Medical Office Feasibility Study in the Phoenix-Mesa-Chandler, AZ Metro Area

Physician offices with a strong local concentration

The Phoenix area records 226 medical office (physicians) loans from FY2017 to FY2026, worth $159.9 million. Among 488 metro and micro areas it holds eighth place for the class, while locally the class sits fourth of 39. The location quotient is 1.88x, the clearest distinction of the cell: physician offices form a far larger part of lending here than across the country. A median of $400,250 equals 1.17x the nationwide class midpoint, and the interquartile span is $150,000 to $933,675.

Program mix and lenders

Of the 226 loans, 197 are SBA 7(a) and 29 are SBA 504. CDC Small Business Finance Corp. is shown with 12 504 loans worth $16.5 million, and Arizona Capital Source with 9 worth $5.7 million. At the top of 7(a) is Wells Fargo Bank National Association, credited with 26 loans and $21.4 million, ahead of JPMorgan Chase Bank, National Association at 22 and $14.4 million, The Huntington National Bank at 12 and $2.6 million, MidFirst Bank at 10 and $15.8 million and BOKF, National Association at 8 and $2.6 million. These are holder entries in SBA's records and imply nothing about any lender's appetite. Maricopa County accounts for 215 loans and Pinal County for 11.

What is withheld

Several values are not published for physician offices in Phoenix: the franchise share, a ceiling on cancellations, the charge-off rate, along with counts and dollars for some fiscal years in the yearly table. Every one of them depends on a thin count of loans, and none should be read as zero. What does show is a cancellation floor of 12.0% among FY2017 to FY2024 approvals. Where years are printed, FY2017 carries 32 loans and $21.1 million, FY2018 23 loans and $15.1 million, and FY2025 26 loans and $18.9 million.

Boundary and study scope

Which loans belong to Phoenix is decided by name-matching each project county to the 2023 map. Anyone testing a physician practice here has to check the supply of physicians and referral patterns in the specific submarket, payer mix, build-out cost for exam rooms and equipment, debt service coverage at the quartile range above, and an appraisal that treats the medical building and the practice as separate assets. A study cannot lean on the area's high concentration alone: concentration says lenders have seen many of these loans, not that a given site is sound.