TWST: What is Grubb & Ellis?

Mr. Osbrink: We are a very confident, stable company that really prides itself on being able to work closely together internally to support our clients. We function at a very high relationship level, both externally and internally. Our clients, I think, enjoy working with our people from a competency level into a relationship level, and that's pretty much the way we try and operate internally in the company as well.

TWST: You have a national reputation, yet how fragmented still is the commercial real estate market in the US?

Mr. Osbrink: It's a very regional business. So there are only a few companies that do have the national scope, and we are one of them. What's nice about our firm is that we are a large firm with a national presence, but we also are nimble enough to have each office relate to each other, have our management team relate to the managers and the brokers in the field, as well as our people in our management services groups. That makes it a very close-knit company even though we are large. I see that as being a little different from some of the companies, because in our business it seemed to have gone one way or the other ' extremely large or very local and regional. We are kind of in between the two.

TWST: When you look at the expectations for the commercial real estate industry today, where do you differ or see areas that might outperform where others may not see that possibility?

Mr. Osbrink: I think the opportunities for us are just to continue to grow in certain markets, and we are focusing on those markets for continued growth. We've always been strong in the western part of the United States. We are gaining strength very quickly in a lot of the eastern cities, so we are excited about great gains we have seen in New York, for example. We've always been very strong in Washington, DC, and anticipate a lot of growth in Chicago, Atlanta and Miami, and all those offices have had a very good year. Looking into the future, I'm sure that they are going to do even better. I think we were able, because we are pretty flatly managed, without a lot of layers of organization. We are able to react to different changes in the markets, possibly a little quicker than the other national firms. I think that's something that we pride ourselves on as being able to make those decisions and do what the client needs in a very effective and quick way in what I think is going to be a changing 2005.

TWST: Do you anticipate a change in the volume of transactions, in the quality and the pricing and the dynamics of transactions in the near term?

Mr. Osbrink: Yes, I think there is going to be a change in pricing. That is going to go market by market, but as certain markets tighten up and start rebounding, you are going to see some changes in the pricing on the leasing side as well as the sales side. I think there are going to be a large number of properties traded in the investment arena again this year. I think the fundamentals might be a little different, again, depending on which market, because 2004 seemed to be investors just buying properties without careful underwriting. I think that there's going to be a little more strategic analysis going on by potential investors in 2005, but I don't think it's going to slow the volume. I think rather than having multiple offers on properties, sometimes up to 10 to 20 like offers, you will probably have three or four because the underwriting will stick more closely to the fundamentals. On the leasing side, with the election behind, it seems there is a lot of confidence in the economy. So I do think that there is going to be an increased volume of transactions in Corporate America across the country where they are actually going to expand or do whatever they need to do to in order to provide their service, expand, contract or relocate. I do see a larger volume of transactions in 2005 over 2004.

TWST: Do you see the participants changing or different areas becoming more prominent ' the pension funds, the institutional investors or the corporate investors?

Mr. Osbrink: The people who become sellers are going to dictate which of those groups is going to step forward more actively in 2005. It's a little too early to tell you, but I do think there is going to be pressure to place money. I think institutions, major institutional investors, are going to look at properties a little differently. I think the REIT market is going to have to analyze some of their holdings and we are going to see probably more large portfolio sales in 2005 as far as the number of combined properties that go out for sale this year than we did in 2004. On the leasing side, I'm not sure that you will see more of what you are calling corporate investment in real estate as much as we might see a number of major corporations looking to move from owned into leased properties. I think we might see more of that than acquisitions by Corporate America.

TWST: Do you feel that foreign investors still see the US market as an opportunity, and does that fuel the demand in any respect?

Mr. Osbrink: I think we will see that. I've seen over the last couple of years a pretty steady interest. Whether it's going to grow more this year than last, I think it's going to be rather consistent with the value of the dollar around the globe. Different things are happening all over the globe, and physical economic and security issues will influence investors. There's always going to be a demand for US real estate from overseas. I don't see that demand going away in our lifetime.

TWST: Over the next year, what are your priorities as far the organization itself and its structure?

