The down payment gets the attention, but closing costs are what surprise borrowers. On a NYC commercial deal they can run into the tens of thousands — budget for them from the start so your cash-to-close is realistic.
The mortgage recording tax (usually the biggest)
On commercial loans of $500,000 or more, the combined NYC mortgage recording tax is about 2.80% of the loan (the lender pays a 0.25% slice, so you bear roughly 2.55%). On larger loans it's frequently the single biggest line item — and on a refinance, a CEMA can shrink it. See the recording-tax guide for the details.
Title and legal
Title insurance protects against defects in ownership and is priced off the loan or purchase amount. Add your own attorney's fees and, often, the lender's legal costs, which you typically reimburse. Together these are a meaningful share of closing costs on any commercial deal.
Third-party reports
The lender orders an appraisal and, on many deals, an environmental Phase I — you generally pay for both. Property condition reports, surveys, and zoning letters may be required depending on the property and program.
Lender and recording fees
Expect an origination fee (points), an application or underwriting fee, and recording and filing charges beyond the tax. On SBA loans there are program-specific guarantee fees as well.
Estimate yours first
Every deal is different, but you can get a realistic range before you apply with the NYC closing-costs calculator — then there are no surprises at the table.