SBA 7(a) Warehouse Feasibility Study in New Jersey

What New Jersey adds to the national warehouse and distribution picture

Set beside the country, New Jersey contributes 41 SBA 7(a) loans for warehouse and distribution projects, $45.9 million overall, FY2017 to FY2026. In New Jersey the class stands 19 of 39, and New Jersey itself ranks 2 among states for warehouse and distribution. The $350,000 median is 1.00x of the warehouse and distribution median nationwide under SBA 7(a), so New Jersey sits close to what warehouse and distribution tickets show elsewhere. In New Jersey, half of warehouse and distribution loans fall from $150,000 to $1.5 million, and franchising marks 0.00% of New Jersey warehouse and distribution loans.

The warehouse and distribution holder table and map for New Jersey

Fulton Bank, National Association tops the New Jersey warehouse and distribution holder list on 5 loans and $7.6 million; TD Bank, National Association (5 loans, $2.6 million) is second in New Jersey. New Jersey names follow SBA's current-holder field. Middlesex County, 6 loans, Ocean County, 6 loans, Passaic County, 6 loans, Essex County, 5 loans and Union County, 5 loans: those are the leading New Jersey warehouse and distribution places.

Year-by-year volume in New Jersey

The New Jersey warehouse and distribution record opens at 4 loans and $669,000 in FY2017, peaks at 9 loans ($7.6 million) in FY2024, and New Jersey closes the series at 2 loans and $3.3 million in FY2026.

Floors for warehouse and distribution lenders to read

For warehouse and distribution approvals in New Jersey through FY2024, SBA's New Jersey records support a cancellation floor of 21.2% and a ceiling of 21.2%. For New Jersey warehouse and distribution loans, no New Jersey charge-off rate is shown for warehouse and distribution funded FY2017 to FY2021: the New Jersey cohort is under the threshold, and for warehouse and distribution that is not zero.

New Jersey warehouses: the questions behind the loan

Warehouse demand follows logistics. A New Jersey study should place the building relative to ports, highways and major population centres, document rents, vacancy and clear heights for comparable distribution space, and identify the tenants or the borrower's own throughput that fills it. Construction or acquisition cost sits against the $350,000 median, coverage is tested at slower leasing, and an appraiser will look to net income, or to replacement cost for an owner-occupied building. Truck-court depth and dock count can decide whether a building is leasable at all.

New Jersey warehousing: whose building

The class is public warehousing only. An owner-occupied New Jersey warehouse serving the borrower's own industry is coded to that industry, so these totals describe space let to others.