GRUBB & ELLIS|COMMERCIAL FLORIDA FORESEES ACTIVE MARKETS IN ALL COMMERCIAL REAL ESTATE SECTORS IN 2007

Grubb & Ellis|Commercial Florida, with offices in Orlando, Tampa and Melbourne, projects that all sectors of commercial property leasing and sales activity will remain active through 2007 and some sectors may see surprising growth.

Jeffrey Sweeney, SIOR, president of Grubb & Ellis|Commercial Florida and managing director of the Orlando office, said the firm’s leasing and sales activity in 2006 compared with record growth in 2005, when Grubb & Ellis|Commercial Florida saw almost 30 percent growth.

“Virtually all of our sectors saw very strong activity in 2006 – land, industrial, retail and office, and especially investments,” Sweeney said. “Our numbers were not significantly higher than 2005, however, they still reflect historically high revenues for the company in Central Florida.”

Sweeney said land sales and investment sales were “hot” sectors in 2006, and he expects to see more of the same in 2007.

“Prior to 2006, Grubb & Ellis|Commercial Florida was not a major player in land brokerage or investment sales,” Sweeney said. “In both sectors we made strategic hires in the last two years, and those individuals have matured and we’re seeing the fruits of those investments — both sectors generated high levels of production in 2006,” he explained.

Sweeney said some analysts feel the retail sector may slow to reflect the drop in housing sales, but not Grubb & Ellis. “We foresee that there is still demand and room for growth in the retail market, as well as other sectors,” he said.

Sweeney said that interest rates are projected to remain low — and there is some speculation the FED may lower the rate even more if inflation subsides.

“If rates remain relatively low, there is a pent up demand for acquisition of income-producing properties and we see that demand continuing through 2007,” Sweeney said.

The Melbourne market was particularly invigorating in 2006, Sweeney said. “Our big move last year was opening up the Melbourne market. We have a full-time manager there and we are actively recruiting through hires, acquisitions and mergers. We anticipate the Melbourne market to be a very vibrant market for us in 2007 and going forward.

Sweeney said Sarasota is the firm’s next strategic venture. “Sarasota has shown significant growth in both residential and commercial, so we have begun interviewing brokers and establish a beach head there,” he said.