EXHIBIT 10.10

August 22, 2001


Mr. John G. Orrico
21 W. Mallard Lane
Lake Forest, IL 60045

Re:  SEPARATION AGREEMENT

Dear John:

This  letter,  upon  your  signature,   will  constitute  the  entire  agreement
("Agreement")  between you and Grubb & Ellis  Company (the  "Company" or "G&E"),
and all of its  respective  subsidiaries,  divisions,  affiliates,  and  related
entities  (collectively,  the  "Company")  regarding  the  termination  of  your
employment with the Company.

1.     You hereby  resign as an officer and employee of the  Company,  and as an
       officer and director of all subsidiaries of the Company  effective August
       31,  2001 (your  "Termination  Date").  Your last day in the  Northbrook,
       Illinois  office  will be  August  17,  2001.  Between  the  date of this
       Agreement and your  Termination  Date,  you will  essentially  assist the
       Company  in  transitioning  your  duties  and  responsibilities  to other
       persons at the Company. You will have no authority to bind the Company or
       to direct employees,  independent  contractors or business  strategies of
       the Company after August 17, 2001.

2.     (a)    Because   you  and  the   Company   have  an  at-will   employment
              relationship,   you  acknowledge   that  your  employment  can  be
              terminated  at any time,  with or  without  notice  and  without a
              reason. The Company has adopted the Executive  Incentive Bonus and
              Severance  Plan  effective  June 1, 2000 (the "Bonus and Severance
              Plan").  Pursuant  to the  Bonus  and  Severance  Plan,  after the
              Effective Date of this Agreement (see Section 13 below),  you will
              receive the following:

              (i)    On your  Termination  Date, a lump sum in cash equal to One
                     Hundred Six Thousand Dollars  ($106,000)  representing your
                     prorated calendar year 2001 target bonus; and

              (ii)   Cash payments of Thirty-One  Thousand Five Hundred  Dollars
                     ($31,500)  per  month,   from  September  1,  2001  through
                     December 31, 2001, payable semi-monthly, plus on January 2,
                     2002,  a lump  sum in cash  in the  amount  of Two  Hundred
                     Forty-Seven   Thousand  Three  Hundred   Forty-One  Dollars
                     ($247,341),  together  representing  one year's base salary
                     and the equivalent of your Company benefits and perquisites
                     for one year,

                     all of the above to be  reduced  by  withholding  taxes and
                     customary payroll deductions.

                                  Page 1 of 6
<PAGE>


       (b)    In  addition,  you will be paid your  accrued but unused  vacation
              time pay, less withholding taxes and customary payroll deductions,
              through and on your Termination Date.

3.     Upon  execution  of this  Agreement,  you will no longer be an  Executive
       Officer of the  Company  and will  thereafter  no longer be covered by or
       eligible  to  receive  any  compensation  or  benefits  pursuant  to  the
       Executive  Change  of  Control  Plan,  adopted  by the  Company  Board of
       Directors on May 10, 1999, as amended (the "CIC Plan").  In consideration
       of an  extension  of your  Termination  Date to August 31,  2001 and your
       acceptance of this Agreement,  and provided you have fulfilled your other
       obligations  set forth in this  Agreement,  the Company shall provide you
       with the following benefits:

       (a)    you may keep your portable  computer  after the Company shall have
              deleted therefrom  confidential  Company software and information;
              and

       (b)    reimbursement,  upon tendering applicable receipts,  of reasonable
              relocation   expenses  of  up  to  Twenty-Five   Thousand  Dollars
              ($25,000),  less, where applicable for  non-qualified  deductions,
              withholding  taxes  and  customary  payroll  deductions,  for your
              relocation   expenses  to  a  location   outside  of  the  Chicago
              metropolitan  area,  if needed,  in order to relocate to your next
              job or career  opportunity,  for house  hunting  trips,  temporary
              housing,  closing costs,  packing and  transportation of household
              effects and temporary storage of your goods; and

       (c)    you and the Company  shall  mutually  agree upon a reasonable  and
              appropriate  interoffice  memorandum announcing your exit from the
              Company.

