FIRST AMENDMENT TO
                              EMPLOYMENT AGREEMENT


     This First Amendment to Employment Agreement  ("Amendment") is entered into
as of October 3, 2001 by and  between  Ian Y.  Bress  ("Executive")  and Grubb &
Ellis Company,  a Delaware  corporation (the "Company").  All capitalized  terms
used and not otherwise  defined herein shall have the meanings  assigned thereto
in the Employment Agreement (as defined below).

     WHEREAS an Employment  Agreement was entered into between Executive and the
Company dated June 18, 2001 (the "Employment Agreement"; and

     WHEREAS Executive and the Company desire to amend the Employment  Agreement
and modify certain of its terms.

     NOW  THEREFORE,  in  consideration  of each party's  counter  undertakings,
promises  and  covenants  set forth in this  Amendment,  and for other  good and
valuable  consideration  of the parties  hereto,  the receipt and sufficiency of
which is hereby acknowledged, the parties hereby agree as follows.

1.   Section 4 of the  Employment  Agreement is hereby  modified by changing the
     Base Salary as follows:

     a)   for the first  year of the  Period of  Contract  Employment,  the Base
          Salary shall be increased  from  $275,000 to $450,000  retroactive  to
          June 18, 2001; and

     b)   for the second  year of the Period of  Contract  Employment,  the Base
          Salary shall be increased from $302,500 to $500,000; and

     c)   for the third  year of the  Period of  Contract  Employment,  the Base
          Salary shall be increased from $332,750 to $600,000.

2.   Section 5 of the Employment  Agreement is hereby modified by (i) increasing
     the Sign On Bonus from $27,500 to $50,000;  and (ii)  increasing  the Bonus
     Compensation  for the period from June 18, 2001  through June 30, 2002 from
     $110,000  guaranteed  to  $225,000  guaranteed;  and (iii)  increasing  the
     Targeted bonus annually in each of the second and third years of the Period
     of Contract Employment from 40% of Base Salary to 50% of Base Salary with a
     maximum of 80% of Base Salary.

3.   Section 6 of the Employment Agreement now provides for a grant of an Option
     to  Executive  to purchase  one hundred  thousand  (100,000)  shares of the
     Common  Stock on terms  set  forth  therein.  Section  6 of the  Employment
     Agreement  is modified by  providing  for a second grant to Executive of an
     Option,  subject to the approval of the Compensation Committee of the Board
     and the Board,  to purchase an  aggregate  of one  hundred  fifty  thousand
     (150,000)  shares of the Common Stock,  ("Second  Grant") at the end of the
     second year of the Period of  Contract  Employment  at an  exercise  price,
     pursuant to the terms of the Plan, equal to the closing price of the Common
     Stock on the New York Stock  Exchange on the trading day next preceding the
     date of grant,  based on the  achievement of milestones to be determined by
     the Chief Executive Officer of the Company, in consultation with Executive,
     within  three (3) months of the




     Executive's  commencement of Employment.  Except as provided herein in this
     Section  3 of  this  Amendment,  all  of  the  terms  of  Section  6 of the
     Employment  Agreement  that  are now  applicable  to the  initial  grant to
     Executive  of an Option to purchase an  aggregate  of one hundred  thousand
     (100,000)  shares of the Common  Stock  shall be  applicable  to the Second
     Grant.

4.   Except as modified  above,  all provisions of the  Employment  Agreement as
     amended, shall remain in full force and effect, unmodified.


                                               GRUBB & ELLIS COMPANY



By: /s:/ Ian Y. Bress                          By: /s:/ Barry M. Barovick
   -----------------------------               ---------------------------
       Ian Y. Bress                                     Barry M. Barovick
                                                        President &
                                                        Chief Executive Officer