Net Takeaways with Feller & Harf

Episode Title: Net Lease Evolution with Joey Agree, CEO of Agree Realty

Podcast: Net Takeaways with Feller & Harf

Hosts: BJ Feller & Isaiah Harf

Special Guest: Joey Agree, CEO of Agree Realty

Episode Overview: In this insightful episode, BJ and Isaiah sit down with Joey Agree, the CEO of Agree Realty, to discuss the evolution of the net lease real estate sector and the strategic moves that have driven Agree Realty’s success. Joey shares how the company evolved from its roots as a Kmart developer to become one of the largest players in the net lease space, with nearly $8 billion in market cap. They also explore the rise of e-commerce, the impact of omnichannel retailing, and what the future holds for retail real estate.

Key Discussion Points:

• History of Agree Realty: From Kmart developer to an industry leader with Walmart as its largest tenant.
• E-commerce Disruption: Joey’s early recognition of the e-commerce revolution and its impact on retail real estate.
• Omnichannel Retailing: The future of retail lies in a blend of online and in-store strategies, with significant implications for real estate.
• Strategic Acquisitions: A focus on top-tier retailers and disciplined investment, with an emphasis on long-term value and stability.
• Balance Sheet Strength: Agree Realty’s pioneering role in forward equity offerings and maintaining a low-leverage approach.
• Cap Rate Trends: Insights into the current state of the market, cap rates, and where the industry is heading.
• Agree Realty's Future Vision: Joey's outlook for expanding the company's portfolio and achieving a $20 billion enterprise within the next few years.

Key Quotes:

• “We are focused on the top 30 retailers because they have the balance sheets and liquidity to weather the e-commerce disruption.”
• “The power of mobile e-commerce has transformed consumer behavior – we're in the sixth inning of this evolution.”
• “At Agree Realty, it’s not about doing something fun – we focus on essentials like auto parts and grocery, where there’s consistent demand.”

Additional Insights:

• The episode touches on the generational trade from high-intensity downtown assets to more passive, suburban net lease investments.
• Joey discusses the impact of changing consumer behavior and how retailers are adapting to an omnichannel approach to serve modern shopping preferences.
• The conversation concludes with Joey’s reflections on leadership and staying disciplined in an ever-changing market, with inspiration from Kobe Bryant's legendary work ethic.

Links & Resources:

• Agree Realty Website
• Follow Joey Agree on LinkedIn
• Net Takeaways with Feller & Harf podcast is available on all major platforms.

Connect with Us:

• Net Takeaways with Feller & Harf on LinkedIn
• Follow BJ Feller on LinkedIn: BJ Feller
• Follow Isaiah Harf on LinkedIn: Isaiah Harf

Tune in next week for more insights from industry leaders!

Title: Net Takeaways with Feller & Harf: No Ring or Mode

Hosts: BJ Feller & Isaiah Harf

Key Topics:

• AI & Machine Learning in Commercial Real Estate: Discussing the role of AI in property valuation, market analysis, and whether traditional methods are becoming obsolete.
• The Impact of Long-Term Leases & Interest Rates: How 15- to 20-year leases are holding up in the current interest rate environment and what landlords and investors are doing to adjust their strategies.
• Preparing Commercial Properties for Institutional Sale: Practical advice for a listener managing a portfolio of family-owned commercial properties, covering how to approach the sale process and attract institutional buyers.
• The Future of Brick-and-Mortar Retail: A debate on the role of physical retail spaces in the age of e-commerce, with a focus on omni-channel retail strategies and evolving consumer expectations.

Notable Quotes:

• “AI will not take your job in commercial real estate, but someone using AI will.”
• “We’re looking at a business transformation on the level of pre- and post-internet.”
• “Omni-channel retail isn’t something to fear; it’s a future where customer experience seamlessly integrates across all platforms.”

