Commercial Real Estate — New Hampshire
How to Sell Commercial Property in New Hampshire: Strategy Before the Sale
New Hampshire's tax advantage is real — but federal capital gains, depreciation recapture, and the RETT still apply. The difference between a good outcome and a great one is built before the listing goes live.
Informational only. Not legal or tax advice. Consult a qualified CPA before making decisions.
Section 1
The New Hampshire Tax Advantage for Commercial Property Sellers
New Hampshire is one of the most tax-favorable states in the country for commercial property owners. There is no state income tax, no state capital gains tax, and no broad-based sales tax. For a commercial property seller, this means one significant layer of tax liability that Massachusetts owners face simply does not exist in New Hampshire.
In Massachusetts, a seller with a large long-term gain can face a combined state and federal effective tax rate exceeding 32% — and up to 37–38% if the Millionaire's Tax surtax applies. In New Hampshire, the same seller faces only federal taxes: long-term capital gains (15–20%), depreciation recapture (up to 25%), and the Net Investment Income Tax (3.8% for high earners). The absence of state capital gains tax alone can represent tens of thousands of dollars in preserved capital on a mid-market transaction.
| Tax Layer | New Hampshire | Massachusetts (for comparison) |
|---|---|---|
| State Capital Gains Tax | None | 5.0% (long-term) / 8.5% (short-term) |
| Millionaire's Tax Surtax | None | +4% on income above $1,107,750 (2026) |
| Federal Capital Gains Tax | 15% or 20% | 15% or 20% |
| Depreciation Recapture | Up to 25% (federal) | Up to 25% (federal) + 5–9% state |
| Net Investment Income Tax | 3.8% (if applicable) | 3.8% (if applicable) |
| Real Estate Transfer Tax | 1.5% (split buyer/seller) | None on seller |
Section 2
The New Hampshire Commercial Real Estate Market in 2026
Southern New Hampshire's commercial real estate market has been one of the most active in New England over the past five years — driven by proximity to Greater Boston, a business-friendly tax environment, and sustained demand from logistics, manufacturing, and technology tenants.
Strong Fundamentals, Rising Rates
The NH industrial market closed Q1 2026 with a vacancy rate of 6.4% and a direct asking rate of $12.26 NNN — up 61.8% over five years. Warehouse and distribution space continues to lead absorption. Both owner-user and investment buyers remain active, drawing capital from in-state and out-of-state sources. Source: Colliers Q1 2026.
Selective Demand, Flight to Quality
The southern NH office market is more nuanced. Leasing activity slowed in late 2025, but well-positioned, amenity-rich assets in Nashua, Manchester, and the Route 3 corridor continue to attract tenants and investors. Older, functionally obsolete office buildings face headwinds — repositioning or redevelopment is often the right strategic path.
Active Buyer Pool
NH commercial investment sales remained strong through 2025 and into 2026. The combination of no state capital gains tax, stable fundamentals, and proximity to Boston creates a compelling story for both 1031 exchange buyers reinvesting from other markets and direct investors seeking yield outside of Greater Boston's compressed cap rates.
Southern NH Leads Activity
The most active commercial submarkets in New Hampshire are concentrated in the southern tier: Nashua, Manchester, Salem, Derry, Londonderry, and the Route 101 and Route 3 corridors. These markets benefit from direct access to I-93, I-95, and Route 3, making them attractive to logistics and distribution tenants serving Greater Boston and New England.
Section 3
Tax Obligations When Selling Commercial Property in New Hampshire
While New Hampshire's tax environment is favorable, sellers still face meaningful federal tax obligations. Understanding these before you list is essential to accurate net proceeds modeling.
Federal Capital Gains Tax
Long-term capital gains (property held more than one year) are taxed at 15% or 20% depending on your total taxable income. Short-term gains (held one year or less) are taxed as ordinary income — up to 37%. Most commercial property owners qualify for the long-term rate.
Depreciation Recapture (Section 1250)
The IRS requires you to "recapture" all depreciation deductions taken during your ownership at a maximum federal rate of 25%. This applies whether or not you actually claimed the deductions — the IRS taxes the amount "allowed or allowable." On a 10-year hold of a $1M building, this can generate $64,000+ in federal tax on the recapture alone.
Net Investment Income Tax (NIIT)
High-income sellers face an additional 3.8% federal surtax on investment income — including capital gains from commercial real estate. For 2026, the NIIT applies to individuals with Modified Adjusted Gross Income exceeding $200,000 (single) or $250,000 (married filing jointly).
NH Real Estate Transfer Tax
The NH RETT of $0.75 per $100 of the sale price applies to both buyer and seller — totaling 1.5% of the purchase price. On a $2,000,000 sale, the seller's share is $15,000. The RETT is typically split evenly but is negotiable. It applies regardless of whether a 1031 exchange is used.
