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dizposition

Sell your commercial property in Pennsylvania

We buy commercial real estate across Pennsylvania directly, as-is, for cash.

Pennsylvania at a glance

Population
13.1M
Job growth
+0.6%
Transfer tax
1% state + local (typically 1%)
Eff. property tax
1.26%

Data current as of

Market conditions

The Pennsylvania market right now

Our read

Pennsylvania's population is about 13.1 million and is growing 0.1% a year. Median household income is $77,545, and over the latest year the state lost a net 2,936 residents to other states.

Pennsylvania's population is close to flat, with migration roughly in balance, so its strength is location rather than growth. The Lehigh Valley around Allentown and Bethlehem is one of the strongest bulk distribution markets in the Northeast; Philadelphia is port, life sciences and dense infill industrial; Central Pennsylvania around Harrisburg and Carlisle is an interstate distribution corridor; Pittsburgh is advanced manufacturing, robotics and healthcare at UPMC.

Transfer tax is the cost that stands out. The combined state and local rate is one of the higher ones in the country, and Philadelphia's is more than double the usual level. Spot reassessment is prohibited, so a sale does not let the county reassess, though taxing districts such as school districts can still appeal an assessment after a sale.

Valuation

What your Pennsylvania property is worth

How we price it

What a commercial property is worth in Pennsylvania comes down to the income it produces, how durable that income is, and what it costs to hold and transfer the asset here. We underwrite all three rather than applying a statewide cap rate to a number you send us.

Income durability is where most valuations go wrong. A tenant with three years remaining in Lehigh Valley is a different risk from the same tenant in Pittsburgh, and remaining lease term alone does not capture it. We look at what the space actually re-leases for and how long it sits empty first.

Holding and transfer cost is the other half, and it comes directly out of your proceeds. Transfer tax, property tax treatment, and closing convention vary more between states than most sellers expect. The Pennsylvania figures, with the statutes behind them, are set out in the tax and legal section below.

Capital markets today

10-yr Treasury
5.24%
4.12% a year ago
SOFR
3.87%
4.2% a year ago
30-yr mortgage
7.28%
6.3% a year ago
CRE loan delinquency
1.53%
1.57% a year ago
CRE prices, YoY
6.58%
-2.7% a year ago

Sources: FRED DGS10, 2026-10-01 · FRED SOFR, 2026-10-01 · FRED MORTGAGE30US, 2026-10-01 · FRED DRCRELEXFACBS, 2026-04-01 · FRED COMREPUSQ159N, 2026-01-01

Pennsylvania tax & legal

Pennsylvania's transfer tax is usually about 2% combined state and local, and 4.578% in Philadelphia, which makes it one of the more expensive states to sell in.

Transfer tax
1% state + local (typically 1%)
Property tax (eff.)
1.26%
1031 conformity
Yes
Closing
Title state

Pennsylvania property tax vs. the 50 states

  • Pennsylvania
  • Other states
  • Median state
  • Effective property tax rate

    0.29%1.88%

    1.26%

    12th highest of 50

Effective rates as cited on each state's page; every state's sources include Tax Foundation.

View all states as a table
StateEffective property tax rate
Arizona0.48%
Texas1.40%
Florida0.78%
Alabama0.37%
Alaska0.94%
Arkansas0.56%
California0.70%
Colorado0.50%
Connecticut1.54%
Delaware0.54%
Georgia0.79%
Hawaii0.29%
Idaho0.50%
Illinois1.88%
Indiana0.76%
Iowa1.33%
Kansas1.21%
Kentucky0.74%
Louisiana0.55%
Maine0.98%
Maryland0.92%
Massachusetts1.00%
Michigan1.19%
Minnesota1.00%
Mississippi0.58%
Missouri0.89%
Montana0.61%
Nebraska1.44%
Nevada0.50%
New Hampshire1.50%
New Jersey1.88%
New Mexico0.63%
New York1.30%
North Carolina0.66%
North Dakota0.92%
Ohio1.36%
Oklahoma0.79%
Oregon0.81%
Pennsylvania1.26%
Rhode Island1.12%
South Carolina0.49%
South Dakota1.00%
Tennessee0.52%
Utah0.48%
Vermont1.51%
Virginia0.78%
Washington0.75%
West Virginia0.51%
Wisconsin1.32%
Wyoming0.53%

Statutes

  • 72 P.S. § 8102-C
  • 53 Pa.C.S. § 8843
  • 53 Pa.C.S. § 8855

Transfer tax is the line item that matters most in Pennsylvania.

