Grubb & Ellis, the US-listed property services firm, is being taken over by a small Californian agency

Grubb & Ellis has agreed to merge with NNN Realty Advisors to create a business with a market capitalisation of $725m (£365m)..

NNN chief executive Scott Peters will become the CEO of the enlarged company, which will retain the Grubb & Ellis name and continue to be listed on the New York Stock Exchange.

The merger announced yesterday marks the latest consolidation in the increasingly competitive US property services industry. Last December, CB Richard Ellis bought Trammell Crow for $1.9bn (£1bn) and the Italian Agnelli family bought a majority stake in Cushman & Wakefield.

Grubb & Ellis was founded in California in 1958 by real estate brokers Bill Grubb and Hal Ellis. The company moved its headquarters from San Francisco to Chicago in 1996. It has about 5,000 employees and a substantial presence in Southern California, one of the US’s largest property markets.

NNN has about 500 employees and is best known for offering individual investors the chance to buy commercial real estate as ‘tenant-in-common’ owners. Under such deals the owner of an investment property who swaps it for a similar property does not have to report a capital gain immediately.