Feature News

Report Shows Increase in Vacancy Rates, Steady Rental Rates

SANTA ANA, Calif., March 26 /PRNewswire/ -- - Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that recent trends show that while vacancy rates for logistic properties have risen, asking rental rates have decreased very little, according to the company's inaugural logistics research report, Logistic Market Trends, Qtr 4 2008.

The report states that at year-end 2008, the national average asking rental rates for logistic properties was $4.16 per square-foot per year triple net, 3 percent less than the cyclical peak of $4.29 in fourth quarter 2007. Gaining 260 basis points, the vacancy rate ended 2008 at 11.7 percent.

"Although market conditions are expected to soften over the next few quarters, when the economy slows, the demand for logistic space still tends to hold up well," said Bob Bach, senior vice president and chief economist, Grubb & Ellis. "Manufacturers need to store excess inventories while their sales slow, in turn boosting demand for warehouse space."

On a long-term basis, businesses look at logistics space as a productivity enhancer, an integral part of their supply chain strategies, the report states. Construction pipeline for logistics space is emptying rapidly, compared to the 98 million square feet of logistics space delivered to the market in 2008.

One of the country's largest consumer markets, Southern California is a critical link in the supply chain. The area's ports handle more than 40 percent of all U.S. container imports, and 14 million consumers can be reached within a two-hour truck trip from the twin ports of Los Angeles and Long Beach.

The report also identifies the nation's top 10 logistics markets: Chicago; Inland Empire, Calif.; Atlanta; Dallas/Fort Worth; Los Angeles; north and central New Jersey; east and central Pennsylvania; Houston; Columbus, Ohio; and Indianapolis.

The complete Logistics Market Trends Q4 2008 report is available on the Grubb & Ellis Company Web site: www.grubb-ellis.com

About Grubb & Ellis

Grubb & Ellis Company (NYSE: GBE) is one of the largest and most respected commercial real estate services and investment companies. With more than 130 owned and affiliate offices worldwide, Grubb & Ellis offers property owners, corporate occupants and investors comprehensive integrated real estate solutions, including transaction, management, consulting and investment advisory services supported by proprietary market research and extensive local market expertise.

Grubb & Ellis and its subsidiaries are leading sponsors of real estate investment programs that provide individuals and institutions the opportunity to invest in a broad range of real estate investment vehicles, including tax-deferred 1031 tenant-in-common (TIC) exchanges; public non-traded real estate investment trusts (REITs) and real estate investment funds. As of September 30, 2008, more than $3.8 billion in investor equity has been raised for these investment programs. The company and its subsidiaries currently manage a growing portfolio of more than 225 million square feet of real estate. In 2007, Grubb & Ellis was selected from among 15,000 vendors as Microsoft Corporation's Vendor of the Year. For more information regarding Grubb & Ellis Company, please visit www.grubb-ellis.com.