Medical Office Feasibility Study in the Denver-Aurora-Centennial, CO Metro Area

Medical office lending in Denver

Between FY2017 to FY2026, for now, borrowers opening or buying doctors' offices in Denver received 103 loans with $89.3 million in gross dollars. Area sizing centers on $360,000; in plain terms, set against the category's national median, in this cell, that is a ratio of 1.05x, so loans track the country. By rank, Denver is 18 of 488 among metro and micro areas, as reported, and physician offices place 11 among the 39 classes recorded locally. A ratio of 0.91x on the location quotient puts physician offices with a smaller weight in Denver against the nation as a whole. Half of the loans fall between $130,900 and $1.2 million.

Program mix and lenders for doctors' offices

Of the 103 approvals, 91 are 7(a) approvals and 12 are 504 approvals, which reveals us which SBA program physician offices applicants tend to use around Denver. Denver's franchise share is left out because fewer than 30 loans are in that cohort. No 504 lender appears for doctors' offices in Denver on this page. On the 7(a) side, the largest holder is Wells Fargo Bank National Association, in plain terms, with 8 loans; BOKF, National Association comes next at 7, and Northeast Bank (ME) follows at 7. SBA shows the current holder of each loan, so these Denver lines describe where sit medical office approvals now; they do not describe the way a bank judges credit; no lender's requirements can be inferred.

Place and timing for physician offices

By project county, Arapahoe County, CO leads with 32 loans, then Denver County, CO with 26 and Jefferson County, CO with 20. The yearly file peaks in FY2018 at 14 loans and $14.5 million, and bottoms out in FY2017 at 7 loans and $2.4 million. FY2019 and FY2022 and FY2025 and FY2026 are blank for physician offices in Denver; Loan Analytics prints nothing for years with under 30 loans, so those blanks are not zeros.

Floors and limits behind the Denver figures

Within FY2017 to FY2024, 19.4% or more of Denver medical office approvals were cancelled after approval, by the file, a floor (no ceiling is printed). No charge-off rate appears for Denver: only a few funded medical office approvals from FY2017 to FY2021 is too thin, for now, and the gap says nothing about losses at all. Denver counts a physician office loan only when SBA's project county matches, by name, a county in the 2023 Denver area.

Feasibility questions for medical offices for physicians around Denver

A feasibility study for physician offices in Denver starts with demand: panel size per physician, and referral patterns. The 103 approvals document that lenders funded this class in Denver, which is no evidence that a given site would pass the same bar. Next comes cost, counting space tenure and rent and records and billing systems, measured against the Denver midpoint loan of $360,000. Last, the appraisal of a Denver site for physician offices should address physician transition risk, along with special-purpose space resale. The coverage test should assume a sluggish first stretch, since Denver shows medical office loans that did not run as approved.