Wells Fargo vs Bank of America: Which NNN Investment Wins?

Wells Fargo and Bank of America are two large bank branch tenants in net lease, and the pairing shows a point that matters in bank branch leases: the rating belongs to a specific legal entity, and the entity that signs the lease may not be the one that is rated. Both banks carry investment grade ratings in our ratings database. Wells Fargo Bank, N.A. is rated A+/Aa2 and Bank of America, N.A. is rated A+/Aa2 (S&P / Moody’s ratings on the bank entities). In the listings we track, Wells Fargo asks a live median cap rate of 5.12%, versus 5.25% for Bank of America.

This comparison applies the framework from our investment grade guide to a matchup where the two ratings are close and the real differences are the lease entity, the branch network trend and the site: credit first, then lease structure, then the real estate.

Wells Fargo vs Bank of America: Head-to-Head Comparison

Ratings per our tenant ratings database. Wells Fargo: Ratings checked September 27, 2026. Bank of America: Ratings checked October 8, 2026. Branch counts and revenue are from the companies’ Form 10-K and Form 10-Q filings as labeled. Median asking cap rates, cap rate counts, average remaining terms, prices and last-observed dates are live values from the active listings InvestmentGrade.com tracks; a few cap rates are calculated from a listing’s stated price and income rather than stated in the listing. Asking cap rates are not closing cap rates.

Credit: Which Entity Is Rated

Wells Fargo Bank, N.A. is rated A+/Aa2 (S&P / Moody’s), which our ratings database classifies as investment grade. Wells Fargo & Company, the parent, is rated separately, so a branch lease signed by the bank and a lease signed by the holding company are different credits. On June 3, 2025, the Federal Reserve announced that Wells Fargo is no longer subject to the asset growth restriction from the Board’s 2018 enforcement action. That removes a regulatory constraint on the company; it does not by itself change the terms of any branch lease. The full profile is on the Wells Fargo credit rating and cap rate page.

Bank of America, N.A. is rated A+/Aa2 (S&P / Moody’s), classified as investment grade in our ratings database. Bank of America, N.A. is the charter under which the company primarily conducts its banking activities, and the holding company, Bank of America Corporation, is rated lower than the bank by S&P, Moody’s and Fitch (Form 10-Q, quarter ended June 30, 2026). A bank-level rating therefore helps a buyer only when the bank, or another rated Bank of America entity, signs or guarantees the lease. Details are on the Bank of America credit rating and cap rate page, and both banks can be benchmarked in our credit tenant ratings database.

Branch Networks: Both Are Shrinking Footprints

Wells Fargo’s retail bank branches fell from 4,177 at December 31, 2024 to 4,090 at December 31, 2025 (Form 10-K) and numbered 4,079 at June 30, 2026 (Form 10-Q). Bank of America reported a net decrease of 134 financial centers and an increase of 35 ATMs in the twelve months to June 30, 2026, describing the change as part of continuing to optimize its consumer banking network (Form 10-Q). Both companies are reducing branch counts, so a bank’s scale supports its ability to pay rent but does not guarantee that any single branch stays open. Review the role of a specific branch in the local network, the remaining term and any early termination or go-dark provisions before relying on the credit.

Cap Rates: Live Medians for Banks

Live asking cap rates for Wells Fargo, Bank of America and comparable bank tenants:

Active listings InvestmentGrade.com tracks with an asking cap rate (stated in the listing, or computed from its stated income and price when no rate is stated), listings last observed October 12, 2026. Asking cap rates are not closed-sale cap rates. The middle half is the range from the 25th to the 75th percentile of listings. The 10-year Treasury yield is 5.24% as of October 1, 2026 (FRED series DGS10). Ratings are the agency ratings in our ratings database for the entity shown, which may be a parent company; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company and is shown on each tenant page. A rating applies to a lease only if the rated entity signs or guarantees it, so confirm the tenant and any guarantor in the lease. n/a means no verified rating is on file.

Across the active listings we track, Wells Fargo asks a live median cap rate of 5.12%, while Bank of America asks 5.25%. Each median rests on the number of listings shown in the table, and a few listings can move a median, so treat the figures as a snapshot of what sellers are asking rather than what buyers pay. Pricing for a specific branch depends on the remaining lease term, rent level, location and lease guarantor, and some bank listings we track are ground leases, which should be compared with other ground leases.

Lease Structure: What to Confirm in a Bank Branch Lease

Branch lease terms, renewal options and rent increases vary by lease for both banks, so read the executed lease rather than relying on a listing summary. Under an NNN lease the tenant is expected to pay property taxes, insurance and maintenance, but structures vary, so confirm the landlord obligations. The checklist is short: the tenant entity and any guaranty, the primary term and renewal options, the rent schedule, termination or go-dark rights, and whether the lease is a building lease or a ground lease. Building and lot sizes also vary by site, so confirm them from the survey and the lease.

The Bond-to-NNN Pivot

Income buyers can compare a branch against a bond benchmark. A corporate bond index for the matching rating category is one such benchmark, but it is a category measure rather than a quote on a bank bond. The cap rate table above shows median asking cap rates of 5.12% for Wells Fargo and 5.25% for Bank of America against the 10-year Treasury yield, and current index yields by rating category are on our corporate bond yields by rating page. A bondholder owns a claim on the issuer; a branch buyer owns real estate, so the pre-tax comparison is only part of the picture. The case for the real estate rests on 1031 exchange eligibility, residual land value, scheduled rent increases where the lease has them, and building depreciation when the investor owns the building. The framework is in bank bonds vs bank branch NNN properties and what the bond-to-NNN spread means. Tax outcomes depend on your situation; this is general information, not tax advice.

Verdict: Which Bank Wins?

In our ratings database, the S&P / Moody’s ratings are A+/Aa2 for Wells Fargo Bank, N.A. and A+/Aa2 for Bank of America, N.A. The live medians in the table show where sellers are asking for each. Neither rating decides the investment, because the rating helps only when the rated bank entity signs or guarantees the lease.

Compare branches on tenant entity, remaining term, rent and site quality, and weigh the branch-count trend at both banks. The better branch is the one with the clearer lease, the longer remaining term and the location the bank is likely to keep. If you are weighing a replacement property under a 1031 exchange deadline, confirm the tenant and any guaranty in the lease.