But ATTOM report points to market resilience
Commercial foreclosures have been steadily rising over the years, but the market continues to demonstrate stability and adaptability in the face of economic challenges, according to ATTOM.
ATTOM’s updated monthly report showed that commercial foreclosures rose from a low of 141 in May 2020 to 647 in June 2024, representing a 219% year-over-year increase. This marks a consistent upward trend that began in June 2020, following an almost seven-year phase of continuous declines.
ATTOM has been analyzing this data since January 2014, when commercial foreclosures numbered 740 nationwide. The market saw fluctuations over the years, with a peak of 889 foreclosures in October 2014, indicating ongoing market corrections.
“Despite challenges like the COVID-19 pandemic and evolving economic policies, the market demonstrated remarkable adaptability,” ATTOM wrote in the report. “Initial pandemic-related foreclosures were followed by a stabilization as businesses adjusted to new realities.”
California led the nation with the highest number of commercial foreclosures in June 2024, totaling 214. This represented a 10% decrease from the previous month but a significant 289% increase from the same month last year. This decline was California’s first monthly decrease after a seven-month period of rising foreclosures, which began in November 2023 when cases exceeded 100 and continued to climb.
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Other states with high numbers of commercial foreclosures in June 2024 included Texas, New York, New Jersey, and Florida. Despite some decreases this quarter, these states have shown significant fluctuations over the past decade, with an overall continuous increase in foreclosures.
- Texas: down 1% from last month and a 100% increase from a year ago.
- New York: down 8% from last month and a 21% decrease from last year.
- New Jersey: down 35% from last month and a 34% increase from last year.
- Florida: down 45% from last month and a 10% increase from last year.
ATTOM’s Commercial Foreclosure Report compiles data on properties with at least one foreclosure filing each month. The report includes documents filed in all three phases of foreclosure: Default (Notice of Default and Lis Pendens), Auction (Notice of Trustee Sale and Notice of Foreclosure Sale), and Real Estate Owned (properties that have been foreclosed on and repurchased by a bank).
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