Tax-Deferred Real Estate Investing in Texas.
A 1031 Exchange is one of the most powerful wealth-building tools available to real estate investors. By deferring capital gains when reinvesting into a like-kind property, you preserve equity, grow your portfolio, and multiply long-term returns.
An investment accelerator,
not just a tax deferral.
A 1031 Exchange allows you to sell a real estate investment and reinvest the proceeds into a like-kind property while deferring capital gains taxes. The process is complex, time-sensitive, and requires expert guidance to execute successfully.
Timing is critical. With only 45 days to identify and 180 days to close on replacement properties, every decision must be precise. Our team leverages local expertise and national networks to uncover opportunities quickly — many of them off-market.
We coordinate closely with your tax advisors, attorneys, and Qualified Intermediaries (QIs) to ensure full IRS compliance. From contract structuring to due diligence, we manage the details so you avoid costly mistakes that could disqualify the exchange.
In Texas — where population growth, corporate relocations, and infrastructure investment are fueling demand — 1031 Exchanges create powerful opportunities to transition equity from mature assets into high-growth markets.
8 steps to a successful exchange.
Define Investment Objectives
Clarify goals: cash flow, appreciation, diversification, or management-free properties.
Property Valuation & Sale
Prepare the relinquished property for sale and assess current market value.
Qualified Intermediary Setup
Structure proceeds through an IRS-approved QI to ensure compliance from day one.
Property Identification (45 days)
Source and analyze potential replacement properties within the strict 45-day window.
Due Diligence
Evaluate tenant strength, income potential, expenses, and market growth indicators.
Contract Negotiations
Secure favorable purchase terms aligned with IRS timelines and your financial goals.
Closing (within 180 days)
Finalize the transaction within the mandatory 180-day exchange window.
Ongoing Portfolio Strategy
Guidance for future exchanges, portfolio expansions, and diversification.
Three metros. Three distinct 1031 strategies.
Each Texas metro creates a different replacement-property thesis. Our brokers identify where your exchange dollars work hardest based on current market fundamentals — not last cycle's assumptions.
Energy, medical, and industrial yield.
Houston's energy sector, the Port of Houston, and the Texas Medical Center drive demand for industrial, medical-office, and grocery-anchored retail replacement properties. Class A office clears at roughly $30.74/SF, and industrial has held near $10.67/SF for seven consecutive quarters — a level of stability 1031 investors can underwrite against. Energy Corridor, Katy, and Sugar Land are where we source the most replacement inventory today.
Active submarkets: Energy Corridor, Galleria/Uptown, The Woodlands, Katy, Sugar Land.
Corporate HQ relocation + mixed-use scale.
Dallas is ranked the #1 CRE market nationally by PwC/ULI, home to 24 Fortune 500 headquarters, and absorbed more than 100 corporate relocations between 2018 and 2024. With 2026 FIFA World Cup infrastructure investment still flowing, office absorption and mixed-use retail are the cleanest 1031 plays. Plano, Frisco, and Irving/Las Colinas carry the deepest tenant rosters and the most competitive exit caps.
Active submarkets: Uptown, Irving/Las Colinas, Plano, Frisco, Arlington.
Tech-driven growth at premium pricing.
Austin posts the highest office rents in Texas at $45+/SF, anchored by Samsung's CHIPS-Act semiconductor expansion and HQs from Dell, Apple, Google, Meta, and Oracle. Retail vacancy sits at 3.4% — the tightest in the state — and 10,621 new jobs were announced in 2025 alone. For 1031 investors willing to accept compressed yields in exchange for rent-growth runway, Austin remains the state's premium trade.
Active submarkets: Downtown, The Domain, Round Rock, Cedar Park, Georgetown.
1031 Exchange — your questions, answered.
What are the 45-day and 180-day deadlines?
After the relinquished property sells, you have 45 calendar days to formally identify replacement properties and 180 total days from the sale date to close. Miss either window and the exchange fails — triggering immediate capital-gains tax on the full gain. These dates are IRS-hard; there are no extensions for weather, financing, or estate events.
What counts as "like-kind" for a Texas commercial exchange?
Most commercial real estate held for investment or business use qualifies as like-kind to other commercial real estate. You can exchange a Houston industrial warehouse for an Austin retail center or a Dallas medical-office building — the properties do not need to match in type, only in investment intent. Personal residences and short-term flips are excluded.
Why do I need a Qualified Intermediary?
The IRS prohibits constructive receipt — meaning you cannot touch the sale proceeds. A Qualified Intermediary (QI) holds the funds in a segregated account and wires them directly to the replacement-property closing. We coordinate with vetted Texas QIs we have transacted with for years, so your timing and compliance stay clean.
How does Core Cre source replacement properties fast enough?
We begin replacement sourcing the day the relinquished property goes to market — not the day it closes. Our Texas broker network surfaces both listed and off-market candidates across all three metros. You typically receive a ranked short list of 8–15 underwritten properties within the first two weeks of the 45-day identification window.
Which Texas metro is the best 1031 destination right now?
No single answer — it depends on your thesis. Houston offers the strongest industrial and energy-adjacent yields. Dallas leads in corporate-HQ-driven office and mixed-use. Austin delivers semiconductor-fueled growth at premium pricing. Before identifying, we model each metro against your cash-flow, appreciation, and management-load goals.
What are the most common 1031 mistakes you see?
Three recur. One: starting replacement search after the sale closes instead of before. Two: identifying properties that cannot realistically close within 180 days due to financing, title, or environmental diligence. Three: routing proceeds through a personal account, breaking constructive-receipt rules. Each of these is avoidable with proper sequencing.