Grubb & Ellis Predicts Leasing Market Weakness Through Mid-2009

SANTA ANA, CA--Bob Bach, (top right photo) Senior Vice President and Chief Economist, Grubb & Ellis Co., notes Gross Domestic Product, the output of goods and services produced in the U.S., grew at a revised rate of 3.3% annualized in the second quarter.

In the first half of the year, annualized GDP rose 2.1% even as the labor market shed 463,000 net payroll jobs through July.

The disconnect between GDP and jobs, while not unusual in recent economic cycles, sends mixed signals about the economy.

Most analysts think GDP growth will cool in the coming quarters as the tax rebate fades and the global economy slows. Expect leasing market weakness through mid-2009.

Source: Bureau of Economic Analysis, Bureau of Labor Statistics, Grubb & Ellis

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