Sales, Leases Help Grubb & Ellis Roll Up Gain

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NORTHBROOK, IL-A booming investment market and pick-up in leasing activity has helped Grubb & Ellis post net income of $2.2 million during the quarter that ended Sept. 30, compared to a $1.8-million loss during the same time in 2004. Revenue from the real estate firm’s transaction services operations, which includes appraising and consulting as well as sales and leasing, jumped 31.2% to $73.1 million, according to the company’s earnings report.

Management services fees dropped $300,000 to $47.6 million, as Grubb & Ellis continues attempts to land contracts with owners of more stable properties with long-term assignments. Part of the shift in strategy is an attempt to protect against losing accounts as a result of property sales, according to the company.

On the other side of the ledger, Grubb & Ellis spent 7.4% on payroll in the quarter ended Sept. 30 compared to the same three months in 2004, which officials say is a result of new hires to positions. However, the costs of providing services represented 75.8% of total revenue, down from 76% for the same quarter in 2004.