U.S. Cities Fall Into A “Doom Loop” As The CRE Crisis Absolutely Explodes

 theeconomiccollapseblog.com

In the entire history of the United States, we have never witnessed an urban collapse of this magnitude.  During the pandemic, millions of Americans started working from home, and many of them have never returned to the office.  Meanwhile, rapidly rising levels of crime, homelessness and migration have transformed many of our inner cities into extremely dangerous places.  

As a result, thousands upon thousands of businesses have left our core urban areas in search of greener pastures.  So now there is lots and lots of commercial real estate space that is sitting empty, and commercial real estate prices have absolutely plummeted.

At this moment, we are in the midst of a meltdown that I believe will eventually be regarded as the worst commercial real estate collapse that America has ever seen.

In fact, we just learned that the number of commercial real estate foreclosures in March was 117 percent higher than it was during the same month in 2023.

The commercial real estate market is starting to buckle under the weight of higher interest rates and remote work.

There were 625 commercial real estate foreclosures in March, up 6% from February and 117% from the same time last year, according to a new report published by real estate data provider ATTOM.

Things are particularly bad on the west coast.

The struggles of San Francisco and Los Angeles are well documented, and so it is not much of a surprise that last month commercial real estate foreclosures in the state of California were up 405 percent compared to the same month last year…

California had the highest number of commercial foreclosures in March, with 187 properties. While that marked an 8% decrease from the previous month, it is a stunning 405% jump from the previous year.

“California began experiencing a notable rise in commercial foreclosures in November 2023, surpassing 100 cases and continuing to escalate thereafter,” the report said. CLICK HERE TO CONTINUE