The Current State of Commercial Foreclosures in Florida (2025)

By Andrew Pascale, Esq. – Ormond Beach Commercial Foreclosure Defense Lawyer

Commercial foreclosure activity in Florida has been shaped in 2025 by broader U.S. commercial mortgage stress, uneven strength across property types, and local market divergences. Commercial Mortgage Backed Security or “CMBS” delinquency rates rose through mid-2025 before a slight pullback in September; Florida bank-level non-current/loan metrics remain low but show signs of pressure. These dynamics are increasing workouts, special servicing, and — in some cases — foreclosure filings.

Key Indicators

Trepp’s CMBS delinquency rate rose to 7.29% in August 2025 and slightly improved to 7.23% in September 2025.
Office loans remain the most troubled, while industrial and multifamily are relatively resilient.
FDIC data show Florida banks’ median noncurrent loan ratios around 0.24% in Q2 2025, still historically low.

Figure 1: Trepp CMBS Delinquency Rate (Selected Months, 2025)

Figure 2: Florida Noncurrent Loans / Total Loans (Median %), Selected Quarters

Factors Driving Foreclosures
– Higher interest rates have made refinancing more difficult.
– Office property values remain weak, leading to higher defaults.
– Banks are closely monitoring CRE exposure and tightening credit.
– Investor demand for multifamily and industrial assets continues to offset some risk.

Conclusion
The 2025 data show rising stress in certain commercial property sectors, especially office and maturing CMBS loans. However, Florida’s growing population and investor demand have kept much of the state’s commercial real estate stable. Foreclosure risk is highest among older office properties with refinancing challenges. For borrowers, early legal intervention remains key to avoiding unnecessary loss.

Trusted Sources
– Trepp CMBS Delinquency Reports (2025)
– FDIC Florida State Profile (Q2 2025)
– CBRE U.S. Real Estate Market Outlook (2025)
– Reuters and CREFC 2025 CRE Loan Performance Updates

Law Offices of Andrew J. Pascale, P.A. dba Florida Foreclosure Defense law firm focuses on real estate litigation and foreclosure defense.  

For legal assistance, contact:

Law Offices of Andrew J. Pascale, P.A.
761 W. Granada Blvd. #112
Ormond Beach, FL 32174
877-667-1211