Medical Office Feasibility Study in Florida

Physician practices borrow more in Florida

Florida physicians borrow more than their peers nationally. The median SBA loan for a medical office here is $422,500, 1.24x the physician-office median nationally; that gap sets the cell apart from Florida's overall SBA lending and from physician lending across the country alike. Loans in the middle half ran from $151,550 to $896,600. Florida ranks 2 of 53 states for the class, with 858 approvals worth $627.7 million from FY2017 to FY2026, a location quotient of 1.51x and the class 5 of 39 within the state. Approvals rose from 72 in FY2017 to 113 in FY2024.

A deep 504 bench

SBA 504 is a real part of this market, with 198 approvals against 660 under SBA 7(a), which points to physicians buying their own space. Of the Florida physician loans under 504, 95 worth $87.9 million sit with Florida Business Development Corporation and 85 worth $65.5 million with Florida First Capital Finance Corporation, Inc. Among 7(a) lenders in Florida, TD Bank, National Association holds 60, Newtek Bank, National Association 53 worth $40.5 million, JPMorgan Chase Bank, National Association 44, Wells Fargo Bank National Association 40 and Truist Bank 37. Franchise models are rare at 2.1% of loans.

The weak point is closing. Florida medical office approvals over FY2017 to FY2024 were cancelled at no less than 15.7%, and the ceiling is 17.8% once undisbursed loans are counted. For a practice buyer that is a warning to settle the purchase terms, the lease or the building, and credentialing before the approval is used. Funded loans have performed well: of the 327 Florida physician loans disbursed FY2017 to FY2021, charge-offs stand at 2.1% or more, and at 1.5% within the first five years.

What a Florida medical office study has to test

Demand for a practice rests on referral patterns, payer mix and the patients the specialty serves within reach of the site; the counties with the most approvals are Miami-Dade with 150, Broward with 90, Hillsborough with 82, Palm Beach with 71 and Orange with 63. Cost has to include medical build-out and equipment, which is more specialised than ordinary office fit-out. Debt service coverage should be built from collections, not charges, after the physician's own pay. Where a Florida physician buys the building through 504, the appraisal must stand on the real estate as general medical office space, not on the one practice in it.