Property type

Retail

Educational overview for 1031 exchange planning. Not investment advice.

Category: RetailmixedAsset class: Retailfee_simpledstnnn_lease

Overview

Retail Property 1031 Exchange — Educational Overview

Retail real estate ranges from single-tenant net lease to multi-tenant shopping centers. Educational considerations include tenant credit, lease structure (NNN, gross), and consumer demand.

General characteristics

Educational Considerations

  • Tenant credit and lease term
  • Co-tenancy clauses
  • Location and traffic counts

Potential benefits

  • Visible, well-located assets\n- Often long-term leases to creditworthy tenants

Potential risks

  • Sensitive to consumer spending\n- Some sub-types pressured by e-commerce

Management requirements

Property manager or NNN tenants handle most day-to-day operations.

Liquidity considerations

Direct: moderate. DST: very low.

Tax considerations

Generally eligible for 1031 exchange when held for investment.

Common investor profiles

Owners seeking yield from creditworthy tenants.

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.