The 1031 exchange is no stranger to sellers and buyers of commercial real estate. It is a way to avoid capital gains taxes on a sale by acquiring a similar property. But what happens when similar investment properties — say, a hotel or apartment development — are in short supply or the cost of development-grade farmland is escalating? Those market forces are in play in Greater Des Moines, and they can prompt future sellers to become buyers of the moment, especially when a suitable property is available, said David Brown, president and owner of IPE 1031 in West Des Moines. Those deals are called reverse exchanges, and Brown said his firm, which facilitates 1031 exchanges of all types, is seeing quite a few of them. In a reverse exchange, a replacement property is bought in advance of the sale of the property it will replace. If you aren’t familiar with 1031 exchanges and their various configurations, check out IPE 1031.