Hunt said that the company's $32.8 million second-quarter lossand its $74.3 million loss for the first six months of the year"reflect a continued slowdown in leasing throughout all sectors anda stalled investment sales market." The Grubb & Ellis CEOobserved that the company's quarterly earnings calls are "startingto sound a bit like a broken record," but he said that's because,"There has been little change from what we've reported for the pastyear. The economy in general and the operating environment forcommercial real estate services continue to be extremelychallenging."

In his outlook, Hunt said the consensus is that the recession isclose to the bottom and that GDP will pick up in the second half ofthis year, but the labor market, the most important driver forcertain segments of the commercial real estate services industry,"is a lagging indicator, and it may not bottom out until the firsthalf of 2010."

In light of this scenario, Hunt said that conditions in theoffice, industrial, retail and multifamily markets "are likely tosoften fairly rapidly over the next six months," with vacanciesrising by 1.5% to 2% by year-end. "We do not expect to see anincrease in leasing until 2010," he said.

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