What’s Next for St. Louis’ Bank Buildings?
May 2025 // NAI DESCO Blog
Bank Branch Closures Are Reshaping Retail Real Estate—But the St. Louis Market Tells a Different Story
Across the country, banks are consolidating and rethinking their physical presence, driven by evolving consumer habits and the rise of digital banking. But in St. Louis, the commercial real estate impact of these changes is more layered—and in many ways, more opportunistic.
Repurposing Bank Real Estate: A Local Advantage
“Former bank buildings are in high demand,” says Michelle Goodwin, Principal at NAI DESCO. “We’ve seen strong leasing activity from quick-service restaurants and service-based tenants who can repurpose existing drive-thru layouts and capitalize on the visibility and accessibility of these sites.” These properties often sit on prime corner lots, offer existing infrastructure, and provide ample parking—making them highly adaptable for a variety of users beyond traditional financial services.
“Former bank buildings are in high demand,” says Michelle Goodwin, Principal at NAI DESCO. “We’ve seen strong leasing activity from quick-service restaurants and service-based tenants who can repurpose existing drive-thru layouts and capitalize on the visibility and accessibility of these sites.” These properties often sit on prime corner lots, offer existing infrastructure, and provide ample parking—making them highly adaptable for a variety of users beyond traditional financial services.
A Market Historically Shaped by Banking
St. Louis has long had a deep banking presence, and the footprint those institutions created continues to shape the local commercial landscape.
“Banks historically paid some of the highest prices per square foot for prime land,” says Bill Barnes, Principal at NAI DESCO. “Fifth Third Bank, for example, made a major entry into our market, acquiring high-value sites, but eventually exited, leaving behind over a dozen properties. Meanwhile, Chase Bank has been one of the few national banks expanding in the region—opting for new, non-drive-thru branches in places like Des Peres and Kirkwood.”
St. Louis has long had a deep banking presence, and the footprint those institutions created continues to shape the local commercial landscape.
“Banks historically paid some of the highest prices per square foot for prime land,” says Bill Barnes, Principal at NAI DESCO. “Fifth Third Bank, for example, made a major entry into our market, acquiring high-value sites, but eventually exited, leaving behind over a dozen properties. Meanwhile, Chase Bank has been one of the few national banks expanding in the region—opting for new, non-drive-thru branches in places like Des Peres and Kirkwood.”
Local and regional players are also active:
- CommunityAmerica Credit Union is entering the market, with its first location under construction in Des Peres at Manchester and Bopp Road.
- First Community Credit Union, based in St. Louis, continues to expand with recent branches in Sunset Hills and O’Fallon, MO.
- PNC Bank, meanwhile, has been actively closing branches and selling off real estate.
- Downsizing vs. Investing in Physical Presence
Peter Sheahan, Vice President and Founding Principal at NAI DESCO, has worked closely with Commerce Bank for over 30 years and has witnessed this evolution firsthand. “Many banks are downsizing their footprints—cutting their number of locations nearly in half. In Clayton, for example, Commerce Bank went from four branches to two. But there are still banks like Chase willing to pay top dollar for prominent brick-and-mortar locations.” This contrast highlights a key takeaway for investors and developers: not all banks are retreating—some are simply optimizing.
What It Means for Owners and Investors
As the traditional banking model evolves, so does the opportunity for adaptive reuse. Former bank branches in the St. Louis region continue to offer strong potential for owners, landlords, and tenants who can reimagine these buildings for today’s commercial needs.
As the traditional banking model evolves, so does the opportunity for adaptive reuse. Former bank branches in the St. Louis region continue to offer strong potential for owners, landlords, and tenants who can reimagine these buildings for today’s commercial needs.
At NAI DESCO, we continue to help clients navigate these transitions—whether repositioning former bank assets or identifying new development opportunities.
Looking to explore a former bank site or discuss investment strategies? Let’s talk.
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