Bisnow has a new podcast chronicling how members of the commercial real estate industry are dealing with the impact of the current global health crisis. The economic impacts are vast, and it is forcing businesses to adapt and make difficult decisions.
In this series, Make Yourself At Home, we are hearing from members of the commercial real estate industry about how they are managing this new reality and gaining insight into their day-to-day approaches. You can subscribe on iTunes and Spotify.
In this episode, we’re hearing from Corcoran Group President and CEO Pam Liebman. Liebman has led the company for 20 years and has been a broker in the city since the 1980s.
She said on the podcast that transactions are still happening, though they have slowed by roughly 70%. With few transactions, Liebman said it is hard to put an exact figure on how much prices have come down. However, she said some buyers are making unrealistic offers — and most sellers aren’t willing to take a lowball price.
“Buyers are being very aggressive, they are coming in and bidding anywhere from 10 to 30% below the ask, claiming this is what they are calling a ‘COVID discount,'” she said. "Sellers are saying, pricing was already down, and it’s certainly not down another 20 or 30%."
“The discounts we’re seeing are more on the upper end of the market than the lower end, but they are not as great as people think they are.”
She discusses her steadfast belief that New York City will bounce back, her worries about the political environment affecting the real estate industry and why she thinks the pandemic won’t hit prices as much as the aftermath of 9/11.
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