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On this episode of Bisnow Reports, we hear from two of New York's most prolific brokers to talk over what has been a tumultuous start to 2023 for investment sales and commercial real estate market amid ongoing rate hikes, a banking crisis that closed down a major multifamily lender in New York and growing questions about the values of buildings.

“The reality is that in our commercial real estate market and in all markets, it is always a battle between fear and greed. When greed is winning, there are certain market conditions, and when fear is winning there are certain market conditions,” Bob Knakal, a senior managing director at JLL who leads the New York Private Capital Group, said on the show. “Fear is winning today, and it’s said ‘Be greedy when most are fearful.' Some people are taking advantage of that, but not many.”

Walker & Dunlop's Aaron Appel, who heads up the New York Capital Markets team, said the “can kicking” from lenders is now coming to an end, which will lead to more defaults, workouts and forced sales this year.

“We’re starting to see some breaks in the market with assets either going back or sponsors unable to market debt service payments," Appel said. "Typically when that happens, credit providers will either look to move the position or they will look to find an alternative solution.”