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Commercial Foreclosures Have More Than Doubled Since Last Year


U.S. commercial foreclosures more than doubled in March compared to the same month in 2023, according to real estate data specialist Attom.

Attom counted 625 foreclosures across the country, a monthly increase of 6% and an annual increase of 117%.

Foreclosures have climbed steadily since the pandemic began, rising from 141 in May 2020. Since Attom began tracking foreclosures in January 2014, the number peaked in October of that year at 889.

California had the most commercial foreclosures in March at 187, an 8% decrease from February but a 405% increase from a year earlier. Texas saw a 31% increase month-over-month and a 129% increase from March 2023, while Florida experienced a 30% uptick for the month and 107% for the year. 

Delinquency rates for mortgages backed by commercial properties were the same during the first quarter as during Q4, the Mortgage Bankers Association reports, with 3.2% of loans either more than 30 days late at the end of the quarter or real estate-owned.

Office properties remain the most common for delinquencies and foreclosures, according to the MBA.

The delinquency rate for office-based commercial loans increased to 6.8% in the first quarter, while hospitality-backed properties ticked up to 6.3%. Delinquent retail-backed loans dropped from 5% at the end of 2023 to 4.7% in Q1.

“Loans across property types are adjusting to higher interest rates and uncertainty about property values, but the continued fog around the impact of hybrid work adds another challenge for office properties and their loans,” MBA Head of Commercial Real Estate Research Jamie Woodwell said in a statement.