New ATTOM report looks at changes in commercial foreclosures

A new report charts the fluctuations in commercial foreclosures in the United States over the past 10 years and shows a significant spike since the pandemic.

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The report, developed by ATTOM, a curator of land, property, and real estate data, said that commercial foreclosures went from a low of 141 in May 2020 up to 635 in January 2024.

ATTOM’s analysis takes a 10-year look at commercial foreclosures, starting in January 2014. At that point, commercial foreclosures were at 740 nationwide. That number spiked to a high of 889 in October 2014 but then fluctuated over the years and declined to a low of 141 in May 2020.

This low was due to the swift response measures that followed the COVID-19 pandemic, including moratoriums and financial aid. However, since then, commercial foreclosures have gone up, reaching 635 in January 2024.

“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,” Rob Barber, CEO at ATTOM, said.

Looking at some of the key states, California had the highest number of commercial foreclosures in January at 181. This was a 72 percent increase from the previous month and a 174 percent increase from the same month last year. Further, New York had a total of 59 commercial foreclosures in January 2024, a 12 percent decrease from the previous month and a 12 percent decrease from a year ago.

Also, Texas saw a 17 percent increase in January from the previous month and a 143 percent increase from the same month last year, while New Jersey saw a 38 percent increase month-over-month and a 157 percent increase year-over-year. Finally, Florida experienced an 18 percent increase in January compared to the previous month and a 42 percent increase year-over-year.