The COVID-19 pandemic is taking a toll on the commercial real estate industry, and its impact could have broader implications for the economy as a whole. In this article, we’ll take a look at the challenges facing the commercial real estate industry during the pandemic and some potential solutions.
The Impact of COVID-19
COVID-19 has impacted every industry in one way or another, and commercial real estate is no different. With various lock-down measures in effect across the country, more people are staying home – not going out to eat, drink, or shop nearly as much as before. Furthermore, many companies have instituted work from home policies for their employees for the foreseeable future. It’s not a stretch to imagine these companies rethinking their need for physical office space as we get deeper into this pandemic.
So what happens if companies choose not to renew their office leases and we end up with a significant number of empty buildings with no plan to replace their previous tenants? No one can say for sure what the outcome would be, but it likely wouldn’t be good.
1031 Exchanges can Help
Segments of real estate industry are much weaker and more vulnerable than people think. Removing 1031 exchanges (as Joe Biden has proposed in his tax plan) will further harm an industry that is essential for job creation, economic stability and growth. In a time of great uncertainty in the commercial real estate industry, it’s important that 1031 exchanges remain intact to help prevent the further downtown of the commercial real estate market and the economy as a whole.
1031 Exchange Company in Minneapolis, MN
CPEC1031, LLC has been facilitating 1031 exchanges of real estate for over twenty years. Our qualified intermediaries have the knowledge and experience to guide you through your real estate exchange. Contact us today to learn more about the 1031 exchange process and how we can help. You can find us at our primary office located in downtown Minneapolis.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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