2025 Trends in 1031 Exchanges and Commercial
Real Estate
CHICAGO, Jan. 23,
2025 /PRNewswire/ -- Investment Property Exchange
Services, Inc. (IPX1031), the national leader in 1031 Qualified
Intermediary services, has released its annual 1031 trends,
outlining the key developments expected in the commercial real
estate (CRE) market and the 1031 Exchange landscape for 2025. As
economic conditions and market dynamics evolve, staying informed on
these trends is crucial for investors and property owners.
Insights on key 1031 Exchange trends for
2025
"Utilizing 1031 Exchanges fosters economic growth by enabling
capital reinvestment and job creation," IPX1031 President
John Wunderlich stated. "We strive
to provide investors with the essential knowledge and tools to
navigate the complexities of the market and maximize 1031
investment potential."
Given the anticipated growth in the CRE market, 1031
transactions will stay active as informed investors and commercial
property owners employ strategic 1031 tax deferral tools.
Anticipated 1031 Exchange Trends for 2025:
- Reverse and Improvement (Build-to-Suit)
Exchanges: Increased popularity due to higher interest
rates and limited quality inventory.
- Maturing Loans and Refinancing: Significant
transactional activity driven by maturing loans and the need for
better ROI and loan terms through 1031 Exchanges.
- Seller Financing: Traditional financing challenges will
lead to more seller-financed transactions.
- Shifts in Asset Classes: Multifamily, industrial, and
retail properties are expected to see robust activity.
- Passive Investments: A shift towards exchanging
management-intensive properties for passive investment types like
NNN (Triple Net Lease) and fractional ownership properties such as
DSTs (Delaware Statutory Trusts).
- Geographical Shifts: Owners will continue shifting
investment property purchases to more landlord regulatory friendly
areas.
- ADU/Mixed-Use Growth: Thriving 1031 opportunities
for properties with accessory dwelling units (ADUs) and mixed-use
properties.
- Retirement-Friendly Areas: Increased 1031
investment in regions with favorable and attractive retirement
conditions.
For more detailed information on the 2025 trends,
visit: www.ipx1031.com/1031-trends-2025/.
About IPX1031: Investment Property Exchange
Services, Inc. (IPX1031) is the largest and one of the oldest
Qualified Intermediaries in the United
States. As a wholly owned subsidiary of Fidelity National
Financial (NYSE: FNF), a Fortune 500 company, IPX1031 provides
industry leading security for exchange funds as well as expertise
and experience in facilitating all types of 1031 Exchanges.
IPX1031's nationwide staff, which includes industry experts,
veteran attorneys and accountants, is available to provide answers
and guidance to clients and their legal and tax advisors. For more
information about IPX1031 visit www.ipx1031.com.
Contact: Cindi Marinez, VP, Marketing
cindi.marinez@ipx1031.co
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SOURCE IPX1031
