Medical Office Feasibility Study in the Salt Lake City-Murray, UT Metro Area

Physician offices with a premium ticket

Medical offices for physicians stand 6 of 39 among asset classes in the Salt Lake City-Murray area and the metro lands at 23 of 488 after sorting all metro and micro areas by physician office loans. SBA approved 72 such loans from FY2017 to FY2026, worth $58.9 million. A location quotient of 1.28x shows physician offices take a bigger share of the area's approvals than of the nation's, and the median loan of $374,750 runs 1.10x the national median for the class. Those two ratios together describe an area where the class is both more common and somewhat larger than the national norm.

Programs, lenders and counties in Utah

Loan amounts in the middle half span $185,100 to $844,750. Of the 72, 53 went through 7(a) and 19 through 504, a real estate lean heavier than many classes show. No loan is flagged as a franchise, 0.00%. Among 7(a) loans, SBA lists Mountain America FCU as current holder of 11 loans worth $3.6 million, First Utah Bank of 7 worth $6.6 million, BMO Bank National Association of 6 worth $1.7 million and Central Bank (UT) of 5 worth $1.7 million. Salt Lake lender figures come from SBA ledger entries and say nothing about any lender. Salt Lake County has 67 of the loans and Tooele County 5.

Approvals peaked at 13 loans in FY2021 for $9.6 million. FY2018 had 10 loans for $8.1 million, FY2019 had 6 for $6.2 million, FY2022 had 6 for $2.6 million, FY2023 had 6 for $4.5 million, FY2024 had 10 for $12.1 million, FY2025 had 9 for $2.9 million and FY2026 had 5 for $4.5 million. FY2017 and FY2020 are withheld, as are the cancellation and charge-off rates, because too few loans support them; none of these is zero. A loan joins this metro through the county of its project, matched by name against the July 2023 map; a county that cannot be placed drops out of every area.

Testing a Salt Lake physician office

A study for a physician office in this area should test referral and payer mix, the number of practitioners the space must hold, and the cost of build-out for exam rooms and equipment against a ticket that often sits near $374,750. Where the project buys the building, the 504 share in this record suggests the real estate and the practice should be tested separately: the property for market value and vacancy, the practice for collections and cash flow. Coverage of debt service needs a ramp-up period for any provider new to the chair. The appraisal will weigh both, so the study should reconcile them. Nothing here predicts an approval.