What Selling a Warehouse Really Costs in Pennsylvania and New Jersey

This guide adds up what it costs to sell a warehouse or industrial building in Philadelphia, its Pennsylvania suburbs and South Jersey.

The rates come from the state and local agencies named in each section, and where we did the arithmetic, we say so. Direct Warehouse Buyers is part of a family-owned business that has been operating for over 15 years. We buy industrial buildings through our own company in Philadelphia, Bucks, Montgomery and Delaware counties in Pennsylvania and Camden, Burlington and Gloucester counties in New Jersey. The title company figures the exact amounts for your closing.

What does it cost to sell a warehouse?

Selling a warehouse brings four kinds of costs: transfer taxes or fees set by law, a commission if you list, loan and lien payoffs, and smaller closing items. Those include certificates, prorated property taxes and title charges. Most income tax on your gain comes later. Of the costs set by law, location and, in New Jersey, tax class make the biggest difference.

• Transfer taxes: in Pennsylvania, a state tax plus a local tax, split as the agreement says. In New Jersey, the seller's Realty Transfer Fee and, for some commercial property, the Graduated Percent Fee.
• Commission: only if you list, at the rate in your listing agreement.
• Payoffs: your mortgage and any liens, paid from the price at closing.
• Smaller items: town certificates, prorated property taxes and rents, and title and settlement charges.

How much is Pennsylvania's realty transfer tax on a warehouse sale?

The Pennsylvania state tax is 1% of the property's value, and the county collects it, often with a local tax on top. In Philadelphia the total is 4.578%, usually split evenly. Bucks and Montgomery counties list a 2% total, and Delaware County is 2% except in four municipalities. On a $2,500,000 sale, that's $114,450 in Philadelphia and $50,000 at 2%.

Philadelphia's rate has been 4.578% since July 1, 2025: 3.578% for the City and 1% for the state. An even split is what the City says usually happens, not a legal requirement. The Department of Revenue holds both grantor and grantee (seller and buyer) "jointly and severally liable" for the state's 1%. The City says it "has the right to collect 100% of the tax from either party." We didn't find a published custom for the suburbs, so there the split is whatever your agreement says. The Delaware County exceptions come from the county's Recorder of Deeds, and our Delaware County transfer tax table lists each one. The title company confirms the rate for your exact address.

How much is New Jersey's Realty Transfer Fee on a warehouse sale?

New Jersey's Realty Transfer Fee on a $2,500,000 sale is $27,725 by our arithmetic, and the seller pays it by law. The Division of Taxation charges it per $500 of the price. On a sale over $350,000, the rate runs from $2.90 per $500 of the first $150,000 to $6.05 per $500 of the part above $1 million.

On $2,500,000, the parts add up to $27,725:

• $870 on the first $150,000
• $425 on the next $50,000
• $3,360 on the next $350,000
• $3,180 on the next $300,000
• $1,740 on the next $150,000
• $18,150 on the $1,500,000 above $1 million

The Division lists these as its rates for standard transactions and new construction. The title company figures the exact fee for your closing.

Does a warehouse sale owe New Jersey's Graduated Percent Fee?

A warehouse sale owes New Jersey's Graduated Percent Fee only if the property is Class 4A commercial and sells for more than $1 million. Since July 10, 2025, unless an exemption applies, the seller pays it at 1% to 3.5% of the full price. Class 4B industrial property doesn't owe it. The class on the municipal tax list decides, so check it before you set a price.

News coverage often calls it New Jersey's "mansion tax," though it applies to Class 4A commercial sales too. The Division of Taxation lists the rates by price, each applied to the whole price:

• Over $1,000,000 up to $2,000,000: 1%
• Over $2,000,000 up to $2,500,000: 2%
• Over $2,500,000 up to $3,000,000: 2.5%
• Over $3,000,000 up to $3,500,000: 3%
• Over $3,500,000: 3.5%

Watch the bracket edges

Because each rate applies to the whole price, crossing an edge raises the entire fee. By our arithmetic, a Class 4A sale at $2,000,000 owes a $20,000 Graduated Percent Fee, and one at $2,000,001 owes $40,000.02. At $2,500,000 the fee is $50,000, and at $2,600,000 it's $65,000. When a price lands near an edge, run the numbers on both sides of it.

Check the class first

The state's classification rule names storage warehouses among its Class 4B industrial examples, but the class that counts is the one on your town's tax list. If a property is in the wrong class there, the Division says the assessor or the taxpayer can appeal to the county board of taxation before the town's appeal deadline. After that deadline, the assessor can change the class on the next year's list.

Mixed-use property has an interim route of its own. On April 27, 2026, the Tax Court held that the predominant use test, which classes a mixed-use property by its main use, is the right standard. The Division told assessors to apply it on the 2027 tax lists.

Until those lists come out, the Division will review a mixed-use property's class before closing, on request. Email Form RTF-3, the Division's Realty Transfer Fee claim for refund, to [email protected] with "INSPECTION" in the subject line. Send it at least 45 days before closing, so there's time for a decision. An appraisal done for the sale or the assessor's records can show the property's uses without an inspection. If the request comes too late, you pay the fee at closing and can claim a refund within 90 days of paying it.

Selling the company instead of the building

New Jersey's Controlling Interest Transfer Tax applies when a controlling interest in a company that owns Class 4A property is sold for more than $1 million. It uses the same 1% to 3.5% schedule, and since July 10, 2025 the seller owes it. Under the state's rule, a controlling interest in a corporation means more than 50 percent of its total combined voting power. For a partnership, association, trust or other organization, it means more than 50 percent of the beneficial ownership. This guide covers selling the building itself.

