Revenue for the quarter ending Dec. 31, 2000 increased 19.8% to a record $140.5 million, says chief financial officer Blake W. Harbaugh. However, earnings per diluted share were down $0.08 per share to $0.19 per share for the quarter because of non-recurring expenses involved in writing off goodwill associated with the 1998 purchase of Hayward, CA-based White Commercial Real Estate, costs of the company's strategic review process and writing off financing fees. Meanwhile, the company also is buying back 7 million of its shares at $7 after an oversubscribed tender offer. The stock most recently traded at $5.72.

"We were able to achieve this type of growth in a tenuous time in the company's history," says executive vice president Brian D. Parker. "Twenty percent revenue growth during a period in which this company was reviewing its strategic alternatives and completing a tender offer reinforces our belief that we have built a lasting company with talented professionals who put the needs of the clients first. With that process behind us, we believe Grubb & Ellis will continue to seize market opportunities and produce consistent results in a softening economy."

Real estate advisory services president John G. Orrico says "a very strong sales market" in the office and multifamily sectors helped rachet fee income for his unit up 24.2% for the quarter ending Dec. 31. Although the unit is paying out higher commissions, it also is seeing strong leasing activity within the telecommunications sector in the Silicon Valley, San Francisco, Denver, Washington, DC and New York markets.

"January was a very good month, but as we look forward, we see a slowing taking place," Orrico says. He adds, however, that Grubb & Ellis is well-positioned with larger companies looking to make larger deals. "These relationships take on an importance as we see a slowdown in the economy."

Income from property management and facilities outsourcing was down 7% to $15.8% in the fourth quarter, caused primarily by the firm resigning from a large contract, says management services president Maureen Ehrenberg.

Grubb & Ellis has been operating with three co-presidents since May, when Chairman and CEO Neil Young resigned. Ehrenberg, Orrico and executive vice president Brian D. Parker have been in charge of the commercial real estate service firm. Parker said "a few" top candidates have visited the firm's headquarters here, and the company hopes to have "someone in place in the next couple of months."