Property type
Industrial
Educational overview for 1031 exchange planning. Not investment advice.
Category: IndustrialmixedAsset class: Industrialfee_simpledstnnn_leasefund
Overview
Industrial Property 1031 Exchange — Educational Overview
Industrial real estate—warehouses, distribution centers, and light manufacturing—is a common 1031 replacement category. Considerations include tenant credit, lease structure, and location near logistics corridors.
General characteristics
Educational Considerations
- Single-tenant vs. multi-tenant
- Lease term and credit
- Ceiling height and clear span
- Truck access and parking
Potential benefits
- Long-term lease durations\n- Lower tenant turnover than retail/office\n- E-commerce demand tailwind
Potential risks
- Tenant concentration risk\n- Specialized building types may have limited reuse
Management requirements
Typically professionally managed; NNN leases push most operating responsibility to the tenant.
Liquidity considerations
Direct: moderate. DST: very low.
Tax considerations
Generally eligible for 1031 exchange when held for investment.
Common investor profiles
Owners prioritizing long-term lease stability.
Educational information only. The content on this page is general education and is not tax, legal, accounting, or investment advice. Consult your own CPA, attorney, and licensed investment professionals before making any decision related to a 1031 exchange or Delaware Statutory Trust.