Grubb & Ellis Predicts Continued Softening in Commercial Markets

SANTA ANA, CA--Bob Bach, (top right photo) senior vice president and chief economist at Grubb & Ellis Co. notes in his regular market update the labor market has deteriorated sharply in the past three months.

The October unemployment rate hit 6.5 percent, (middle left chart) the highest since February 1994, while employers have shed nearly 1.2 million payroll jobs this year, more than half of them coming in August, September and October.

Total job losses may approach the 2.7 million total recorded during and after the 2001 recession, while the unemployment rate could exceed 7.8 percent, the peak registered in June 1992 following the 1990-91 recession.

Expect commercial real estate leasing market fundamentals to soften through 2009.



Source: Bureau of Labor Statistics and Grubb & Ellis Co.



For more information or to speak with Bob Bach, please contact Janice McDill at 312.698.6707.