The commercial property market further waned in the first month of 2024 as borrowers continued to grapple with elevated interest rates, making refinancing more expensive, and the postpandemic work-from-home trend has hampered demand for office space.

Commercial foreclosures spiked totaled 635 in January from, up 17% from the prior month and 322 in the year-ago period, according to data from Attom.

Foreclosures hit a low of 141 in May 2020, when forbearance programs were available for owners to navigate the impact of the Covid pandemic. Now, such moratoriums and financial aid have largely run out.

“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 in a statement.

 

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