Article submitted by Brian Nicolich, Sales and Leasing Agent for Saurage Rotenberg Commercial Real Estate
Written by Stephen Alpher for Seeking Alpha | June 13, 2017
Commercial real estate players must not be keeping up with their political donations? As a way to “pay” for possible tax cuts, lobbyists say Congress might be eyeing full elimination of the popular 1031 exchange program, which allows deferral of capital gains taxes on certain property sales.
These “like-kind” exchanges are used in 10%-20% of commercial real estate transactions, according to Green Street Advisers. The elimination would devastate a sizable cottage industry of businesses whose sole purpose is to facilitate these deals. Also hurt would be those that rely on transaction volume – Walker & Dunlop (NYSE:WD), HFF (NYSE:HF), Ladder Capital (NYSE:LADR), and Marcus & Millichap (NYSE:MMI) come to mind; not to mention municipalities who reap transfer taxes when properties are bought and sold.
Then there’s commercial real estate owners themselves, and the higher taxes they would face.
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Brian Nicolich joined Saurage Rotenberg Commercial Real Estate in May 2017. He is a lifelong resident of Baton Rouge. Brian attended both St. Michael the Archangel High School and Louisiana State University (LSU). He started his career in Luxury Car Sales, working at Brian Harris Porche Audi for eight years. Brian will be pursuing his Certified Commercial Investment Member (CCIM) designation through the Commercial Investment Real Estate Institute.
Saurage Rotenberg Commercial Real Estate is a member of the Baton Rouge Area Chamber of Commerce (BRAC); the West Baton Rouge Chamber of Commerce; the Baton Rouge Better Business Bureau; the Louisiana Commercial Data Base (LACDB); and the International Council of Shopping Centers (ICSC). Several agents, on an individual basis, are members of the Society of Industrial and Office Realtors® (SIOR), the Certified Commercial Investment Member Institute (CCIM); the National Association of REALTORS® (NAR); and the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID).
