In wake of the news that Newmark Group will acquire Knotel, some may wonder whether this makes the commercial real estate group a competitor to its own clients.
However, CEO Barry Gosin believes that this move will create more opportunities for the company’s landlords and clients.
New York-based flex office firm Knotel had been facing numerous struggles prior to the pandemic. Its inability to pay rent at several locations left it facing several lawsuits, and subsequently led the firm to file for Chapter 11 bankruptcy earlier this month.
Now that Newmark will acquire Knotel, some wondered if this deal would create a conflict of interest with its landlords and other flexible office operators that use Newmark as a broker.
Gosin stated that this move could actually be beneficial for all parties involved. However, he stated it was too early to confirm whether Knotel would be a long-term hold for them, or if Newmark will exit once the company stabilizes.
During the fourth quarter of 2020, Newmark’s earnings fell by 34.3% compared to the year prior, accompanied by a 45% dip in revenues from leases.