Commercial real estate closing costs in New York & Florida
Closing a commercial mortgage typically costs 2–5% of the loan amount. The biggest variable is state tax: New York City's mortgage recording tax reaches 2.8% of the loan, while Florida's documentary stamps plus intangible tax add about 0.55%. The rest — origination, title, legal, reports, reserves — is broadly similar everywhere. Run your own numbers in the NY/FL closing cost calculator.
The cost stack, category by category
Every commercial closing statement breaks down into five buckets. State taxes dominate in New York and matter in Florida; the other four are set by the lender and the deal, not geography.
| Category | Typical range | Notes |
|---|---|---|
| State & local taxes | 0.55%–2.8% of loan | The NY/FL sections below |
| Lender fees | 0.5%–1% + costs | Origination, processing, lender's counsel |
| Title | ~0.4%–0.6% of loan | Loan policy; rates are regulated per state |
| Third-party reports | $5,000–$25,000 flat | Appraisal, Phase I environmental, PCA, survey |
| Prepaids & reserves | Varies | Insurance, tax escrows, interest to month-end |
New York: the mortgage recording tax problem
New York taxes the recording of a mortgage under NY Tax Law §253, and New York City stacks its own tax on top. For commercial mortgages of $500,000 or more in NYC, the combined rate is 2.8% of the mortgage amount — on a $10 million loan, roughly $280,000 due at closing before any other cost. Rates outside the city vary by county, generally 1–1.3%.
The tax applies to the mortgage, not the purchase price — which is why New York borrowers structure around it. The main tool is the CEMA (Consolidation, Extension and Modification Agreement): on a refinance, the new lender takes assignment of the existing mortgage instead of recording a fresh one, so tax is due only on new money above the old balance. Refinancing a $9 million balance with a $10 million loan means paying recording tax on $1 million instead of $10 million — a saving in the neighborhood of $250,000 in NYC. See how a CEMA works for the mechanics, cooperation fees, and timing tradeoffs.
Buyers can sometimes capture similar savings by assuming and consolidating the seller's existing mortgage (a purchase CEMA), though it requires cooperation from two lenders and adds weeks to closing.
Florida: doc stamps and intangible tax
Florida taxes commercial financing twice, at closing, with no workaround. Documentary stamp tax on the note runs $0.35 per $100 of the loan amount (Fla. Stat. §201.08), and nonrecurring intangible tax on the mortgage adds 0.2% (Fla. Stat. §199.133). Together: about 0.55% of the loan — $27,500 on a $5 million mortgage.
Unlike New York, Florida offers no CEMA-style assignment structure — refinances generally pay both taxes on the full new loan amount each time. That changes refinance math: a Florida owner who expects to refinance again in three years should weigh those recurring taxes against rate savings, which is exactly the comparison the loan comparison calculator runs. On purchases, deed transfer tax ($0.70 per $100 in most counties) is a seller-side cost and separate from the financing taxes above.
Worked example: $5M refinance, NYC vs. Miami
| Line item | NYC (no CEMA) | NYC (CEMA, $4.5M old balance) | Miami |
|---|---|---|---|
| State/city taxes | ~$140,000 | ~$14,000 + fees | ~$27,500 |
| Origination (0.75%) | $37,500 | $37,500 | $37,500 |
| Title, legal, reports | ~$50,000 | ~$55,000 | ~$45,000 |
| Indicative total | ~$227,000 (4.5%) | ~$107,000 (2.1%) | ~$110,000 (2.2%) |
Illustrative estimates for comparison only — title rates, legal scope, and lender fees vary by deal. CEMA column includes typical assignment and extra legal costs.
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The closing cost calculator applies these statutes line by line — including CEMA savings on New York refinances — to your loan amount and state.
Frequently asked questions
How much are closing costs on a commercial mortgage?
Typically 2–5% of the loan amount, but the state drives the spread. In New York City, mortgage recording tax alone adds up to 2.8% of the loan. In Florida, documentary stamps and intangible tax add about 0.55%. On top of state taxes, expect lender origination (typically 0.5–1%), title insurance, legal fees on both sides, third-party reports, and prepaid reserves.
Who pays closing costs in a commercial real estate deal?
The borrower pays nearly all financing-related costs — recording taxes, lender fees, lender's legal counsel, title, and reports. Deed transfer taxes on a purchase are negotiated but customarily paid by the seller in New York and by the seller in most Florida counties. Everything is negotiable in commercial deals, which is why the term sheet matters.
Can I roll closing costs into a commercial loan?
Sometimes. On a refinance, lenders often let closing costs come out of loan proceeds, reducing net cash to you rather than requiring cash at the table. On acquisitions, costs typically must be paid from equity, since the loan amount is sized to the property's value or purchase price — not to costs.
Why are New York commercial closing costs so high?
The mortgage recording tax. New York taxes the act of recording a mortgage (NY Tax Law §253), and New York City adds its own layers — reaching 2.8% combined on commercial mortgages of $500,000 or more. A $10 million NYC mortgage generates roughly $280,000 in recording tax before any other cost. The CEMA structure exists specifically to reduce this on refinances.
Does Florida have a mortgage recording tax like New York?
Not by that name, but it taxes financing twice: documentary stamp tax at $0.35 per $100 of the note (Fla. Stat. §201.08) and nonrecurring intangible tax at 0.2% of the mortgage (Fla. Stat. §199.133) — together about 0.55% of the loan. Unlike New York, Florida has no CEMA-style workaround, so refinances generally pay in full each time.
Reviewed by the Relendi Team · Updated 2026-07-11. Educational content, not legal or tax advice — statutes cited above govern; confirm current rates with counsel at closing.