Section 4
The New Hampshire Real Estate Transfer Tax: What Sellers Need to Know
The NH Real Estate Transfer Tax (RETT), codified at RSA 78-B, is the one state-level tax that applies to all commercial property sales in New Hampshire — regardless of the seller's income or the size of the gain.
| Factor | Detail |
|---|---|
| Rate | $0.75 per $100 of consideration — 0.75% per party, 1.5% total |
| Who Pays | Both buyer and seller each pay 0.75% — typically split evenly, but negotiable |
| Minimum Tax | $40 total ($20 per party) |
| Example: $2M Sale | Seller pays $15,000 · Buyer pays $15,000 · Total RETT: $30,000 |
| Applies to 1031 Exchanges? | Yes — the RETT applies to the sale of the relinquished property regardless of exchange status |
| Entity Transfers | The RETT also applies to transfers of controlling interests in entities that own NH real estate — not just direct deed transfers |
| Statute | RSA 78-B and NH Code of Administrative Rules, Rev 800 |
Section 5
How to Sell Commercial Property in New Hampshire: The Process
Selling a commercial property in New Hampshire follows the same fundamental process as any commercial transaction — but the specific market dynamics, buyer pool, and tax considerations require a strategy built for the NH market.
- Understand your asset's value before you list. A Strategic Asset Evaluation gives you a data-driven picture of your property's current market value, the right buyer universe, and your net proceeds across multiple scenarios — before you commit to any path.
- Model your full tax exposure. Even without state capital gains tax, federal liability can be substantial. Calculate your adjusted basis, total depreciation taken, and estimated recapture before setting your asking price.
- Engage a Qualified Intermediary early if a 1031 exchange is on the table. The QI must be in place before the sale closes. There is no retroactive structuring. See our complete 1031 exchange guide →
- Target the right buyers. NH commercial assets attract a distinct buyer pool — including 1031 exchange buyers from Greater Boston seeking to defer MA taxes by reinvesting in NH, owner-users expanding from Massachusetts, and institutional investors seeking yield outside of Boston's compressed cap rates.
- Prepare for environmental and due diligence requirements. NH commercial transactions often involve Phase I environmental assessments, title review, and zoning confirmation. Anticipating these requirements early reduces closing risk.
- Negotiate the RETT allocation. While the RETT is typically split evenly, the allocation is negotiable. In a strong seller's market, it is common to negotiate the buyer's assumption of a larger share.
- Coordinate with your CPA and attorney before the listing goes live. The decisions that determine your outcome — pricing, timing, exchange structure, RETT allocation — are made before the property hits the market, not after.
Strategy First
The Difference Between a Good Sale and a Great One Is Built Before the Listing
Most NH commercial property owners go to market without fully understanding what their asset is worth, who the right buyers are, or how to create real competition. The result is a transaction that closes — but not at the number the property deserved.
At MANSARD, we start with a Strategic Asset Evaluation that gives you a complete picture before anything goes to market. We model your net proceeds across every viable scenario — sell, hold, lease, or redevelop — and identify the specific buyers who will pay the most for your asset.
- Know your property's true market value before you set an asking price
- Identify the 1031 exchange buyers, owner-users, and investors most likely to pay a premium
- Model your full tax exposure — federal capital gains, depreciation recapture, RETT
- Determine whether selling now, holding, or exchanging is the right move
- Go to market from a position of strength — not uncertainty
Schedule a Pre-Sale Strategy Call
A short, confidential conversation to understand your NH property's value, your full tax exposure, and what your best move actually is — before you commit to anything.
Schedule a Pre-Sale Strategy Call Call (617) 674-2043Confidential. No obligation. Licensed in NH & MA.
Client Results
What Commercial Property Owners Say About MANSARD
“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.”
“With regard to commercial brokers in Greater Boston, Jeremy Cyrier at Mansard is among the most knowledgeable and sophisticated. I would highly recommend reaching out to Jeremy and his team if you are looking to sell commercial property, or if you are looking to expand your portfolio.”
“Jeremy Cyrier and Mansard are invaluable resources to me and my company. When it came to negotiating a lease renewal with Navitance’s landlord, Jeremy couldn’t have brought more insight into the negotiations. Thoughtful preparation and employing tactical empathy brought just the results I was hoping for.”
Reviews sourced from Google. 4.9 stars • 33 reviews.
Frequently Asked Questions
Selling Commercial Property in New Hampshire: Common Questions
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Work with MANSARD
MANSARD Is Licensed in New Hampshire. We Know the Market.
Jeremy Cyrier, CCIM, CRE is licensed in both Massachusetts and New Hampshire. MANSARD works with industrial and office property owners across southern NH — from Nashua and Manchester to Salem, Londonderry, and the Seacoast — to deliver the strategic clarity that separates a good sale from a great one.
Sources: NH Department of Revenue Administration, Real Estate Transfer Tax (RSA 78-B). Colliers, Q1 2026 New Hampshire Industrial Market Insight (April 2026). McLane Middleton, Real Estate Tax Considerations in New Hampshire (December 2025). Valur, New Hampshire Capital Gains Tax 2025 Explained (May 2026).
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.