Commercial real estate foreclosures jumped 117% in March as trouble looms
foxbusiness.comThomas Michaud, CEO of KBW, a Stifel Company, assesses the stability of regional banks, commercial real estate and the Basel III proposals.
The commercial real estate market is starting to buckle under the weight of higher interest rates and remote work.
There were 625 commercial real estate foreclosures in March, up 6% from February and 117% from the same time last year, according to a new report published by real estate data provider ATTOM.
The figure is calculated based on commercial properties with at least one foreclosure filing – including default notices, scheduled auctions and bank repossessions – entered into the ATTOM Data Warehouse during the month.
California had the highest number of commercial foreclosures in March, with 187 properties. While that marked an 8% decrease from the previous month, it is a stunning 405% jump from the previous year.
INTEREST RATE CUT ODDS DWINDLE AS INFLATION PROGRESS STALLS
«California began experiencing a notable rise in commercial foreclosures in November 2023, surpassing 100 cases and continuing to escalate thereafter,» the report said.
Signs are posted on the exterior of the Westfield San Francisco Centre on April 13, 2022, in San Francisco, California. (Photo by Justin Sullivan/Getty Images / Getty Images)
New York, Florida, Texas and New Jersey also saw notable increases in commercial foreclosures last month.
Foreclosures have steadily risen since May 2020, when they hit a record low of just 141 properties. At that time, the U.S. economy was still in the throes of the COVID-19 pandemic, and many lenders offered commercial loan forbearance to borrowers to help them stay afloat.
However, those agreements have largely expired and now, the commercial real estate market
Read more on foxbusiness.com
