Los Angeles commercial real estate continues to spiral downward, according to a report released Wednesday by Real Capital Analytics Inc.

The New York-based real estate research firm found that Los Angeles had $4.5 billion in troubled commercial properties at the end of June. In all, 263 properties are in default, foreclosure or bankruptcy, the firm reported. At the beginning of the year there were 113, a 133% increase.

Don Walker, senior vice president of Irvine-based John Burns Real Estate Consulting, said the worst may be yet to come, because commercial real estate numbers traditionally lag behind residential. “We might be in the early stages of decline,” he said. “I don’t expect a turnaround until consumers regain confidence and the jobless numbers stop mounting.”

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