Where Commercial Foreclosures Are Surging

Commercial foreclosures are on the rise in Florida as borrowers continue to face significant challenges.

In September, the state saw 70 commercial foreclosures, up from 47 the previous year, with 538 foreclosures reported by late 2024. This marks a notable increase from the record-low figures seen in 2020, according to real estate data provider Attom.

The uptick in foreclosures is largely attributed to higher interest rates, which have increased monthly payments for many borrowers with adjustable-rate mortgages. Additionally, those with expiring low-rate loans are finding it difficult to refinance at current, higher rates. Development site owners are also struggling, as the combination of rising interest rates and elevated construction costs has made it challenging to move forward with projects as their land loan maturity dates approach.

Attom’s report highlights that while commercial foreclosures are rising nationwide, they have not yet reached the levels seen in previous years. In Florida, foreclosures peaked at over 880 in 2015.

 

Source:  OBJ