Medical Office Feasibility Study in Oregon

Physician space at about half the national weight

Oregon's physician-office lending is lighter than the national pattern. The location quotient is 0.57x, so the class is much less prominent than across SBA approvals nationally, and it ranks 12 of 39 within the state while Oregon itself is 27 of 53. The record covers 67 loans and $51.8 million between FY2017 and FY2026. The median loan of $319,800 is 0.94x the nationwide median, and the central half of loans covers a broad range, $79,900 to $954,200. A lender should therefore see a mix of small practice starts and a few building purchases.

Program mix and lenders

SBA 7(a) dominates at 62 loans, against 5 under SBA 504, and no loan carries a franchise flag. U.S. Bank, National Association is the leading named lender with 15 loans worth $5.4 million, and Columbia Bank follows with 7 loans worth $6.5 million, a higher average. Multnomah County has 12 loans, Lane and Washington counties 10 each, and Jackson 9, so lending spreads beyond Portland to Eugene and the Rogue Valley. Annual counts are erratic: 3 loans in FY2019, only 2 and $100,000 in FY2024, and then 15 loans with $10.0 million in FY2025.

Cancellation floor and the loss rate we hold back

At the floor, 11.6% of approvals through FY2024 were cancelled after approval, and the upper bound is 14.0% when undisbursed loans are counted. A borrower in Oregon should plan for a meaningful chance that the lender, the lease or the practice plan changes before closing. No charge-off rate appears, since the disbursed FY2017 to FY2021 group is under 30 loans, so no figure is shown, and nothing is claimed about the absence of losses. Healthcare practices often fail quietly through sale or merger rather than default, which a loan-level record would not capture.

What an Oregon study needs to prove

A study for an Oregon medical office has to start with the provider pipeline: whether a physician or group is committed, credentialed and able to join payer panels on time. Then it must size the patient base in the specific catchment against competing clinics and hospital systems, estimate collections under the realistic payer mix, and test rent or build cost against that revenue. Debt service coverage should survive a slow credentialing period. The appraisal question is whether tenant improvements retain value for another practice. Loan Analytics keeps the approved-loan figures beside these questions so the borrower and the credit officer argue from the same record.