The current commercial real estate market is experiencing significant headwinds. Malls, strip shopping
centers, office buildings, and hotels are all distressed. As lenders and capital markets restrict investment
activity, 1031 exchanges become particularly important. Investors that have significant gain are able roll
over that gain and identify distressed real estate as a replacement property where they can repurpose and
improve the property making it viable and productive. In rolling over the gain these investors use less
leverage, and often have more equity, than other purchasers, thereby reducing systemic risk in the
banking industry.
To read more about the benefits of like-kind exchanges in a distressed real estate market, click here for FEA’s flyer.
