DFW banks continue to optimize locations, but “new” branches an important part of meeting customer needs
Like across the US, DFW banks have been examining their branch networks to identify how to be more efficient, enhance their market presence, and better serve their customers – all amid a technological revolution.
- Since 2010, DFW has gone from 1,800 to 1,600 branches – a net decline of 11 percent – in a fast growing market.
- In the last year, banks continued to shed branches with DFW’s net count declining by 44 locations, or 2.7 percent. This is slightly faster than the US overall, which saw a 1.9 percent net decline.
- While the region saw closures, 42 new locations also opened. These new locations opened across the region in established commercial and/or residential development hotspots.
- A new Chase Bank opened in a downtown trophy mixed-use project, next to Klyde Warren Park. That project includes PwC Tower (494,000 square feet) and the Residences at Park District (228 units).
- Park District rents are among the highest in the region. The office space is 85 percent leased and rents for $58 to $60+ per square foot (full service gross) – 15 percent above Uptown’s Class A average. In comparison, the luxury apartments are 94-percent occupied, with 1- & 2-bedroom units fetching $3,500 to 7,000+ per month.
- The new branch represents JPMorgan Chase’s current philosophy. At about 4,500 square feet, it is a modern, open format, with 3-4 private offices, a couple booth-style stations for banking advisors, as well as a general open area.
- The branch has no tellers. They highlighted that tellers are a major cost and are often underutilized. All transactions can be accommodated by 3 ATMs, with which the branch staff can assist, especially since the ATMs can process very large personal and business deposits and withdrawals.
Source: FDIC; JPMorgan Chase, JLL Research