Medical Office Feasibility Study in the Kansas City, MO-KS Metro Area

Medical offices in the Kansas City area borrow more than the class does nationally: a $434,650 median runs to 1.27x the national figure, with loans in the middle band stretching from $92,500 to $697,050. From FY2017 to FY2026 SBA approved 42 loans worth $24.3 million in this area. Medical offices sit at 11 of 39 locally, and the area is 32nd among 488 for them; at 0.83x, the quotient falls short of parity.

Kansas side first

Johnson County, KS supplies 22 loans and Jackson County, MO 11, so the Kansas suburbs outweigh the Missouri core. The book is 37 loans under 7(a) and 5 under 504. UMB Bank, National Association appears alone among named lenders, at 9 loans and $3.4 million, a figure that reflects what SBA records it as holding. SBA hides the franchise share.

Floors and hidden years

Cancellation after approval is at least 20.6% for FY2017 to FY2024 approvals. The stricter measure and the charge-off rate are hidden. Only FY2019 (5 loans, $1.3 million), FY2021 (8 loans, $4.2 million) and FY2024 (6 loans, $4.7 million) are shown; those hidden years are not zeros, and a reader should not assume quiet periods.

What a Kansas City medical office study must test

Medical office is a tenant-and-building question. The study should name the practice, its specialty and referral sources, and test whether the project is a purchase, a build-out or a relocation. Proximity to hospitals and to the suburban growth corridors on the Kansas side matters for patient access. Tenant-improvement cost, exam-room count and any imaging or procedure suites belong beside the $434,650 median. Lease terms and whether the borrower is an owner-user or a landlord change the debt service test, and vacancy of nearby medical buildings should be counted. A cancellation floor of 20.6% suggests lenders will want firm commitments before closing. The appraiser should value the building and the practice separately. The two-state metro follows the July 2023 definitions, and the study ought to place the project in Missouri or in Kansas, since licensing, tax and Medicaid rules differ. It should also state how many exam rooms and providers the space supports at maturity, because rent per provider is the figure lenders and appraisers compare first.