Real Estate: Barbara Corcoran Talks Changes In Commercial Demand

April 17, 2020 | News, Real Estate

Commercial real estate markets have been severely impacted by the economic shutdown caused by the coronavirus.

Barbara Corcoran, Shark Tank judge and founder of the Corcoran Group, a New York-based residential brokerage, told Yahoo! Finance today that some of these changes may be permanent.

Barbara Corcoran on RE

Corcoran said in the interview that “It is going to bring down the value of all commercial real estate overnight. I really don’t believe we’re going to go home to what we had before. It’s totally changed.”

Ms. Corcoran thinks that office demand may decline after the economy is back up and running.

Many companies have been able to function with the workforce working remotely from home. She thinks that many people will want to continue doing so after the shutdown to avoid the hassle of commuting. Companies may embrace the idea and look to renegotiate leases on smaller spaces.

She thinks that the hardest hit sector will be shopping centers. She noted that they were standing on one leg thanks to e-commerce when this happened, and that leg has now been kicked out from under them. We have already seen many retailers and restaurants withhold rent payments in April, and it is unlikely that they will be able to make payments until the economy is fully open.

Ms. Corcoran does think the decline will create opportunities. She said, “Because then they’re [the educated buyer] in the position to actually recognize a sweetheart deal when they see it. And if they pounce on it, they’re going to get the deal of a lifetime. Every real estate cycle that has gone up and down, the deals weren’t made in the down cycles, nor in the up cycles. They were always made in the times where there’s the greatest uncertainty where everybody’s guessing.”

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.

Alt Insights

May 21, 2020

Venture Capital: British Startup Offers Travel Jaunts on the Never-Never

Venture Capital: British Startup Offers Travel Jaunts on the Never-Never

Latest Alternative Investment News
Artificial Intelligence: Global Agency to Use AI to Nab Doping Athletes
May 29, 2020     Artificial Intelligence, News

The World Anti-Doping Agency (WADA) has initiated four projects across Canada and Germany to identify doping athletes through the use of artificial intelligence. The agency understands the ethical questions surrounding…
FinTech: PruPay and PayPal Working on Text-based, Contactless Payments
May 29, 2020     FinTech, News

PruPay is a specialty fintech company that provides easy payment solutions for merchants and consumers. The U.S.-based company announced Thursday its collaboration with PayPal (NASDAQ: PYPL) for the launch of…
Digital Assets: Goldman Pans Bitcoin; Crypto Community Up in Arms
May 29, 2020     Digital Assets, News

Crypto fans have not taken kindly to a Goldman Sachs presentation that fired potshots at bitcoin. The offending presentation from Goldman Sachs (NYSE: GS) has sparked a raging controversy for…
Venture Capital: Optimus Ride Driverless Cars in the U.S., and Cute Starship Robots in the U.K. Combat COVID
May 29, 2020     News, Venture Capital

Driverless vehicles and delivery robots are serving a crucial need for consumables during lockdowns and shelter-in-place restrictions. More importantly, because they are autonomous there’s no risk of a driver spreading…

Scroll to Top