Ownership Transfer Error

Hi, I'm trying to switch ownership of a folder to a friend, but every time I try I get the error message "The new owner's account does not have enough space for the transfer" (see attached). The folder is large (about 9.3 GB) but the person I want to transfer it to has only used 1.8 MB of their 10.0 GB storage, so they have enough space. I tried another friend's account who also has enough space but got the same error message. How can I fix this and get the folder transferred? Thanks!