Since the COVID-19 pandemic, the commercial real estate industry has seen a myriad of changes. Low occupancy rates in office buildings, hotels and other commercial properties are causing an uptick in commercial foreclosure, which is continuing into 2024. Read more about this trend and how Total Lender Solutions can help you with the foreclosure process, no matter the property type.
Industries Struggling with Low Occupancy
Industries that are the most susceptible to commercial foreclosure include hospitality and office space. The hospitality industry faced a historic wave of foreclosures at the onset of the pandemic, and even in 2023, hotels have not yet reached 2019 levels of occupancy, meaning that many hotels are still struggling to make rent. Office spaces, meanwhile, are foreclosing at record numbers, with about $1.2 trillion in outstanding debt to banks and lenders. More than 10,000 office spaces were foreclosed in the first quarter of 2023, while vacancies sit at approximately 18%.
What’s the Impact on Commercial Foreclosure?
Commercial foreclosure rates have been rising steadily throughout 2023. The first six months of year saw approximately 185,000 filings for foreclosure nationwide, vs. about 165,000 filings in all of 2022. The commercial real estate sector continues to face challenges that have softened demand while raising operating and financing costs. These include higher interest rates, an economic slowdown, the hybrid work environment and a tight labor market.
How a Commercial Foreclosure Company Can Help
If you find yourself at a crossroads and need to begin the commercial foreclosure process, turn to an experienced professional like Total Lender Solutions to guide you. No matter what property type, the team at TLS will specifically tailor solutions for your foreclosure, ensuring your process is completed in a timely manner and in full compliance with local and national laws.
Foreclosing on your hotel or office space can be overwhelming but hiring an expert like Total Lender Solutions can make all the difference for your business. 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.
