Commercial Foreclosures – Statistics
May 7th, 2010 | Author: weissheiss
Just as land and residential foreclosure take place, so too do commercial foreclosures. Commercial property is purchased much in the same way as any other property and hence can be foreclosed upon in much the same way. As the foreclosure crisis grips the nation and continue to mount, commercial foreclosures have also been seen to be on the increase.
Looking at the high percentage of foreclosures at present compared to the same period in 2007, foreclosures have increased between 20 – 40% across the nation and this is prevalent in the commercial sector also. The president of Foreclosure Listing Service, George Roddy Snr. Said that the percentages of commercial foreclosures are much lower than that of residential, if you take into consideration for example the Fort Worth area. Of 53 400 total foreclosure postings filed, only 1 918 of those filings were for commercial property, this makes the total filing of commercial property a relatively low 4%.
This percentage includes across the boar commercial enterprises such as retail buildings and centers, industrial buildings, unimproved land, office buildings, apartment complexes and other miscellaneous commercial property. And apparently this means that the commercial property market is not in such a great deal of trouble. Certainly not nearly as much trouble as the residential property market is in.
Most of the foreclosure filings for commercial property during the course of this year have been due to mortgage delinquency. This seems to be affecting buildings that are smaller, older and not in very desirable areas. This however does not appear to be affecting too many of the better quality commercial properties. It is significant that in comparison to the real estate crash in the late 1980′s, quality commercial properties are not being so widely affected. In the crash of the 80′s a large majority of “Class A” property had been listed for foreclosure, whereas today this seems to only be affecting “Class C” property.
Commercial foreclosure has also affected undeveloped tracts of land that have been earmarked for commercial use quite significantly, with a 65% increase over 2007. These represent a as much as 17% of the total foreclosure activity this year, and is far higher than the 4% being experienced by commercial property. Apartments have also been affected, and they rank second highest with a 35% increase in foreclosures, this is approximately 18% of the areas total commercial foreclosure filings. The rate of industrial buildings experiencing commercial foreclosure filings has risen to 32% and this equates to 8% of the total commercial filings.
Looking at these figures, we can deduce that commercial foreclosures are on the increase over the figures from last year and in some instances quite significantly. What it does mean however is that there is a rather large amount of property available to wise investors who are able to negotiate well discounted prices. Retail buildings and retail centers have also suffered in the foreclosure crisis, as have other miscellaneous commercial buildings.
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