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Cap Rates Compress 20 BPs in Net Lease Banking Sector
National asking cap rates in the single-tenant bank ground lease sector decreased to 5.15% in the first quarter, according to the Boulder Group’s 2022 Net Lease Bank Ground Lease Report. This represented a 20-basis-point decrease year-over-year.
“The cap rate compression associated with the banking sector can be best attributed to overall market conditions in the net lease sector combined with an increase in supply of longer-leased properties,” said president Randy Blankstein.
Changing bank footprints and closings are a top concern for investors. According to S&P Global Market Intelligence data, almost 3,000 bank branch locations closed net of openings in 2021.
“3,000 closings sounds significant; however it represents less than 5% of the bank branches in the United States,” said partner Jimmy Goodman. “That being said, as digital banking continues to grab a larger share of transactions, investors will remain steadfast in investing in strong locations with above-average deposits.”
- ◦Sale/Acquisition
