The WSJ reported today that the Bank of America will close 10% of it's 6,100 branches. This means a dump of 610 facilities in a commercial real estate market suffering from oversupply and under demand.
Yes, another 610 locations for sale and or for lease.
The reason stated for the closings was" customer preference," as more and more customers are banking on-line!
Bottom-line good-news for the bank as they will continue to have the same customer base and shed the cost and expense of maintaining multiple branches.
Expect to see more and more banking branches shuttered.This illustrates the vulnerability of the standard "brick and mortar" concept.
The Internet is here to stay and is a serious and direct threat to commercial real estate. Retailers and many service-type firms no long have to maintain a fleet of stores or locations.
More and more individuals, nd business firms are shopping on line.
As the WSJ stated, " The bank on every corner" period is drawing to an end."
Bill McInerney
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