Like-kind is broader than you think
Under Section 1031, almost any US real property held for investment is like-kind to any other. You can sell a rental house and buy an office condo, sell raw land and buy retail, or sell an apartment building and buy a single-tenant net-lease asset. The use doesn't matter; the investment intent does.
Debt replacement: the rule exchangers forget
To fully defer tax, your replacement property must carry equal or greater debt than the property you sold — or you must add cash to make up the difference. If you sell a property with a $900K mortgage and buy one with a $700K mortgage, the $200K difference is taxable boot unless offset with new cash.
For smaller commercial assets like office condos, many exchangers simply pay all cash and avoid the issue entirely.
Reading a commercial lease before you identify
The lease is the asset. Before identifying a commercial replacement, review the remaining term, renewal options, escalations, expense structure (gross vs. net), and the tenant's renewal intentions. A property with a tenant in place through 2029 offers income certainty that covers the entire typical hold period for a first-time commercial buyer.
A current example: Suite 200 at 599 Tamiami Trail N
This fully built-out executive office condo in the heart of Old Naples is offered at $1,500,000 with a 4.67% cap rate and $70,000 in net operating income. The tenant is in place on a lease running through 2029, so a buyer steps directly into stabilized income with no lease-up risk.
Fee-simple title, a prestigious downtown address, and a turn-key buildout make it a clean, quick close — important for anyone working inside a 1031 exchange timeline or placing capital before year-end.