Julie Baird is President of First American Exchange Company. She leverages people centered leadership practices to foster an organizational culture of collaboration, transparency, and trust, with employees reporting high job satisfaction while delivering record setting financial results.

A fierce advocate for elevating female voices within the CRE industry, Julie has been a member of GlobeSt Woman of Influence speaking faculty since its inception and was awarded as a Woman of Influence in 2023; she was awarded First American’s DPK Circle of Excellence Award in 2022, a recognition given to a very small number of the highest achieving employees in the entire organization of nearly 20,000 employees, and Julie was invited to participate in First American’s Women in Leadership class of 2021 and selected by her class as a presenter to the First American Financial executive team.

Julie is a past President of the Federation of Exchange Accommodators and is past Director for CREW Denver. She is a frequent speaker and author on 1031 exchange and industry related topics.

Investors who take advantage of store closures by using a 1031 exchange can trade out of fully valued or underperforming assets and redirect their capital into distressed or overlooked retail properties with greater upside

Julie is a former Chair of the Executive Committee of the Real Property Law Section of the State Bar of California and she is the prior Managing Editor of the California Real Property Journal. In 2009, Julie was named as one of the “Top 20 Under 40” real estate professionals by the Commercial Real Estate Women (CREW) Network.

Prior to joining First American, Julie was a real estate attorney in San Francisco.

What is a 1031 exchange and why is it an opportune time for investors in the retail real estate sector to consider it?

A 1031 exchange is a tax-deferral strategy that allows investors to sell a property and reinvest into a like-kind real property asset, without recognizing or having to pay capital gains taxes at the time of the sale.

Normally, when investors sell a property for a profit, they must pay taxes on capital gains, which can be significant depending on the property’s appreciation and how long it has been held. Tax deferral allows investors to keep more capital in the real estate market, rather than losing a portion of their profit to taxes, making it easier to compound wealth over time.

Investors should always consult their tax professional and legal counsel when evaluating their options, but retail real estate investors can use a 1031 exchange to exit underperforming or fully valued assets and redirect that capital into properties with stronger upside, rather than simply riding out a challenging market cycle.

How are changing consumer habits influencing retail investment strategies?

Consumer behavior is changing rapidly. People are dining out less, shopping more selectively, and prioritizing convenience and services over discretionary goods. This shift is putting pressure on traditional retail formats. For example, big box stores and older shopping centers have been harder hit as they are typically geared toward product-heavy tenants.

A bright spot is in smaller centers with experience-oriented or service-based tenants, such as medical, boutique fitness, and fast casual dining options. These types of tenants draw consistent foot traffic compared to traditional big box retail.

We are seeing investors using 1031s to pivot into properties featuring these more experiential, service-based businesses; it’s all about aligning the portfolio with today’s demand drivers.

In 2025, store closure rates are accelerating. How are those closures creating new opportunities for investors?

Closures by large national retailers, for example, are opening up space that has been historically hard to find, especially in high-barrier-to-entry markets. This inventory shift is creating a window for investors to step in and reposition these assets.

Investors who take advantage of store closures by using a 1031 exchange can trade out of fully valued or underperforming assets and redirect their capital into distressed or overlooked retail properties with greater upside.

For example, if investors can move into properties where they can make strategic upgrades–such as modernizing facades, subdividing large footprints or seeking tenants with in-demand, service-oriented uses–they can reposition those retail properties and better meet today’s tenant needs and demands. Utilizing a 1031 exchange, investors can directly invest cash from the property sold into these types of strategic opportunities.

Rising insurance costs are also affecting property owners. How are you seeing savvy investors use 1031s to address that particular challenge?

Insurance premiums are putting pressure on net operating income (NOI) across many markets. The causes range from inflation to climate risk, and they are not going away anytime soon, from what I can tell. There has been a strategic migration as investors are using 1031s to trade out of high-cost properties and into better-insulated assets.

This could mean moving into newer construction, safer geographies, or properties where improvements like roofing, HVAC, or fire safety systems can reduce risk. The strategy of looking for retail properties in more insurable locations relieves cost pressure and can also improve long-term asset resilience and enhance cash flow predictability.

What’s your advice to investors who might be feeling hesitant about making moves in today’s climate?

Don’t confuse volatility with risk. Yes, the market is shifting, but sitting still can be just as risky. This is especially true when you have tools like a 1031 exchange available. If you have an asset that is no longer performing the way it once did, or no longer fits your goals, this is not a moment to retreat, it’s time to reposition the asset.

Investors who lean in to repositioning and make smart exchanges are ultimately more likely to stay ahead of the curve and come out stronger.

Disclaimer: First American Exchange Company, LLC, a Qualified Intermediary, is not a financial or real estate broker, agent or salesperson, and is precluded from giving financial, real estate, tax or legal advice. Consult with your financial, real estate, tax or legal advisor about your specific circumstances. Nothing contained in this article is to be considered as the rendering of legal or tax advice for specific cases, and readers are responsible for obtaining such advice from their own legal counselor tax professional. This article is intended for educational and informational purposes only.

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