Medical Office Feasibility Study in the Bakersfield-Delano, CA Metro Area

Medical offices in Kern County's metro area

The Bakersfield-Delano, CA Metro Area shows 35 SBA loans for physicians' medical offices from FY2017 to FY2026, totalling $28.5 million. Kern County holds all 35. Within Bakersfield-Delano, medical offices occupy position 5 of 39 classes; by area, Bakersfield-Delano sits at 40 of 488 for medical office loans. Every one of the loans is in a single county, so the geography is simple even if the credit questions are not. The location quotient of 2.46x is a large concentration: medical offices take well over twice their national share of local SBA lending. The median loan of $667,000 works out to 1.95x the national medical office median, while the middle half stretches from $346,000 to $1.0 million. These are described as figures, not as distinctive ones.

Programs and franchising

The program split favors SBA 504 with 21 loans against 14 for SBA 7(a), so property and equipment financing dominates over working capital. Franchise affiliation is 0.00%. The lenders table is not shown because no institution holds enough loans in either program to print.

Years that can be printed

FY2017 shows 8 loans and $6.0 million, and FY2021 shows 5 loans and $4.3 million. For FY2023 the page shows 0 loans and $0: the year ended without a loan in the class. Remaining years carry too few loans for display, so they are blank and not zero. Loan Analytics' own rule keeps cancellation and charge-off rates off this page, since Kern County's FY2017 to FY2021 disbursements fall short of 30 loans.

Testing a Bakersfield medical office

The 504 weighting suggests buildings, so a study has to test whether the physician group's patient volume and payer mix support the floor area, the buildout and the tenant improvements. It should model collections per provider, a ramp for new physicians, and debt service coverage including owner-occupied rent. Expect the appraiser to treat the building as a specialty property, so the building's worth should be shown apart from the practice's goodwill. Set the proposed loan beside the $346,000 to $1.0 million middle half; a project far above it must explain why. Only loans whose project county maps into this metro on the July 2023 list are counted.