Commercial Foreclosures Reflect Persistent Economic Challenges

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In September 2024, there were 695 commercial foreclosures across the United States, according to a recent report from ATTOM. While this figure shows a decline from the 752 foreclosures reported in May, it still indicates a heightened level of risk that surpasses pre-pandemic figures, amid ongoing financial pressures such as rising interest rates, inflation, and changing demand for commercial properties.

California recorded the highest number of foreclosures in the nation for September, with lenders initiating proceedings against 264 properties—up 12% from August and a staggering 238% compared to September of the previous year. New York followed with 92 foreclosures, reflecting a 59% increase from August and a 48% rise year-over-year.

Other states that experienced notable foreclosure activity included Florida, which reported 70 foreclosures, a 21% increase from August and 48% higher than in September 2023. In Pennsylvania, foreclosures jumped 129% from August to September, reaching 32, a 33% increase from the same month last year. Texas had 45 foreclosures, marking a 15% rise from August but a 13% decrease compared to the previous year.

This data encompasses all commercial properties with at least one foreclosure filing in ATTOM’s database, covering all three phases of the legal process: default, auction, and real estate owned.

 

Source:  GlobeSt.