GlobeSt.com: What was it about the Grubb & Ellis jobthat convinced you to take it?

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D'Arcy: There were three main factors. First,there was the brand, which I think is fair to say is one of themore recognizable in commercial real estate. Then there is theplatform itself and the reach of 126 offices with 6,500 employees.And then there was the recovering market, so those three added upto a pretty good opportunity.

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GlobeSt.com: When in your view did the marketturn?

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D'Arcy: If you look back now at when thecommercial real estate values hit bottom, it was in the thirdquarter of 2009, so even then, we had a sense that the market wasrecovering. Grubb & Ellis is offering guidance of $550 millionto $575 million of revenue that we expect in 2010, and EBITDA of$10 million to $15 million, based on the recovering market and whatthe senior management of the company has done in terms ofrecruiting productive talent to the company over the past 18months. The recovering markets are benefiting all of the realestate services companies, ourselves included. (Grubb & Ellistransaction services revenue increased 26% year-over-year in thefirst quarter, and management services revenue grew by 11% duringthe same period.)

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GlobeSt.com: What are some of the specific steps thatGrubb & Ellis is taking to improve its performance and takeadvantage of the recovering market?

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D'Arcy: We are working on increasing the scale andproductivity of our brokerage operations by migrating lessproductive brokers out of our shop and bringing in more productivebrokers. We have migrated 176 less productive brokers out of thecompany and brought in 118 more productive brokers (since July2008), including 19 in the first quarter of this year. We areintently focused on management services. We are the seventh-largestmanager of properties in the country, with approximately 290million square feet, and we would like to grow that to 400 millionor 500 million.

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GlobeSt.com: What new areas are you expanding into inorder to grow?

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D'Arcy: We're expanding into the mortgage bankingbusiness (with the hiring of Jeff Majewski as executive managingdirector to direct the company's commercial mortgage brokeragepractice), and we are also looking at the appraisal business, theinstitutional investment management business and other areas thatare clearly within the competency of our company that we are notinto right now that we will be moving into as we move forward.

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GlobeSt.com: Do you have stated goals for increasingmarket share?

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D'Arcy: That's really difficult to do because wehave multiple lines of business, so we're working on increasing thescale and productivity of our brokerage operations, managementservices and other areas that are in keeping with the skill sets wehave at the company. We have clearly defined goals, and we thinkthat if we really focus on our core competencies, we will expandour platform.

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GlobeSt.com: Do you have a growth goal in terms of thesize of the company?

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D'Arcy: We're not the biggest, but the best. Ourfocus is on making sure that we are delivering great service to ourclients. That is something that we can control. With arecapitalized balance sheet, squarely focused on growth, with the$30 million of new capital we have raised in a recovering market,we feel very comfortable about where we sit and our ability to beable to drive our company going forward.

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GlobeSt.com: What, if anything, has surprised you aboutGrubb & Ellis since you joined the company?

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D'Arcy: I would not say that I am surprised, butthe opportunity is even greater than when I first took on the job.There is an unbelievable opportunity to add value for the employeesas well as the shareholders, so we are bullish on Grubb &Ellis.

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