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No Foreclosure Red Flags Despite Rise in Calls

DALLAS-CRE foreclosures continue to climb in North Texas. But unlike the 1980s, class A postings are few and far between. Pros say the market's in far better shape this time.

By Connie Gore | Updated on March 17, 2008

[IMGCAP(1)]DALLAS-Despite a steady and paced increase in commercial foreclosures, a leading market watcher and lender agree that Dallas/Fort Worth is far better prepared to weather the capital markets tsunami than most major metros. On average, commercial postings are running 175 per month in five North Texas counties, but it’s mostly class B and class C properties.

“We have seen a pickup in the past six months relative to the slowdown,” George Roddy Sr., president of Foreclosure Listing Service Inc. of Addison, TX, tells GlobeSt.com. “By the same token, there is not a huge amount of primo-type properties on the list. And, I just don’t foresee anything like that in this cycle.” He says the majority of foreclosure postings are multifamily properties, with retail like convenience stores running a close second. Two years ago, the monthly average was 120 postings in Collin, Dallas, Denton Rockwall and Tarrant counties.

Simply put, Roddy says job growth, occupancy rates for all product type and construction constraint have positioned the metroplex to fare better than its US peers. Despite the traumatic reports from Wall Street, Roddy says Dallas/Fort Worth’s streets aren’t in danger like they were in the mid- to late 1980s because, in part, lenders have done their part to keep the market in check. “For that reason and the vibrancy of our market, I do see more foreclosures [in the months ahead], but I don’t think it’s going to be anywhere close to what we saw in the mid-1980s,” he stresses.

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