Dental Office Feasibility Study in the Phoenix-Mesa-Chandler, AZ Metro Area

Dentistry in Maricopa County, with gaps in the file

Maricopa County, AZ carries 146 of the 151 dental office loans around Phoenix-Mesa-Chandler, with Pinal County, AZ at 5, totaling $129.8 million across FY2017 to FY2026. Phoenix sits 11 of 562 among areas for dental offices and 7 of 39 among its classes, and 1.15x on the location quotient lifts the class a little above the national mix. Phoenix has no printed cancellation rate or charge-off rate, because neither is printed under Loan Analytics' small-count rule, and a blank is not nil. Read the missing rates as unknown rather than favourable.

The median is $539,000, 1.06x measured against the nation, with $200,000 at the lower quartile and $1.1 million at the upper. SBA 7(a) handled 138 loans and SBA 504 carried 13. The franchise share prints as 0.00%, so every practice stands alone. Yearly counts are also incomplete: FY2019 and FY2020 are withheld because Loan Analytics masks small counts and any value that subtraction could recover.

Lenders

Live Oak Banking Company carries 22 SBA 7(a) loans and $36.1 million, far more dollars than any peer. JPMorgan Chase Bank, National Association and BayFirst National Bank hold 8 each, Newtek Bank, National Association holds 7, and so does Wells Fargo Bank National Association. Arizona Capital Source is the only SBA 504 lender named, with 5 loans and $3.7 million. The figures above are only SBA's holder data.

The years that appear run from 24 loans and $17.5 million in FY2017 to 13 in FY2018, 18 in FY2021, 7 in FY2022, 21 loans and $23.0 million in FY2024 and 18 loans and $15.9 million in FY2026. A loan counts for Phoenix when its project county falls in the 2023 delineation of the metro.

Testing a Phoenix-area dental office

A study should test patient demand within reach of a site in Maricopa County, the practices already open, and the payer mix. Operatories, imaging and build-out must be priced against $539,000, and chair time, collections and hygiene revenue must carry debt service. Because the loss rates are withheld, the review should show its own downside case. Live Oak Banking Company's 22 loans are the largest book in the record, and its $36.1 million is far more than any other named holder shows. The 151 approvals say nothing about any one practice, and a request near the $1.1 million upper quartile needs a clear reason of its own.