(617) 674-2043 advisors@mansardcre.com

Massachusetts · Greater Boston & New England

Selling Commercial Property in Massachusetts: How to Maximize Your Outcome

Most Massachusetts commercial property owners go to market without knowing their building’s true value, their full tax exposure, or which buyers will pay the most. That gap costs them millions. MANSARD fixes it before you list.

$0
State Capital Gains Tax in NH
5%
MA State Capital Gains Rate
25%
Depreciation Recapture Rate
19
Years Experience

The 7-Step Process

How to Sell a Commercial Property in Massachusetts

Selling commercial property in Massachusetts is a multi-step process that requires careful planning, market knowledge, and tax strategy. Here is the complete process — and why each step matters.

01

Understand Your Property’s Value

A commercial building valuation in Massachusetts requires understanding how different buyer types — owner-users, investors, 1031 exchange buyers, and developers — each value your asset differently. MANSARD models all four perspectives before you set a price.

02

Model Your Full Tax Exposure

Before listing, calculate your adjusted basis, total depreciation taken, and estimated tax liability. Massachusetts sellers face federal capital gains tax, a 5% state tax, and potentially the 4% Millionaire’s Tax surtax if income exceeds $1,107,750 in 2026. Full guide →

03

Evaluate Your Zoning Rights

Your zoning rights determine which buyers can use the property — and therefore who will compete for it. Understanding your zoning before listing expands your buyer pool and supports a higher asking price.

04

Engage a Qualified Intermediary (if 1031)

If a 1031 exchange is part of your strategy, the QI must be in place before the sale closes. There is no retroactive structuring. Full 1031 guide →

05

Position and Price Strategically

Price based on buyer-type analysis, not just comparable sales. The right asking price creates competition. The wrong price creates market time — and market time creates price reductions.

06

Run a Competitive Process

A targeted marketing campaign to the right buyer universe — not a passive MLS listing — is what drives multiple offers and a closing at or above asking price.

Massachusetts Tax Obligations

What You Owe When Selling Commercial Property in Massachusetts

Massachusetts commercial property sellers face multiple layers of tax. Understanding each one before you list is the difference between a well-planned exit and a preventable surprise at closing.

Tax Rate Who Pays Notes
Federal Capital Gains Tax 15% or 20% Seller Long-term gains (held >1 year). Short-term taxed as ordinary income up to 37%.
Depreciation Recapture 25% Seller Applied to all depreciation taken during ownership. Full guide →
Net Investment Income Tax (NIIT) 3.8% High-income sellers Applies to individuals with MAGI above $200K (single) or $250K (joint).
Massachusetts State Tax 5% Seller Applied to long-term capital gains.
MA Millionaire’s Tax +4% High-income sellers Applies to income above $1,107,750 in 2026. Full guide →
MA Real Estate Transfer Tax $4.56 per $1,000 Seller Applied to the full sale price. On a $2M sale: $9,120.
Combined Effective Rate (MA, high income) Up to 37.8% Federal + recapture + NIIT + MA state + surtax.

ⓘ Use our free net proceeds calculator to estimate your exact tax liability before you list.

Why MANSARD

Strategy Before the Sale Is Where the Real Money Is Made.

Most Massachusetts commercial property owners go to market before they understand what their building is worth, who the right buyers are, or what they’ll actually walk away with after taxes. MANSARD builds the pre-sale strategy that changes that — before anything goes live.

We work with owner-occupants who sold their company, private investors evaluating their next move, and institutions managing complex assets across Greater Boston and New England.

Get Your Pre-Sale Strategy

A short, confidential conversation to model your exact net proceeds, tax exposure, and best move — before you commit to anything.

Schedule a Pre-Sale Strategy Call
Call (617) 674-2043

Confidential. No obligation. No pressure.

Client Results

Trusted by Massachusetts Commercial Property Owners

★★★★★

“Jeremy did a great job with the entire process. He is very smart and great at making everything go smoothly. I would recommend MANSARD for anyone looking to sell or rent commercial property.”

Mitch Smith — Commercial Property Owner
★★★★★

“Working with the MANSARD team and Jeremy Cyrier was a great experience in every way. The process was handled with patience and confidence. The result exceeded my expectations.”

Marc Deschenes — Commercial Property Owner
★★★★★

“Jeremy and his team demonstrated integrity and professionalism throughout the entire process. The sale was seamless from start to finish.”

Nancy Matheson-Burns — Industrial Property Owner, Woburn MA

Frequently Asked Questions

Selling Commercial Property in Massachusetts: Common Questions

How long does it take to sell a commercial property in Massachusetts?+
The typical commercial property sale in Massachusetts takes 6–12 months from listing to closing, depending on property type, pricing, and market conditions. Owner-occupied industrial and office buildings in Greater Boston typically sell faster than vacant properties or those with below-market leases.
What taxes do I pay when selling commercial property in Massachusetts?+
Massachusetts commercial property sellers pay federal capital gains tax (15–20%), depreciation recapture (25%), Massachusetts state capital gains tax (5%), and potentially the Millionaire’s Tax (4% on income above $1,107,750 in 2026). The combined effective rate can reach 37.8% for high-income sellers. Read our full guide →
Can I defer capital gains tax when selling commercial property in Massachusetts?+
Yes. A properly structured 1031 exchange defers federal capital gains tax, depreciation recapture, and Massachusetts state tax by reinvesting the full proceeds into a replacement property. The Qualified Intermediary must be in place before the sale closes. Read our 1031 exchange guide →
Do I need to list my property to find out what it’s worth?+
No. A MANSARD Strategic Asset Evaluation gives you a complete commercial building valuation — including how different buyer types value your property, your net proceeds after taxes, and whether selling now makes sense — without any obligation to list. Learn more →
What is the Massachusetts Real Estate Transfer Tax?+
The Massachusetts Real Estate Transfer Tax is $4.56 per $1,000 of the sale price, paid by the seller. On a $2,000,000 commercial property sale, the transfer tax is $9,120.

Start Here

Ready to Understand What Your Massachusetts Commercial Property Is Worth?

The first step is a confidential conversation. No obligation. No pressure. Just clarity.

Confidential. Discreet. No obligation to list.

MANSARD Commercial Properties · 18 Spring Grove Road, Andover, MA 01810 · (617) 674-2043 · masscommercialproperties.com
Jeremy Cyrier, CCIM, CRE — Licensed in Massachusetts and New Hampshire. This page is for informational purposes only and does not constitute tax or legal advice.