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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.

foreclosure road sign_canstockphoto1176215 800x315

The number of commercial foreclosures in the U.S. has steadily increased, from a low of 141 in May 2020 to 625 in March 2024, according to an updated report from ATTOM.

That represents a 6% increase from the prior month and a 117% increase from last year. The real estate data tracking firm also noted that California, New York, and Florida were the states with the most foreclosures.

New York had a total of 61 commercial foreclosures in March 2024, a 5% increase from the prior month and a 65% increase from a year ago. Florida saw increases of 30% and 107%, respectively. Texas saw increases of 31% and 129%, and New Jersey saw increases of 31% and 133%.

Foreclosure filings on commercial real estate property in California in January 2024 were triple the number of foreclosures in January 2023, according to ATTOM data. Banks in California have a great deal of exposure to commercial real estate with 31% of Golden State bank portfolios carrying three times larger loans than capital.

The recent increase in foreclosures follows a multi-year low of just 141 in May 2020, reflecting the immediate impacts of the pandemic and swift response measures like moratoriums and financial aid for owners.

“Despite challenges like the COVID-19 pandemic and evolving economic policies, the market demonstrated remarkable adaptability,” ATTOM reported. “Initial pandemic-related foreclosures were followed by a stabilization as businesses adjusted to new realities.”

 

Source:  GlobeSt.