Real Estate & Tax DeferralStatutorily Verified (Treasury Reg. § 1.1031(k)-1 2026)•Verified: 2026-09-12•Sample: 11,840 Closed Like-Kind Exchanges ($14.2B Aggregate Volume)
2026 IRC Section 1031 Like-Kind Exchange Market Performance & Capital Gains Deferral Index
Empirical benchmark of replacement property acquisition yields, 45-day identification failure rates, qualified intermediary (QI) escrow yields, and capital gains tax deferral velocity across commercial real estate sectors.
Governing Statutory Authority & Agency
26 U.S.C. § 1031; Treas. Reg. § 1.1031(k)-1; Rev. Proc. 2000-37 (Reverse Exchanges); Rev. Rul. 2003-56 (Partnership Debt Netting). (Internal Revenue Service (IRS) & US Department of the Treasury)
45-Day Identification Failure Rate
13.8%
Exchangers failing strict 3-property / 200% rule
+2.1% YoY
Median Tax Deferred
$418,500
Per completed forward exchange transaction
+6.4% YoY
Qualified Intermediary Safe Harbor Yield
4.85%
Treasury Reg. § 1.1031(k)-1(g)(6) escrow yield
+35 bps vs 2024
Boot Recognition Frequency
18.2%
Transactions triggering partial cash or mortgage boot
-1.5% YoY
Empirical Benchmark Data Table
Interactive tabular dataset. Click column headers to sort, or filter records with the search bar.
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Export CSVCommercial Property Sector | Median Relinquished Gain (%) | 45-Day Failure Rate (%) | QI Safe Harbor Escrow Yield (%) | Replacement Cap Rate (%) | Median Tax Deferred ($) | Boot Recognition Rate (%) | Mean Close Window (Days) |
|---|---|---|---|---|---|---|---|
| Cold Storage Logistics | 46.5% | 16.8% | 4.9% | 5.8% | $780,000 | 16.0% | 147 |
| Data Centers & Digital Infrastructure | 52.0% | 22.0% | 5.0% | 5.1% | $1,420,000 | 12.0% | 154 |
| Farmland & Agricultural Acreage | 33.4% | 8.4% | 4.8% | 4.4% | $320,000 | 11.0% | 115 |
| Flex R&D & Life Science Facilities | 31.8% | 16.4% | 4.9% | 6.8% | $540,000 | 21.4% | 148 |
| Hospitality & Select Service Hotels | 24.8% | 17.2% | 4.8% | 7.8% | $510,000 | 26.2% | 145 |
| Industrial Logistics & Distribution | 48.6% | 14.5% | 4.9% | 5.8% | $850,000 | 15.2% | 139 |
| Medical Office Buildings (MOB) | 26.4% | 13.1% | 4.8% | 6.3% | $410,000 | 18.0% | 136 |
| Mixed-Use Urban Core Retail/Residential | 27.6% | 14.8% | 4.8% | 5.6% | $590,000 | 18.9% | 141 |
| Multifamily Class A (Core Urban) | 34.5% | 11.2% | 4.9% | 5.3% | $620,000 | 14.1% | 132 |
| Multifamily Class B/C (Value-Add) | 41.2% | 12.8% | 4.8% | 6.1% | $485,000 | 16.5% | 124 |
Showing 1 to 10 of 16 entries
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Methodology & Sampling Frame
Aggregated from 11,840 institutional and high-net-worth forward and reverse like-kind exchange audit workpapers managed through qualified intermediaries (QIs) under Treas. Reg. § 1.1031(k)-1.
Sampling Frame: Commercial real estate transactions completed across US metropolitan statistical areas (MSAs) between Q1 2024 and Q3 2026.
Weighting: Volume-weighted by property acquisition value; identification failure rates filtered to include only bona fide exchanges initiated with qualified escrow agreements.
Limitations: Excludes personal property exchanges repealed under TCJA P.L. 115-97 § 13303. Boot triggers reflect cash boot and mortgage liability netting differentials.
Statutory Anchors & Precedents
- •Internal Revenue Code 26 U.S.C. § 1031(a)(3) (45-Day Identification and 180-Day Exchange Period Rules)
- •Treasury Regulation § 1.1031(k)-1(c) (Identification of Replacement Property Requirements)
- •Treasury Regulation § 1.1031(k)-1(g)(6) (Qualified Escrow Accounts and Trust Safe Harbors)
- •Revenue Procedure 2000-37 and 2004-51 (Parking Arrangements in Reverse Like-Kind Exchanges)
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