Segment Disclosure

6 Months Ended

Jun. 30, 2011

Segment Disclosure [Abstract]

SEGMENT DISCLOSURE

9. SEGMENT DISCLOSURE

Management has determined the reportable segments identified below according to the types of services offered and the manner in which operations and decisions are made. We operate in the following reportable segments:

Management Services — Management Services provides property management and related services for owners of investment properties and facilities management services for corporate owners and occupiers.

Transaction Services — Transaction Services advises buyers, sellers, landlords and tenants on the sale, leasing, financing and valuation of commercial property and includes our national accounts group and national affiliate program operations.

Investment Management — Investment Management includes services for acquisition, financing and disposition with respect to our REITs, asset management services related to our REITs, and dealer-manager services by our securities broker-dealer, which facilitates capital raising transactions for our REITs.

We also have certain corporate-level activities including legal administration, accounting, finance, human resources and management information systems which are not considered separate operating segments.

As a result of reclassifying our Daymark subsidiary to discontinued operations in the second quarter of 2011, our segment disclosure no longer includes a Daymark segment as all of the Daymark segment is included in discontinued operations. In addition, our Daymark subsidiary historically provided some Investment Management services. Accordingly, all revenues and expenses related to our Investment Management segment that were provided by Daymark are also included in discontinued operations.

We evaluate the performance of our segments based upon operating (loss) income. Operating (loss) income is defined as operating revenue less compensation and general and administrative costs and excludes other rental related, rental expense, interest expense, depreciation and amortization and certain other operating and non-operating expenses. The accounting policies of the reportable segments are the same as those described in our summary of significant accounting policies (See Note 1).

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In thousands)	2011			2010			2011			2010
Management Services
Revenue	$	57,913		$	70,110		$	116,958		$	142,558
Compensation costs		10,192			9,756			18,872			19,310
Transaction commissions and related costs		2,846			4,212			6,624			10,395
Reimbursable salaries, wages and benefits		38,289			49,021			77,843			99,379
General and administrative		2,758			2,543			5,949			4,790
Provision for doubtful accounts		859			448			1,330			789
Segment operating income		2,969			4,130			6,340			7,895
Transaction Services
Revenue		72,814			54,684			123,266			96,917
Compensation costs		15,024			11,210			30,492			22,175
Transaction commissions and related costs		48,715			35,399			81,953			62,398
General and administrative		10,794			8,667			20,690			17,515
Provision for doubtful accounts		1,209			224			1,968			1,029
Segment operating loss		(2,928	)		(816	)		(11,837	)		(6,200	)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In thousands)	2011			2010			2011			2010
Investment Management
Revenue		7,228			2,265			9,989			3,893
Compensation costs		2,030			2,514			4,164			5,130
Transaction commissions and related costs		892			867			1,755			1,351
General and administrative		1,753			1,441			3,578			2,729
Provision for doubtful accounts		(22	)		—			(14	)		—
Segment operating income (loss)		2,575			(2,557	)		506			(5,317	)
Reconciliation to net loss attributable to Grubb & Ellis Company:
Total segment operating income (loss)		2,616			757			(4,991	)		(3,622	)
Non-segment:
Corporate overhead (compensation, general and administrative costs)		(5,953	)		(6,484	)		(12,390	)		(15,723	)
Stock based compensation		(686	)		(2,778	)		(2,378	)		(5,797	)
Severance and other charges		(139	)		(119	)		(956	)		(2,769	)
Depreciation and amortization		(1,980	)		(1,709	)		(4,062	)		(3,314	)
Interest		(915	)		(458	)		(1,688	)		(504	)
Other income (expense)		263			(105	)		137			(273	)
Loss from continuing operations before income tax benefit (provision)		(6,794	)		(10,896	)		(26,328	)		(32,002	)
Income tax benefit (provision)		23			(80	)		23			(218	)
Loss from continuing operations		(6,771	)		(10,976	)		(26,305	)		(32,220	)
Loss from discontinued operations		(7,946	)		(8,219	)		(7,096	)		(11,027	)
Net loss		(14,717	)		(19,195	)		(33,401	)		(43,247	)
Net loss attributable to noncontrolling interests		(384	)		(1,736	)		(779	)		(2,007	)
Net loss attributable to Grubb & Ellis Company	$	(14,333	)	$	(17,459	)	$	(32,622	)	$	(41,240	)