_1031 exchange guide
1031 exchanges for Orlando industrial sellers
A 1031 exchange lets you sell an Orlando industrial property and defer capital gains tax by buying like-kind real estate with the proceeds. You generally must identify replacement property within 45 days and close within 180 days, and a qualified intermediary must hold the money. Plan the exchange before you list, not after you sign.
For owners of warehouses, flex buildings and small-bay parks in Central Florida, the exchange shapes the whole sale: the price you accept, the closing date you negotiate and the property you buy next.
_how it works
How does a 1031 exchange work when you sell industrial property?
You sell the building, the proceeds go to a qualified intermediary instead of to you, and the intermediary uses them to buy the replacement property. If you take the cash yourself, even briefly, the deferral is usually lost.
Replacement property must also be held for investment or business use. Industrial, flex, retail, office and land can all count as like-kind real estate to each other, so an industrial seller is not limited to buying another warehouse.
_the clock
What deadlines matter most?
Two dates run from the day your sale closes. You generally have 45 days to identify replacement property in writing and 180 days to close on it. Neither date moves for weekends or for a slow seller on the other side.
- Start looking for replacement property while your building is still on the market.
- Line up the qualified intermediary before closing. It cannot be added after you receive funds.
- Negotiate a closing date that gives your search room, or a short leaseback if you still occupy the building.
- Expect to identify backups. Deals fall through, and the 45-day list is hard to change.
_what to watch
What can make part of the gain taxable?
Any cash you keep, or debt you pay down without replacing, can be taxed. This is often called boot. To defer the full gain, the replacement generally needs to cost at least as much as the property you sold and carry equal or greater debt, unless you add cash.
Owner-users have extra choices. If you still run a business in the building, a sale-leaseback can turn equity into cash while you stay, and the proceeds can still go into an exchange.
_how blackline helps
How does Blackline run a sale with an exchange?
We plan the sale around your exchange: pricing, buyer selection and a closing date you can live with. Start with a free Broker Opinion of Value so you know your likely proceeds, then read how our investment sales process runs from first call to closing.
We are brokers, not tax advisors. Bring your CPA or tax attorney in early, and we will work alongside them.
_next steps
Put a number on your building.
_questions
Frequently asked questions
Can I do a 1031 exchange on an Orlando warehouse?
Yes, if you held the warehouse for investment or for use in your business. A primary residence does not qualify, and property held mainly for resale may not either.
Do I have to buy another industrial building?
No. Like-kind is broad for real estate held for investment or business use, so you can exchange a warehouse into retail, office, land or a different industrial property.
How long do I have to complete a 1031 exchange?
You generally have 45 days after your sale closes to identify replacement property and 180 days to close on it. Plan the search before you sign a sale contract.
Can I sell my building, stay in it and still do an exchange?
Often, yes. A sale-leaseback lets you sell, sign a lease and keep operating, and the sale proceeds can be exchanged into other property. Your tax advisor should confirm your structure.
Who should I talk to first?
Talk to your tax advisor about your basis and goals, and to a broker about value and timing. Blackline can start with a free Broker Opinion of Value. Main office (689) 215-1651.