measures the size of the exchange market nationwide, and defines conceptually and

empirically the magnitude of the effect of exchanges on transaction prices in different

markets across the country and across property types. The results imply that participants

in tax-delayed exchanges, need to be careful because the price they pay in the form of

higher replacement property price may offset, in whole or in part, the gain from

deferment of taxes.

 I also analyze properties purchased by out-of-state buyers, sales that are part of

sale-leasebacks, portfolio transactions, or condominium conversions. I find that these

special motivations are generally associated with positive price premiums. These results

have important implications since they demonstrate not only that various atypical

motivations of buyers and sellers have an impact on transaction prices in commercial real

estate, but also that this impact is sensitive to the market, as well as to the property type.