4.     Except as specifically  provided in this  Agreement,  you hereby abrogate
       and  repudiate  any and all claims you have under the Bonus and Severance
       Plan,  the CIC Plan,  the  acknowledgment  agreements  executed by you in
       respect  of said  plans,  any and all other  written  or oral  agreements
       between you and the Company  regarding the terms of your  employment  and
       any and all compensation to be paid to you by the Company.

5.     After your Termination Date, you will no longer be covered by or eligible
       for any benefits  under any Company  employee  benefit plans in which you
       currently  participate.  After your Termination Date, you will receive by
       separate  cover  information  regarding  your rights to health  insurance
       continuation  (COBRA) and any 401(k) PLUS plan and Deferred  Compensation
       Plan benefits.  To the extent that you have such rights,  nothing in this
       Agreement will impair those rights.

6.     (a)    In exchange for the compensation to be provided to you herein,  to
              which  you are not  otherwise  entitled  except  pursuant  to this
              Agreement,  you  agree to and  hereby do waive  and  release,  and
              promise  never  to  assert,  any  claims  of any  kind  or  nature
              whatsoever,  in  law or  equity,  known  or  unknown,  direct  and
              indirect,   that  you  have  against   G&E,  and  its   respective
              predecessors,   subsidiaries,   affiliates,   associates,  owners,
              divisions, representatives, related entities, officers, directors,
              shareholders,  agents, partners,  insurers, employee benefit plans
              (and  their  trustees,   administrators  and  other  fiduciaries),
              attorneys,    employees,    heirs,    successors,    and   assigns
              (collectively, the "Released Parties"), arising from or related to
              your  employment,  the  transition  of  your  employment,  and the
              termination of your employment with the Company.

                                  Page 2 of 6
<PAGE>


              The claims that you are waiving,  releasing  and  promising not to
              assert  include,  but are not limited  to,  claims  arising  under
              federal, state and local statutory and common law, such as the Age
              Discrimination  in Employment Act, as amended,  the Americans with
              Disabilities  Act of 1990,  the Family  Medical Leave Act of 1993,
              Title VII of the Civil Rights Act of 1964,  as amended,  the Equal
              Pay Act of 1963,  as  amended,  the Civil  Rights Act of 1866,  as
              amended,  the common law of contract and tort,  and any other laws
              and   regulations   relating   to   employment,    or   employment
              discrimination and/or the payment of wages or benefits.

       (b)    In  consideration  of  the  foregoing  and  the  execution  of the
              Agreement  by you,  the Company and the  Released  Parties  hereby
              waive and release  and  promise  never to assert any claims of any
              kind or nature  whatsoever,  in law or equity,  known or  unknown,
              direct or indirect  that the Company  (and/or any of the  Released
              Parties)   might  have   against  you  (and   including,   without
              limitation, your partners,  associates,  agents,  representatives,
              related  entities  and/or  affiliates,   contractors  and/or  your
              attorneys).

7.     (a)    You  understand  and agree that the claims  that you are  waiving,
              releasing and promising  never to assert  include  claims that you
              now know or have reason to know  exist,  as well as those that you
              do not presently have any reason to know,  believe or suspect that
              you  have,  including  unknown,   unforeseen,   unanticipated  and
              unsuspected   injuries,   damages,  loss  and  liability  and  the
              consequences thereof. By signing this Agreement you agree that you
              are expressly waiving any provision of any state, federal or local
              statute, and common-law doctrine,  providing, in substance, that a
              release shall not extend to claims, demands,  injuries or damages,
              loss or liability,  which are unknown or unsuspected to exist,  by
              the person making the release, when s/he is making the release.

