Chase bank branches are sold as net lease properties, and JPMorgan Chase Bank, N.A. carries investment grade ratings of AA-/Aa2; we track 34 active Chase listings. Today the median asking cap rate on the Chase listings we track is 5.00% against an AA bond index yield of 5.80%, a spread of −80 bps. Many Chase listings we track are ground leases, where the investor owns the land and the tenant generally owns the building during the lease term; confirm ownership of the improvements in the lease.
The comparison mixes two legal entities. Most of JPMorgan’s long-term debt is issued by the holding company, JPMorgan Chase & Co. Confirm the tenant entity and any guarantor in each branch lease. Owning the bank does not make the holding company a guarantor of its leases, and the two carry different ratings. See the JPMorgan Chase credit rating and NNN cap rate page.
JPMorgan Chase Credit Profile
| Metric | Details |
|---|---|
| S&P rating / outlook | AA- |
| Moody’s rating / outlook | Aa2 |
| Status | Investment Grade |
| Rated entity in our database | JPMorgan Chase Bank, N.A. (the bank subsidiary) |
| Rating sources | S&P Global Ratings AA-, as of June 30, 2026; Moody’s Aa2, as of June 30, 2026; Fitch Ratings AA, as of June 30, 2026. Ratings checked September 27, 2026. |
The ratings above are for JPMorgan Chase Bank, N.A. (long-term issuer ratings). Confirm whether that bank is the tenant or guarantor in the lease. The holding company, JPMorgan Chase & Co., which issues most of the group’s long-term debt, carries lower long-term issuer ratings than the bank from S&P, Moody’s, and Fitch, according to JPMorgan Chase’s Form 10-Q for the quarter ended June 30, 2026. In a resolution of the holding company in bankruptcy, its unsecured creditors would realize value only to the extent available to it as a shareholder of the bank and its other subsidiaries (2025 Form 10-K).
The Spread: JPMorgan Chase Bonds vs. NNN
Because the bank is rated in the AA category in our database, the table uses the AA index yield. A holding company bond would be compared with the A index, which yields 5.84% today.
| Metric | JPMorgan Chase bonds (rating-category index) | JPMorgan Chase net lease properties |
|---|---|---|
| Yield measure today | 5.80% (ICE BofA AA index) | Median asking cap rate 5.00% (34 listings with a cap rate) |
| Spread, cap rate minus index yield | Baseline | −80 bps |
| Obligor | The issuing entity named in the bond’s indenture | The entity that signs or guarantees the lease |
| Cost of entry | Bond: each issue’s minimum denomination, set in its prospectus | Property: asking prices vary by listing; the median asking price is $3.42M (a median, not a minimum) |
| Liquidity | Trades over the counter through dealers | Sold through a property sale; timing varies by property and market |
| Income taxation (general information) | Interest is included in gross income (IRC 61(a)(4)) and taxed at ordinary rates | Rent is included in gross income (IRC 61(a)(5)); an owner of the building may deduct depreciation on it (IRC 167(a)), but land is not depreciable (Treas. Reg. 1.167(a)-2) |
| 1031 exchange | Not eligible; IRC 1031(a)(1) applies only to real property | Can qualify when held for business or investment use and exchanged for like-kind real property (IRC 1031(a)(1)); identification and timing rules apply |
| Value at the end | Face value at maturity absent default; market price moves before then | Depends on the property, lease term, and market |
| Income growth | Fixed coupon | Only if the lease provides rent increases |
Bond yield: ICE BofA effective yield index for JPMorgan Chase’s rating category via FRED, as of October 1, 2026; it is an index average, not a quote on JPMorgan Chase’s own bonds. Cap rate: median asking cap rate on active listings InvestmentGrade.com tracks, as of today; asking cap rates are not closed-sale cap rates. n/a means too few listings to report a median.
Why the Spread Exists
Branch buyers pay for location, the bank’s credit, and lease structure; ground lease or fee simple structure, remaining terms and landlord responsibilities vary by listing, so confirm them in the lease and compare a property with listings of the same structure and remaining term.
