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Magento has a static setting sitewide that we can either select to commercial or residential How can I make it dynamic depending on addresses, since addresses are mixed commercial and residential so I want to check destination type dynamically and add shipping rate? Shipping rates I have already set.

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You can approach you need to add customer address eav attribute, even after that logically speaking.

if you change site wide setting per customer is not logical ( imagine multiple customers having different adrdess type changing that setting at same time, still if you want that approach you can do it like this:

— Logically speaking write plugin around sales_order_address_save_after event and check for address and do necessary steps (i.e. change the setting based on the address ).

Hope this helps.

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