As PNC Bank continues to strengthen their position in new markets, the same applies to their investor-grade credit. They will typically choose prime real estate properties for new branches, with sites spanning from one to one and a half acres per lot size, and buildings range between 3500-4800 square feet in dimension. Standard leasing is based on NNN terms, making investment opportunities highly desirable. Landlords will find ground leasing with fee simple ownership as an excellent opportunity to passively invest, with consideration that average sales are well below capitalization rates; typically between 50-125 basis points below average. In such cases, tenants are also responsible for building costs and maintenance, and in cases of default, the buildings will revert to the landlord. With primary terms usually based on fifteen to twenty years, offering up to five separate 5 year options to renew, PNC Bank also complements with price rent bumps of ten to fifteen percent every 5 years.
Lowest Cap Rate
Lowest cap rate over past 24 months
Average Cap Rate
12 mo avg with 5+ yr lease term
Average Property & Lease
|Average Sale Price||$2,000,000 - $4,000,000|
|Average NOI||$100,000 - $250,000|
|Lease Term||15 - 20 Years|
|Escalations||10% Every 5 Years|
Ranked as the 6th biggest bank in the U.S. by deposit volume, PNC Financial Services Group, Inc., is also the 3rd biggest bank ATM banking company when taking into account their non-banking locations.
They currently own twenty five hundred branches with sixty six hundred ATMs, in addition to internet banking services. Presently, more than five million clients utilize PNC’s managerial services, deposits, investments, and lending opportunities.
With corporate headquarters based in the United States, PNC Bank regionally franchises with operations located in 15 states including Washington D.C. They continue to offer their well-known TAMP program (Turnkey Asset Management Program), alongside business management services that extend to official government agencies and organizations.
- Company guaranty
- Solid NNN leasing terms
- Choice real estate
- Ten percent rental increases during lease
- Primary rent fees can be expensive
- Variable bank sector market stability
- Lower capitalization ask rate
- Lease does not allow for depreciation1845
COMPANY QUICK STATS
|Number of Locations||2,629|
|Key Principal||William S. Demchak|