Net Lease Industry

Lowest
Cap Rate

5.15%

Lowest cap rate over past 24 months

Average
Cap Rate

6.25%

12 mo avg with 5+ yr lease term


Overview
Regions Bank locations are generally sold as absolute NNN or ground leases, appealing to passive real estate investors seeking long-term stability with no landlord responsibilities. These properties are typically situated on high-visibility corner lots in established or growing communities across the Southeast and Midwest. Leases are generally corporate-guaranteed by Regions Bank, offering investment-grade credit to buyers.
Average Property & Lease
Average Sale Price $2,000,000 - $4,000,000
Average NOI $130,000 - $240,000
Building SF 3,000
Lease Term 15 Years
Escalations 10% Every 5 Years
Stock Symbol NYSE:RF
CREDIT RATING
S&P

BBB+

Moody's

Baa1

TENANT DESCRIPTION

Regions Financial Corporation is a full-service regional bank and one of the largest U.S. banks headquartered in the South. It offers retail, commercial, mortgage, and wealth management services, with a strong presence in AL, TN, FL, GA, MS, and TX.

PROS
  • Investment-Grade Credit: Corporate lease from a publicly traded, regulated bank

  • No Management: Absolute NNN or ground lease structure with passive income

  • Prime Corner Sites: High-visibility locations often near grocery anchors or major intersections

  • Resilient Performance: Continued regional dominance and brand strength in the Southeast

  • Renewal History: Regions tends to maintain long-term occupancy of key branches

CONS
  • Lower Cap Rates in Core Markets: Investors pay a premium for credit quality

  • Smaller Branch Format: May offer limited reuse if vacated

  • Bank Consolidation Risk: Industry trend toward fewer, higher-performing branches

COMPANY QUICK STATS
Founded 1972
Headquarters Birmingham, AL
Number of Locations 1,250
Revenue $7.3 B
Company Website https://www.regions.com
Key Principal John Turner