We agree — but it doesn’t mean that they don’t belong together.
There are few firms that can make the two different disciplines work in conjunction with one another. We are not sure why that is because in our world, both sides of the ledger are intertwined in a powerful way.
Aside from the obvious advantage of being able to offer a full range of services for your residential clientele that wish to invest, the residential component of our company has consulted numerous times on the values for development deals. Being able to value the end sales price of an asset destined to be redeveloped into residential and commercial mixed use requires knowledge of residential sales and knowledge of commercial lease rates. Discussing the design of a building or the highest and best use of land requires knowledge residential values.
Will the conversion of a particular complex from apartments to condominiums make sense? What are the financing concerns for the end user? What is a ‘warrantable’ project and why is it important? What is the value of the land for a residential use? Is there a market? What will the zoning allow?
By blending disciplines, each side becomes better at valuations and thus, more valuable for its clients.