A total of 625 commercial real estate foreclosures were recorded in March, according to new data from ATTOM. This is up 6% from February and up by 117% from March 2023.
California had the highest number of commercial foreclosures last month at 187, up 8% from February but up by an astonishing 405% from one year earlier. ATTOM noted that California began experiencing a notable rise in commercial foreclosures last November, surpassing 100 cases and continuing to escalate thereafter.
New York, Florida, Texas and New Jersey also showed significant variance over the decade, with each state continually increasing. New York had a total of 61 commercial foreclosures in March, up 5% from the previous month and up 65% from one year earlier. Florida which saw a 30% percent increase from February and a 107% year-over-year spike. Texas experienced a 31% increase from the previous month and a 129% upswing from the March 2023. And New Jersey saw a 31% monthly increase and a 133% annual spike.
Last month, Federal Reserve Chairman Jerome Powell warned that commercial real estate-related risks will impact the banking sector.
‘We have identified the banks that have high commercial real estate concentrations, particularly office and retail and other ones that have been affected a lot,’ Powell said during testimony before Congress. ‘This is a problem that we’ll be working on for years more, I’m sure. There will be bank failures, but not the big banks.’
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