1031 Exchange Into Small Bay Industrial

A 1031 exchange into small bay industrial moves the proceeds from your property sale into multi-tenant industrial real estate while deferring the capital gains tax. Small bay qualifies as like-kind replacement property — the exchange rules don't care that you're leaving houses or land behind.

We operate small bay industrial and keep a live inventory of Texas properties, so you're identifying real, closable assets instead of racing the clock with a broker's stale list.

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The 1031 Exchange Clock — 180 Days, One Start
DAY 0 Sale closes — clock starts DAY 45 Identification deadline DAY 180 Closing deadline IDENTIFY · 45 DAYS CLOSE ON WHAT YOU IDENTIFIED · BY DAY 180 Both windows start the same day. Calendar days — weekends and holidays count. No extensions. 45 calendar days to identify, in writing, to your QI 3 properties you can identify, any value (standard rule) 180 days total to close — runs concurrently, not after

Why Small Bay Works for Exchange Capital

Small bay industrial is many small tenants under one roof — contractors, tradesmen, distributors. One tenant leaving doesn't gut your income the way it does with single-tenant property.

  • 20-40 tenants per property spreads vacancy risk
  • Minimal tenant improvement costs between leases
  • Rents reset frequently — inflation flows through to income
  • Persistent supply shortage: nobody builds small bays anymore

How the Exchange Runs

You sell, your Qualified Intermediary holds the proceeds, and you have 45 days to identify replacement property and 180 to close. We coordinate directly with your QI on documentation and deadlines, and our inventory gives you identifiable properties on day one — not day 40.

Current Replacement Property Inventory

The Brown Portfolio

Houston, TX · Small Bay Industrial

$7,760,000

57,565 SF · 100% occupied

East Houston Shallow Bay Portfolio

Houston, TX · Small Bay Industrial

Contact for Pricing

· 100% occupied

Highway 30 Business Park

College Station, TX · Small Bay Industrial

Contact for Pricing

186,225 SF · 94.5% occupied

View all available properties →

Common Questions

Does small bay industrial qualify as like-kind?

Yes. Any real property held for investment or business use exchanges into any other — a rental house, apartment building, or raw land can all move into small bay industrial.

What are the deadlines?

45 calendar days from your sale closing to identify replacement property in writing, 180 days total to close. Both run concurrently and neither extends.

Can I combine my exchange funds with financing?

Yes. To fully defer tax you generally need to buy equal or greater value and replace the debt you paid off. Financing on top of exchange proceeds is standard.

Related Exchange Scenarios

Ready to Deploy Your 1031 Capital?

Call us at 717-553-6888 or send an inquiry. We coordinate the exchange from identification to closing.

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