What does a commission cost on a warehouse sale?

A commission costs whatever your listing agreement says, and you negotiate the rate with your broker. On a $2,500,000 sale, each 1% of commission is $25,000. A listing can also bring repair credits after the buyer's inspections, and carrying costs such as taxes, insurance and utilities while the building is on the market. Direct Warehouse Buyers charges no commission and no fees.

A vacant building in Philadelphia adds a carrying cost of its own: the City's Vacant Commercial Property License, at $202 a year. Its bond is $50,000 for a building under 50,000 square feet, $100,000 from 50,000 to 200,000 square feet and $500,000 above that. The City accepts a letter of credit as an alternative to the bond. Philadelphia's vacancy rules explain when the license applies. Our comparison of selling direct and listing sets these costs side by side.

What other costs come out at closing?

Your mortgage and any liens are paid off from the price, and property taxes and rents are prorated to the closing date. Title and settlement charges appear line by line on the settlement statement. Some towns also charge for a certificate or inspection before a sale. In the towns we checked, most of those fees are a few hundred dollars or less.

Fees can run higher for big buildings: Bensalem's certificate fee, set by floor area, runs from $230 to $9,525 (2024 fee schedule). Rules and fees change, so confirm yours with the municipality. Our county pages list more towns: Philadelphia, Bucks County, Montgomery County, Delaware County, Camden County, Burlington County and Gloucester County.

If ISRA, New Jersey's Industrial Site Recovery Act, applies to a property, the site investigation and any cleanup bring costs of their own. Our ISRA guide explains what it requires and how a sale can still close.

Sellers who live outside New Jersey

Nonresident sellers have one more line to plan for. When the seller is an individual, estate or trust based outside New Jersey, the state requires an estimated income tax payment before the deed can be recorded. The payment is the gain times 10.75%, the top rate, and no less than 2% of the price, or $50,000 on a $2,500,000 sale. Sellers that aren't individuals, estates or trusts are exempt, and GIT/REP-3, the state's residency form, lists the other exemptions. It's an estimated income tax payment, not a fee, and it's paid before or at closing. Our FAQ explains the payment and its exemptions.

What does a seller net on a $2,500,000 warehouse sale?

On a $2,500,000 sale with a sample $800,000 mortgage payoff and no commission, a seller nets $1,642,775 in Philadelphia and $1,675,000 in a 2% Pennsylvania suburb. Both figures assume the transfer tax is split evenly. In New Jersey, the seller nets $1,672,275 on Class 4B property and $1,622,275 on Class 4A property. Title charges, certificate fees, prorations, income taxes and New Jersey's payment for nonresident sellers aren't included.

The $800,000 payoff is a sample; use your lender's payoff figure. The Pennsylvania columns assume an even split of the transfer tax. If you agree to pay all of it, subtract another $57,225 in Philadelphia or $25,000 at 2%. Certificate fees, title charges and prorations depend on the town and the closing date, so they aren't shown.

If you list instead

Subtract the commission in your listing agreement, $25,000 for each 1% at this price, plus any repair credits and carrying costs. A listing can also bring a higher price, so run the numbers at the price a broker expects. In New Jersey, a higher price can push a Class 4A sale into a higher bracket: $2,500,000 owes a $50,000 Graduated Percent Fee, and $2,600,000 owes $65,000.

If you live outside New Jersey

In the New Jersey columns, an individual, estate or trust living outside the state would also make the estimated income tax payment before or at closing. Here it would be at least $50,000, unless an exemption applies.

Do income taxes come out at closing?

Mostly not. Income taxes are figured on your gain, not the price, and settled through your tax returns. Two payments can come out at closing. One is New Jersey's estimated payment for nonresident individuals, estates and trusts. The other is federal withholding for foreign sellers under FIRPTA, the Foreign Investment in Real Property Tax Act, generally 15% of the amount realized.

FIRPTA's amount realized is the cash and other property paid, plus any debt the buyer takes on. For individuals, estates and trusts, Pennsylvania's personal income tax is 3.07%, and New Jersey's graduated income tax tops out at 10.75%. Corporations pay New Jersey's Corporation Business Tax instead. A 1031 exchange can defer tax on the gain when you buy replacement property within the IRS deadlines. For federal rates, the 3.8% net investment income tax and the exchange rules, see the taxes due after you sell a warehouse in our seller's guide. Your accountant works out the actual figures.

How can you lower what it costs to sell?

Haverford and Logan Township, for example, charge more for a rush. Haverford's certificate costs $105 with 30 days to process and $300 with less than five days. Logan Township charges $300 instead of $200 for an inspection within 48 hours. A 1031 exchange runs on IRS deadlines of its own, starting with 45 days after the sale to identify replacement property. Our seller's guide lists every lead time to plan around.

What does it cost to sell to Direct Warehouse Buyers?

We charge no commission and no fees. Transfer taxes are handled the usual way for your property: in Philadelphia the tax is usually split evenly, and in New Jersey the seller pays the Realty Transfer Fee by law. On some deals we cover more, in writing.

In the Pennsylvania suburbs, our written offer spells out who pays the transfer tax. In New Jersey, a Class 4A sale over $1 million also carries the seller's Graduated Percent Fee. Our written as-is offer shows the price, and the title company's settlement statement lists every cost line by line. How It Works explains who pays what when you sell to us, and our guide to the steps from first offer to closing covers the rest of the process.