Commercial property foreclosures increased 17 percent from the previous month and 97 percent from a year ago.
States with the highest number of commercial real estate foreclosures in January 2024 included California, New York and Texas.
IRVINE, Calif. — February 22, 2024 — ATTOM, a leading curator of land, real estate and real estate data, today released a special report on commercial foreclosures in the U.S. The report shows that commercial foreclosures have increased significantly over the years, from a low of 141 in May 2020 to a current figure of 635 in January 2024, indicating a steady increase throughout this period.
A Decade of Data-Driven Decision-Making
ATTOM's analysis began in January 2014, when commercial property foreclosures nationwide reached 740 and the country was emerging from the shadows of economic uncertainty. Over the next decade, ATTOM tracked the fluctuations, with the steepest spike in foreclosures at 889 in October 2014, signaling a continuing market correction and consolidation.
But the trajectory has not been a steady upward trend. In the face of challenges such as the COVID-19 pandemic and shifts in economic policy, the market has shown remarkable adaptability. The pandemic initially led to an increase in foreclosures, but the following months showed a remarkable stabilization as businesses adapted to new market realities.
In May 2020, the U.S. saw a significant drop in commercial residential foreclosures to 141, reflecting the direct impact of the COVID-19 pandemic and subsequent swift response measures, including moratoria and financial assistance. By January 2024, commercial residential foreclosures surged to 635, contrasting with the lows recorded in 2020. The 97% year-over-year increase signals a revitalized market that has weathered the long-term economic upheaval associated with global events and is adapting to new commercial realities with resilience and strategic adjustments.
“This increase not only marks a return to pre-pandemic activity levels, but also highlights the ongoing adjustment within the commercial real estate sector as it navigates an environment changed by evolving business practices and consumer behavior,” said Rob Barber, CEO of ATTOM.
Review of commercial foreclosures by state
California, as the index state, began the decade with 209 foreclosures in January 2014. Though it declined in subsequent months, foreclosure numbers fluctuated, reflecting the state's dynamic economic climate. By January 2024, commercial residential foreclosures in California reached a monthly high of 181, a 72 percent increase from the previous month and a 174 percent increase from last year.
New York, Texas, New Jersey, and Florida have also seen significant fluctuations over the past decade, with each state's unique economic makeup impacting their foreclosure rates. For example, New York saw a total of 59 commercial residential foreclosures in January 2024, down 12% month-on-month and 12% year-on-year. Meanwhile, Texas saw a 17% increase month-on-month and a 143% increase year-on-year. New Jersey saw a 38% increase month-on-month and a 157% increase year-on-year. Finally, Florida saw a 18% increase month-on-month and a 42% increase year-on-year.
Report Methodology
ATTOM's U.S. Commercial Foreclosure Report shows the total number of commercial properties that had at least one foreclosure filing registered in the ATTOM data warehouse during the month. ATTOM's report incorporates documents filed in all three phases of foreclosure: defaults – Notice of Default (NOD) and Lis Pendens (LIS), auctions – Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS), and real estate owned (REO) properties (properties foreclosed and repurchased by the bank).
About ATTOM
ATTOM delivers premium property data to power products that improve transparency, innovation, efficiency, and disruption in a data-driven economy. ATTOM collects multi-source property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for over 155 million residential and commercial properties covering 99% of the U.S. population. A rigorous data management process involving over 20 steps validates, standardizes, and enriches real estate data collected by ATTOM, and assigns a persistent unique ID (ATTOM ID) to each property record. The 30 TB ATTOM data warehouse drives innovation across many industries, including mortgage, real estate, insurance, marketing, and government, through flexible data delivery solutions including ATTOM Cloud, bulk file licensing, property data APIs, real estate market trends, property navigator, and more. ATTOM also introduces AI-enabled solutions, the latest innovative solutions that make property data more accessible and optimized for AI applications.
Media Contact:
Jennifer von Pohlmann
949.412.3897
jennifer.vonpohlmann@attomdata.com
Data and Reporting License:
949.502.8313
datareports@attomdata.com
About the Author The ATTOM Team ATTOM Data Solutions is a one-stop shop for premium property data with flexible delivery solutions. Our mission is to increase real estate transparency and drive innovation across industries with the most comprehensive property data. We have built a multi-source national data warehouse that consolidates property tax, deed, mortgage, foreclosure, environmental risk, natural hazard and neighborhood data for over 155 million U.S. residential and commercial properties covering 99% of the U.S. population.
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