ACREX · CALDWELL, NJ
Should you sell or lease your commercial property in NJ?
What each path pays, what it costs in fees and the questions that usually decide it, for northern NJ owners.
Owners of warehouses, offices, storefronts, apartment buildings and land in northern NJ often have two choices: sell now, or lease the space and keep the property. This page lays out the trade-offs, what each path costs with AcreX and what to check before you decide.
Selling vs leasing at a glance
What you get — If you sell: Cash at closing; If you lease and keep it: Rent over the lease term, and you still own the building
Ongoing work — If you sell: None after closing; If you lease and keep it: Leasing, repairs, rent collection and reporting, yourself or through a manager
Taxes — If you sell: A taxable gain unless deferred, for example with a 1031 exchange; If you lease and keep it: Rental income is taxed each year; you keep any future appreciation
Market exposure — If you sell: Locks in today’s price; If you lease and keep it: Future rents, vacancy and values stay with you
AcreX fee — If you sell: 5% up to $5M, 4% on $5M–$10M, 3% above $10M; $10,000 minimum; If you lease and keep it: 5% of total base rent for years 1–5, 2.5% after; minimum $3,500 or one month’s rent, whichever is less
Fee example — If you sell: $2,000,000 sale: $100,000; If you lease and keep it: 6,000 SF at $18/SF, 5 years, 3% yearly increases ($573,387 total base rent): $28,669
Fees are set in a signed agreement and are split 50/50 when the buyer or tenant has a broker. In New Jersey commissions are negotiable.
Questions that usually decide it
Do you need the cash now? A sale (or a 1031 exchange into another property) frees up your equity. A lease pays it out over time.
Is the building vacant? You can sell it vacant, often to a buyer who will use it, or lease it first and sell later to an investor who buys on the income. Compare the two prices after leasing costs and the time it takes to find a tenant.
Do you use the building yourself? A sale-leaseback lets you sell and stay as the tenant.
Is development approved nearby? Nearby approvals, zoning and your town’s affordable housing plan affect what a developer will pay for land. Check the NJ development pipeline map with the 1, 3 or 5 mile radius filter around your address.
Do you want to keep managing it? If not, sell, or hand day-to-day work to AcreX property management.
How long a lease can you sign? The term, rent increases and who pays taxes and repairs carry over to any later buyer, so negotiate the lease with a possible sale in mind.
Run both numbers before you decide
AcreX gives a free written opinion of value or rent within 5 business days. It is a broker’s opinion, not an appraisal. Ask for both, then compare the sale price after fees with the rent you would collect after fees, vacancy and costs. The fee calculator shows the AcreX fee for any price or lease.
Next steps
Questions owners ask
Is it better to sell or lease commercial property in NJ?
It depends on whether you need cash now, whether the building is leased or vacant, your tax position and whether you want to keep owning and managing it. Compare a written opinion of value with a written rent opinion before you decide.
What does AcreX charge to sell vs to lease?
Selling: 5% of the price up to $5M, 4% on the part from $5M to $10M and 3% above $10M, with a $10,000 minimum. Leasing: 5% of total base rent for years 1–5 and 2.5% after, with a minimum of $3,500 or one month’s rent, whichever is less. In New Jersey commissions are negotiable.
Can I lease my building now and sell it later?
Yes. Investment buildings are often sold with tenants in place, and buyers price them on the rent the leases produce, so the lease terms you sign now affect a later sale.
Can I sell my building and keep using it?
Yes, with a sale-leaseback: you sell the property and sign a lease to stay on as the tenant, which turns your equity into cash without moving.
How can I defer capital gains tax when I sell?
A 1031 exchange can defer the tax if you reinvest the proceeds in other investment real estate within the IRS deadlines. Talk to your CPA or tax attorney before you list; this is general information, not tax advice.
Who manages the property if I keep it?
You can manage it yourself or hire a manager. AcreX manages properties directly for 3–8% of rent collected depending on property type, with no setup fee and no repair markup, and you can cancel any time after 90 days.
More owner questions: AcreX FAQ.
About the broker
Jonathan Libock is the founder and principal broker of AcreX Commercial Real Estate in Caldwell, NJ. He has a decade of experience in commercial real estate, including time at DR Properties, a New York City development brokerage. He specializes in industrial and multifamily land development and also works on development sites in Southeast Florida. Licensed real estate broker in New Jersey (#1757237) and Florida (#BK3462244). AcreX Realty LLC, Licensed Real Estate Broker. Licensure does not imply endorsement.
AcreX Realty LLC is a licensed NJ commercial real estate broker with published fees, at 307 Bloomfield Ave, Caldwell, NJ 07006. General information, not legal or tax advice.