10 Trends to Consider for 1031 Exchange Properties in 2022

It is no secret that the tax-efficient 1031 Exchange has been a popular tool in real estate deals. With rising property values and increased investment costs, the usage of 1031 exchanges is projected to increase over the next five years. This blog will discuss the trends that will impact 1031 properties in 2022.

1. The Demand for Industrial Real Estate is Expected to Grow

The industrial and biotech sectors represent the largest use of real estate in terms of square footage. The demand for industrial real estate is expected to grow steadily over the next five years due to increased manufacturing businesses and technological innovation.

2. Properties Reviews

Home and commercial property reviews will be a trend over the next five years due to increased scrutiny of home buyers. Kay properties reviews, for instance, are good, which means it is a good option for both sellers and buyers who want to ensure that the property they are purchasing is safe and will last for many years. The increased focus on reviews will also lead to more and more people who want to purchase their homes through the open market.

3. Relocating to New Buildings

Relocating the company is not only expected to grow exponentially over the next five years, but relocating to new buildings will also be a trend that will grow in the next year. New construction and purchase of new offices will create more demand than relocation or expansion of existing buildings.

4. Increasing Demand for Private Office Space

With a growing workforce, the increasing size of companies, and the slow pace at which business has been growing, a rise in demand for private offices is expected to continue over the next five years. Increased use of office space will also increase the need for cross-ventilation and temperature control and power backup during peak hours.

5. Facility Conversion in Meeting Halls

The need for space to meet increased demand is expected to increase dramatically over the next three years. Facilities such as meeting halls and auditoriums are a great alternative for office buildings that do not meet business requirements regarding space, temperature control, etc. More and more companies are likely to use sports stadiums or large auditoriums as meeting places.

6. Large Scale Development of Parking Space

The increasing amount of business will create a high demand for parking spaces. In addition to the developed parking lots near office buildings, many large companies are now building their private parking facilities.

7. Housing Prices Are Expected to Remain High

Housing prices are expected to remain high, and therefore the number of people looking to sell their home to purchase a new one will increase in 2022. The increased search for homes for sale will create an increased need for finding buyers and professional property inspectors who can ensure the quality of the property.

8. Increasing Use of Short Sale Process

With the decrease in the number of foreclosures or short sales of residential properties, the need for a professional who can guide a client through all steps required to sell their property will also increase significantly over the next five years. This trend is expected to continue as more people find it harder to get their homes sold.

9. The Reduced Role of Mortgages

The interest rate is set to decrease in the next five years, and many experts believe that the real estate industry will move to a more finance-free environment. This will result in an increased trend of pre-paid payments. The trend of paying half or slightly more than half of the purchase price over ten years will also increase due to the decline in the interest rates.

10. Increasing Focus on Renewable Energy

The increase in focus on renewable energy, rising cost of energy, and growing popularity of green building will lead to an increase in the number of companies that focus on sustainable design. Indeed an increasing number of companies that build new residential properties are now using more fuel-efficient methods and techniques to reduce their carbon footprint.

Closing Thoughts

The demand for real estate will grow over the next five years. The increase in property value and increased demand for homes and office spaces will create more buyers and sellers than ever before. Great deals are expected to be made in real estate, which will provide a source of income and value.