CBRE to cap number of people at auctions on health fears
CBRE will restrict its coming auctions to registered bidders only and up to a maximum of 30 people, as commercial real estate agencies seek to keep business flowing while abiding by strict social distancing and hygiene requirements.
“We also have the technology to move to online bidding and will be reassessing our approach to auctions on a daily basis, given our overriding focus on the health and wellbeing of our people, our clients and the general public,” said Mark Coster, CBRE head of capital markets for the Pacific.
Another big agency, Colliers International, has taken a more extreme measure: converting some of its auctions to expressions of interest (EOI).
The first of these was the sale of a ground floor strata space at 100 Flinders Street, that was due to be auctioned on Wednesday.
“Given the strong levels of buyer inquiry, demand and engagement we have experienced this year to date, we are disappointed to move from an on-site auction to an EOI sale process,” said Colliers International’s Melbourne city sales manager Anthony Kirwan
“However, we must prioritise the safety of our clients and the community – holding events with large numbers of people represents an unnecessary risk during these times.”
Mr Kirwan said the decision had been made based on the advice of the firm’s risk management and coronavirus response teams.
“We’ve contacted everyone via email, text and phone call, and the response has generally been favourable.” he said.
High inquiries
The campaign attracted more than 100 inquiries so a large auction crowd had been expected.
Mr Kirwan said another consideration for the decision was that the expected buyer was elderly, and there were fears he would not attend the auction.
But another agency, Burgess Rawson, best known for its well-attended Sydney and Melbourne portfolio auctions, still plans to hold its coming auctions indoors, despite the fresh ban on gatherings of 100 or more and social-distancing guidelines aimed at stopping the spread of the COVID-19 disease.
Initially, director Shaun Venables had told The Australian Financial Review there would be “no mass gatherings” and that the firm was looking at a system of remote online bidding and avoiding in-person contract signings.
But later, the firm’s Melbourne managing director, Ingrid Filmer, said an auction of 20 properties due to take place in that city in two weeks time “remains on track”.
“As planned, and in strict accordance with the up to the minute recommendations as provided by the Australian government’s Department of Health, the auction will be held in the River Room at Crown Casino on Wednesday, April 1,” Ms Filmer said.
She said this decision had the “overwhelming support” of the firm’s clients, staff and “everyone we work with in the extended industry”.
“In the last week alone, our Melbourne office has transacted almost $14 million of commercial property, including a service station and two development sites,” said Burgess Rawson director Raoul Holderhead.
Those attending can bid in person, over the phone or in the firm’s Melbourne boardroom.
