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) October 9, 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 October 10, 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 approval of the Registrant's 
modified Bolsa Chica Local Coastal Program ("LCP") by the California Coastal 
Commission on October 9, 1997. The LCP had been returned to the Commission 
for reconsideration pursuant to a previously announced order of the San 
Diego Superior Court.

       On October 14, 1997, the Registrant received notice that opponents of 
the Bolsa Chica Project had appealed the August 1997 San Diego Superior 
Court's judgment. The Registrant does not believe that the appeal will 
permanently prevent the Registrant from completing the Bolsa Chica project; 
however there can be no assurance in that regard or that further delays would 
not result. If the appellate court does not issue an injunction preventing 
construction or if a significant appeal bond is required and not posted by 
the opponents of the Bolsa Chica project, the Company expects to commence 
infrastructure construction during the second quarter of 1998, even though 
the appeal may be pending. 

       Certain of the foregoing information is forward looking in its nature 
and involves risks and uncertainties that could significantly impact the 
ability of the Registrant to achieve its currently anticipated goals and 
objectives.

Item 7.  FINANCIAL STATEMENTS AND EXHIBITS

       (c)     Exhibits:

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

       99.1              Press Release, issued October 10, 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:  October 14, 1997            By  /s/ Raymond J. Pacini
                                      ------------------------------
                                      Raymond J. Pacini
                                      Executive Vice President and
                                      Chief Financial Officer


                                       3.

EX-99.1

                                                                        [LOGO]

NEWS RELEASE

Contact:

   Raymond J. Pacini, Chief Financial Officer, 714-833-3030 x291


                KREG ANNOUNCES COASTAL COMMISSION APPROVAL
                  OF MODIFICATIONS TO BOLSA CHICA PLAN

    NEWPORT BEACH, CALIF. -- October 10, 1997 -- Koll Real Estate Group, Inc. 
(NASDAQ:KREG) has announced that on October 9, 1997, the California Coastal 
Commission approved modifications to the Bolsa Chica Local Coastal Program 
("LCP") in response to a June 1997 San Diego Superior Court decision which 
returned the LCP to the Coastal Commission for reconsideration. The LCP, as 
modified, preserves a small pond adjacent to Warner Avenue and will allow the 
development of up to 1,235 homes on the Bolsa Chica mesa.

    The modifications to the LCP must now go back to the Orange County Board 
of Supervisors for their approval. Provided that (i) these modifications to 
the LCP are approved by the County Board of Supervisors by the end of 1997 
and (ii) there are no further litigation delays, the Company expects to start 
infrastructure construction on the mesa in the second quarter of 1998; 
however, there can be no assurance in this regard.


    Koll Real Estate Group, Inc. provides residential and commercial real 
estate development services on a national and international basis. The 
Company's largest single asset is Bolsa Chica, which is progressing toward 
groundbreaking for a new master-planned residential community in 1998. In 
addition, the Company currently has more than 30 commercial projects under 
development in the United States and Asia totaling approximately 12 million 
square feet and $1.2 billion in construction costs.

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

                                    **END**