8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C.  20549


                                    FORM 8-K
                             Current Report Pursuant
                          to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934



          Date of Report (Date of earliest event reported) June 4, 1997


                          KOLL REAL ESTATE GROUP, INC.
               (Exact Name of Registrant as Specified in Charter)


                                    Delaware
                 (State or Other Jurisdiction of Incorporation)

               0-17189                       02-0426634
          (Commission File Number) (I.R.S. Employer Identification No.)



4343 Von Karman Avenue, Newport Beach, California         92660
(Address of principal executive offices)               (Zip Code)


                                 (714) 833-3030
              (Registrant's Telephone Number, Including Area Code)


                                 Not Applicable
                         (Former Name or Former Address,
                          if Changed Since Last Report)



Item 5.  OTHER EVENTS

       On June 4, 1997, the Registrant issued a press release, a copy of
which is attached hereto and is incorporated herein by reference.

       The attached press release describes the decision of the San Diego 
Superior Court to return the Bolsa Chica Local Coastal Program to the 
California Coastal Commission for further consideration.

Item 7.  FINANCIAL STATEMENTS AND EXHIBITS

       (c)     Exhibits:

       Exhibit No.            Description
       ------------           -----------

       99.1              Press Release, issued June 4, 1997.




                                       2.


                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                   KOLL REAL ESTATE GROUP, INC.



Date:  June 4, 1997                By  /s/ Raymond J. Pacini
                                      ------------------------------
                                      Raymond J. Pacini
                                      Executive Vice President and
                                      Chief Financial Officer


                                       3.

EX-99.1

                                                        Exhibit 99.1
                                                        [LETTERHEAD]

NEWS RELEASE
- ------------

Contacts:

      Raymond J. Pacini, Chief Financial Officer, 714-833-3030 x291
      Lucy Dunn, Senior Vice President, 714-477-0873

                                       
                         KREG ANNOUNCES COURT'S DECISION
                           ON BOLSA CHICA LITIGATION

     NEWPORT BEACH, CALIF. -- June 4, 1997 -- Koll Real Estate Group, Inc. 
(NASDAQ:KREG) announced today that the San Diego Superior Court issued a 
decision to return the Bolsa Chica Local Coastal Program ("LCP") to the 
California Coastal Commission for further consideration. From the Company's 
perspective, the court's decision today was primarily focused on the 
lowlands, where KREG no longer has a real estate development interest.

    The court's decision that the Coastal Commission reconsider the LCP was 
based on the court's determination (i) that development of homes in the 
lowlands is not in compliance with the Coastal Act and (ii) that the filing 
of a 1.8 acre pond on the Bolsa Chica mesa is not in compliance with the 
Coastal Act.

    With respect to the Bolsa Chica mesa, the court's decision concluded that 
the Coastal Commission failed to weigh and resolve a conflict in Coastal Act 
policies related to a small pond adjacent to Warner Avenue. The court's 
decision directed that the Coastal Commission reconsider its treatment of the 
Warner Avenue pond. In every other respect, the court supported the Coastal 
Commission's approval of the plan for development of the mesa. The court 
agreed with the Coastal Commission's findings with regard to (i) the


                                    **MORE**



June 4, 1997                                                       Page 2

relocation of raptor habitat, (ii) adequacy of a buffer between the new 
residential development and the lowlands, and (iii) treatment of 
archeological resources.

    While KREG believes that the Coastal Commission's prior action concerning 
the Warner Avenue pond is fully supported under the Coastal Act, the Company 
is also pleased to see that its plan for the Bolsa Chica mesa development was 
otherwise upheld by the court. The Company is currently weighing its options 
for dealing with the court's concerns about the findings of the Coastal 
Commission concerning the Warner Avenue pond, including the possibility of 
filing an appeal.

     The court has directed counsel to submit a proposed writ and judgment, 
which will determine the specific issues to be reconsidered by the Coastal 
Commission, for the court's review by June 27, 1997. The Company will not 
make any decision regarding a potential appeal until the final writ is 
reviewed by the Company and is approved by the court.

     The Company expects that the court's ruling may delay the previously 
planned start of infrastructure construction during the fourth quarter of 
1997; however, the Company is unable to predict the nature or length of any 
such delay at this time. While the Company believes that the court's ruling 
will not permanently prevent its planned development on the Bolsa Chica mesa, 
there can be no assurance in this regard.

     Bolsa Chica is located in the County of Orange, California, adjacent to 
the City of Huntington Beach. In February 1997, KREG sold 880 acres of its 
property in the Bolsa Chica lowlands to the California State Lands Commission 
for wetlands preservation and restoration purposes. The Ports of Los Angeles 
and Long Beach, together with other state


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June 4, 1997                                                       Page 3

and federal agencies, will fund the restoration and preservation of a total 
of 1,200 acres of wetlands. KREG will limit its residential development to 
approximately 200 acres on the upland mesa. No development will occur in the 
wetlands or lowlands previously owned by KREG.

    Any forward-looking statements in this press release involve risks and 
uncertainties. The actual results could differ materially from those 
currently anticipated in any such forward-looking statements because of many 
factors.

    KREG provides residential and commercial real estate development services 
on a national and international basis. The Company holds a large residential 
land inventory in Southern California.


                                   **END**

    EDITOR'S NOTE: Please do not confuse publicly-owned Koll Real Estate 
Group, Inc. with three privately-owned and separately-operated companies 
which also carry the Koll name: Koll, which provides a full range of real 
estate services, including property, facilities and asset management, to 
clients throughout the United States and Asia; Koll Construction, one of the 
country's largest multi-service construction firms; and Koll Resorts 
International, a leading developer of resort communities in Mexico and a 
consultant for golf and resort development and management in Mexico and the 
United States.