Commercial Foreclosures Increase 97 Percent from Last Year to Near Decade-High

by Madeleine Hubbard

Commercial real estate foreclosures increased 97 percent 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 percent from December 2023 and 97 percent 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 properties are not the only ones affected by foreclosures.

In January 2024, 33,270 U.S. properties, including residential homes, had foreclosure filings, which is up 10 percent from December and 5 percent from the same time the previous year, per another ATTOM report.

The increase may be due in part to normal post-holiday filing progressions, Barber said. “However, other external factors may be at play such as escalating interest rates, inflation, employment shifts and other market dynamics.”

Michigan saw the greatest increase in foreclosures from December 2023 to January 2025 with a rise of 200 percent, per data.

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Photo “Vacant Shopping Center For Lease” by Nicholas Eckhart CCNCSA2.0