Warehouse Feasibility Study in New York

Public warehousing: small loans, big ratio gap

New York warehouse lending is notable for how small its tickets are. SBA approved 41 loans for warehouse and distribution businesses between FY2017 and FY2026, worth $23.3 million, but the median of $200,000 is only 0.40x the class's national median, and the median is where the cell differs from the comparators. The location quotient is 0.92x, the class holds 23 of 39 among New York classes, and the state ranks 5 of 46 on volume. The class covers public warehousing only; a warehouse owned and used by a business in another trade carries that trade's code, so a manufacturer's own building is not here.

Structure and geography

Half of the loans fall between $100,000 and $350,000. There are 32 SBA 7(a) loans and 9 SBA 504 loans. No loan carries a franchise brand. TD Bank, National Association has 10 loans worth $954,000, while KeyBank National Association has 5 worth $4.5 million, which shows how much larger KeyBank's average ticket is. By county, Rockland and Suffolk each have 7 loans, Orange 6, Onondaga 4 and Kings only 3, with Monroe, Queens, Sullivan and Wayne at 2 each.

Cancellations, losses and timing

The cancellation floor is 11.8% for approvals from FY2017 to FY2024, and 14.7% if loans still undisbursed are counted. New York's loss rate is withheld, with too few funded loans behind it, and Loan Analytics gives no figure or claim of zero. Volume peaked at 9 loans and $6.6 million in FY2023 and fell to 2 loans and $400,000 in FY2026. FY2020 had 4 loans worth $5.4 million, FY2018 had 5 worth $3.0 million, and FY2019 and FY2022 had 2 each.

Questions for a New York warehouse study

Because the median is low, a study should first establish what kind of project this is. It should test the tenant or customer base, rate per square foot, clear height, loading and truck access, and the lease or ownership structure against a ticket near $200,000. Show debt service coverage with vacancy or lost customers, and compare the site with competing space in the surrounding counties. The appraisal will treat the building and the operating business separately, so keep them separate. Environmental review matters for older industrial sites.