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."
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*May exclude premium contentLeslie 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.
