Technology is likely responsible for another distinction in real estate that is now creating a blurring of the lines between commercial and residential real estate. Residential and commercial real estate brokers are entering onto each other’s turf in Ohio and nationwide. The two realms of real estate transactions are now beginning to increasingly overlap, with various hybrid models now creeping into the mainstream of commercial and residential real estate sales.
It appears that both traditionally separate areas of the real estate business are lending some of their strongest marketing tools to each other. Even the substance of commercial space is starting to take on certain hospitality features of residential space and vice versa. Buyers can now see hybrid commercial properties that incorporate residential and hospitality features.
The crossover, however, involves changing a lot of thinking about how to service the new kinds of clients that a brokerage firm might be servicing. While flashy marketing ploys are usually used in the residential market, when it comes to commercial property sales, brokers find it necessary to work with tenants on business strategy and other goals. Residential deals with the physical attraction of a property while commercial involves money-making prospects in a business context.
The commercial transaction will take into account different size options that the building may offer for the commercial tenant, the details associated with the building’s landlord, and the business projections that may be made by association with the particular site chosen. In addition, the methodology used in selling commercial space opposed to selling residential real estate will necessarily differ. While the tides of change may not have yet permeated the markets in Ohio, there is a sea of change coming, as exists in so many other areas of business that have been affected by evolving technologies.
Source: therealdeal.com, “Commercial meets residential:a marketing strategy unfolds“, Natalie Hoberman, Sept. 30, 2017