Year-to-Date Acquisitions Increase Portfolio by 19 % -- Again Revises FFO
                           Targets Upward for 1998

    Banyan Strategic Realty Trust Highlights

    *  Second Quarter Funds From Operations (FFO) of $2.6 million, or $0.195
       per share, more than double same period last year
    *  Revenues of $9.7 million, up 44 percent from year earlier period
    *  Average occupancy of portfolio 93 percent at June 30, 1998
    *  Quarterly cash distribution of $0.12 per share declared
    *  One office and five flex/industrial properties acquired in quarter,
       comprising 444,000 square feet, for total consideration of $32 million
    *  Shareholders approve changes in the Trust's governing document
       providing greater opportunity for future portfolio growth
    *  Revises 1998 FFO targets upward to $0.75 to $0.76 per share range

    CHICAGO, Aug. 5 /PRNewswire/ -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS) a real estate investment trust, today announced second quarter
1998 funds from operations (FFO) of $2.6 million, or $0.195 per share, nearly
double total FFO per share in the previous year's second quarter.  The
improved  FFO and other operating results for both the second quarter and
first six months reflect the improving performance of the Trust's portfolio,
which increased the amount of square footage under management by 35 percent
from the previous year's second quarter, as well as the continued strong
office and flex/industrial markets the Trust serves in the mid-west and
southeastern areas of the U.S.  Occupancy rates at the Trust's 30 properties
as of  June 30, 1998 averaged 93 percent.
    Since the beginning of 1998, the Trust has announced a total of
$41.6 million in completed acquisitions, totaling 569,000 net rentable square
feet, for a 19 percent increase in square footage from year-end 1997.

    Consolidated Financial Results
    Banyan reported significantly higher second quarter and first six months
1998 results compared to the comparable periods a year ago.
    For the second quarter, net income nearly tripled to $1.3 million,
compared to $439,000 in the previous year's second quarter.  Basic earnings
(income before net gains and extraordinary items) increased to $0.11 per
share, from $0.04 per share in the second quarter last year.  Revenues grew
45 percent to $9.7 million, compared to $6.7 million during the 1997 second
quarter.  FFO of $2.6 million, or $0.195 per share, more than doubled from FFO
of $1.2 million, or $0.12 per share a year ago.
    For the first six months of 1998, the Trust reported net income of
$2.6 million, or $0.195 per share, on revenues of $18.2 million, and FFO of
$4.9 million, or $0.375 per share.  For the first six months of 1997, the
company reported net income of $0.8 million or $0.08 per share, on revenues of
$12.6 million, and FFO of $2.3 million, or $0.22 per share.
    "For the second consecutive quarter, we exceeded expectations as our
growing portfolio, with consistently high occupancy rates of 93 percent,
continued to generate stronger financial and operating results from a year
ago," said Leonard G. Levine, President of Banyan.  "With our new acquisitions
so far in 1998, all in markets with strong economic growth, and consistent
positive operations at the existing properties, we are again revising our
estimated 1998 FFO upward to a range of $0.75 to $0.76 per share to reflect
our confidence in continued portfolio performance and growth going forward."

    Two New Acquisitions Announced in Second Quarter
    During the second quarter, Banyan acquired six multi-tenant office
properties located in Orlando and Winter Park, Fla., Bensenville, Ill., in
west suburban Chicago, plus a third property in Norcross, Ga., for a total
consideration of $32 million.  The properties 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 $23.3 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 was 92 percent at June 30, 1998.
    In Norcross, Banyan purchased Avalon Ridge Business Park, consisting of
two single-story office buildings with a total of 57,400 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 $5.2 million, or a
capitalization rate of 12 percent on net operating income.  The buildings were
92 percent occupied at June 30, 1998.

    Portfolio Performance -- Second Quarter Rental Income Up 40 Percent
    Rental income from the Trust's portfolio increased 40 percent to
$8.4 million, compared to $6.0 million during the same period a year ago,
reflecting the addition of twelve properties acquired since the end of last
year's second quarter.  Total property operating expenses as a percent of
total revenue decreased to 33 percent in the second quarter of 1998 from
39 percent for the same period the previous year.

    Balance Sheet, Market Value and Liquidity
    At June 30, 1998, total assets at net book value were approximately
$200 million.  The debt to total market capitalization ratio was 58.7 percent,
based on a total market capitalization of $225.6 million. EBITDA (earnings
before interest, tax, depreciation and amortization) was $5.3 million, up 18%
from the first quarter.  EBITDA coverage ratio for the second quarter was
2.23.  The Trust had $132.5 million of total debt outstanding as of June 30,
1998.
    As previously announced, the Trust in the second quarter finalized a
financing with The Capital Company of America LLC (CCA), formerly known as
Nomura Asset Capital Corporation, including a permanent debt financing of
$53.6 million and a $25 million revolving acquisition line of credit to
replace the Trust's previous acquisition line of credit.  The debt under this
facility has a 10-year term at an interest rate set at 6.97 percent, amortized
over 26 years.  Proceeds of the CCA permanent debt financing were used to
retire certain permanent debt scheduled to mature within the next two years
and to repay amounts borrowed under the CCA 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.