The state's realty transfer tax under 72 P.S. § 8102-C is 1% of value, and local jurisdictions add their own, typically another 1% and more in some places. In Philadelphia the city rate has been 3.578% since July 1, 2025, for a total of 4.578%. On a $4M Philadelphia sale that is $183,120. By statute the grantor and the grantee are jointly and severally liable, so the split is negotiated. Selling the entity that holds the property does not avoid the tax: acquiring a real estate company is taxable too.

On assessment, a sale does not by itself let the county reassess. Spot reassessment is prohibited under 53 Pa.C.S. § 8843. But taxing districts can appeal any assessment under § 8855, and a recent sale price is the evidence they use, so your buyer may model a higher bill. The statewide effective rate on owner-occupied housing is about 1.26%.

Pennsylvania has recognized federal 1031 exchanges for personal income tax since 2023, under Act 53 of 2022. Before that it did not, so older advice may be out of date. The deferral does not cover transfer tax, which is still due on each deed.

What this means

If you're selling in Pennsylvania

  1. Transfer tax of 1% state + local (typically 1%)

    Budget this as a closing cost from day one. It is charged on the sale price, not on your gain, so it applies whether or not the sale is profitable.

  2. Closes through title, no attorney required

    A title or escrow company handles closing, title insurance, and recording. That usually means a faster close and one less party to coordinate.

  3. 1031 exchange defers state tax too

    Pennsylvania conforms to federal like-kind exchange treatment, so a properly structured 1031 defers both. You must have a qualified intermediary in place before closing — it cannot be arranged afterward.

  4. How the sale affects assessed value

    A sale alone does not let the county reassess, because spot reassessment is prohibited. Taxing districts such as school districts may still appeal any assessment, including one on a recently sold property.

Demand drivers

The Pennsylvania economy

Population

13.1M

Pop. growth

+0.1%

Job growth

+0.6%

Unemployment

3.7%

Net domestic migration

-2,936

Housing permits YTD

17,028

Permits vs last year

-1.4%

Median household income

$78K

How Pennsylvania compares

  • Pennsylvania
  • Other states
  • Median state
  • Job growth, year over year

    -0.9%+1.6%

    +0.6%

    21st highest of 50

  • Population growth

    -0.3%+1.5%

    +0.1%

    8th lowest of 50

  • Unemployment rate

    2.0%5.1%

    3.7%

    23rd lowest of 50

  • Median household income

    $59K$105K

    $78K

    24th lowest of 50

View all states as a table
StateJob growth, year over yearPopulation growthUnemployment rateMedian household income
Arizona+0.6%+0.9%4.9%$81K
Texas+1.1%+1.3%4.4%$80K
Florida+0.6%+0.8%4.5%$78K
Alabama+1.1%+0.6%3.4%$67K
Alaska+1.3%+0.1%4.3%$96K
Arkansas+0.6%+0.6%3.9%$62K
California+0.8%-0.0%5.1%$100K
Colorado+0.2%+0.4%4.0%$97K
Connecticut+0.9%+0.4%5.1%$96K
Delaware+0.1%+0.9%4.7%$88K
Georgia-0.1%+0.9%3.2%$80K
Hawaii+0.2%-0.1%2.7%$101K
Idaho+0.9%+1.4%3.6%$81K
Illinois+0.2%+0.1%4.7%$83K
Indiana-0.5%+0.6%3.3%$72K
Iowa+0.0%+0.3%3.2%$76K
Kansas+0.5%+0.4%3.8%$76K
Kentucky-0.1%+0.5%4.7%$65K
Louisiana+1.6%+0.1%4.2%$61K
Maine-0.1%+0.5%3.2%$76K
Maryland-0.2%+0.3%4.1%$103K
Massachusetts+0.2%+0.2%4.3%$105K
Michigan+0.2%+0.3%5.0%$72K
Minnesota+1.4%+0.6%4.4%$87K
Mississippi+0.4%+0.1%3.4%$59K
Missouri+1.1%+0.4%3.5%$72K
Montana-0.9%+0.6%3.2%$75K
Nebraska+0.2%+0.6%2.9%$76K
Nevada+1.3%+0.9%4.8%$81K
New Hampshire+0.2%+0.5%2.8%$100K
New Jersey-0.2%+0.4%4.3%$104K
New Mexico+1.6%-0.1%4.7%$68K
New York-0.0%+0.0%4.3%$86K
North Carolina+1.3%+1.3%3.5%$74K
North Dakota+0.5%+0.8%2.2%$78K
Ohio+0.2%+0.3%3.3%$72K
Oklahoma+0.7%+0.6%4.3%$66K
Oregon-0.8%+0.2%5.1%$85K
Pennsylvania+0.6%+0.1%3.7%$78K
Rhode Island+0.1%+0.4%3.7%$84K
South Carolina+1.6%+1.5%4.1%$72K
South Dakota+0.2%+0.9%2.0%$77K
Tennessee+0.5%+0.9%3.4%$72K
Utah+1.0%+1.0%3.5%$97K
Vermont-0.3%-0.3%2.6%$83K
Virginia-0.9%+0.7%3.6%$92K
Washington+0.4%+0.9%4.9%$99K
West Virginia-0.3%-0.1%4.0%$61K
Wisconsin+0.6%+0.3%3.2%$77K
Wyoming+0.8%+0.3%3.0%$76K

