According to an article in the Star-Telegram, commercial property foreclosure postings rose by 12 percent in North Texas from a year ago.
The article said:
“There have been 384 postings in Tarrant County through July, down 27 percent from a year ago, according to Addison-based Foreclosure Listing Service. In Dallas County, postings are up 27 percent. Those two counties account for 77 percent of the 1,245 postings in the area, which also includes Denton and Collin counties.”
Nationwide, the owners of shopping malls, hotels and offices are succumbing to foreclosure at an alarming rate. The number of foreclosures on office and retail space has risen by 110 percent devastating many small businesses. And those who haven’t faced foreclosure yet are often delinquent on their loans.
Delinquency rates on commercial loans have doubled in 2009, jumping by 7 percent, an ominous sign of future foreclosures in this sector. Even foreclosures on land has risen since January 2009, with 252 foreclosures posted in North Texas, a rise of 53 percent over the previous year of 163 foreclosures.
If the commercial property industry experiences a foreclosure crisis similar to the residential sector we could be in for another downturn complete with several rounds of job losses and corporate bankruptcies.