Medical Office Feasibility Study in the Baltimore-Columbia-Towson, MD Metro Area

Baltimore: a medical office class ranked ninth locally

Between FY2017 and FY2026, Baltimore borrowers received 48 SBA-approved medical office loans worth $27.5 million. Two standings frame Baltimore: 27 of 488 nationally for medical office, and 9 of 39 among the classes at home. At 0.76x, the location quotient shows Baltimore lending less to medical office, proportionally, than the country does. Four counties share the record, led by Baltimore County, MD. Project counties: Baltimore County, MD with 16, Howard County, MD with 9, Anne Arundel County, MD with 8, and Harford County, MD with 7.

Half of Baltimore's loans land between $67,500 and $693,350, around $200,000 at the median. Beside the country's median, Baltimore comes to 0.58x, a sign of lighter projects. Smaller practices or leased suites are the likely users of loans this size. For Baltimore, SBA holds back both program counts. No franchise share appears for Baltimore, because SBA holds it back.

The institution on file

Manufacturers and Traders Trust Company is the only name listed. Among 7(a) holders: 19 loans for $1.9 million at Manufacturers and Traders Trust Company. The Baltimore holder list reflects SBA records, not the habits of institutions.

Loss and cancellation measures are blank for Baltimore, so silence says nothing. FY2017 brought 6 loans worth $3.3 million, FY2021 brought 6 loans worth $8.3 million, FY2025 brought 6 loans worth $2.5 million, and FY2026 brought 16 loans worth $3.9 million appear in the yearly record. In Baltimore, thin counts hide the missing years. The Baltimore cohort falls short of 30 loans, so no cancellation rate is reported. A county match sits behind each Baltimore figure, hence counts can run short.

Baltimore study: the key tests

With loans well under the national class norm, a study should be explicit about the project: a small practice buy-in, a lease fit-out or an owner-occupied suite. Referral sources and payer mix decide how fast patients arrive, and credentialing can leave a new provider below break-even for months, so the plan needs a working-capital reserve. Billing lags collections, and malpractice and records costs belong in the budget. Compare competing practices and health systems across the four counties before committing to a site. Cash flow should be proven on collections, not charges billed. Valuation separates improvements from location and asks which other medical tenants could use the space. The study should map where referring physicians and the nearest hospital sit relative to the site, since a convenient location in one county may not be convenient for referrals.