The strength and resilience of the commercial real estate market has been tested many times over the last 100 years â never more so than during these past 16 months as the COVID-19 pandemic shuttered countless strip shopping centers, shopping malls, retail centers, and restaurants.
It is estimated that up to 25% of strip shopping centers will go bankrupt. The fallout continues with hotels and office buildings. Virtual meetings will permanently replace significant business travel, and many people will work from home exclusively.
As every state in the nation, California especially begins to creep towards an economic rebound, commercial real estate must again play an essential role in that recovery. The Biden plan to eliminate the ability to defer taxes on property gains over $500,000 from like-kind exchanges of real estate, which is granted under Section 1031 of the Internal Revenue Code, will cripple commercial redevelopment at a time when our communities need that investment m