Julie Baird on the Strategic Use of 1031 Exchanges in Today's Retail Real Estate Market

Julie Baird, President of First American Exchange Company, has been recognized for her leadership and contributions to the commercial real estate (CRE) industry, including her advocacy for elevating female voices within the sector. With a background as a real estate attorney and a history of awards and recognitions, Baird brings a wealth of knowledge to the discussion on 1031 exchanges and their strategic use in the current retail real estate market.

A 1031 exchange is a tax-deferral strategy that allows investors to sell a property and reinvest in a like-kind real property asset without immediately paying capital gains taxes. This strategy is particularly relevant in the retail sector, where changing consumer habits and the acceleration of store closures are reshaping investment opportunities. Baird highlights how investors can use 1031 exchanges to pivot from underperforming assets into properties with stronger upside, such as those featuring experiential or service-based tenants that align with today's demand drivers.

The article delves into the impact of rising insurance costs on property owners and how savvy investors are using 1031 exchanges to transition into assets that are more insurable, thereby improving long-term resilience and cash flow predictability. Baird advises investors not to shy away from market volatility but to see it as an opportunity to reposition assets strategically. She emphasizes the importance of consulting with tax professionals and legal counsel to navigate these complex decisions effectively.

For more information on 1031 exchanges and their implications for retail real estate investors, visit https://www.firstamericanexchange.com. Baird's insights underscore the potential for investors to adapt and thrive in a rapidly changing market by leveraging tools like the 1031 exchange to stay ahead of the curve.