Like all commercial real estate pros, those working the net lease and 1031 Exchange markets are struggling with the uncertainty caused by rising interest rates and inflation. This means stalled deals and fewer sales in this market.
Not surprisingly, the country’s economic uncertainty was a frequent topic during Minnesota Real Estate Journal’s Net Lease and 1031 Summit held Nov. 30 at the Golden Valley Country Club in Golden Valley, Minnesota.
The event attracted a crowd of the top names in the net lease industry plus speakers who have carved out long and successful careers in this field. And while panelists did express plenty of concerns over rising interest rates and their impact, they also expressed plenty of optimism.
This isn’t surprising, either. Despite the hardships this industry is certain to face, the net lease business has proven resilient during difficult markets before. Net lease investments are safe ones, and that will always attract investors.
And in the 1031 Exchange market? There is relief here that Congress no longer appears eager to either tweak or eliminate this tax benefit. That had been a major concern just one year ago.
Who were the big names speaking at this year’s event? Participating in the day’s first panel, focusing on tax-deferred transactions, were Dan Werry, senior investment consultant with Irvine Advisors; Dannielle Lewis, partner with WipFli; and Jeffrey Peterson, president of CPEC 1031. Our own Todd Phillips, chief financial officer of Minnesota Real Estate Journal, served as the panel’s moderator.
Participating in the second panel, which focused on the art and science of closing 1031 leases, were Andy Topka, senior 1031 exchange advisor for the Midwest region with First American Exchange Company; Matt Hazelton, senior director with JLL Capital Markets; Michael Houge, manging director with NAI Legacy; Patricia Weller, attorney with Monroe Moxness Berg PA; and Vikie Loher-Johnson, commercial real estate attorney, also with Monroe Moxness Berg PA. Phillips again served as moderator.
