by Calculated Risk on 8/05/2009 06:08:00 PM

Note: Corrected 2nd sentence: "Values were driven not by underlying demand ..."

Barry Gosin, CEO of Newmark Knight Frank: "The rise in rents were really never connected to real demand. Values were driven not by underlying demand, they were driven by liquidity, and cap rates, and the desire to invest in real estate. Then on the way down, our view is the rental market has relatively stabilized - how far do you go?"

CNBC: "Stabilized at what sort of levels?"

Gosin: "In some of the big cities where you had a tremendous runup, as much as 50% [off]. The rest of the countries where the rents are much lower, 15% to 20%."

CNBC: Oh my ...! (this section starts around 4:20)