Regional bank credit on passive NNN ground leases at higher cap rates than the national banks, and what to check, from a NNN buyer’s broker with 225+ transactions.
A KeyBank NNN property is a freestanding bank branch, often with a drive-thru, frequently on an absolute NNN ground lease: you own the land, the bank owns the building, and landlord duties are minimal. KeyBank is owned by KeyCorp (NYSE: KEY) of Cleveland, Ohio, with 939 branches in 15 states as of June 2026. Its bank, KeyBank National Association, is rated BBB+ by S&P with a positive outlook. Scotiabank bought a minority stake in KeyCorp in 2024, and in Q2 2026 KeyCorp grew earnings per share about 26%.
KeyBank properties usually trade at higher cap rates than the largest national banks, and many are older leases with shorter remaining terms. That makes the branch, its deposits and the lease terms the key questions on any KeyBank 1031 exchange. Solid Investments FL has represented a buyer on a KeyBank ground lease in King City (Portland), Oregon. See it in our track record. Our buyer representation is always free to you.
| Tenant | Usually KeyBank National Association; confirm the tenant entity on each lease |
|---|---|
| Parent company | KeyCorp (NYSE: KEY); Scotiabank holds a minority stake |
| Headquarters | Cleveland, Ohio |
| Credit rating | KeyBank N.A.: S&P BBB+, positive outlook (mid-2026). KeyCorp: Morningstar DBRS A (low) |
| Branches | 939 in 15 states (June 2026); at year-end 2025 KeyBank owned 408 branches and leased 532 |
| Recent performance | Q2 2026 EPS $0.44, up about 26%; revenue up about 7% |
| Lease terms | Vary widely, from month-to-month to long-term ground leases; check the remaining term |
| Lease type | Often absolute NNN ground leases; building leases also trade |
| Typical cap rate (2026) | About 5%–6%, depending on remaining term, deposits and location |
| Typical price range | About $1.5M–$6M |
Branch counts and results from KeyCorp filings, and ratings from S&P and Morningstar DBRS, as of 2026. Cap rates and pricing reflect current market conditions and vary by deal.
KeyCorp and KeyBank National Association are rated separately. Confirm the tenant entity on the lease; that’s whose credit you’re buying.
Many KeyBank leases are older, and some listings show only a few years left. Check the expiration date, the number of options and any early termination rights.
A branch’s deposit base (reported publicly by the FDIC) is the best indicator of how important that location is to the bank.
Banks continue to trim branch networks. Check for other KeyBank branches nearby and favor well-located branches with strong deposits.
Rent bump schedules vary by lease. Check how and when the rent grows, including in the option periods.
With a ground lease, you own the land under a bank branch, usually on a hard corner or busy outparcel. If the bank ever leaves, well-located land is valuable to other users.
We’ve represented a buyer on a KeyBank ground lease in King City (Portland), Oregon:
Banks
Solid Investments FL is a NNN buyer's brokerage based in Lakewood Ranch (Sarasota), FL, with 225+ NNN transactions, including a KeyBank ground lease in King City (Portland), Oregon. We help investors and 1031 exchange buyers find, underwrite and close bank ground leases nationwide, and our buyer representation is free.
As of 2026, KeyBank NNN properties generally trade around 5% to 6% cap rates, depending on remaining lease term, rent increases, branch deposits and location.
The main, and really the only, drawback of a ground lease is that you can't depreciate the building, since you own only the land and land isn't depreciable. For investors who need depreciation to shelter income, a fee-simple property may be a better fit.
The tenant paid to build the branch, so it has a strong vested interest in staying. Ground rents are typically at or below market, which gives you upside if the site is ever re-leased. And in most ground leases the building reverts to the landowner when the tenant vacates or the lease ends (every lease is different, so verify it in yours). That's why ground leases are viewed as safer investments and trade at lower cap rates.
As of mid-2026, S&P rates KeyBank National Association BBB+ with a positive outlook, which is investment grade. Morningstar DBRS rates KeyCorp A (low). Confirm the tenant entity on each lease.
KeyBank is owned by KeyCorp, a public company based in Cleveland, Ohio. Scotiabank bought a minority stake in KeyCorp in 2024. KeyBank had 939 branches in 15 states as of June 2026.
KeyBank is a regional bank with lower credit ratings than the largest national banks, and many KeyBank leases are older with shorter remaining terms. Buyers ask for a higher return in exchange, which can make a well-located KeyBank with a solid term a good value.
Check the tenant entity, the branch's deposits, nearby KeyBank branches, the remaining term and options, any early termination rights, and the rent increase schedule. Then look at the land itself: corner location, access and traffic.
General information only, not investment, tax or legal advice. Credit ratings and market data change; verify current figures before investing.
We’ll help you check the branch, the term and the lease. Tell us your budget and timeline; our buyer representation is completely free.
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