As the commercial real estate industry begins to look up in 2025, 1031 exchange inquiries are gaining momentum, according to ALM Digital. Single-tenant net lease and multitenant retail properties are seeing an increase in activity.
Many properties that once saw little to no buyer interest have closed at or above asking price. With a positive outlook for commercial real estate properties, 1031 exchange volume is expected to continue increasing.
While inflation may moderate, lenders may need to ask for a 50 percent down payment in order to hit their debt-service coverage ratio, the article says. If buyers consider financing, they may face negative leverage.
