Single-tenant net-leased retail assets have historically been the go-to investment for small-to-midsize 1031 exchange buyers seeking to secure a cash-flowing passive investment. But the current economic turbulence created by retailer shake-ups, changes (or impending changes) in tax legislation, and other COVID-19-related and unrelated challenges is creating uncertainty when it comes to commercial property ownership.
We are seeing increased transaction velocity in the STNL 1031 exchange market as more and more investors cast a critical eye on their holdings and look for a 1031 upleg move to create a better position for themselves. When the economy is plugging along and strong, STNL asset owners collect their rent checks and don’t have to think too much. We are now garnering more requests from private owners and family offices to sit down and talk portfolio strategy with them. Sometimes it makes sense to stay put. In other scenarios, it may be time to move on to create a better ownership position.