1031 exchange buyers typically find increased pressure on cap rates for a variety of reasons, including supply constraints of inventory, historically low interest rates, and new investors who have moved their equity into this investment arena. It is not unusual for 1031 exchange buyers with the potential of paying substantial capital gain taxes to pay between 50-150 basis points above asking cap rates to secure the deal and defer capital gain taxes.

By constantly monitoring the single tenant net leased marketplace, and working directly with REITs/institutional investors, merchant developers, private owners, and the brokerage community we leverage our knowledge, resources, and expertise to successfully navigate the 1031 exchange process.