Among those who have reported quarterly results in recent daysare CB Richard Ellis, Thomas Properties Group Inc., Douglas EmmettInc. and Pacific Office Properties Trust. While all are publiclyheld companies, Emmett and Pacific Office are REITs, but CBRE andThomas are not.

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While CBRE reported comparable revenue versus last year's thirdquarter, the company's net income dropped to $40.4 million and 19cents per share compared to nearly $115 million and 48 cents pershare. Although CBRE's management team noted a significant portionof the decline resulted from one-time charges, the company'sprepared statement regarding its quarterly performance summarizedthe forces that are vexing commercial real estate around the globe."Results during the quarter were impacted by weak sales activitycaused by the global credit market turmoil, and soft leasingperformance reflecting weaker economic conditions, particularly inthe US and the U.K. Constraints in the capital markets alsoadversely affected the achievement of incentive-based revenues bythe global investment management business," according to therelease.

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Despite these forces, CBRE continued to generate significantgrowth in its fee-based services during the quarter. Revenue fromthe business line rose by 30% in the third quarter and accountedfor more than one-third of global revenue, a figure that was upfrom about 23% since Q3 2007.

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At Douglas Emmett Inc., FFO increased to $51.1 million and 33cents per diluted share compared to $46.6 million and 29 cents pershare in Q3 2007. REIT experts generally consider FFO a moretelling measure of performance, but Emmett nonetheless reported aloss of $9.7 million and eight cents per share for the quarter, upfrom a loss of $2.8 million and three cents per share lastyear.

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At Thomas Properties Group, the company reported a net loss ofnearly $3 million and 12 cents per share versus income of $271,000and a penny a share for last year's third quarter. A report byanalysts at Milwaukee-based Robert W. Baird & Co., however,argues that quarterly earnings are less important than after-taxcash flow in TPGI's business model, which is nearly completelybased on the company's net asset value. TPGI reported after-taxcash flow of 15 cents per share for the quarter.

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Founder James Thomas commented in a press release that "theoffice property fundamentals of our markets are relatively stable,particularly in Philadelphia, Houston, Downtown Los Angeles andDowntown Austin, despite the current crisis in the capitalmarkets." Thomas, who is chairman and CEO, says the firm is "wellpositioned to be responsive to the market conditions we arefacing," with sufficient cash on hand and manageable debt.

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At Pacific Office Properties Trust, the REIT reported FFO ofmore than $1 million and six cents per share along with a net lossof $1.19 million and 39 cents per share. The company did notcompare these results to those from last year because this is onlyits second quarter as a REIT.

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Dallas E. Lucas, president and CEO of Pacific Office, cited the"adverse conditions and challenges recently posed by the capitalmarkets and related economic environment" as one of the factorsaffecting its fortunes. In a prepared statement, Lucas said "we areoptimistic about our future prospects, given that 80% of our rentalrevenue for the three months ended September 30, 2008 was derivedfrom Honolulu and Southern California submarkets, which are some ofthe strongest office markets in the US." Lucas also said the REITrecently lined up a new $40-million revolving line of credit andfaces "minimal near-term debt maturities."

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