After the Internal Revenue Service extended the deadline for 1031 exchange buyers to commit to deals, there was a spike in net lease transactions in June. When the sales numbers come out for July, there could be even more commitments.
But now that deadline, which was July 15, passes, what happens to 1031 sales, especially as COVID-19 forces shutdowns around the country?
"It could be the case that we still have a strong performance in July, but towards the end of the summer, you're going to see more of a slowdown," says Chris Pappas, associate director with Marcus & Millichap's Net Lease Division. "This exchange capital is going to be placed, and then there's going to be a lull in the market."
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
