SBA 7(a) Flex Space Feasibility Study in New Jersey

Size and standing of the New Jersey flex-space lessor record

The New Jersey flex-space lessor cell holds 34 loans under SBA 7(a), $21.4 million in all, from FY2017 through FY2026. New Jersey is 17 among states by flex-space lessor loan count, while New Jersey holds flex-space lessor at 20 of 39 among its classes. New Jersey borrowers took a median of $250,000, which is 0.42x of the figure that flex-space lessor borrowers elsewhere receive, in New Jersey, below the SBA 7(a) norm for flex-space lessor. The central half of New Jersey loans starts at $128,625 and, for flex-space lessor, tops out near $533,700; 0.00% of New Jersey flex-space lessor loans carry a franchise flag.

New Jersey holders and counties

By flex-space lessor loans approved in New Jersey, Trenton Business Assistance Corporation (7; $1.0 million) come first. SBA lists each New Jersey flex-space lessor holder as current. Geographically, Bergen (7), Middlesex (6), Camden (4), Burlington (3) and Essex (3) lead New Jersey flex-space lessor lending.

How the flex-space lessor pipeline moved

New Jersey flex-space lessor approvals per year: FY2017 3 ($770,000), FY2018 7, FY2019 10, FY2020 3, FY2021 7 ($6.2 million); then for flex-space lessor in New Jersey FY2022 1, FY2023 2, FY2024 1, FY2025 0, FY2026 0. The top New Jersey dollar year, $9.6 million, was FY2019. In FY2025 and FY2026, New Jersey saw no flex-space lessor approvals.

How New Jersey loans ended up

New Jersey flex-space lessor cancellations run at a floor of 23.5% for FY2017 to FY2024 approvals, or 23.5% if undisbursed flex-space lessor lending is counted in. Charge-offs of New Jersey flex-space lessor loans are withheld: New Jersey funded too few flex-space lessor loans in New Jersey, so no rate is printed in New Jersey for FY2017 to FY2021, and the flex-space lessor gap is not a zero.

New Jersey flex space: a study's checklist

In New Jersey, flex buildings compete with warehouse and office product. A study should show rents, vacancy and clear heights for comparable space, tenant demand by type, and the time to stabilise. Cost is set against loans around $250,000, with coverage tested at slow leasing and at the loss of a main tenant. Access to highways and ports, parking and truck circulation often decide leasability, and the appraiser values the building on net income.

New Jersey flex space and the FY2024 stop

Flex buildings are not distinguishable from office or retail lessors in this class, which nearly stops from FY2024. A thin recent run in New Jersey reflects that change in the record, not market demand.