CHAPTER 10
 CONCLUSION

 I study the role that buyer and seller motivations play in determining sales prices in

commercial real estate markets. Various conditions of sale, which can be viewed as

distinct motivations, appear to be quite common in commercial real estate transactions. I

examine several conditions of sale which represent distinct motivations that are

frequently seen in comparable sales data and also could influence sales price. In

particular, I focus attention on the use of tax-deferred exchanges nationwide and their

effect on observed transaction prices. I also examine the pricing of properties that are

purchased by out-of-state buyers, as well as sales that are part of condominium

conversions, portfolio transactions or sale-leaseback transactions.

 This dissertation finds several interesting results that have not been discussed in

previous published work.

 First, this dissertation represents the first work that quantifies the size of the

exchange market nationwide, as well as defines conceptually and empirically the

magnitude of possible effects of exchanges on transaction prices in different markets

across the country.

 Second, I find a significant positive marginal effect related to replacement property

exchanges, which is consistent with the Tax Capitalization Hypothesis and the Imperfect

Substitute Hypothesis interpretations. This effect is robust across the 15 markets studied

in the apartment, office and retail properties samples. More importantly, the price effect

differs substantially across residential and non-residential properties, as well as across