At nearly 100 years old, like-kind exchanges have become a subject of much debate recently as tax reform has taken center-stage under the Trump administration. Tax reform is on the agenda for Congress in 2017 and it must consider whether to repeal, preserve, or expand the provisions of the section of the United States Tax Code known as “1031”.
It has been a slow and steady process, but new office construction is finally approaching its long-term average in the U.S.
In fact, newly constructed office space exceeded demand in the first quarter of 2015.
Approximately 15 million square feet of new office space came on-line in the U.S. during the first three months of 2015. This surpassed net absorption by 3 million square feet for the same period.
There was approximately 108 million square feet under construction at the end of the first quarter 2015. This equates to an increase of 17% compared to the same period a year ago. This is quite an improvement from the historical low of 50 million square feet in 2010.
Increasing office rents are making new construction a viable alternative to purchasing an existing building. If this trend continues, the amount of office space under construction will continue to move closer to the quarterly historical average of 122 million square feet under construction.
Things are coming to life at this Meridian Realty managed shopping center off Hanes Mall Blvd in Winston-Salem. A surge of new tenants have been busy moving into thousands of previously vacant square footage at this shopping center. The new tenant theme seems to be Work & Eat, so if you’re looking to Play you’ll have to venture somewhere else for the time being.