Commercial Foreclosures Up 97% Year-Over-Year
U.S. commercial foreclosures rose 17% in January from the previous month and 97% from 2023, according to real estate and property data provider Attom.
Attom counted 635 commercial foreclosures across the country in the first month of the year. The nearly 100% increase year-over-year demonstrates a market that is "navigating through the long-term economic shifts following a global event" and adapting to the new landscape, a release from Attom says.
"This uptick signifies not just a return to pre-pandemic activity levels but also underscores the ongoing adjustments within the commercial real estate sector as it navigates through a landscape transformed by evolving business practices and consumer behaviors," Attom CEO Rob Barber said in a statement.
California's 181 foreclosures made up 28.5% of the January total and represented a 174% increase over the same month in 2023.
New York had 59 foreclosures, a 12% drop compared to January 2023. Texas' 56 foreclosures last month were a 143% increase compared to the previous year.
Attom's count considers the total number of commercial properties with at least one foreclosure filing entered into its database during the month. Its report incorporates documents filed for default, lis pendens and real estate-owned properties.
Attom didn't break down the types of properties that make up its count nor properties that may have been returned to their lenders via deed-in-lieu-of-foreclosure transactions, in which borrowers voluntarily transfer their properties to lenders. Other reports suggest the pace of the latter is on the rise among office landlords.
