Dental Office Feasibility Study in the Cleveland, OH Metro Area

Cleveland dentistry: large tickets, thin share

Cleveland places dental offices ninth locally, 9 of 39, with a location quotient of 0.47x, well under the national weight, and the metro is 37 of 562 on the national class table. Yet 49 loans totalling $47.9 million were booked from FY2017 to FY2026. Their midpoint of $437,000 is 0.86x of the national one, and a central band of $150,000 to $1.1 million makes a range wide enough to cover a practice purchase at one end and a new build at the other.

Franchise share is 0.00%, since dental practices are owner-operated professional businesses. The program division, 7(a) against 504, stays unpublished. The 7(a) side lists The Huntington National Bank at 17 loans and $9.2 million, and Live Oak Banking Company at 10 loans and $18.6 million, a much larger average ticket. They are SBA's holder entries and imply no judgment of either bank.

Counties and years

Cuyahoga County, OH supplies 37 loans and Lake County, OH 5, so the record is concentrated in the core county, which leaves little local evidence for a practice outside it; a dentist in Lake County, OH, for example, would have only a handful of local comparables. The 0.00% franchise share means the file offers no brand benchmark either. Cleveland dental cancellations sit at 14.6% or higher for FY2017 to FY2024 approvals, a floor; no ceiling or charge-off rate is published, since loans are scarce, and neither is zero. Years that print: FY2017 (8 loans, $6.2 million), FY2019 (5, $4.5 million), FY2021 (7, $3.2 million), FY2022 (7, $4.2 million) and FY2024 (6, $7.8 million).

All other years are hidden. The July 2023 delineation decides where a project county falls, and an unplaceable county removes the loan from every metro.

Cleveland dentistry: what a study proves

Patients within reach of the office, the payer mix and the practices nearby need measuring, along with production history if an existing practice is being bought. Equipment and build-out should be costed against the $437,000 midpoint, with collections carrying debt service coverage. Appraisal values the practice, goodwill included, apart from the real estate, and the engagement is signed by Daniel Smith, MAI, for Loan Analytics. No approval follows automatically from any of this.