Wells Fargo TENANT OVERVIEW


Pros

  • Investment grade tenant
  • NNN leases eliminate landlord responsibilities

Cons

  • Retail banking industry outlook on the number of physical locations required is evolving
  • Low cap rates

Tenant Description

Wells Fargo (NYSE: WFC) is one of the largest retail banks in the US.

Wells Fargo’s stability and strength are a huge draw for net lease investors. Wells Fargo has strong investment grade credit, rated A- by S&P and Aa2 by Moody’s. The Wells Fargo leases typically do not require any landlord responsibilities, making it a passive investment. Most leases have rental increases built in during the primary term, during option periods, or both to provide a hedge against inflation.

Wells Fargo was found in 1852 by Henry Wells and William Fargo in the Gold Rush port of San Francisco. Today, Wells Fargo has a very large reach across the nation with over 8,300 locations and 13,000 ATMs. Wells Fargo has offices in 42 countries and serves one in three households in the US. Ranking 3rd in assets and in market value, Wells Fargo is a massive bank which offers many services to customers all over the world.

Average Cap Rate
4.95%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $2,322,500
NOI $114,964
$/Square Foot $450 - $775
Building SF 3,000 - 5,000
Lot Size 0.75 - 1.5 Acres
Lease Term 10 - 20 Years
Escalations Varies
Stock Symbol WFC
Credit Rating
S&P A-
Moody's Aa2
Average Cap Rate Trend
5.23%
2016
5.71%
2017
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Bluffton, SC 4.94%
San Bernardino, CA 4.86%
Spanish Fort, AL 5.50%