Foreclosure listings are surging in the commercial sector of the Dallas-Fort Worth area, according to studies by a Texas-based foreclosure tracking firm.
In 2009, a total of 2,431 office buildings, warehouses, vacant lands, shopping centers and other commercial properties were foreclosed and offered for sale. The number represented an increase of more than 25 percent from the over 1,900 commercial property foreclosures in 2008.
Although the number of residential foreclosures in the Dallas-Fort Worth area was higher than the number of commercial foreclosures, the rate of increase in commercial foreclosures compared to foreclosure activity in 2008 was higher than the rate of increase in residential foreclosures, according to the foreclosure tracking firm.
From 2007 to 2008, commercial property foreclosures in the Dallas-Fort Worth area soared by a stunning 67 percent. From 1,458 commercial foreclosures in 2007, the number soared to almost 2,500 foreclosures in 2009. However, according to analysts, the commercial property sector in the Dallas-Fort Worth area is not as battered as other cities where there were plenty of buildings resulting from overbuilding and speculative investing.
According to Texas foreclosure analysts, commercial foreclosures followed the growth in foreclosure listings in the high end sector of the residential market. They contend that developments in the commercial sector generally follow developments in the residential sector. They also predict that commercial foreclosures will continue to occur and even rise throughout 2010.
Last year, commercial foreclosures accounted for only around 4 percent of total foreclosure postings in the Dallas-Fort Worth area. Out of the 65,700 foreclosure actions in the area in 2009, only 2, 431 were commercial foreclosures.
The biggest increase in commercial foreclosures occurred in Denton where filings soared by more than 200 percent. In Tarrant County, foreclosures on retail and shopping centers and offices rose by more than 70 percent.
In commercial foreclosures, the subsector with the highest rate of foreclosures was the office sector, with office foreclosures growing by a staggering 121 percent from 119 foreclosed offices in 2008 to 263 foreclosures in 2009. Postings for vacant commercial land rose by 71 percent while filings for retail buildings increased by 20 percent.
A total of 257 foreclosure actions were filed in the retail and shopping center sector, an increase of 11 percent from 135 filings in 2008.
Additionally, foreclosures in the apartment sector rose by 16 percent from 347 filings in 2008 to 404 filings in 2009. Apartment foreclosure listings accounted for 17 percent of commercial foreclosures in the Dallas-Fort Worth area in 2009.
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