Craig Alexander’s insights in BINJE shed light on a major shift impacting New Jersey’s real estate market.
A little-known provision in the July 2025 state budget transformed the “mansion tax” into a significantly higher, seller-paid “Graduated Percent Fee”, dramatically increasing transaction costs for many deals. In some cases, fees have more than tripled, reshaping how transactions are structured and negotiated.
As Craig explains, the impact is now fully setting in:
➡️ Buyers are no longer sharing the cost
➡️ Some deals are stalling because “they no longer pencil out”
➡️ Investors are shifting toward industrial and multi-family assets, where the fee does not apply
The result? A noticeable cooling in certain commercial sectors and increased pressure on sellers navigating already complex transactions.
His takeaway: this policy change is likely here to stay and may continue to influence investment decisions and market activity across the state.