Panel E is 11.92 percent for HOLD' = 39, HOLD2 = 39 and 1 = 2 percent, while the

maximum benefit from exchange in Panel F is 13.25 percent for HOLD1 = 39, HOLD2

39 and 71 = 2 percent.

 To summarize the results in Table 2, an increase in the after tax-cost of equity by

two percent, all else the same, is associated with a maximum increase in the incremental

NPV from completing an exchange of slightly over 1.3 percent. Increase, in the dollar

costs associated with an exchange, relative to the cost of completing a taxable sale, is

associated with approximately a 0.5 percent decrease in NPV, all else the same, in the

worst case. A capital gain tax rate of 20 percent, all else the same is associated with, at

most, approximately a 4.5 percent higher allowed price premium. Maximum price

benefits vary between 8.5 and 11.5 percent for apartments and between 9.3 and 13.3

percent for non-residential real estate.

 The next chapter describes the data and empirical methodology used to measure the

size of exchange premiums and discounts actually observed in commercial real estate

markets over the 1999 to 2005 period.