Using a 1031 Exchange in Massachusetts: Turning Equity Into Opportunity

By Casey DiMascio, Broker Partnerships Lead at CommercialGRP

One of the most powerful tools available to real estate investors is the 1031 exchange — a strategy that allows the sale of one investment property and the reinvestment of those proceeds into another, tax-deferred. But beyond its tax advantages, a 1031 exchange can be a smart way to reposition portfolios, unlock equity, and align capital with markets that are truly growing.

At CommercialGRP, our focus is on helping investors and brokers navigate these transitions with confidence — especially within the industrial (15K–120K SF) and retail asset classes that continue to strengthen communities and drive meaningful impact across Massachusetts and the Northeast.

What a 1031 Exchange Really Means for Investors

A 1031 exchange, named after Section 1031 of the Internal Revenue Code, allows investors to defer capital gains taxes by reinvesting the sale proceeds from one qualifying property into another “like-kind” property.

For Massachusetts investors, this can mean exchanging an older industrial asset in Boston Metro West for a higher-yield property in Central MA — or trading out of a single-tenant retail property into a multi-tenant center that offers diversified income.

While the IRS rules are specific — including the 45-day identification window and 180-day closing requirement — the benefits are substantial when done right:

  • Tax deferral keeps your capital working for you.

  • Portfolio repositioning allows you to adapt to evolving market dynamics.

  • Community reinvestment channels private capital into properties that create jobs, improve infrastructure, and support local economies.

In our recent blog, Where Industrial Investors Are Finding the Best Returns in MA, we explored how investors are strategically leveraging market data — and tools like the 1031 exchange — to move capital into submarkets where returns are most compelling.

Building Strong Partnerships Around Every Exchange

At the heart of every successful 1031 exchange is collaboration. These transactions work best when brokers, investors, and advisors communicate transparently and move quickly to identify qualified replacement properties.

That’s where CommercialGRP’s partnerships-first approach makes a difference. Our team supports both sides of the deal — helping sellers achieve a smooth transition while helping buyers locate industrial and retail assets that meet both their investment and timing needs.

We believe strong communication creates strong results. Whether it’s sharing off-market opportunities or navigating deadlines, we stay proactive, detailed, and honest throughout every step of the process — values we explored in From Data to Deal Flow: How We Evaluate Industrial Opportunities.

Why Industrial and Retail Assets Fit Perfectly in a 1031 Strategy

Industrial and retail properties — particularly those in the 15K–120K SF range — continue to perform well in today’s environment. Investors seeking steady cash flow and operational stability often find these assets ideal for 1031 reinvestments because:

  • Industrial demand remains strong, driven by supply chain diversification and e-commerce growth.

  • Retail repositioning is unlocking new value through experiential, service-based, and necessity-driven tenants.

  • Local impact: Both sectors play an essential role in revitalizing neighborhoods and supporting small business ecosystems.

We recently covered this theme in Industrial Market Trends: Reading Between the Lines of Demand, which highlights how targeted reinvestment in industrial corridors can strengthen both investor portfolios and local economies.

Turning a Transaction Into Transformation

For us at CommercialGRP, a 1031 exchange isn’t just about a transaction — it’s about transformation. It’s about helping our clients move from one chapter of ownership to the next, while ensuring the next investment contributes to something bigger: communities that thrive and assets that endure.

If you’re a broker or investor exploring a 1031 exchange in Massachusetts or the Northeast, I’d love to connect. Let’s talk about your goals, your timeline, and how we can help you identify industrial or retail opportunities that align with your vision.

Let’s turn your next exchange into an opportunity to grow, reinvest, and make an impact — together.
 📩 Connect with me and the CommercialGRP team at CommercialGRP.com/contact