- 28 Mar 2024 20:35
#15309457
Commercial foreclosures increase 97% from last year to near decade-high
Commercial real estate foreclosures in the U.S. increased 97% in January 2024 compared to last year, reaching a high that has not been seen in nearly a decade, according to new data.
With 635 commercial foreclosures in January 2024, foreclosures increased 17% from December 2023 and 97% from January 2023, according to a report last week from property data analyst ATTOM.
The last time that commercial foreclosures were this high was in May 2015, per agency data
"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," ATTOM CEO Rob Barber said.
Commercial real estate foreclosure is highest since 2015.
data source:
U.S. Commercial Foreclosures Increase in January 2024 | ATTOM
I think we really have to ask ourselves what this says about the U.S. economy.
I know the media keeps saying there has been a switch to remote work outside the office space, but I think that it is only a smaller part of what is really going on.
Think about how they keep building more and more high-density multi-unit homes, track homes squeezed right next to each other with no yard space.
But at the same time we have not really seen more commercial buildings being built.
It sounds to me like the population keeps going up but these people don't have money.
What I suspect is many businesses simply cannot afford to have office space. That ranges all the way from medium-large businesses to smaller one-person professional practices.
related thread: Beginnings of default on debt in U.S. economy (October 2023) (North America section)
Commercial real estate foreclosures in the U.S. increased 97% in January 2024 compared to last year, reaching a high that has not been seen in nearly a decade, according to new data.
With 635 commercial foreclosures in January 2024, foreclosures increased 17% from December 2023 and 97% from January 2023, according to a report last week from property data analyst ATTOM.
The last time that commercial foreclosures were this high was in May 2015, per agency data
"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," ATTOM CEO Rob Barber said.
Commercial real estate foreclosure is highest since 2015.
data source:
U.S. Commercial Foreclosures Increase in January 2024 | ATTOM
I think we really have to ask ourselves what this says about the U.S. economy.
I know the media keeps saying there has been a switch to remote work outside the office space, but I think that it is only a smaller part of what is really going on.
Think about how they keep building more and more high-density multi-unit homes, track homes squeezed right next to each other with no yard space.
But at the same time we have not really seen more commercial buildings being built.
It sounds to me like the population keeps going up but these people don't have money.
What I suspect is many businesses simply cannot afford to have office space. That ranges all the way from medium-large businesses to smaller one-person professional practices.
related thread: Beginnings of default on debt in U.S. economy (October 2023) (North America section)
- By Tainari88
- By QatzelOk