SBA 7(a) Flex Space Feasibility Study in Pennsylvania

What Pennsylvania adds to the national flex-space lessor picture

Set beside the country, Pennsylvania contributes 53 SBA 7(a) loans for flex-space lessor projects, $37.2 million overall, FY2017 to FY2026. In Pennsylvania the class stands 19 of 39, and Pennsylvania itself ranks 8 among states for flex-space lessor. The $447,500 median is 0.75x of the flex-space lessor median nationwide under SBA 7(a), so Pennsylvania sits below what flex-space lessor tickets show elsewhere. In Pennsylvania, half of flex-space lessor loans fall from $150,000 to $1.0 million, and franchising marks 5.7% of Pennsylvania flex-space lessor loans.

The flex-space lessor holder table and map for Pennsylvania

In Pennsylvania, holders enter the flex-space lessor table if large enough; none is. Pennsylvania names follow SBA's current-holder field. Montgomery County, 6 loans, Allegheny County, 5 loans, Berks County, 4 loans, Bucks County, 4 loans and Chester County, 3 loans: those are the leading Pennsylvania flex-space lessor places.

Year-by-year volume in Pennsylvania

The Pennsylvania flex-space lessor record opens at 7 loans and $4.1 million in FY2017, peaks at 9 loans ($5.1 million) in FY2021, and Pennsylvania closes the series at 1 loan and $120,000 in FY2026. FY2024 and FY2025 show no Pennsylvania flex-space lessor approvals.

Floors for flex-space lessor lenders to read

For flex-space lessor approvals in Pennsylvania through FY2024, SBA's Pennsylvania records support a cancellation floor of 13.5% and a ceiling of 13.5%. The funded FY2017 to FY2021 Pennsylvania flex-space lessor cohort has 30 loans; charge-offs so far stand at 3.3%, and 3.3% came inside five years. Both flex-space lessor figures are minimums.

Testing a Pennsylvania flex space project

In Pennsylvania, a lender will ask what rents and vacancy comparable flex, office and light-industrial buildings are posting, which tenants will take the space, and how long stabilisation will take. The study should test purchase or build cost against loans around $447,500, show coverage at stabilised occupancy and at a delayed lease-up, and document roll-over and expense assumptions, since an appraiser values the building on net operating income. Submarket specifics, such as access to highways and neighbouring uses, deserve explicit treatment.

Pennsylvania flex space and the lessor stop

The class cannot isolate flex buildings from office, retail and banquet-hall lessors, and it nearly stops from FY2024. Quiet recent years in Pennsylvania reflect that break in the record, not a weak market.