ATTOM: June 2024 Commercial Foreclosures Decline

ATTOM released an updated monthly report on U.S. Commercial Foreclosures. The report reveals a continued increase in commercial foreclosures over the years, from a low of 141 in May 2020, to the current figure of 647 in June 2024. This represents the continuation of a steady increase throughout the period.

Historical Commercial Foreclosure Overview

Since January 2014, ATTOM has been analyzing data, a period marked by the nation’s emergence from economic uncertainty, with commercial foreclosures numbering 740 nationwide. Over the following years, ATTOM monitored fluctuations, observing a peak in October 2014 with 889 commercial foreclosures, indicating ongoing market corrections.

Yet, the path wasn’t always upward. Despite challenges like the COVID-19 pandemic and evolving economic policies, the market demonstrated remarkable adaptability. Initial pandemic-related foreclosures were followed by a stabilization as businesses adjusted to new realities.

In June 2020, the U.S. observed the onset of a consistent upward trend in commercial foreclosures following an almost seven-year phase of continuous declines. June 2020 marked the first rise, from a notable low of 141 in May 2020, that persisted with steady increases through June 2024. By June 2024, commercial foreclosures had increased to 647, reflecting a 219% year-over-year increase compared to the 2020 low.

State-by-State Commercial Foreclosure Review

In June 2024, California had the highest number of commercial foreclosures for the month, at 214. This was a 10 percent decrease from last month but a 289 percent increase from last year.

This marks California’s first monthly decline following a notable rise in commercial foreclosures over the past seven months, which began in November 2023. During this period, cases exceeded 100 and continued to escalate.

Texas, New York, New Jersey, and Florida, following California, recorded the highest numbers of commercial foreclosures in June 2024. While these states experienced decreases this quarter, they exhibited significant fluctuations over the past decade, with each state showing a continuous overall increase.  Texas had a total of 70 commercial foreclosures in June 2024, a 1 percent decrease from last month and a 100 percent increase from a year ago. Then came New York which saw an 8 percent decrease from last month and a 21 percent decrease from last year. New Jersey saw a 35 percent decrease from last month and a 34 percent increase from last year. Finally, Florida saw a 45 percent decrease from last month and a 10 percent increase from last year.