Overview

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.