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March 2024 » thefivestar.com 63 March 2024 J O U R N A L year earlier in 230 of the 389 metropol- itan areas, lower in 128 areas, and un- changed in 31 areas. A total of nine areas had jobless rates of less than 2% and 10 areas had rates of at least 8%. Nonfarm payroll employment increased over the year in 61 metropolitan areas and was essentially unchanged in 328 areas. The national unemployment rate in Decem- ber was 3.5%, not seasonally adjusted, up slightly from 3.3% a year earlier. COMMERCIAL FORECLOSURES ON THE RISE A ccording to a new ATTOM report, the number of commer- cial foreclosures has increased significantly in recent years, rising from 141 in May 2020 to 635 in January 2024—indicating a consistent rise over the period. When ATTOM began analyzing data in January 2014, the United States was just starting to emerge from the shadows of economic uncertainty, with 740 commer- cial foreclosures nationwide. ATTOM monitored changes during the ensuing 10 years, with the greatest peak occurring in October 2014 with 889 foreclosures, a sign of continuous corrections and adjustments in the market. But the trajectory was not a steady course. Market flexibility was impressive in the face of obstacles like the COVID-19 pan- demic and shifting economic policies. Fore- closures saw a spike during the pandemic, but as companies adjusted to the changing market conditions, there was noticeable stability in the months that followed. To illustrate the early effects of the COVID-19 epidemic and the quick reaction measures that followed, such as financial relief and moratoriums, the United States recorded 141 commercial foreclosures in May 2020, a considerable low. In sharp con- trast to the 2020 low, business foreclosures had skyrocketed to 635 by January 2024. "This uptick signifies not just a return to pre-pandemic activity levels but also underscores the ongoing adjustments within the commercial real estate sector as it navigates through a landscape trans- formed by evolving business practices and consumer behaviors," said Rob Barber, CEO at ATTOM. State-by-State Commercial Foreclosures California saw roughly 209 foreclo- sures in January 2014. The state's dynamic economic condition was reflected in the variations in the foreclosure statistics, despite a subsequent drop. With 181 commercial foreclosures in January 2024, California had the most of any state in the nation. This was an increase of 174% from the previous year and 72% over the previous month. Over the decade, there was notable variation in the foreclosure rates of New York, Texas, New Jersey, and Florida, as the distinct economic structure of each state had a role. In January 2024, for example, there were 59 commercial fore- closures in New York—an estimated 12% decline from the previous month and a 12% decrease from a year earlier. WHAT FACTORS ARE IMPACTING FORECLOSURE FILINGS? A ccording to ATTOM Data's January 2024 U.S. Foreclosure Market Report, there were 33,270 properties across the country with foreclosure filings—defined as a default notice, scheduled auction, or bank repos- session—against them, a number which is up 5% year over year and 10% from the prior month. "We observed a slight uptick in fore- closure filings, which may be partially attributed to the typical post-holiday pro- gression of filings through the legal sys- tem," said Rob Barber, CEO at ATTOM. "However, other external factors may be at play such as escalating interest rates, inflation, employment shifts, and other "This uptick signifies not just a return to pre- pandemic activity levels but also underscores the ongoing adjustments within the commercial real estate sector as it navigates through a landscape transformed by evolving business practices and consumer behaviors." —Rob Barber, CEO, ATTOM