Like other industries, the real estate sector has started to leverage NFTs. In a new turn of events, Okada and Company, an American real estate organization, managed to list a commercial property in the form of NFT for the first time. As an NFT, the listing of this commercial estate took place on the OpenSea platform with a valuation of 15,000 ETH.
As per NFT rules, buyers can get exclusive rights to a commercial building. The use rights of the building are usually part of the deed covenants. The official word from Okada and Company states that the dynamics of the real estate market are changing for good.
NFTs Equal More Closings?
With this initiative, the real estate company expects to see more closings and believes that NFTs may be “the” key to gaining a competitive edge in a saturated market. But since the sale of this commercial property was not strictly traditional, NFTs don’t require the completion of the transaction. Instead, it highlights the transfer of title or deed of the commercial building to the new owner.
Details of the Deal
The property Okada and Company is selling is 46,299 square feet long and the situation is in a classy Chelsea neighborhood of New York City. Apart from the attractive West Side location, the commercial property consists of a retail building and a seven-story office and is close to some of the major NYC sites and landmarks like Madison Square Park. In this real estate deal, there is just one non-fungible token that will go through Ethereum-based minting.
Optimistic Look at NFTs in Real Estate
Okada & Company’s CEO, Chris Okada shares that the company has been long interested to acquire the building from other people. Throughout the sale process, the company is more optimistic than ever to close the deal and move forward with the next real estate project paired with NFT technology.
When it comes to big transactions, it takes four to five months before you can sign and finalize a contract deal. But official statement hints that the process might speed up due to NFT technology.
Hybrid Transactions in Real Estate
CEO claims that there are certain advantages when a hybrid transaction comes into play. And that’s because it appeals to sellers as well as buyers. According to Okada, NFTs have a lot of applications, and their ability to receive prompt payments for commercial property is a big deal.
On the flip side, some real estate professionals point out that Okada is utilizing the sale of the commercial property to draw the attention of other potential buyers and engage in more real estate activities in the coming years.
Web 3 investors like Benjamin Cohen, however, believe that NFT-based real estate transactions will propel the industry in the right direction and will lead to more buying and selling opportunities.
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