Realty transfer tax is unusually heavy here
Pennsylvania applies a state realty transfer tax, and municipalities and school districts typically add their own, so the combined rate across most of the state lands around two percent of the price. In Philadelphia the municipal component is far larger, taking the total to roughly double the statewide figure. Pittsburgh is also above the state norm.
By convention the tax is often split between buyer and seller, but that is custom rather than law and it is negotiable. On a transaction of any size this is real money, so settle who pays what in the letter of intent. Confirm the current combined rate for your specific municipality with your closing attorney — it varies by jurisdiction, not just by county.
The stock is old, fragmented, and often under-priced
Pennsylvania has a large number of self-storage facilities built decades ago and held ever since by a single owner or family. Many have never used revenue management, have street rates well below what the submarket would now support, and show physical occupancy in the high nineties precisely because they are cheap.
Those are among the most attractive assets we buy, and they are the ones most consistently undervalued by approaches that key off occupancy rather than rate. A facility that is full at 2015 rates is not a mature asset with no upside — it is an asset whose upside has not been taken yet. That gap should be reflected in what you are paid rather than captured entirely by whoever buys it.
Property tax varies by school district, not county
Pennsylvania property tax is driven substantially by school district millage, which means two facilities a few miles apart can carry very different tax burdens. Assessment practice and reassessment cycles also vary considerably by county, and some counties have not reassessed in a very long time. Both matter to what a buyer can pay, and both are worth knowing before you are shown a number.
Delinquencies
Pennsylvania’s self-service storage statutes govern liens and disposal of stored property. Facilities with delinquencies and lien processes under way are fine — we underwrite economic occupancy, so tidying the rent roll before a sale gains you nothing.
Why Pennsylvania 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.
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