"We're not immune to what's taking place in the economy as a whole," says executive vice president Brian Parker.

Corporations are deferring or delaying real estate decisions, Parker says. Also, John Orrico, president of real estate advisory services group notes that the company's third fiscal quarter is historically its weakest, with the notable exception of last year's strong performance led by the tech and telecom markets.

Total revenue was down 13.7% to $80.7 million. The decrease was fairly uniform across advisory service fees, which includes commissions, as well as fees generated from property management. Investment sales were off 37% in the quarter, Orrico says. Maureen Ehrenberg, president of the company's management services group, says companies appear "more focused on internal initiatives" than contracting for services.

For the nine months ending Mar. 31, revenue is up 7% to $327.6 million but net income is down 22% to $0.47 per share.

Bright spots on the horizon include the multifamily housing market sector, which Orrico expects to produce double its revenues this year. Meanwhile, Orrico says Grubb & Ellis has seen an uptick in tenant representation assignments.

Grubb & Ellis has been run by Parker, Orrico and Ehrenberg for the past year during a search for a new chief executive officer to replace Neil Young. Barry M. Barovick takes over as president and CEO May 15.

"We're excited to have someone with Barry's background and commitment to take Grubb & Ellis to the next level," Parker says.