Shopping Center 1031 Exchange

Yes. Shopping centers, strip centers, and single tenant retail buildings are all real property held for investment, so they can be sold in a 1031 exchange and replaced with another investment property. We have handled many retail center exchanges and many owners in Houston, Sugar Land, and across Texas use an exchange to move out of an aging center, trade up to a larger one, or move into something easier to manage, like a single tenant net lease property.

Retail deals come with moving parts that can affect your timeline. Tenant leases, estoppel certificates, and lender approvals take time to collect, and your 45 day identification deadline begins the day you close the sale of your center. It helps to start lining up replacement options before you list.

If you cannot find a single property that fits, you can identify more than one. The most common limit is three properties of any value, and there are other options with additional conditions.

Given that retail closings involve so many parties, bring us in at the beginning. As always, consult with a CPA or tax attorney to confirm how the rules apply to your situation.