2024 Missouri Commercial Foreclosures

2024 Missouri Commercial Foreclosures

Known as the “Show Me State,” for reasons that have never quite been verified, Missouri serves as the center of the midwestern United States. Beyond its centrality of being bordered by eight states, Missouri is popular with business leaders and entrepreneurs as one of the most affordable places in America to do business. Despite being home to major corporate powerhouses in industries like manufacturing, R&D, and distribution, Missouri is not immune to some of the same economic challenges plaguing other business-rich metropolitan areas. Total Lender Solutions, a nonjudicial foreclosure team that assists hard money lenders and financial attorneys, is monitoring the commercial real estate landscape of Missouri commercial foreclosures heading into 2024.

Missouri Commercial Foreclosures By the Numbers

The state 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.

Using PropertyRadar®, we found that the biggest concentration of commercial real estate foreclosures was in the following areas:

  • Kansas City (21)
  • St. Louis (19)
  • Springfield (19)

Kansas City Commercial Foreclosures

Kansas City, the state’s largest region for employment – accounting for 20% of all of the state’s jobs, led the way with 21 of the 79 Missouri commercial foreclosures.

While the city entered the year with the most active foreclosures, they were mostly single, standalone properties.

One of them, at 440 E 63rd Street, stands at 5,740 feet. The property has 19 enclosed offices, a conference room, and several other open-air rooms.  

“It’s fascinating to see the difference in which type of properties fall/ into foreclosure across states, and, more granularly, small business zones,” said Randy Newman, founder and CEO of Total Lender Solutions. “In some parts of Missouri, we have enormous properties in foreclosure, and then you look at Kansas City, and it’s just a series of 5,000 square foot or less office buildings.”

St. Louis Commercial Foreclosures

Unlike Kansas City, St. Louis is seeing larger foreclosures among its 19 foreclosures to begin 2024.

The largest property, standing at 420,000 square feet, is 10 South Broadway in St. Louis. This building spans 21 stories.

The St. Louis Business Journal looked at the financial woes of the property back in May of 2023. It was also the subject of a KSDK report when the building’s owner, Hertz Investment Group, defaulted on the property’s $15 million loan in 2019.

“It’s been five years, and little has changed with this property in terms of its financial stability,” said Newman. “The tenants started falling like dominos back in 2019, and the property hasn’t recovered since.”

Springfield Commercial Foreclosures

Springfield also saw 19 commercial foreclosures, and this is something you don’t see every day; A property at 229 E Commercial Street fell into foreclosure heading into 2024.

Its significance is not that it’s a 10,000-square foot commercial building. Its prominence is due to the fact that the building is 140 years old and is a contributing structure to the Commercial Street Historic District.

Related Post: How to Start Missouri Commercial Foreclosures

When to Start a Missouri Commercial Foreclosure

If you are a lending institution or you serve as a financial attorney for a lender and you’d like to discuss starting the Missouri commercial foreclosure process, connect with us. Our team is intimately familiar with the nonjudicial process in Missouri. We work as an extension of lender teams looking to maximize recoveries on defaulted loans. We transform the complicated process of foreclosing commercial real estate into clear resolutions for institutional and private lenders.

Fill out a form today, and let us assist you.