Where the returns actually differ, and how we model them before committing.
Residential returns come mostly from the sale; commercial from the lease. That single difference changes how each is analysed — one is priced on the exit, the other on the covenant and the term.
We model both before committing, because the same building can look very different depending on which line you pull. A commercial floor with a weak tenant can underperform a residential one that simply sells through.