Property data curator ATTOM released a special report on U.S. commercial foreclosures, revealing a significant climb in commercial foreclosures over the years, from a low of 141 in May 2020 to the current figure of 635 in January 2024.
ATTOM’s analysis began in January 2014, a time when the nation was emerging from the shadows of economic uncertainty, with commercial foreclosures at 740 nationwide. Over the next decade, ATTOM tracked fluctuations, witnessing the highest spike in October 2014 with 889 foreclosures, indicating the ongoing market corrections and adjustments.
However, the trajectory wasn’t a steady incline. In the face of challenges such as the COVID-19 pandemic and changing economic policies, the market displayed remarkable adaptability. While the pandemic saw an initial rise in foreclosures, the subsequent months showed a notable stabilization as businesses adapted to new market realities.
In May 2020, the United States marked a significant low in commercial foreclosures, reaching 141, reflecting the immediate impacts of the COVID-19 pandemic and the swift response measures that followed, including moratoriums and financial aid.
According to ATTOM, January’s commercial foreclosure total represents a 97 percent year-over-year increase and signals a revitalizing market that is navigating through the long-term economic shifts following a global event.
“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 in a release.
California, as a bellwether state, began the decade with 209 foreclosures in January 2014. Though it experienced a decrease in the following months, the foreclosure numbers saw fluctuations reflecting the state’s dynamic economic climate. By January 2024, California had the highest number of commercial foreclosures for the month, at 181. This was a 72 percent increase from last month and a 174 percent increase from last year.
New York, Texas, New Jersey, and Florida also showed significant variance over the decade, with each state's unique economic composition influencing the foreclosure rates. For instance, New York had 59 commercial foreclosures in January 2024, a 12 percent decrease from last month and a 12 percent decrease from a year ago, whereas Texas saw a 17 percent increase from last month and a 143 percent increase from last year. New Jersey saw a 38 percent increase from last month and a 157 percent increase from last year. Finally, Florida saw an 18 percent increase from last month and a 42 percent increase from last year, according to ATTOM.