Medical Office Feasibility Study in the Portland-Vancouver-Hillsboro, OR-WA Metro Area

Portland-area medical office lending is smaller than the national pattern: a $207,600 median is 0.61x the national figure, the quotient is 0.52x, and the central loans run from $77,450 to $544,250. The area ranks 38 among 488 and the class holds 12 of 39 places locally. FY2017 to FY2026 shows 38 approvals totaling $19.8 million.

All 7(a), across the river

All loans ran through 7(a); 504 prints 0 loans, a real count rather than a suppressed one. Multnomah County, OR supplies 12 loans, Washington County, OR 10 and Clark County, WA 8, so the metro spans two states. Wells Fargo Bank National Association is listed at 5 loans and $5.0 million, a large average, with Columbia Bank (OR) at 5 loans and $1.5 million. The franchise share is 0.00%.

Years and hidden measures

FY2017 shows 6 loans and $1.1 million, FY2023 6 loans and $5.9 million, FY2025 5 loans and $1.9 million and FY2026 7 loans and $1.9 million. FY2018 through FY2022 and FY2024 are hidden. Because the cohort is under 30 loans, no cancellation rate is given for these offices, and charge-offs stay hidden. Neither is a nil, and the page gives no loss floor to compare with other metros. Neither is a zero.

What a Portland-area medical office must test

A study should name the practice and the tenant mix, and settle whether the project is a purchase, a fit-out or a move. Because the metro spans Oregon and Washington, licensing, taxes and payer rules differ, and the study should say which side of the Columbia the project sits on. Referral sources, proximity to hospitals and clinics and nearby vacancy in medical buildings all affect leasing. Tenant-improvement cost and exam-room count belong beside the $207,600 median. The loan payment should be tested against a gradual build in patient volume, and against the loss of a key provider. With only 7(a) loans in the record, a borrower seeking an owned building should ask early whether a different program would fit. The appraiser should value the building and any practice goodwill separately. Placement follows the July 2023 definitions. The study should list the specialties, the number of providers and the exam rooms the space is built for, plus the lease length each tenant will sign, since a lender and an appraiser will ask for those first.