Mitigation banks emerged in the 1990s as a market-based response to federal wetlands preservation efforts. Mitigation bankers rely on real estate professionals to advise on the potential demand for a bank and to find the land to include in it. Practitioners also give a bank its local seal of approval.
Analysts are warning of brownouts and escalating utility prices in major metro areas throughout the country this summer. What will that mean for the nation’s commercial practitioners? Some extra client hand holding but no extreme measures, say California pros who’ve been there.
At the state and federal levels, efforts are under way to remove liability barriers to the redevelopment of brownfields, but if you have a deal that can’t wait until lawmakers act, there’s good news for you.
Even if commercial property prices are rising, sellers can’t make a profit if taxes absorb all the appreciation. That’s why tax-deferred exchanges continue to be an attractive alternative for a growing number of private investors, companies, and even governmental bodies interested in delaying payment of capital gains taxes.
In the event of an economic downturn in 2001, industry developments are working in your favor. Market forces and regulatory changes have converged in a way that’ll ensure a soft landing for commercial real estate.
The increased interest in 1031 transactions by property owners looking for tax-deferred commercial real estate ownership opportunities has masked one small problem: It’s not always easy for practitioners and their clients to find good matches for the properties that they want to exchange.