Over the past six months, more and more of our clients have started asking the same question:

“Why am I sitting on this much equity and getting this little return?”

When you actually sit down and run the ROE (return on equity) numbers, a lot of properties that felt like winners turn out to be dead weight. Maybe they made sense five years ago, but with today’s interest rates, rising costs, and flat rents... they’re just not performing.

That’s why we’ve seen a surge in 1031 exchanges lately—especially among folks trading up into 5+ unit buildings.

The small commercial space is showing signs of real opportunity. Sellers are more flexible. Lenders are being cautious and no longer underwriting pie-in-the-sky proformas. That creates room for smart buyers who are ready to move fast with real capital.

And when you combine that with a 1031 exchange? You can sell a low-yield property, avoid the tax hit, and roll those gains into something that actually cash flows.