The majority of these studies are based on either homes or residential real estate.

Only Downs and Slade (1999) and Munneke and Slade (2000, 2001) study property types

that are different from residential in this case offices. All of the previous studies, with the

exception of one, focus on one market and one property type. The study by Hardin and

Wolverton (1999) analyses REIT purchases in three markets Atlanta, Phoenix and

Seattle.

 I examine several conditions of sale which represent distinct motivations that are

frequently seen in comparable sales data and could influence sales price. In particular, I

focus attention on the use of tax-deferred exchanges nationwide and their effect on

observed transaction prices.

 Tax-deferred exchanges are transactions in which a taxpayer is able to defer

payment of some, or all, of the federal income taxes associated with the disposition of

real property by acquiring another property of "like kind." Although Section 1031 of the

Internal Revenue Code (IRC) dates back to the 1920's, exchanges under the original

restrictions could only be completed as a simultaneous swap of properties among two or

more parties. The required simultaneous exchange of property severely limited the

usefulness of Section 1031 exchanges as a tax deferral tool because of the difficulty of

synchronizing the close of two or more complex transactions.

 Only in 1984, in response to an earlier court decision related to the "Starker" case

(Starker vs. United States, 602 F. 2d 1341 (9th cir., 1979)), did Congress amend the

original regulations to allow taxpayers more time to complete the transaction. More

specifically, a taxpayer who initiates a Section 1031 tax-deferred exchange has up to 45

days after the disposition of the "relinquished" property to identify a replacement