Overview

As one of the most branded names in the net leasing industry, JP Morgan Chase bank locations number over five thousand throughout the United States. In the summer of 2010, total deposit volume had approached $650 billion dollars, with a staggering two trillion dollars in assets held under the JP Morgan Chase name. With respect to real estate leasing, many variables are considered such as property size, building size, and property location. All of these components usually factor into seven unique prototype filters that Chase uses for determining their investments. Standard Chase bank branch sizes typically span from about 2600 square feet to 4800 square feet in dimension. Most buildings reside on approximately 0.65 to one acre total. Chase will often hold ownership with unsubordinated ground leasing for renovations and upgrades whenever leasing agreements are drafted. However, they often will choose corporate ownership whenever possible. Investors will also find a standard twenty year leasing term with up to 4 renewals, and at 5 years per option to renew. In consideration of their high level requirements for real estate (class A), coupled with excellent creditworthiness, most capitalization rates will be found on the lower end of the industry. With that said, the upside for net leasing prospects is in the rental income opportunity for growth. In most cases, investors can expect to see increases of ten percent every five years. Though be warned, since Chase may often add certain clauses of assignability. This might involve criteria like net worth minimums and other financial variables. While minimums can be ascertained in advance, it is cause for concern, even when assuming the parent company is guaranteeing a leasing contract. In light of recent recessions, JP Morgan Chase was rather fortunate to acquire Washington Mutual while avoiding their legacy assets (which could have spelled trouble). This allowed Chase further growth opportunities in recent years for net leasing, and for tapping into new markets.