also the second most expensive market after San Francisco, with an average price per sq.

ft. of $172.

 Approximately 13 percent of the retail transactions involve the purchase of a

replacement property to complete an exchange; six percent involve the sale of the

relinquished property in an exchange; and three percent represent a sale of relinquished

property that is also a replacement property in a separate exchange. This distribution of

exchanges is similar to the one observed for office properties and suggests that there are

multiple properties used by taxpayers in the upleg portion of the exchange. On average,

the data suggests for one relinquished property there are two replacement properties. In

addition, in several markets the number of replacement exchanges far outnumbers the

relinquished property sales. For example, in Tucson the ratio of replacement to

relinquished sales is 6.3; in the Dallas / Forth Worth area this ratio is 6. In Houston and

Las Vegas the ratios are each 5.3. In San Francisco, however, relinquished sales

outnumber replacement property purchases by a factor of 1.5. These ratios also can be

used as indicators of which markets have been preferred by investors for investment once

they dispose of their relinquished properties.

 Approximately 15 percent of all buyers reside out-of-state; out of 12,015 retail

sales 1,850 involved an out-of-state buyer. This percentage is very similar to the 16

percent share of out-of-state buyers observed in the office sample. The markets with the

highest share of buyers that are out of state are: Las Vegas, 52 percent; Phoenix, 47

percent; Tucson, 30 percent; Dallas/Forth Worth, 29 percent; and Houston, 27 percent.

Other markets of potential interest when quantifying the effect of having a buyer that is

out-of-state include Fort Lauderdale with 18 percent out-of-state buyers; Denver with 17