Pennsylvania's economy runs on logistics and distribution, healthcare and life sciences, advanced manufacturing, energy and natural gas, and higher education. Distribution in the east and manufacturing and healthcare in Pittsburgh give the state two distinct industrial bases.

Over the past year the state added jobs at 0.6% over the past year, unemployment is 3.7%, and residential permits are down 1.4% year to date. Steady hiring without population growth means employers are filling existing demand, which supports well-located industrial and medical space more than speculative retail.

The Lehigh Valley generates most of our Pennsylvania calls. Allentown and Bethlehem form one of the strongest bulk distribution markets in the Northeast.

Industries driving demand

  • Logistics & distribution

  • Healthcare & life sciences

  • Advanced manufacturing

  • Energy & natural gas

Sources: U.S. Census Bureau, American Community Survey 1-Year Estimates, 2024 · U.S. Census Bureau, Population Estimates Program, Vintage 2025 · U.S. Bureau of Labor Statistics, Local Area Unemployment Statistics, August 2026 · U.S. Bureau of Labor Statistics, Current Employment Statistics (total nonfarm, YoY), August 2026 · U.S. Census Bureau, Building Permits Survey (residential units, year to date), January–August 2026

Regions

Where Pennsylvania volume happens

  1. 01

    Lehigh Valley

    Allentown–Bethlehem; one of the strongest bulk distribution markets in the Northeast.

  2. 02

    Philadelphia

    Port, life sciences, and dense infill industrial.

  3. 03

    Central Pennsylvania

    Harrisburg–Carlisle; I-81/I-78 distribution corridor.

  4. 04

    Pittsburgh

    Advanced manufacturing, robotics, and healthcare at UPMC.

Property types

What we buy in Pennsylvania

Process

How selling to Dizposition works

The full process
  1. Day 0

    01

    Send us the property

    Address, asset type, and the lease if there is one. That is enough for us to start.

  2. 02

    We underwrite it

    Our underwriting runs the income against current Pennsylvania market pricing and the cost of capital. No lowball anchor.

  3. 10 minutes

    03

    You get a firm offer

    In 10 minutes, with the math shown. You will know exactly how we got there.

  4. As fast as 30 days

    04

    Close on your timeline

    As fast as 30 days, or as slow as you need. We are the principal, so the date is yours.

FAQ

Selling commercial property in Pennsylvania

Where in Pennsylvania do you buy commercial property?

Statewide. Our activity concentrates in Lehigh Valley, Philadelphia, Central Pennsylvania and Pittsburgh, but we buy across Pennsylvania including secondary and rural markets that most institutional buyers skip.

What kinds of commercial property do you buy in Pennsylvania?

Retail, industrial, healthcare, hospitality, land, and specialty assets. Pennsylvania's economy leans toward logistics & distribution and healthcare & life sciences, so we see a lot of logistics & distribution-adjacent property here. We also buy assets other people avoid — vacant, environmentally impaired, or with short lease term.

What are the closing costs to sell commercial property in Pennsylvania?

Title and escrow fees, any transfer or recording tax the state levies, prorated property taxes, and payoff of existing debt. Because we are the buyer there is no commission. In Pennsylvania, the transfer tax on a commercial sale is 1% state + local (typically 1%). The statute and the rest of the closing-cost detail are in the tax and legal section above.

Is there a transfer tax when you sell commercial property in Pennsylvania?

Pennsylvania's 1% realty transfer tax is paired with a local tax of usually 1%, more in some places. Philadelphia's total is 4.578% since July 1, 2025. Grantor and grantee are jointly and severally liable, so the contract sets the split. Acquiring a real estate company can also trigger the tax.

Does selling reset the property tax assessment in Pennsylvania?

A sale alone does not let the county reassess, because spot reassessment is prohibited. Taxing districts such as school districts may still appeal any assessment, including one on a recently sold property. The effective property tax rate in Pennsylvania is about 1.26%.

