 million during the same period a year ago,
reflecting the addition of eleven properties acquired since the end of last
year's first quarter.  Total property operating expenses as a percent of
rental income decreased to 41 percent in the first quarter of 1998 from 47
percent for the same period the previous year.  The Trust's total portfolio of
24 properties was 94 percent leased at March 31, 1998.

    Balance Sheet, Market Value and Liquidity
    At March 31, 1998, total assets at net book value were $169 million.  The
debt to total market capitalization ratio was 55 percent, based on a total
market capitalization of $180.8 million.  The market value of equity was
$81.2 million at the quarter-end stock price of $6.125 per share.  The Trust
had $99.6 million of total debt outstanding as of March 31, 1998.
    On May 4, the Trust announced a financing with Nomura Asset Capital
Corporation including a commitment for a permanent debt financing of
$53.5 million and a $25 million revolving acquisition line of credit to
replace the Trust's previous acquisition line of credit.  The debt under the
commitment has a 10-year term at an interest rate set at 6.95 percent,
amortized over 26 years.  At current interest rates, the commitment is
approximately one percentage point lower than the weighted average interest
rate on the Trust's debt prior to this financing.  Proceeds of the Nomura
financing will be used to retire certain permanent debt scheduled to mature
within the next two years and to repay amounts borrowed under the Nomura line
and the revolving line with a previous lender, which was not renewed.
    The new line of credit has an initial term of 24 months at a rate of LIBOR
plus 2.00 percent and can be extended for one additional year for a fee of
0.50 percent of the $25 million facility.
    "This new permanent financing and replacement line of credit not only
reduces our borrowing costs going forward, but will also complement our
unsecured debt to provide additional flexibility in pursuing future
acquisitions," Levine said.

    Increased Quarterly Cash Distribution
    On March 16, Banyan declared a quarterly cash distribution of $0.12 per
share for the first quarter ended March 31, 1998.  The distribution is payable
May 22, 1998, to shareholders of record as of April 22, 1998.  The
distribution is an increase from the previous quarterly distributions of
$0.10 per share, based on the Trust's increased levels of FFO.

    Subsequent 1998 Acquisition Activity Totals $32 Million
    On May 4, Banyan announced $32 million in new acquisitions of six multi-
tenant office properties located in Orlando and Winter Park, Florida,
Bensenville, Illinois, in west suburban Chicago, plus a third property in
Norcross, Georgia.  The properties were the largest group of new acquisitions
ever announced by the Trust, totaled approximately 444,000 net rentable square
feet, representing a 15 percent increase in square footage of the Trust's
overall portfolio.
    The Orlando and Winter Park acquisitions consist of four multi-tenant
office properties, or a total of sixteen buildings, consisting of
approximately 291,000 square feet.  The $23.5 million purchase price equates
to a rate of 10.25 percent on net operating income for the full year 1999.
Occupancy at the combined properties is 91 percent.
    In Norcross, Banyan purchased Avalon Ridge, consisting of two single-story
office buildings with a total of 57,414 net rentable square feet, for
approximately $4.3 million, or a capitalization rate of 11 percent on net
operating income.  Currently, Avalon Ridge is 100 percent leased.
    Finally, in Bensenville, just west of Chicago, the Trust acquired Tower
Lane Business Park, two single-story office buildings containing approximately
95,900 net rentable square feet, for a total of $5.1 million, or a
capitalization rate of 12 percent on net operating income.  The buildings are
currently 87 percent occupied.

    Outlook
    Levine added, "Already this year, our acquisitions activity brings us
close to halfway to our targets for the year.  Our more favorable line of
credit provides us with additional flexibility as we pursue new acquisitions.
While we continue to seek opportunities to add quality properties to our
portfolio in our current markets in major metropolitan areas and mid-sized
cities with strong local economies primarily in the Midwest and Southeast, we
are also looking at similar opportunities in the West as well as the
Northeast.  As with our other acquisitions, we will continue to target
properties in strong economic markets, with a profile of multiple, smaller
tenants, average rents below market rates, and with the opportunity to
increase occupancy."
    Banyan Strategic Realty Trust is a diversified equity Real Estate
Investment Trust (REIT) with a portfolio that includes primarily
flex/industrial and suburban office buildings, as well as retail and
residential properties.  The Trust's current portfolio consists of 30
properties totaling 3.5 million rentable square feet and 864 apartment units.
The properties are located in major metropolitan areas and mid-to-small second
tier markets primarily in the Midwest and Southeast United States.  Currently,
the Trust has 13,269,492 shares of beneficial interest outstanding.
    Some of the statements contained in the foregoing are forward-looking
statements.  Words such as "believes," "intends," "anticipates," "expects,"
and similar expressions are intended to identify forward-looking statements
which are subject to a number of risks and uncertainties, including, among
other things, general real estate investment risks, lack of operating history
associated with recent acquisitions, potential inability to repay or finance
indebtedness at maturity, increases in interest rates, competition for
property acquisitions, adverse consequences of failure to qualify as a REIT,
and possible environmental liabilities.  Actual results could differ
materially from those projected in these forward-looking statements.
Reference is made to the annual report on Form 10-K filed by the Trust,
specifically under the heading "Management's Discussion and Analysis of
Financial Condition and Results of Operations - Factors Affecting the Trust's
Business Plan" for a more complete discussion of these risk factors.  The
Trust undertakes no obligation to publicly release the result of any revisions
to these forward-looking statements that may be made to reflect any future
events or circumstances.

                           Selected Financial Data
                (Dollars in Thousands, except per share data)

                                      Three Months Ended         Year Ended
                                    3/31/98         3/31/97       12/31/97

    Total revenue                    $8,564          $5,894       $28,785
    Recovery of losses on loans,
     notes and interest receivable       --              --           161
    Operating expenses              (7,091)          (5,352)       (25,664)
    Operating income                  1,473             542         3,282

    Minority interest in consolidated
     partnerships                     (116)            (167)          (590)

    Income of real estate ventures       --              30            37
    Net gain on disposition of
     investment in real estate,
     disposition of investment
     in real estate venture and
     disposition of partnership interest --               4           881
    Extraordinary item, net of
     minority interest                   --              --          (64)
    Net income                       $1,357            $409        $3,546
    Earnings per share of Beneficial
     Interest -- Basic and Diluted:
        Income before Net Gains and
         Extraordinary Item           $0.10           $0.04         $0.24
        Net Income                    $0.10           $0.04         $0.32

    Funds from Operations

    Net income                       $1,357            $409        $3,546
    Plus:
    Depreciation expense                979             683         3,277
    Depreciation included in
     operations of real estate ventures  --               8            15
    Lease commission amortization        77              37           208

    Less:
    Minority interest share of
     depreciation expense              (57)             (63)          (254)
    Minority interest share of lease
     commission amortization            (6)              (4)           (21)
    Recovery of losses on loans, notes
     and interest receivable             --              --           (161)
    Franchise tax fees accrued           13              12            50
    Net gain on disposition of
     investment in real estate,
     disposition of investment in real
     estate venture and disposition of
     partnership interest                --              (4)          (881)
    Extraordinary item, net of
     minority interest                   --              --            64
    Funds from operations            $2,363          $1,078        $5,843

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