Medical Office Feasibility Study in the Austin-Round Rock-San Marcos, TX Metro Area

Austin medical offices: a mid-table class with large loans

Over FY2017 to FY2026, SBA approved 56 medical office loans in Austin, worth $57.8 million in all. Two standings frame Austin: 25 of 488 nationally for medical office, and 10 of 39 among the classes at home. Medical office is underweight in Austin: a 0.87x location quotient sits below the national share. Travis County, TX carries 33 of the loans.

Half of Austin's loans land between $297,700 and $1.1 million, around $512,500 at the median. Austin's median is 1.50x the national medical office median. Programs split 46 to 10, 7(a) against 504, across Austin. No franchise share appears for Austin, because Loan Analytics withholds it.

No lender reaches the naming point

No individual lender is listed for either program in this cell, which leaves the holder side blank by design. No lender is named for Austin, so the page offers no holder to compare. For Austin, these lines record loans held, yet say nothing of underwriting.

Austin shows no cancellation rate or charge-off rate because Loan Analytics holds them back, so the silence says nothing about losses. By year: FY2017 brought 7 loans worth $3.6 million, FY2021 brought 5 loans worth $11.0 million, FY2024 brought 6 loans worth $8.9 million, and FY2026 brought 7 loans worth $3.6 million. Years not listed are held back on thin counts. The July 2023 list of counties defines Austin, so some loans are absent.

What Austin borrowers and lenders should test

A practice here stands or falls on referrals and payers, so the study should name the sources of patients, the specialty's competitors in Travis County and the months a new physician needs to be credentialed. With a median of $512,500, 1.50x the national median, exam rooms, imaging space and tenant improvements deserve a room-by-room budget, and coverage should be built on collections, not charges. An owner-user can count rent saved, but the study should still address what happens if the physician leaves. Collateral analysis must price the specialized fit-out on its own and name the tenants who could take over the suite. Site parking, step-free entry for patients and the distance to hospitals or imaging centers should be documented.