       (b)    The Company (and the Released  Parties) agree and understand  that
              the claims that they are waiving, releasing and promising never to
              assert  include  claims  that they now know or have reason to know
              exist, as well as those that they do not presently have any reason
              to know, believe or suspect that they may have, including unknown,
              unforeseen,  unanticipated and unsuspected injuries, damages, loss
              and  liability  and  the  consequences  thereof.  By  signing  the
              Agreement  the  Company  (on  behalf  of itself  and the  Released
              Parties)  agrees that the Company (and the  Released  Parties) are
              expressly  waiving any  provision  of any state,  federal or local
              statute, and common law doctrine,  providing in substance,  that a
              release shall not extend to claims, demands,  injuries or damages,
              loss or liability,  which are unknown or  unsuspected  to exist by
              the party making the release, when it/they are making the release.

8.     a)     You agree that you will not voluntarily, and without compulsion of
              legal process,  assist or encourage  others to assert claims or to
              commence or maintain litigation against the Released Parties.  You
              also agree that neither you, nor anyone  acting by,  through or in
              concert with you, shall  communicate  negative or critical oral or
              written  statements or opinions about the Released  Parties or any
              of them or their business,  or take any action or make any oral or
              written  statements  which  disparage or are intended to disparage
              the  Released  Parties or any of them or their  business  or their
              reputations.

       b)     The  Company  agrees  that it will not  voluntarily,  and  without
              compulsion of legal process,  assist or encourage others to assert
              claims or to commence  or maintain  litigation

                                  Page 3 of 6
<PAGE>


              against you. The Company also agrees that it shall not communicate
              negative or critical oral or written  statements or opinions about
              you or take any  action  or make any  oral or  written  statements
              which   disparage  or  are  intended  to  disparage  you  or  your
              reputation.

9.     You agree to return to the Company, by your Termination Date, any and all
       information  and  materials,  whether in paper,  magnetic,  electronic or
       other  form,  that you have about the  Company's  practices,  procedures,
       trade  secrets,  finances,  client  lists,  or marketing of the Company's
       services.  You will promptly  execute any and all notices of  resignation
       from any  Company  position  as  requested  by the  Chief  Administrative
       Officer. You will take no further action to bind or obligate the Company.
       You will immediately turn in your corporate American Express card.

10.    You  agree  that  you  will  not,  unless  required  by law or  otherwise
       permitted by express  written  permission from or request by the Company,
       disclose to anyone any information regarding the following:

       a.     Any non-public  information  regarding the Company,  including its
              practices,  procedures,  trade secrets, finances, client lists, or
              marketing of the Company's services.

       b.     The terms of this  Agreement,  except that you may  disclose  this
              information  to  members  of  your  immediate  family  and to your
              attorney,  accountant or other professional advisor(s) to whom you
              must make the disclosure in order for them to render  professional
              services to you. You will instruct them,  however, to maintain the
              confidentiality  of this  information  just as you  must,  and any
              breach of this obligation of confidentiality by such family member
              or professional  advisor(s) shall be deemed to be a breach by you.
              If required to disclose  the terms of this  Agreement  by law, you
              shall provide the Company with sufficient notice prior to any such
              disclosure,  including  the  basis for the  legal  requirement  to
              disclose,  to  allow  the  Company  to  seek  a  protective  order
              preventing the disclosure.

11.    Except as  required  by law or  administrative  agency or stock  exchange
       rules, the Company will keep the terms of this Agreement confidential. It
       is expected  that the Company  will file this  Agreement as an exhibit to
       its SEC filings.

12     In the event that you breach any of your obligations under this Agreement
       or as  otherwise  imposed by the law,  the  Company  will be  entitled to
       recover the  benefits  paid under the  Agreement  and to obtain all other
       relief provided by law and equity. This Agreement will be governed by the
       law of the State of Illinois without regard to principles of conflicts of
       laws thereof.

13.    To accept the  Agreement,  please date and sign this Agreement and return
       it, either by personal delivery or by mail, to GRUBB & ELLIS COMPANY, c/o
       Robert J. Walner, Chief Administrative  Officer, 2215 Sanders Road, Suite
       400,  Northbrook,  IL  60062.  An  extra  original  for your  records  is
       enclosed.

