Company officials reaffirmed their "strategic alternatives initiatives," which could include selling the company, during a recent earnings conference call. The REIT recently sold two suburban Chicago assets for a combined $10 million.

The larger deal was the $6.1 million received by Great Lakes REIT for a 62,000-sf building at 191 Waukegan Rd. in Northfield. The company acquired the asset in 1998 for $4.2 million, and had most recently boosted occupancy to 88.8%. While that is well above the REIT's overall 78.3% occupancy rate, the 7.5% leveraged internal rate of return it saw on the north suburban investment was more than 20 points below its overall track record.

Earlier this summer, Great Lakes REIT sold 165-175 Hansen Court in Wood Dale for $3.9 million.

"We continue to pursue targeted dispositions," says CFO James Hicks.

The REIT's leasing team has pared 1.2 million sf of 2003 rollover—nearly 20% of the portfolio—down to 173,000 sf entering the fourth quarter, and the company continues to average 30,000 sf a month in deals, adds president and COO Patrick Hunt.

"Overall, vacancy in our markets appears to have bottomed, although there continues to be pressure on lease economics," he adds.