Commercial foreclosures increase in Dallas-Fort Worth

As foreclosures across the nation and in North Texas continue to mount, commercial properties have begun to pile up as well.

According to a report released by Foreclosure Listing Service Inc., Dallas-Fort Worth commercial real estate foreclosure postings have increased 32 percent above the same time a year ago. To date, 1,918 postings were filed on commercial properties in the area compared to the 1,458 for the same period in 2007.

However, George Roddy Sr., president of Foreclosure Listing Service, made note that commercial real estate foreclosure postings filed represented just 4 percent of the total postings recorded this year in the Metroplex.

“Of the approximately 53,400 total postings filed in 2008, just 1,918 of those were filed on commercial properties,” Roddy said. “These included postings of all types of commercial real estate such as retail centers, retail buildings, office buildings, industrial buildings, apartment complexes, unimproved commercial land and miscellaneous commercial buildings.”

Foreclosure postings of commercial real estate climbed at a steeper rate than residential postings for the area, jumping 32 percent this year compared to 2007 compared to a 17 percent increase for residential properties over those filed last year.

“Thankfully, this does not mean that the commercial property market is in big trouble,” Roddy said. “The largest share of commercial properties posted for foreclosure this year due to a mortgage delinquency has involved miscellaneous buildings that were smaller, older and in less desirable locations. There does not appear to be an alarming number of postings among the quality commercial properties.”

Roddy said one of the most significant differences between commercial foreclosure posting activity in today’s market compared to the real estate crash of the late 1980s is the quality of properties being posted.

“In the late 1980s, I saw a significant amount of signature, Class A properties posted for foreclosure,” he said. “But today, the vast majority of the commercial properties posted for foreclosure are either Class C properties or miscellaneous commercial buildings.”

Commercial Land

Postings filed on undeveloped, commercial tracts of land surged 65 percent above the previous year with 321 postings filed on raw land in the Metroplex in 2008 compared to 195 recordings in 2007

Postings of commercial land represented 17 percent of the total commercial foreclosure posting activity this year.

Apartments

Ranking second in highest gain, apartment communities experienced a 35 percent jump in foreclosure postings. This year, 347 postings were filed on apartment communities in Dallas-Fort Worth compared to 257 notices a year ago.

Foreclosure postings filed on apartment complexes equaled 18 percent of the Metro’s total commercial posting activity this year.

Industrial Buildings

Postings of Dallas-Fort Worth industrial buildings have climbed 32 percent higher than those filed last year with 148 postings for 2008 compared to 112 filed for the same period a year ago.

Postings of industrial buildings equated 8 percent of the total commercial posting activity for the year.

Office Buildings

In 2008, 119 postings were filed on Dallas-Fort Worth office buildings compared to 103 notices for this same period last year, accounting for a 16 percent gain.

Postings of area office buildings accounted for 6 percent of the total commercial postings filed this year.

Retail Buildings/centers

The lowest gain in posting activity among the commercial property types was a 15 percent increase in postings filed on Dallas-Fort Worth retail buildings/centers. In 2008, 135 postings were filed on retail buildings/centers compared to 117 notices in 2007.

Notices filed on retail building/centers comprised 7 percent of the total commercial postings filed in 2008.


courtesy of aleshia howe