Nationwide commercial property foreclosures are up significantly since 2023. According to a recent report released by ATTOM in February of this year, the end of 2024 saw a significant year-over-year increase with 725 commercial properties going into foreclosure. California led the charge with 257, which amounted to a 90% increase from the previous month and a 104% jump compared to December of 2023. With foreclosure comes the risk of a property becoming vacant or abandoned. This can eventually cause problems for cities, who run the risk of those vacant commercial properties becoming taken over by squatters or converting into hotbeds for crime.
In any event, it’s important to consider the necessary steps to ensure consistent protection and security for the property itself and the surrounding neighborhood. Appointing a receiver can alleviate the massive constraints on city resources when attempting to bring the property back into compliance and restore safety to the community. Recently-passed legislation has made it easier for cities to take action in such cases.
When it comes to assuming control of vacant commercial properties, one of the most pressing concerns is security. Not only do receivers need to ensure the physical protection of the property, but they also must consider potential threats from trespassers, former owners, or individuals with nefarious intentions.
Understanding the Property and its Surroundings
In most cases, municipalities bringing the receivership action will have a good idea of any existing security threats the property faces, and those details will have been discussed and considered pre-appointment. Once appointed, the receiver schedules an initial inspection to perform a thorough assessment and takes steps to secure the property immediately.
Assessing the Neighborhood's History
Once a familiarity has been established with the physical property itself, the focus is extended to the surrounding neighborhood. What is the neighborhood like? Are there any exterior threats such as known trouble spots, criminal activity, or high traffic areas that may attract trespassers? Understanding these dynamics helps determine the level of risk the property might face so appropriate action can be taken.
If the property is located in a neighborhood with a history of frequent break-ins or squatting, that is always factored into the receivership security plan. If necessary, due diligence is performed to research local crime reports and neighbors may be interviewed to get a clearer picture of the area’s safety record.
Preventing Trespassing: A Proactive Approach
Generally, we collaborate with local law enforcement officials to make sure a property has legally backed protection from the outset. A Letter of Agency is sent to the local sheriff or police department to authorize enforcement of applicable trespass laws and "No Trespassing" signs are posted at the property. This formal request gives law enforcement the authority to remove trespassers from the property, providing a stronger deterrent with actionable consequences. The receiver’s office is in constant communication with officials to keep the property protected at all times.
Analyzing Security Needs: What Works Best?
Every property is unique, and the best security measures depend on a variety of factors, including the property's size, location, and level of risk. In some cases, a regular patrol or standing security guards might be the most effective choice. For larger or more at-risk properties, hiring a security team to conduct regular patrols ensures that the property is monitored consistently. Guards stationed at key entry points can act as a deterrent for repeat groups or individuals who seek to use the property to commit crimes.
Alternatively, physical barriers, such as fences or boarding up entry points, are also common solutions. Fencing not only adds an extra layer of protection by making it difficult for unauthorized individuals to gain access to the property, but it also clearly marks the boundaries of the property. Boarding up windows and doors can help prevent damage and illegal entry.
Secure Board-Up Options: Working with Specialized Vendors
Working with a trusted vendor can make all the difference. Vendors who specialize in secure board-up services specifically for vacant commercial properties offer an excellent solution. They also come with an added layer of protection, using extra durable and code-compliant products to secure and protect points of entry.
Maintaining Security While Executing the Receivership Plan
Whether a receiver recommends an as-is sale, a clean-out and sell, or a rehab - safety and security are front of mind at all times throughout the process. Once a contractor or real estate broker becomes involved, the extra visibility helps make sure the property is looked after while it is in the process of being brought into compliance.
Choose an Expert in Vacant Commercial Properties
Griswold Law has experience managing the rehabilitation of commercial properties and bringing them back into compliance, restoring safety and security for everyone involved.
Contact us today to discuss any potential commercial nuisances your community is facing
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