    Quarterly Cash Distribution and Funds Available for Distribution (FAD)
    On July 6, Banyan declared a quarterly cash distribution of $0.12 per
share for the second quarter ended June 30, 1998.  The distribution is payable
August 21, 1998 to shareholders of record as of July 21, 1998.  In the first
quarter of 1998, the distribution was increased from the previous quarterly
distributions of $0.10 per share, based on the Trust's increased levels of
FFO.
    Funds Available for Distribution (FAD) totaled $2.1 million for the three
months ended June 30, 1998, or $0.16 per share.

    Shareholders Approve Amendments to the Trust's Governing Documents
Enhancing Funding Ability
    On July 23, 1998 shareholders voting at the Trust's annual meeting
approved certain amendments to the Trust's governing document that the Trust
feels will increase its financing options.  Among other proposals, the
shareholders approved eliminating a requirement that the Trustees consider
terminating the Trust by March, 2001.
    "We believe this key vote by shareholders will provide a springboard to
allow for continued growth of our portfolio, by increasing our ability to
attract additional capital through a follow on offering and pursue our long
term business plan of both through internal and external growth," Mr. Levine
said.

    Outlook
    Mr. Levine added, "With our acquisitions completed through the first half
of 1998, along with potential acquisitions in the pipeline, we are moving
toward our targets for the year.  Still, we are continuing to examine
additional opportunities in both our existing markets, as well as others
experiencing strong economic growth.  These include some markets in the
Western U.S., including California, Salt Lake City, Las Vegas and Denver, as
well as the northeast.  We believe there remains significant opportunity to
continue our portfolio growth through the continued acquisition of mid-size
office and flex-industrial properties where we compete principally with the
private sector, giving us the ability to increase income and property value
through improved rental rates and increased 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 3.4 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 13,306,735 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.
    See Banyan's Website at http://www.banyanreit.com for complete company
information.


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

                                       Three Months Ended        Year Ended
                                    6/30/98         6/30/97      12/31/97

    Total revenue                    $9,657          $6,747       $28,785
    Recovery of losses on loans,
      notes and interest receivable      --              --           161
    Operating expenses               (8,057)         (6,183)      (25,664)
    Operating income                  1,600             564         3,282

    Minority interest in
      consolidated partnerships        (182)           (145)         (590)

    Income of real estate ventures       --              20            37
    Net gain on disposition of investment
      in real estate, disposition of
      investment in real estate venture
      and disposition of
      partnership interest               --                           881
    Extraordinary item, net of
      minority interest                (141)             --           (64)
    Net income                       $1,277            $439        $3,546
    Earnings per share of Beneficial
      Interest -- Basic:
      Income before Net Gains and
        Extraordinary Item            $0.11           $0.04         $0.24
      Net Income                      $0.10           $0.04         $0.32
    Earnings per share of Beneficial
      Interest -- Assuming Dilution:
      Income before Net Gains and
        Extraordinary Item            $0.10           $0.04         $0.24
      Net Income                      $0.09           $0.04         $0.32

    Funds from Operations

    Net income                       $1,277            $439        $3,546
    Plus:
    Depreciation expense              1,149             781         3,277
    Depreciation included in operations
      of real estate ventures            --               7            15
    Lease commission amortization        85              54           208

    Less:
    Minority interest share of
      depreciation expense              (72)            (66)         (254)
    Minority interest share of lease
      commission amortization            (8)             (6)          (21)
    Recovery of losses on loans, notes
      and interest receivable             -              --          (161)
    Franchise tax fees accrued           14              13            50
    Net gain on disposition of
      investment in real estate,
      disposition of investment in
      real estate venture and
      disposition of partnership
      interest                           --                          (881)
    Extraordinary item, net of
      minority interest                 141               -            64
    Funds from operations            $2,586          $1,222        $5,843


                                % OF                % OF              % OF
                   6/30/97     TOTAL   12/31/97    TOTAL   6/30/98    TOTAL
    ALABAMA              0     0.00%    233,200    8.11%   233,200    6.77%
    FLORIDA        428,200     16.76%   428,200   14.89%   719,300   20.87%
    GEORGIA        432,400     16.92%   488,600   16.98%   671,000   19.47%
    ILLINOIS       502,900     19.68%   502,900   17.48%   598,800   17.38%
    KENTUCKY       900,200     35.23%   900,200   31.29%   900,200   26.12%
    TENNESSEE            0     0.00%     87,800    3.05%    87,800    2.55%
    WISCONSIN      235,800     9.23%    235,800    8.20%   235,800    6.84%
    WASHINGTON, DC  55,900     2.18%          0    0.00%         0    0.00%
    TOTAL SQUARE
      FT         2,555,400    100.00% 2,876,700  100.00% 3,446,100  100.00%

    OHIO
    OKLAHOMA           350     28.83%         0    0.00%         0    0.00%
    TOTAL APARTMENT
      UNITS            864     71.17%       864  100.00%       864  100.00%
                     1,214    100.00%       864  100.00%       864  100.00%

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