Bedford Property Investors Announces New Lease Transaction

Bedford Property Investors, Inc. (NYSE:BED) announced
today the signing of a lease for 22,026 square feet in its Time Square
project, at 500 SW 39th Street, Renton, Washington. The ten-year lease
is with a national education company. The lease is to commence at the
end of the fourth quarter 2005.
   "With this lease we have commenced Phase III of our Time Square
redevelopment project and have leased 84,516 square feet in this
five-building rehabilitation project this year. We're very pleased
with the success we've experienced in our leasing program at Time
Square," said Peter B. Bedford, Chairman of the Board and Chief
Executive Officer. "With the addition of this tenant, the five
building property will be 33% leased."

   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 Stock Exchange and the Pacific
Exchange under the symbol "BED" and its web site is
www.bedfordproperty.com.

   Please note: This press release contains forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934 that represent the company's current expectations
and beliefs, including, among other things, the company's expectations
regarding the commencement time of the lease. These forward-looking
statements are subject to certain risks and uncertainties that could
cause the actual results, performance or achievements to be materially
different from those expressed, expected or implied by the
forward-looking statements. The risks and uncertainties that could
cause our actual results to differ from management's estimates and
expectations are contained in the company's filings with the
Securities and Exchange Commission, including its 2004 Annual Report
on Form 10-K and its most recent Quarterly Report on Form 10-Q. The
company does not undertake to update forward-looking information
contained herein or elsewhere to reflect actual results, changes in
assumptions or changes in other factors affecting such forward-looking
information.