THURSDAY'S CUP: Capital gains threat drives commercial sales boom

Commercial brokers couldn't get much rest this holiday season and, compared with the prior lackluster activity since the real estate market decline, most are grateful for it.

December is typically a strong month for sales, but commercial brokerages say last month's transaction volume was larger than normal. Probably the biggest contributing factor was the real threat of higher capital gains taxes. This drove a flurry of 1031 tax-deferred exchanges, as investors looked to reduce their taxable income.

At the same time, banks and special servicers continued to approach the end of the year with a renewed willingness to bargain on property prices to clear distressed assets.