Two states, for storage purposes
Self-storage in the New York City boroughs and the inner suburbs operates on economics that barely resemble the rest of the state: rents per square foot that would look implausible almost anywhere else, sites that are frequently multi-storey conversions rather than purpose-built single-storey product, and a supply pipeline constrained by land cost and zoning to the point where the existing stock has a genuine moat.
Upstate — Buffalo, Rochester, Syracuse, Albany and the smaller markets — is a conventional, fragmented, single-storey market with modest rate growth, older ownership, and property tax burdens that are high in absolute terms relative to revenue. Both are interesting to us; they are not valued the same way, and any adviser applying one framework to the other is going to be wrong.
Transfer taxes stack, and they are not trivial
New York State charges a real estate transfer tax, with an additional rate applying above a value threshold. Within New York City a separate municipal real property transfer tax applies on top, at a commercial rate that is substantially higher than the state component. Some other localities add their own.
Stacked, the total on a commercial transaction in the city can be a meaningful percentage of the price rather than a rounding error. Which party bears which component is negotiable and varies by custom, so establish it in the letter of intent rather than at closing. Confirm current rates and thresholds with your counsel — they have moved.
Why an all-cash buyer matters more here
Multi-storey conversions, older buildings, and unusual site configurations are common in the downstate market, and they are exactly the assets a lender scrutinises hardest. Financed buyers fall out of New York deals late and often. We do not have a lender, no financing contingency, and we release contingencies in 15–30 days — which on a New York asset is frequently the difference between a deal closing and a deal restarting.
Why New York owners sell direct to us
Listing a storage facility through a broker means months of marketing, a 4–6% commission, and the risk of a buyer's bank killing the deal late. Selling directly to us removes all of that.
- ✓No commissions. We're the buyer, so there's no 4–6% listing fee coming out of your proceeds.
- ✓All-cash, no lender. Our offers aren't contingent on financing, so they don't fall through at the bank.
- ✓Certainty fast. We release contingencies in 15–30 days, within a standard 60–180 days commercial close.
- ✓As-is, any occupancy. Deferred maintenance or low occupancy is fine — we underwrite the upside.
- ✓Confidential. No public listing and no sign out front. Your tenants and staff don't need to know.
Curious what your New York facility is worth?
Get a fair, all-cash offer with no commissions and no pressure. It costs nothing to find out.
Get My Free Offer →