Mr. Osbrink: One of the things that is paramount to us is that we went through a period of over-information, and we are trying to get back to some more of the basic communications with our clients. I think there has been a push in research and data that excited everyone and became kind of fun to look at and manipulate. But I do think we are at a point where we are going to focus more on specific needs rather than huge overall trends because they can be misleading. Because of what certain markets have gone through ' for example, Denver, San Jose, Boston and different markets across the country have spent a couple of years going through real difficult periods of time ' in 2005 from a Grubb & Ellis standpoint, we are going to focus very specifically on what is very unique in the dynamic of an individual market and how that suits the clients' needs rather than standing up at the umbrella level, 36,000 feet above sea level and just looking at the big trends. I think it's really important in 2005 to get back into the local markets and really understand the dynamic from building to building and street to street. So we are going to focus on that.

TWST: What should we expect as far as revenue growth opportunities for Grubb & Ellis? Is this a stepwise growth situation for the company or are there ways to take large steps in growth?

Mr. Osbrink: We've had a very successful year in recruiting, bringing a lot of new people to the company. We have a lot of brokers in the field who are now maturing in their business and in their relationships. So I wouldn't be surprised to see us have an exceptional growth in 2005 in revenue and in our ability to service clients; transaction volume will grow.

TWST: What traditionally or historically has been the shareholder base with Grubb & Ellis? At this point, has that base undergone any changes?

Mr. Osbrink: Right now we are publicly traded over the counter, and we have one investor particularly who is our Chairman and major shareholder, or at least the majority of voting rights, Michael Kojaian. As a public company, all that information is out there. There has not been any major change in our shareholders over this past year, and there has been a registration put out this year that's been announced to possibly sell some holdings, but whether that takes place or not, I really don't know.

TWST: Introduce us to two or three of the key top-level management with the company today. As you look at bench strengths and skill sets, are there particular areas you are looking to add or augment?

Mr. Osbrink: As I said, we don't have layers of management within our company. Brian Parker is our CFO, Maureen Ehrenberg is the President of our Global Services Group, and the three of us act as co-CEOs for the company. I'm the President of the Transaction Services Group. We report directly to the Board of Directors, and key to us are our regional people, our Managing Directors in each office, the regional people who work in the property management sector (GEMS as we call it), which is Grubb & Ellis Management Services under Maureen's preview. We look to strengthen those positions any time we can just like a team strengthens their coaching staff, but right now we are pretty satisfied with where we are. We are looking for someone in Chicago right now to help us move those offices to the next level. We've just recruited successfully some great talent to manage our office in Denver, our office in Atlanta, and we are very pleased with those individuals. Strategically across the country, we are looking to bring in more brokerage staff in industrial. We are looking to rebuild and strengthen our retail group across the country. We have a very strong group of affiliates who have great retail capabilities. We are going to continue to grow our business and referral base with our affiliates. Particularly with us, one of our fundamental strategies is to continue to build on the strength of our senior brokers because we've got exceptional senior brokers in our company who have been with the company a long time, understand our culture and understand how we want to move forward, and having them work closely with our affiliate offices so that all the relationships can be brought together and everybody understands who is doing business with whom and leveraging that is going to be key for us in 2005. We do that through what we call a specialty counsel program, and that's where we have very organized regional and national meetings broken out into our different specialty groups. It creates a communication system within our company that is unique to our company within the business because it's coast to coast; it crosses all business lines and brings everybody in, including our affiliates, our GEMS people, our Corporate Services Group and Institutional Investment Group and gives everybody a chance on a very regular basis to communicate and interact where we see the business going, where we see our client base changing and where we need to be stronger. That helps me navigate where we hire people and the types of people we want to bring into the firm.

TWST: What compels investors to review Grubb & Ellis and include it in their current portfolios and in their longer-term investment strategies?

Mr. Osbrink: To look behind the very strong branding of the company and really understand why it has always been such a strong brand; it is because it has always had a very loyal strong close-knit group of people working in the company, even with changes over the years. People certainly come and go in our business, that is part of the nature of the business. But fundamentally, we've been a very strong, closely operated company, and I think if somebody is looking at it and interested enough, the words they ought to think of are professionalism, culture and capability because all three of those are very high level. We pride ourselves on that.

TWST: Are there any specific events or opportunities for the investment community to speak with or interact with Grubb & Ellis management?

Mr. Osbrink: We are a public firm. We are always open to talking to people on the Website. Anyone can certainly contact me and talk about what we see in the future for Grubb. We are excited about 2005; that I can categorically say, and 2004 was a very successful year for us.

TWST: Thank you. (DWA)

ROBERT H. OSBRINK President & Co-CEO Grubb & Ellis Company 2215 Sanders Road Suite 400 Northbrook, IL 60062 (847) 753-7500 (847) 753-9034 - FAX www.grubb-ellis.com

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