Two key themes continue to dominate banking's real estate landscape in 2018: mobility and optimization. The net number of branches in the U.S. declined from 91,900 in 2016 to 89,900 last year, a 2.2% decline, a moderate acceleration over recent years. Houston has seen decreases in bank branches every year since 2010, leading to 108 closures, according to a recent JLL report.

As banks optimize their branch footprints, some branches have been abandoned on the sidelines. In most cases, the closed branches are still in good locations. Some strategies to redeploy these branches across the U.S. have included credit unions, mobile phone stores such as Verizon and T-Mobile, fitness centers, educational services, local-serving office space, personal services and restaurants.

Across Houston, those trends are clear. At 2606 Edloe, a former bank branch is now operating as Bebidas, a coffee and juice bar. In Conroe, the Conroe-Mission Fellowship Baptist Church congregation meets in a former bank branch. Gifted & Talented Kids Academy operates out of a bank branch in West Houston along Richmond Avenue. Several credit unions occupy former bank branches across the Houston MSA.

Looking forward to 2018, JLL expects new branch development to slow, with approximately 1,700 additional branches to close across the U.S.