Why the under-$2M segment is so tight
Most 1031 exchanges involve relinquished properties worth between $500K and $1.5M. Those exchangers need replacements in roughly the same range — but institutional-quality leased product under $2M is scarce, because larger investors don't sell it and builders don't build it.
The result: good sub-$2M listings attract multiple exchange buyers at once, and the ones who win are prepared before the identification clock starts.
How to win in this price range
- Get pre-qualified with a lender who understands exchange timelines
- Line up your qualified intermediary before your sale closes
- Start touring replacement properties before day one of your 45-day window
- Favor assets with leases in place — income from day one with no lease-up risk
- Be ready to write clean offers with short inspection periods
What $1.5M buys in Naples today
In Old Naples, $1.5M buys a fully built-out Class A office condo with a tenant in place — fee-simple ownership, a prestigious downtown address, and a cap rate near 4.7%. Compared with NNN retail at similar pricing, an office condo offers simpler diligence and a faster close, both critical inside a 180-day window.
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.