EXHIBIT 5
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OPINION OF PEABODY & BROWN


                    [LETTERHEAD OF PEABODY & BROWN]

April 3, 1998


Banyan Strategic Realty Trust
150 South Wacker Drive
Chicago, Illinois  60606

     Re:   Banyan Strategic Realty Trust
           Registration Statement on Form S-8

Ladies and Gentlemen:

     We have acted as counsel to Banyan Strategic Realty Trust, a
Massachusetts business trust (the "Trust"), in connection with the Shares
to be issued by the Trust upon the exercise of options granted by the Trust
under the Trust's 1997 Omnibus Stock and Incentive Plan, as amended to date
(the "Plan").

     For purposes of this opinion, we have examined the originals or
copies certified or otherwise identified to our satisfaction of: (i) the
Trust's Declaration of Trust, as amended to date; (ii) records of the
proceedings of the Trust as we deemed necessary or appropriate as a basis
for the opinions set forth herein; and (iii) those matters of law as we
have deemed necessary or appropriate as a basis for the opinions set forth
herein.  In rendering our opinion, we have assumed without inquiry the
legal capacity of all natural persons, the genuineness of all signatures,
the authenticity of all documents submitted to us as originals, the
conformity to original documents of all documents submitted to us as
certified or photostatic copies and the authenticity of the originals of
these documents submitted to us as copies.

     We are admitted to the practice of law only in the Commonwealth of
Massachusetts and, accordingly, we do not purport to be experts on the laws
of any other jurisdiction nor do we express an opinion as to the laws of
jurisdictions other than the laws of the Commonwealth of Massachusetts.

     On the basis of, and in reliance upon, the foregoing, and subject to
the qualifications contained herein, we are of the opinion that the Shares,
when issued in accordance with the Plan for the consideration set forth
therein, will be validly issued, fully-paid and nonassessable.

     We hereby consent to the use of this opinion as an exhibit to the
Registration Statement and further consent to the use of our name wherever
appearing in the Registration Statement, including the Prospectus
constituting a part thereof, and any amendment thereto.  


                            Respectfully submitted,

                            /s/ Peabody & Brown

                            PEABODY & BROWN