Commercial foreclosure figures in Denton County show an abrupt increase, but not one that should cause alarm, local officials say.

The county’s commercial foreclosure postings rose 92 percent for January through November 2008, compared to the same period last year. The main culprit behind the major increase in numbers is land foreclosures, according to records from Foreclosure Listing Service Inc.

“It’s higher than prior years, obviously, but not as high as it could be,” said George Roddy Sr., president of the Addison-based company. “It’s been quite surprising the fact that commercial properties have not been affected nearly as much as they were in the late ’80s, when we saw huge numbers of these properties foreclosed on.”

The percentages, though, could be foretelling the future, he said, adding that some landowners are “land poor.”

Figures show the county had no foreclosures on apartment complexes or office buildings so far this year; eight of those foreclosures were posted in the first 11 months of 2007. Fewer retail centers and industrial buildings have been foreclosed on in 2008 during the same periods, records show.

However, land foreclosures are up 250 percent with 63 posted for foreclosure auction in the first 11 months of the year — significantly higher than the 18 posted during the same period in 2007.

“There’s really not a demand for new buildings,” Roddy said, adding that the ones that are being built are primarily specialty buildings, such as medical facilities.

“What we’re seeing is a general slowdown or a general re-look at what’s needed,” he said. “If people are not leasing the space that’s out there, then there’s no sense for building any more.”

Construction in and around Denton continues, though, says Linda Ratliff, economic development director for the city.

She cited construction restarting at Rayzor Ranch’s northern section in preparation for a Wal-Mart, Sam’s Club and Lowe’s, in addition to several projects along FM2181, including a Kroger grocery store at Teasley Lane and Hickory Creek.

“Even though we might have some foreclosures, we’re probably still in good shape because we still have construction ongoing,” Ratliff said.

Chris Rosprim, a longtime Denton area broker and commercial real estate services division manager with Scott Brown Properties, said he has seen the slowdown due to the tightening in the credit market, but development has continued.

“It has not come to a complete halt,” he said. “In the commercial arena, in our neck of the woods, we’re still seeing a lot of activity.”

The recent foreclosed properties, Rosprim said, were likely speculative purchases, in which people bought property, put some money down and got to the point where they couldn’t continue.

“In these financial times, if you have property that’s not moving and that’s not making any income, if you had some property to let go, that’s what you would let go,” Ratliff said.

Roddy said with banks pulling back and no lending available, the current financial times may be pushing more people to the brink.

“You’ve got a lot of people that are hanging on that are basically land poor,” he said. Some who purchased larger tracts of land for single housing projects and similar projects are facing problems, he added.

Rural farms and non-urban areas are not on the foreclosure lists. Roddy said that people who purchased land for personal use are not finding themselves adrift in foreclosure proceedings.

While development has moved into Denton and continues to move north, it has reached a stopping point, Roddy said.

“It’s certainly moving north, but it’s pretty much stopped at [U.S.] Highway 380,” he said.

Rosprim says growth is still coming, just not as quickly.

“People are still moving this way, and they still have to have a place to eat and a place to shop,” he said. “Things are going to keep on rolling even if they are a bit slower.”

DAWN COBB can be reached at 940-566-6879. Her e-mail address is dcobb@dentonrc.com .