U.S. commercial foreclosures remain elevated and are still considerably higher than pre-pandemic figures, ATTOM reported. Beginning in June 2023, foreclosure numbers saw a sharp increase, peaking at 752 in May 2024, before settling at 695 in ATTOM’s most recent data for September 2024. The recent surge points to “renewed financial stress or changes in commercial real estate dynamics,” according to ATTOM.
Historical data over the decade between January 2014 through September 2024 reflect significant fluctuations, largely shaped by economic conditions and major events like the COVID-19 pandemic. The period from 2014 to 2015 was marked by consistently high commercial foreclosure numbers, peaking at 889 in October 2014. However, a gradual decline began in 2016, with monthly totals falling below 500 by late 2016, a trend that continued into the years prior to the pandemic.
While foreclosures reached a low point during the pandemic, falling to just 144 in April 2020, they begin to rise again by mid-2021. By June 2023, commercial foreclosure activity saw a sharp resurgence, with numbers steadily climbing and reaching a peak of 752 in May 2024.
For September 2024, California led the nation with 264 commercial foreclosures, a 12% increase month-over-month and a 238% jump compared to the year-ago period. New York followed with 92 foreclosures, for a 59% rise M-O-M and a 48% increase year-over-year. Florida recorded 70 commercial foreclosures, up 21% from the previous month and 49% higher than a year ago. Texas saw 45 foreclosures, up 15% increase from August, although down 13% compared to last year. Pennsylvania had 32 foreclosures, up 129% M-O-M and 33% Y-O-Y.
Read More: ATTOM: U.S. Commercial Foreclosures Remain Elevated
