Deferral may be full or partial. Instead of using current dollars to pay taxes, the money is retained by the Taxpayer and used for investment purposes. Poorly performing properties can be weeded out. Income producing property can be exchanged for property that is not appreciating. Vacant land can be traded for improved.
Investments can be more easily diversified, to reduce risk.
The burden of management and operating expenses can be reduced by obtaining less management intensive properties. The Taxpayer can relocate his portfolio, to keep investments closer to home. Cash can be raised. Even if some taxes must be paid, an exchange may still benefit the Taxpayer. The Taxpayer can unload a large problem property for several smaller ones that may be easier to sell.