Local Commercial Real Estate Foreclosures Tick Up In 2023

This year, South Florida saw an increase in the number of significant business foreclosure cases filed.

Seventeen foreclosure lawsuits totaling at least $2 million on commercial real estate were filed for the 12-month period ending on October 30 and are still pending, according to the Business Journal. A year earlier, there were 15 lawsuits of this type at the same time.

The Business Journal reported in 2023 on four commercial foreclosure lawsuits that have since been settled out of court.

Rising building costs and high borrowing rates are posing problems for many developers, making it more difficult to sell their properties or refinance. Eight of the seventeen cases on the list are related to large-scale construction or remodeling projects.

Only one foreclosure involved an office that was leased to tenants, despite worries about the state of the office market across the country. But there were three cases concerning lodging establishments.

 

Source:  SFBJ