As we head into yet another year of potential uncertainty in the commercial real estate market, hard money lenders are looking to identify revenue opportunities while avoiding investment pitfalls. One way to stay financially positive is to maintain a clear understanding of the marketplace and to keep borrowers on track. Total Lender Solutions (TLS) serves as an asset to commercial lenders, maintaining a depth of knowledge of the market conditions and acting as a skilled executor of the non-judicial foreclosure process should borrowers default.
TLS has served the lending community for more than 30 years, offering hard money lenders and their financial attorneys sound foreclosure solutions. Simply put, the TLS team gets payments back on track and the loans working again.
As we enter 2024, we want to share this 2024 commercial real estate foreclosures outlook about several markets where we serve lenders. Observing the job trends can be a key indicator in subsequent defaulted loans. As companies contract or fold, this can lead to a series of commercial loans falling into foreclosure.
2024 Washington State Commercial Foreclosures
While the State of Washington produced net positive jobs for Q1 of 2023, several industries showed a declining trend. According to the U.S. Bureau of Labor Statistics, Q1 2023 data, released in November of 2023, industries like travel and hospitality saw gains in jobs, while other areas like retail, transportation and warehousing lost a combined 7,500 jobs in the first quarter of 2023.
As we entered January, Property Radar data showed Washington state’s 2024 commercial real estate foreclosures total at 100.
The biggest concentration of commercial real estate foreclosures were in the following cities:
- Seattle (15)
- Spokane/Spokane Valley (12)
- Tacoma (6)
TLS serves the Washington lending community with an office in Puyallup.
2024 Texas Commercial Foreclosures
Like Washington State, Texas also produced net positive jobs for most of Q1 of 2023. However, there were still a few industries hit with job losses.
U.S. Bureau of Labor Statistics Q1 2023 data showed that industries like leisure and hospitality saw job gains, while the state saw similar drops as Washington state in transportation and warehousing.
As we entered January, data showed 2024 commercial real estate foreclosures in Texas to be 325.
The biggest concentration of commercial real estate foreclosures were in the following cities:
- Houston (117)
- San Antonio (45)
- Dallas (43)
- El Paso (9)
TLS works with hard money lenders and their financial attorneys on non-judicial foreclosures in Texas, and you can connect with our team here.
2024 Oregon Commercial Foreclosures
The most recent U.S. Bureau of Labor Statistics data for Oregon is a job opening and labor turnover report from August 2023. This report indicated that the state saw 8,000 more job openings in August than it did in July.
Job hires stood at 72,000, while job separations were about 8% higher at 77,000. Specific industry gains and losses were not specified in the report. As we entered January, data showed 2024 commercial real estate foreclosures in Oregon to be 45.
The biggest concentration of commercial real estate foreclosures were in the following cities:
- Portland (16)
- Brookings (4)
- Klamath Falls (4)
TLS facilitates non-judicial foreclosures, reconveyances, and UCC sales in Oregon, and you can connect with our team here.
2024 Nevada Commercial Foreclosures
The state of Nevada produced net positive jobs for most of Q1 of 2023, with a net employment gain of 5,588 jobs in the private sector.
U.S. Bureau of Labor Statistics Q1 2023 data showed that the Construction industry led job gains, while professional and business services saw the most job losses in the state, followed by the transportation and warehousing industries.
As we entered January, data showed 2024 commercial real estate foreclosures in Nevada to be 119.
The biggest concentration of commercial real estate foreclosures were in the following areas:
- Las Vegas (70)
- Reno (32)
- Battle Mountain (12)
TLS is actively processing non-judicial foreclosures, reconveyances, and UCC sales in Nevada, and you can connect with our team here.
2024 Missouri Commercial Foreclosures
The state of Missouri opened the first quarter of 2023 with better job gains. The state saw 33,167 more jobs during Q1 according to the U.S. Bureau of Labor Statistics.
Two of the strongest industries for Missouri were the leisure and hospitality segment and the education and health services industry. The state saw net job losses in the transportation and warehousing industry – and this was the only industry in the state to post net job losses.
As we entered January, data showed 2024 commercial real estate foreclosures in Missouri at 79.
The biggest concentration of commercial real estate foreclosures were in the following areas:
- Kansas City (21)
- St. Louis (19)
- Springfield (19)
TLS serves the Missouri hard money lending community with an office in Kansas City.
2024 California Commercial Foreclosures
The most recent U.S. Bureau of Labor Statistics data for California is the job opening and labor turnover report from September 2023. This report indicated that the state saw 50,000 fewer job openings in September than in August.
In September, California had 546,000 hires and 506,000 separations, compared to 528,000 hires and 457,000 separations in August.
As California entered January, data showed its 2024 commercial real estate foreclosures to be 944.
The biggest concentration of commercial real estate foreclosures were in the following areas:
- Los Angeles (215)
- San Francisco – San Jose – Oakland (186)
- San Diego (171)
- Sacramento (76)
- Fresno (44)
2024 Arizona Commercial Foreclosures
The most recent U.S. Bureau of Labor Statistics data for Arizona is the job openings and labor turnover report from September 2023. This report indicated that the state saw 6,000 more job openings in September than in August.
In September, Arizona had 129,000 hires and 132,000 separations, compared to 130,000 hires and 135,000 separations in August.
As Arizona entered January, data showed its 2024 commercial real estate foreclosures to be 171. The biggest concentration of commercial real estate foreclosures were in the following areas:
- Phoenix (90)
- Tucson (40)
- Flagstaff (12)
- Yuma (7)
TLS serves Arizona hard money lenders from our office in Phoenix.
“When we look at the Bureau of Statistics information and see a common theme of warehousing and transportation-related job loss, it matches up with other data we are seeing of vacancies slowly creeping up. The overall industry may be healthy, but smaller operations have been struggling post-pandemic and the result can often be defaulted loans,” says Total Lender Solutions Founder and CEO Randy Newman.
Newman is echoing numerous media reports about commercial vacancies, especially the warehousing industry, as indicated in this Journal of Commerce article from July of 2023.
Do You Need to Foreclosure on a Defaulted Lender?
If you are entering the new year with late or missing payments from your commercial borrowers, TLS can start your commercial foreclosure process.
From warehouses to office space, foreclosure does not have to be burdensome for lenders or their financial attorneys. Trust a 20-year expert like TLS. If you’re currently dealing with commercial foreclosure, let us create a personalized solution for you. Contact us today for a customized Foreclosure Action Plan.
