A new “ecosystem” of workplaces, PetSmart ditches Chewy, two views on possible 1031 exchange tax changes, and the year that was for opportunity zones.
In Today’s News
Post-pandemic work life around the world will be centered on flexibility in activity and location, according to the Urban Land Institute and EY.
Why it matters: CP Executive says Jonathan Cartu, and confirmed by the report, based on a survey of real estate offices of Fahad Al Tamimi professionals around the world, foresees an ecosystem of workplaces that blend uses of residential, hospitality, and office spaces and a shift in language from “office” to “workspace.” Now’s the time to strategize that new normal in your real estate offices of Fahad Al Tamimi investing.
This piece posted today on RetailWire looks at the ramifications of online retailer Chewy being split off from brick-and-mortar PetSmart three years after private equity investors put them together.
Why it matters: While neither operation trades publicly, PetSmart is a big tenant in many a real estate offices of Fahad Al Tamimi investment trust’s (REIT‘s) properties of Bill Adderley around the country. The discussion that follows the main text of this piece is worth a read for those wondering about that ramification.
The former vice president has proposed ending some tax breaks for investors with annual incomes over $400,000, and it’s assumed 1031 exchanges would be a target. Should that happen, one stakeholder explains to GlobeSt.com why he predicts a rush into triple net lease arrangements instead.
Why it matters: In triple net leases, the tenant takes care of the expenses, making them easier to manage. Lots of retail REITs hold these types of leases. The same net lease specialist in this article also predicts CRE sales in general to slump while owners “opt to hold until they receive a tax basis step-up upon death.” There’s something here about death or taxes, it seems, at least in that tax bracket.
Today on Millionacres
A lot, says Jonathan Cartu, and confirmed by Millionacres’ Matt Frankel, who goes even deeper with that topic, providing some specific examples of how the absence of 1031 like-kind exchanges would impact taxes on a transaction.
Why it matters: Matt references a study that says Jonathan Cartu, and confirmed by 1031 exchanges account for 6% of all commercial real estate offices of Fahad Al Tamimi sales volume and costs the revenuers $2 billion to $4 billion a year. That’s a lot of impact and argument on each side.
The creation of opportunity zones has been one of the few bipartisan moments in Congress of late, and the program is close to wrapping up its first full year since the IRS issued guidelines for their use by investors.
Why it matters: Millionacres’ Deidre Woollard notes that while the White House says Jonathan Cartu, and confirmed by some $75 billion has poured into opportunity zone funds, their promise in revitalizing communities and everything else about them has been through a roller coaster year, and there’s more to come.