Flex Space Feasibility Study in Georgia

Large loans for flex buildings

Georgia's flex lending is distinctive for its ticket. The median of $955,000 is 1.59x the national median, and loans in the central band run from $496,000 to $1.5 million, so borrowers here are buying larger buildings than their peers elsewhere. Over FY2017 to FY2026 the state shows 45 loans worth $55.3 million, ranks 12 of 51 for the class and 21 of 39 within Georgia, and has a location quotient of 0.99x, essentially the national weight. In other words Georgia flex finances a normal share of buildings that happen to be big.

Programs and places

SBA 7(a) made 42 loans and SBA 504 made only 3, a lopsided mix that leaves the fixed-rate real estate programme barely used. Franchise brands account for 6.7%. No lender reaches the five-loan reporting level, so the book is scattered. Gwinnett County has 9 loans and Cobb 5, with Clarke, DeKalb, Forsyth and Hall at 3 each, which fits a suburban ring of business parks around the core.

Lending that stops

Approvals grew from 4 loans in FY2018 to 11 loans worth $9.1 million in FY2021, and FY2023 recorded 7 loans for $10.2 million, the highest dollar year. FY2024 shows 2 loans worth $7.2 million, a very large average, and then the record is empty for FY2025 and FY2026. SBA lending to this lessor class nearly stops from FY2024, so the empty years describe the programme and say little about Georgia buildings.

Outcomes so far

At least 17.8% of approvals dated FY2017 through FY2024 were cancelled after approval, or 20.0% on the strict count of unfunded loans, a high floor. No charge-off rate appears; under 30 loans funded in the early window. That is not a statement that nothing was lost.

What the study has to test

The tenant comes first. A Georgia flex study should identify who leases mixed office and light industrial bays nearby, such as contractors, distributors, showrooms and small manufacturers, at what rents and with what lease lengths. A ticket near $955,000 implies a building purchase, so price per square foot against in-place income decides the deal. Run the payment test with vacancy of the largest tenant's space and a re-leasing delay. The appraiser will value income real estate, and because the lessor code also covers office, retail and banquet hall landlords, the SBA data offers no flex-only comparison.