The main risk is branch consolidation: banks continue to adjust their branch networks as customers move to digital channels. Underwrite the specific location, its deposits and traffic, the remaining term, and the cost of re-leasing the site.
After-Tax Illustration
The table compares one full year of after-tax cash for a fee simple branch, where the investor owns the building, using today’s AA index yield and median asking cap rate. On a ground lease the investor owns only land, which is not depreciable, so both incomes are fully taxable and the real estate’s only advantages are the cap rate, residual land value, and 1031 deferral.
| One full year, $2,000,000 invested, all cash | Bond at 5.80% (AA index) | NNN at 5.00% cap rate |
|---|---|---|
| Pre-tax income | $116,000 | $100,000 |
| Depreciation (building only, 80% of price over 39 years) | $0 | $41,026 |
| Taxable income | $116,000 | $58,974 |
| Federal tax at 40.8% | $47,328 | $24,062 |
| After-tax cash | $68,672 (3.43%) | $75,938 (3.80%) |
Illustration only. Assumes no financing, a 20% land allocation (land is not depreciable), straight-line depreciation with no cost segregation, a combined 40.8% federal rate (37% plus the 3.8% net investment income tax) on both incomes, and no state tax. It ignores closing and management costs, rent changes, and the sale. On a taxable sale, the part of the gain up to the depreciation taken is generally taxed at up to 25% (IRC 1(h)(1)(E), 1(h)(6)), plus the 3.8% net investment income tax where it applies (IRC 1411). A 1031 exchange into like-kind real property can defer that tax (IRC 1031(a)), but gain is taxable up to the cash and the value of any other non-like-kind property received (IRC 1031(b)). With cost segregation or other accelerated depreciation, part of the gain can be taxed as ordinary income even in an exchange (IRC 1245(b)(4), 1250(d)(4)). A bond bought at par returns par at maturity. Bond yield is the ICE BofA index yield for the tenant’s rating category via FRED; cap rate is the median asking cap rate on active listings InvestmentGrade.com tracks. Consult a tax advisor for your situation.
Frequently Asked Questions
Is a Chase branch lease backed by the same credit as JPMorgan bonds?
Not exactly. Most long-term debt is issued by JPMorgan Chase & Co. A branch lease may name a different entity; check its tenant and guarantor. The bank, JPMorgan Chase Bank, N.A., carries higher ratings than the holding company, and the holding company does not guarantee the bank’s leases simply by owning it. Check the tenant entity in the lease.
What is the spread between JPMorgan bonds and Chase branch cap rates?
Today the median asking cap rate on Chase branch listings is 5.00% against an AA index yield of 5.80%, a spread of −80 bps. The A index, closer to holding company bonds, yields 5.84%.
Can I depreciate a Chase ground lease?
Generally no. On a ground lease the investor owns the land, which is not depreciable (Treas. Reg. 1.167(a)-2), and the tenant generally owns the building during the lease term; confirm ownership of the improvements in the lease. Depreciation applies to a building the investor owns and uses in a business or holds for the production of income (IRC 167(a)). This is general information, not tax advice.
What is a key risk with a bank branch?
Branch consolidation. A strong rating does not prevent the bank from closing a branch or declining to renew at the end of the term, so weigh location quality and remaining term alongside the credit.
Considering JPMorgan Chase Net Lease Property?
We source JPMorgan Chase properties nationally and underwrite the lease, the obligor, and the real estate. On the majority of transactions, there is no separate fee to you as the buyer.
Find it: JPMorgan Chase properties across lease terms and markets.
Fund it: financing matched to the tenant’s credit and the remaining lease term.
Exit it: buyers for JPMorgan Chase properties, including 1031 exchange buyers.
Exchange it: 1031 execution against the deadlines.
Related Reading
Educational content only. InvestmentGrade.com is a commercial real estate brokerage and educational publisher. We do not sell, broker, underwrite, or solicit any bonds, securities, or investment products. Yields, ratings, and prices referenced fluctuate continuously and are sourced from public market data as of the date noted. Nothing on this page constitutes investment advice, an offer to sell, or a solicitation to buy any security. Consult a licensed broker-dealer, registered investment advisor, or tax professional before making any investment decision. For SEC investor education, visit investor.gov.