       A.     YOU SHOULD CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS AGREEMENT.

                                  Page 4 of 6
<PAGE>


       B.     YOU HAVE UP TO 21 DAYS FROM THE DATE YOU RECEIVE THIS AGREEMENT TO
              ACCEPT THE TERMS OF THIS AGREEMENT,  ALTHOUGH YOU MAY ACCEPT IT AT
              ANY TIME WITHIN THOSE 21 DAYS.

       C.     ONCE YOU ACCEPT THIS AGREEMENT, YOU WILL HAVE SEVEN (7) DAYS AFTER
              SIGNING  TO REVOKE  YOUR  ACCEPTANCE.  TO  REVOKE,  YOU MUST SEND,
              EITHER   BY   PERSONAL   DELIVERY   OR  BY  MAIL,   TO  THE  CHIEF
              ADMINISTRATIVE  OFFICER AS INDICATED ABOVE, A WRITTEN STATEMENT OF
              REVOCATION. IF YOU DO NOT REVOKE, THE EIGHTH DAY AFTER THE DATE OF
              YOUR ACCEPTANCE WILL BE THE "EFFECTIVE DATE" OF THIS AGREEMENT.

14.    Nothing in this Agreement  shall  constitute an admission of liability or
       wrongdoing by the Company or by you. This Agreement  shall not be binding
       on the Company  unless and until it is signed,  in  unaltered  form,  and
       returned to the Company as provided above.

15.    In the event  that any one or more of the  provisions  contained  in this
       Agreement  shall,  for any  reason,  be held to be  invalid,  illegal  or
       unenforceable  in any respect,  then to the maximum  extent  permitted by
       law, such invalidity, illegality or unenforceability shall not affect any
       other provision of this Agreement.

16.    This Agreement  represents the sole and entire agreement  between you and
       the Company regarding the termination of your services as President, Real
       Estate  Advisory  Services and supersedes any and all previous  verbal or
       written  promises,   representations,   agreements,  negotiations  and/or
       discussions,  if any,  between  you and the Company  with  respect to the
       subject matters covered  herein.  This Agreement  cannot be terminated or
       changed except in writing by you and a duly authorized  representative of
       G&E.

17.    All  notices,  requests,  demands  and  other  communications  which  are
       required  or may be given  under this  Agreement  shall be in writing and
       shall be deemed  to have been duly  given  when  received  if  personally
       delivered;  when  transmitted if  transmitted by telecopy,  electronic or
       digital transmission method, with electronic confirmation; when received,
       if sent  for  next day  delivery  to a  domestic  address  by  recognized
       overnight delivery service (E.G., Federal Express);  and upon receipt, if
       sent by certified or registered mail, return receipt  requested.  In each
       case notice shall be sent to:

       If to you, addressed to:

       John G. Orrico
       21 W. Mallard Lane
       Lake Forest, IL 60045

       If to Grubb & Ellis Company, addressed to:

       Grubb & Ellis Company
       2215 Sanders Road, 4th Floor
       Northbrook, IL 60062
       Attention:  Chief Administrative Officer
       Fax: (847) 753-9060

                                  Page 5 of 6
<PAGE>


or to such other place and with such other copies as either party may  designate
as to itself by written notice to the others.

18     This  Agreement  may be  executed in any number of  counterparts,  all of
       which, when taken together, shall constitute one and the same instrument.

                                        GRUBB & ELLIS COMPANY

                                        /s/ IAN Y. BRESS
                                        ----------------------------------------
                                        By: Ian Y. Bress
Dated:  August 22, 2001                     Chief Financial Officer



By signing this  Agreement,  I acknowledge  that I have had the  opportunity  to
review it carefully  with an attorney of my choice,  that I understand the terms
of the agreements contained therein, and that I voluntarily agree to them.

Dated:  August 22, 2001                 /s/ JOHN G. ORRICO
                                        ----------------------------------------
                                            John G. Orrico


                                  Page 6 of 6