The Evolution of Commercial Real Estate: Insights from a Dual-Market Expert

Written by:

Steve Marcinuk

Date:

06 Jun 2025

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With three decades of experience spanning both residential and commercial sectors, Scott T. Cooney, Broker and Owner of Better Living Realty has developed a rare vantage point at the intersection of these markets. His dual role managing both residential and commercial offices in Danbury, Connecticut provides him with insights into emerging trends that are reshaping the industry.

“Many investors are showing increased interest in commercial real estate because prices have declined while rents have stabilized,” says Cooney, who brings a unique perspective to the current real estate landscape.

From Healthcare Marketing to Real Estate Pioneer

Cooney’s path to real estate wasn’t conventional. “I don’t think anybody starts their life early on and says, ‘I want to grow up, I want to be a realtor,'” he reflects with a laugh. After working as a healthcare marketing director, a 1995 downsizing led to an unexpected opportunity.

A friend in commercial real estate approached him with a proposition: “He said, ‘You ever thought about selling real estate?’ I said, ‘No, never even gave it a thought.’ He said, ‘Well, I got an idea. I’d like to talk to you about creating a healthcare division around you, because no one really specializes in healthcare real estate.'”

This specialized focus on medical properties became Cooney’s foundation. His business expanded to include property management, eventually leading to a residential division servicing their portfolio of approximately 4,000 condos. In 2014, Coldwell Banker acquired his residential operation, and by 2017, Cooney had purchased his former commercial real estate company, bringing it under the Coldwell Banker umbrella.

The Power of Cross-Market Synergy

Cooney’s most innovative strategy has been leveraging the natural connections between residential and commercial markets—a synergy many firms miss.

“Most people purchasing homes in Westport, Greenwich, and New Canaan are typically business decision makers, whether they own their business or hold senior positions in a company,” Cooney explains. By training residential agents to simply ask clients if they need commercial real estate services, his team has unlocked substantial value.

“We’ve paid out close to half a million dollars in referral fees to our residential agents,” Cooney reveals. This approach creates a win-win-win: residential agents earn referral fees, commercial specialists handle transactions in their area of expertise, and clients receive appropriate professional guidance.

“Rather than taking on a client in an unfamiliar environment where you risk losing them entirely,” Cooney advises residential agents, “send them our way. We’ll pay you a substantial referral fee. You’ll maintain your relationship, and you don’t have to worry about my agents competing with you for the residential business.”

Team-Based Approach to Complex Markets

Unlike residential real estate’s often individualistic culture, Cooney’s commercial operation emphasizes collaboration, a necessity given the complexity of commercial properties.

“Because the asset classes are so different, industrial, office, medical office, retail, investment, practitioners work best as a team, as everyone has different expertise,” he explains. This collaborative model extends to property representation, with most listings co-listed and many buyers co-represented.

“We’ve found this approach gives clients a comfort level, especially during challenging market conditions,” Cooney notes, highlighting how the team structure provides comprehensive expertise that no individual agent could offer.

Post-Pandemic Commercial Recovery

The commercial real estate market is showing clear signs of rebounding from pandemic lows. “Our office vacancies are now down to around 23-24%, compared to 35-50% during the worst periods,” Cooney reports.

Three key factors are driving this recovery:

1. Return to collaborative workspaces: “We’re finding that in some businesses, there’s a lack of creativity with remote work,” Cooney observes. “Companies like Google, Apple, and Amazon would have never been born in an environment where people were working from home, because innovation requires collaboration.”
2. Value opportunities in leasing: “The challenging market has caused lease rates to decrease, creating opportunities to secure quality space at reasonable prices.”
3. Retail renaissance: “We’re seeing companies moving back from online-only to brick-and-mortar locations, as consumers prefer to shop, touch, and experience products. Retail is experiencing strong growth as a result.”

Three Hot Investment Sectors

For investors eyeing commercial real estate, Cooney identifies three particularly attractive sectors:

1. Industrial properties: “Industrial is exceptionally strong right now, with microscopic vacancy rates. Investors are attracted because industrial businesses typically remain in place longer, sign renewal leases, and require less tenant improvement investment from landlords.”
2. Medical office space: “Medical office space is in high demand. Large medical practices rarely relocate due to substantial fit-up costs, leading them to sign longer-term leases that appeal to investors.”
3. Multi-family developments: “The rental market is exceptionally active. Properties with more than five units that offer sound financials sell quickly.”

These opportunities are attracting diverse capital, from institutional investors to international groups and even early-career professionals house-hacking multi-family properties.

Remote Work Reshaping Property Values

Perhaps the most profound shift Cooney observes is how remote work is transforming the traditional relationship between location and property values.

“Previously, selling your house in Connecticut meant taking those proceeds to North or South Carolina or Florida to purchase twice the property. That’s no longer the case,” Cooney explains. “We used to need to live near our workplace. Today, someone can work for a New York City-based company while living in North Carolina, thanks to technologies like Zoom and Teams.”

This technological shift is gradually evening the playing field for real estate values across regions, though proximity to major cities still commands a premium. “The closer you get to the city, the higher the prices,” Cooney notes, with properties in markets like Greenwich and Westport still seeing bidding wars with homes selling for “$250,000 over asking price, sometimes even more.”

The Changing Face of Buyers

The current market presents significant challenges for traditional first-time homebuyers. “First-time homebuyers are being excluded from the market,” Cooney observes. “This is primarily driven by cash offers from baby boomers selling their houses for substantial sums and downsizing, as well as young tech professionals who can afford to pay cash.”

Many buyers are planning strategically around interest rates. “Their plan is to refinance later on when rates come down,” Cooney explains, noting that many younger buyers receive family assistance for cash purchases to avoid current high interest rates.