FAIRFIELD, N.J. (July 19, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that 27-year real estate veteran
David F. Zwang (top right photo) has joined the company as senior vice president, Office Group.
“David has a tremendous track record providing real estate services to major multi-market corporations,” said
Eric Stone, executive vice president and managing director of Grubb & Ellis’ Northern and Central New Jersey offices. “His realm of experience greatly enhances our corporate services platform.”
Zwang joins Grubb & Ellis from Cushman & Wakefield, where spent 17 years as director, Corporate and Brokerage Services, responsible for representing clients including Met Life, USI Corporation, Ames Tru-Temper and York Telecom Corporation in leasing and sales needs.
Previously, he was corporate leasing director with the Lansco Corporation, where he created and was responsible for overseeing the firm’s corporate services department. Throughout his career, Zwang has been involved in commercial real estate transactions totaling in excess of $750 million.
Contact: Erin Mays, Phone: 312.698.6735, Email:
erin.mays@grubb-ellis.com
Grubb & Ellis to Participate in U.S. Department of Energy International Energy Efficiency Pilot Program
SANTA ANA, CA (July 20, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that it is one of eight major U.S. corporations, and the only commercial real estate services provider, selected by the U.S. Department of Energy to participate in the pilot program for the Global Superior Energy Performance Partnership.
The Partnership is designed to drive continuous improvements in building efficiency through an international network of government agencies, national-level certification programs and other public/private sector organizations.
U.S. Secretary of Energy
Steven Chu (middle left photo), along with his counterparts and colleagues from Japan, India, Canada and the European Commission, announced the program today at the Clean Energy Ministerial, a gathering of ministers from 24 governments, in Washington, D.C.
Jack Van Berkel, (middle right photo) Grubb & Ellis’ chief operating officer and president, Real Estate Services, also with David Susoreny, president, Corporate Services, Greg Cichy, senior vice president, Operations, and Michael Groppi, senior vice president, Energy, Sustainability and Technology Solutions, attended the event.
“The fact that the Department of Energy has invited Grubb & Ellis to be a part of this groundbreaking initiative underscores our leadership in energy efficiency and our commitment to sustainability,” said
Thomas P. D’Arcy, (lower left photo) Grubb & Ellis’ president and chief executive officer.
“We’re honored to take part in this important program and look forward to the measurable effects it will have on lessening the impact of commercial properties on the environment. Additionally, we believe our participation in this program will bring our clients long-term energy cost reductions and higher asset values.”
Grubb & Ellis is represented in the Department of Energy’s Commercial Real Estate Energy Alliance by Groppi, who co-chairs the organization’s Existing Building subcommittee, and
Robert Sprinker, vice president, who serves as chairman of the HVAC subcommittee. The organization strives to promote technology that will reduce the energy consumption and greenhouse gas emissions of the commercial real estate market.
Contacts:
Janice McDill, Phone: 312.696.6707, Email:
janice.mcdill@grubb-ellis.com
Erin Mays, 312.698.6735,
erin.mays@grubb-ellis.com
Metro Chicago Office Market Snapshot: Second Quarter 2010
The following summary is designed to provide a brief overview of the Chicago metro office market during the second quarter of 2010.
For more information or to speak with one of the company’s local market experts, please contact Erin Mays at 312.698.6735 or via email at
erin.mays@grubb-ellis.com.
REGION
The region posted a total of 72,000 square feet of positive absorption during the second quarter. This amount slightly offset the negative net absorption posted in the first quarter. Net absorption was 680,000 square feet for the first six months of 2010.
The area currently has just 48,000 square feet of new development under construction – a fraction of the 5.8 million square feet under construction at the market’s peak in 3rd quarter 2007.
Average Class A asking rental rates for the region declined $0.41 from the first quarter to $29.49 per square foot.
Inventory of available sublease space saw a decline in the second quarter to 6.6 million square feet – down from 7.2 million square feet in the previous quarter and at just 53 percent of the peak level of sublease space available in 2002 after the previous recession.
The investment market has resurfaced, with 19 properties valued in excess of $1.3 billion trading during the first six months of 2010. This is 2.5 times the total volume in 2009.
CHICAGO CENTRAL BUSINESS DISTRICT
The vacancy rate in the Chicago CBD office market remained unchanged from the prior quarter at 17.4 percent, with the market posting 12,000 square feet of positive absorption.
Class A average asking rental rates decreased by $0.13 to $36.79 per square foot, full service gross.
No new construction is underway in the CBD.
SUBURBAN CHICAGO
The vacancy rate crept to 25 percent, an increase of 10 basis points from the previous quarter, despite nearly 60,000 square feet of positive net absorption.
The increase is due in part to the delivery of the 119,000-square-foot
Rosemont Corporate Center (middle right photo) , which is now partially occupied by Cisco’s corporate offices.
Just one building totaling 48,000 square feet is currently under construction in the I-88 East submarket.
Average Class A asking rental rates in the Chicago suburbs stood at $23.69 per square foot, a decrease of $0.34 from the previous quarter.
Analysis: The market has experienced a slight drop in unemployment and stabilizing vacancy rates; however, improvement in the office demand has yet to be seen.
Tenants are waiting for business to pick up, while landlords in a good capital position hold off on early renewals and new leases until rental rates increase.
Landlords in a poor capital position are typically unable to make deals due to their struggle to fund tenant improvement allowances and other concessions.
The investment market has seen an increase in activity, though that activity is largely relegated to “trophies and train wrecks” – stable, well-located core assets with a full rent roll of credit tenants locked into long-term leases, or distressed assets priced well below replacement value.
The pending sale of
300 N. LaSalle (bottom right photo) indicates that there is plenty of capital available for low-risk investments; however, distressed properties are not coming to market in the volume expected due to banks’ unwillingness to take the financial penalties on their balance sheets associated with foreclosure.
To access the full Chicago Metro Office Trends report and other Grubb & Ellis research publications, visit
www.grubb-ellis.com/research.
The palatial seven-bedroom home offers 13,044 square feet of living space with 19,760 square feet under roof, and features seven bedrooms, seven full baths and four half-baths, a home theater, a game room, three fireplaces, eight-car garage and an attached 2,000 square foot mother-in-law suite.
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