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In the Spotlight: Unique Retail Considerations of Branch Bank Leasing
Major lending institutions are reemphasizing traditional community-branch banking. Thus, as ubiquitous as the retail bank branch might now seem, signs suggest that more are on the way, as letters of intent and leases are being signed. In this context, bank tenants will be best served by legal counsel that understand that their client, while a retail tenant, has specific, banking-driven needs.
In many, perhaps most, ways, the branch bank is a retail establishment governed by conventional “retail rules.” Well before the lease-negotiation phase, selecting the site of the bank follows the “location-is-everything” principle. Using New York City as an example and backdrop, retail bank locations that are close to subway stops frequently offer the most attractive opportunities, as do avenue corners. Of course, a branch bank is a great convenience in one's office building and often adds value as a building amenity that may translate into higher rents for the office floors. Following yet another retail rule of thumb, locating a bank near a daytime revenue generator ' such as a supermarket ' is usually a smart decision.
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