D-FW Commercial Real Estate Market Eludes Foreclosure Flooding in 2010

January 07, 2011 / Elizabeth Buckley, Commercial Property Analyst

Dallas-Fort Worth’s expected foreclosure flood in commercial real estate market fell flat last year, while commercial property transactions defaults totaled above $1 billion in North Texas in 2010, which was less than even the conventional expectations in the commercial real estate market.

D-FW Commercial Real Estate Market Eludes Foreclosure Flooding in 2010

Approximately 700 commercial properties including land, warehouses, apartments, offices, and hotels were sold at a foreclosure auction for 2010 in the four-county district, according to a Foreclosure Listing Service.

According to George Roddy, the president of a tracking firm, the commercial real estate market in the late 1980’s had 10 times the amount of commercial foreclosure filings compared to the current D-FW market.

But, Roddy added, his firm will keep track on the number of properties posted for foreclosures in the following months.

The number of posted foreclosures in D-FW commercial real estate market increased to about 40 percent in 2010 from the 2009 figures. However, the actual property foreclosures were up just about 10 percent, which are a quarter lesser than commercial assets threatened with foreclosure were actually put up for sale by lenders.

Majority of commercial properties foreclosed by lenders in D-FW commercial real estate market are retail centers, office buildings, apartments, and about 241 commercial lands were foreclosed by lenders.

Countrywide, about 9 percent of all securitized commercial mortgages in default are currently threatened with foreclosure in 2011, according to Trepp, an independent provider of CMBS and commercial real estate market information, analytics and technology.

Trepp analysts also said, there would be some ugly surprises this year as the commercial real estate market shows signs of recovery.

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