Digital Landlords in the MetaVerse

Remember a few years ago when the MetaVerse was the newest trend? Everyone was talking about it and thinking about their strategy for how to incorporate it into their business and/or life.

It hasn’t really taken off (yet) as evidenced by this article from October 2023:

One explanation for this is provided by FastCompany when they say the MetaVerse’s “failure is more than the fin de siècle of one of the most rapid and spectacular hype eras in modern business history. It reflects something deeper about Silicon Valley: its inability to understand fun, and how to meaningfully waste time.”

Whether you like the MetaVerse, love the MetaVerse, dislike or even hate the MetaVerse, we want to highlight one concept borrowed from the real world and applied to some MetaVerse platforms.

Two of the largest MetaVerse projects are The Sandbox and Decentraland.

These projects sold off land in their MetaVerses as NFTs (Nonfungible Tokens) and let buyers of these NFTs build experiences on them. Users could play games, visit 3d virtual stores, attend workshops/trainings/experiences and more in a 3d MetaVerse.

The most interesting is the application of real world concepts like buying property, selling property, and leasing property to the MetaVerse.

For example, Decentraland has it’s own Marketplace with the ability to buy, sell or even rent land. Owners of land can try to sell their land for more than they paid for it similar to how owners of land in the real world can try to resell it for more than they paid for it but even more exciting than buying for speculation is the ability to collect rent daily from renting out land to others so they can launch their games, 3d virtual stores, workshops/trainings/experiences into the MetaVerse.

The Sandbox has it’s own marketplace too:

There are even platforms like LootRush that facilitate the renting of NFTs for multiple MetaVerses including Decentraland, The Sandbox and many others.

The price to purchase or rent land in these MetaVerses change dramatically and are dramatically lower than they were a few years ago. As of the end of September 2024, the cheapest land for rent in The Sandbox is $0.88 a day and the cheapest land for sale is $197 to buy. As of the end of September 2024, the cheapest land for rent in Decentraland is $0.96 a day and the cheapest land for sale is $326 to buy. If leased continuously, those are enviable CAP rates, much higher than what we see in the real world, however the marketplace is constantly changing and those prices are not guaranteed to stay consistent.

Now to apply this to commercial real estate. Some brands have expanded into the MetaVerse and created their own online worlds to connect with their customers.

The Metaverse opens up new ways for brands to connect with customers that weren’t possible just a decade ago. Whether you're setting up a virtual store, hosting a pop-up event, or creating a unique brand experience, the possibilities are endless. Unlike physical stores or events, the Metaverse lets brands reach a global audience and create immersive, interactive experiences beyond the limits of the real world.

With the ability to showcase products and facilitate real-time transactions through platforms like Boson Protocol, brands can seamlessly integrate commerce into their virtual spaces.

Users can access your space in just two clicks, as Decentraland operates directly in the browser without any software installation. All you need is a laptop or desktop—no headset required. The guest experience lets anyone start exploring immediately.

This new frontier also opens doors to affluent, and tech-savvy audiences. By establishing a presence in the Metaverse, businesses can explore new creative possibilities, drive customer engagement, and expand their reach in a rapidly evolving digital marketplace.

Takeaways:

If you’re like most, you will have found this interesting, educational and informative so you’re better equipped to understand and discuss the MetaVerse with others.

For most entrepreneurs, other strategies like ecommerce, opening a pop up store, or leasing space to open a retail space make more sense than creating a MetaVerse experience for your brand.

However, if you’re interested in learning how to buy, sell, or rent land in the MetaVerse or open your own experience in the MetaVerse, reach out to us. We’ll explore possibilities and compare the MetaVerse to the real world and to ecommerce for your specific situation.

Please reach out to us at any time via email at [email protected] |  [email protected] or by phone at 347-688-2675 (Ameer Lowe) | 212-335-0590 (John Cook).

Both Ameer and John are prepared to support you throughout your entire commercial real estate process/journey.

We look forward to hearing back from you soon. 

Have a great day! Thank you.

Ameer Lowe
Licensed Real Estate Salesperson
Direct: 347-688-2675
Email: [email protected] | [email protected]

John Cook
Licensed Real Estate Salesperson
Direct: 212-335-0590
Email: [email protected]

ΓEA⅃ Broker Commercial, LLC
Office: 855-450-0442
Address: 477 Madison Avenue, Sixth Floor, New York, NY 10022