U.S. COMMERCIAL FORECLOSURES SPIKE IN SEPTEMBER 2024 WITH SIGNIFICANT YEAR-OVER-YEAR INCREASE

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Oct 22, 2024, 10:00 ET

Commercial Foreclosures Increased 15 Percent from Last Month and 48 Percent from Last Year; States with the Most Commercial Foreclosures in September 2024 Included California, New York, and Florida

IRVINE, Calif., Oct. 22, 2024 /PRNewswire/ -- ATTOM, a leading curator of land, property data, and real estate analytics, today released an updated monthly report on U.S. Commercial Foreclosures. The report reveals that commercial foreclosures remain elevated and are still considerably higher than pre-pandemic figures. Starting 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. This recent surge suggests renewed financial stress or changes in commercial real estate dynamics.

Historical U.S. Commercial Foreclosure Activity

Historical Commercial Foreclosure Overview
The historical data on commercial foreclosure activity from January 2014 through September 2024 reflects 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 commercial foreclosures in October 2014. This early surge points to heightened financial distress in the commercial real estate sector during that time. However, a gradual decline began in 2016, with monthly commercial foreclosure totals falling below 500 by late 2016, continuing this trend into the years before the pandemic.

The impact of COVID-19 is clearly reflected in the data for 2020. By April 2020, commercial foreclosure activity plummeted to just 144 as government interventions, moratoriums, and economic relief efforts took hold. Throughout 2020 and into early 2021, commercial foreclosure numbers remained at historically low levels. However, as pandemic-related measures were lifted and economic pressures resurfaced, commercial foreclosures began 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. This recent surge likely reflects ongoing financial challenges in the commercial real estate market, with factors such as rising interest rates, inflation, and shifts in demand for commercial spaces contributing to the increase. As of September 2024, the total stands at 695, signaling continued high commercial foreclosure activity, although slightly lower than earlier in the year.

State-by-State Commercial Foreclosure Review
In September 2024, California led the nation with 264 commercial foreclosures, reflecting a 12% increase from the previous month and a staggering 238% jump compared to the same time last year. New York followed with 92 foreclosures, marking a 59% rise month-over-month 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, a 15% increase from the previous month, though this was a 13% decline compared to last year. Pennsylvania had 32 foreclosures, experiencing a significant 129% spike month-over-month and a 33% rise year-over-year.

Report Methodology
ATTOM's U.S. Commercial Foreclosure Report provides a count of the total number of commercial properties with at least one foreclosure filing entered into the ATTOM Data Warehouse during the month. ATTOM's report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank).

About ATTOM
ATTOM provides premium property data and analytics that power a myriad of solutions that improve transparency, innovation, digitization and efficiency in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes, and enhances the real estate data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 30TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include ATTOM Cloud, bulk file licenses, property data APIs, real estate market trends, property navigator and more. Also, introducing our newest innovative solution, making property data more readily accessible and optimized for AI applications – AI-Ready Solutions.