Attom issued a great article on commercial foreclosures that we are all wondering about. When you look at the article, note the graph toward the top. What is driving this is a decline in commercial office values. Remember that the Income Method is primarily used for commercial valuation and it uses the rental income to calculate value. As the rents decrease, so does the value. Also, there is a lot of commercial loans coming due and will be reset at higher interest rates. Commercial loans are not typically long term fixed like residential loans. The next few years will be very interesting to watch. Cities will have less income due to this and we recently saw that Boston, MA intends to have a shortfall of 10% of their income in the next five years.