Does Pennsylvania follow federal 1031 exchange rules?

Yes. Pennsylvania conforms to Section 1031, so a properly structured exchange defers state income tax on the gain as well as federal. The 45-day identification and 180-day closing deadlines are federal and apply the same way.

Who handles a commercial real estate closing in Pennsylvania?

Pennsylvania is a title state: a title or escrow company typically runs the closing, with attorneys optional. We open title with a national underwriter as soon as terms are agreed.

Is demand for commercial property growing in Pennsylvania?

Pennsylvania's population is growing 0.1% a year and over the latest year it lost a net 2,936 residents to other states. Employers added jobs at 0.6% over the past year, with unemployment at 3.7%, and residential permits are down 1.4% year to date. Those are the inputs behind tenant demand; what they mean for your property depends on its submarket and lease, which is what we underwrite.

How long does it take to sell a commercial property to Dizposition?

You get a firm written offer within 10 minutes of sending us the property. If you accept, you can close in as little as 30 days — most of that is title work and your own timeline. There is no listing period, no marketing, and no waiting on a buyer's financing contingency.

Can I sell my property as-is?

Yes. We are the buyer, so there is no lender requiring repairs and no inspection contingency to renegotiate against you. Deferred maintenance, a failing roof, an aging tank system — we price it into the offer rather than asking you to fix it first.

Can I sell with a tenant in place?

Yes, and in most cases a tenant makes the property more valuable to us, not less. We will ask for the lease, a rent roll, and any estoppel certificates. You do not need to deliver the property vacant.

What if my lease is short-term or about to expire?

Short remaining term is one of the main reasons owners come to us. A conventional buyer needs lease term to get financing, which is why short-dated assets sit on the market. We underwrite the real estate and the backfill prospects rather than the remaining term alone.

What if the property is vacant?

We buy vacant assets. Pricing shifts from an income approach to what the building and land are worth to the next user, which is a different calculation — but it is one we do routinely rather than one that disqualifies the property.

Do I need a broker to sell to you?

No. We buy directly, and there is no commission because there is nothing to market. If you already have a broker, we will pay them. Selling without one saves the commission, but you should understand you are also giving up price discovery — a broker's job is to find out whether someone will pay more than we will.

What documents do I need to get an offer?

The address and the lease are enough to start. To finalize, we will want the rent roll, the last two years of operating statements, the title commitment, any existing survey, and any environmental reports you already have. You do not need an appraisal or a broker package.

How do you determine your offer?

We underwrite in-place income against what the space would re-lease for, adjust for capital needs and any environmental tail, and apply a cap rate supported by comparable transactions. We show you the inputs. If you disagree with an assumption, we would rather argue about the assumption than about the number.

What are typical seller closing costs?

Title and escrow fees, any transfer or recording tax owed in your state, prorated property taxes, and payoff of any existing debt. Because we are the buyer, there is no commission and no marketing cost. Transfer tax varies significantly by state and is often the largest single line.

Will I owe capital gains tax when I sell?

Usually yes, on the gain above your adjusted basis, and depreciation recapture is taxed separately from appreciation. State treatment varies. This is a question for your CPA before you sign, not after — the structure of the sale can change the answer.

Can I do a 1031 exchange?

Yes. A 1031 exchange lets you defer federal capital gains by reinvesting in like-kind property, subject to a 45-day identification window and a 180-day closing window from the date you sell. You must have a qualified intermediary in place before closing — it cannot be arranged afterward. Most states conform to federal treatment, but a few do not.

Can I sell if I am behind on payments or facing foreclosure?

Yes, and speed is the reason to move early rather than late. We can close on a defined date, which is what a lender or a receiver generally needs to see. Send us the payoff figure and any notices you have received.

Can I sell a property I inherited or that is in probate?

Yes. Probate sales take longer because the court timeline governs, not ours, and multiple heirs need to agree on the price before anything can close. We are used to working around both. Inherited property also generally receives a stepped-up basis, which can change the tax math substantially.

What if there is environmental contamination?

Send it anyway. Environmental history is one of the most common reasons a conventional sale falls apart, and it is one of the reasons owners call us. We price the remediation and the residual liability into the offer rather than walking away at the Phase II.

Is there any cost or obligation to get an offer?

None. There is no fee, no listing agreement, and no obligation to accept. If our number does not work for you, you keep the underwriting we showed you and we part ways.

10-minute offer

Ready to sell in Pennsylvania?

Send us the address and the lease. You'll have a firm offer, with the math shown, in 10 minutes.