Actionable Insights:

• Real estate professionals need to adopt AI and data-driven technologies to remain competitive.
• Long-term leases, especially 15 to 20 years, continue to hold value despite rising interest rates, though financing strategies need to be adapted.
• For owners looking to sell, compiling accurate data and working closely with brokers is a critical first step in preparing properties for institutional buyers.
• Traditional retail isn’t dead; omni-channel strategies are creating more opportunities for a seamless consumer experience across both digital and physical platforms.

Call to Action:

• Don't forget to like, share, and subscribe for more industry insights and discussions on the evolving commercial real estate market.

Episode Title: RealPage Lawsuit, Starbucks' New CEO, and the Future of Omnitail

Release Date: Tuesday, September 3rd 2024

Hosts: BJ Feller and Isaiah Harf

Episode Summary: In this episode, BJ and Isaiah tackle some of the hottest topics in commercial real estate and business. They discuss the implications of the DOJ’s lawsuit against RealPage, dive into the leadership transition at Starbucks with Brian Niccol taking the helm, and explore the evolving concept of "omnitail" in retail. Whether you're interested in the intersection of PropTech and government regulation, curious about how Niccol's strategies from Chipotle might influence Starbucks, or want to understand the future of hybrid retail models, this episode has something for you.

Key Topics:

• RealPage Lawsuit: The DOJ’s antitrust case against RealPage and what it means for CRE, PropTech, and government regulation.
• Starbucks’ Leadership Change: Brian Niccol’s move from Chipotle to Starbucks, his past successes, and the challenges ahead.
• Omnitail and Retail Evolution: The blending of online and physical retail spaces, the costs of online returns, and how retailers can optimize consumer experiences.

Takeaways:

• How government actions might reshape the PropTech landscape and impact CRE investors.
• Insights into what makes Brian Niccol an effective leader and how he might steer Starbucks towards renewed growth.
• The strategic importance of "omnitail" and how integrating online and in-store experiences can drive profitability in retail.

Links & Resources:

• DOJ Lawsuit Details Against RealPage
• Brian Niccol’s Profile and Achievements at Chipotle
• Omnitail: The Future of Retail?

Subscribe & Follow:

• Don’t miss an episode—subscribe to Net Takeaways on Apple Podcasts, Spotify, or your favorite podcast platform.

Listener Questions & Feedback:

• Have thoughts or questions about today’s topics? Send them our way at [email protected]. We’d love to hear from you!

Chicago Traffic Miracle: The DNC is in town, but instead of chaos, BJ and Isaiah find themselves cruising through the best traffic Lake Shore Drive has seen in ages. Maybe we should invite the DNC more often?

The Shorts Debate: Isaiah makes a rare sartorial choice—shorts in the office! But don’t worry, he’s got a good reason: Cubs game after work. BJ, ever the professional, doesn’t miss her chance to comment on the changing tides of office attire post-pandemic.

Couche-Tard's Bold Move: $86 billion is the number on everyone’s lips as Couche-Tard makes an aggressive play to acquire 7-Eleven. BJ and Isaiah break down what this could mean for the convenience store landscape, from antitrust hurdles to the shifting role of these neighborhood staples.

Rise of the Mega Convenience Stores: With pharmacies on the decline, mega convenience stores like Wawa and Buc-ee’s are stepping in to fill the gap. The duo discuss how these mini shopping centers are redefining the hard corner real estate game.

Amazon's Industrial Double Play: Two major Amazon transactions in Pennsylvania have caught the market’s attention. BJ and Isaiah analyze the rising cap rates and what this signals for the industrial sector’s future.

Car Washes on Hard Corners?: Isaiah shares his thoughts on the growing trend of car washes popping up on prime real estate. Could this be the next big thing? Isaiah remains skeptical, but the debate is worth the listen.

Looking Ahead to 2025: BJ predicts that 2025 could be the best year for real estate fund formation in a decade. She and Isaiah explore why the time might be right for raising capital and deploying it strategically in the years ahead.

Family Loyalty Tested: Isaiah's Sox-loving kids are baffled by his decision to head to Wrigley for a Cubs game. Can you say household drama? But hey, at least the weather’s nice!

Wrap-Up: As always, BJ and Isaiah bring their A-game with a mix of industry insights and banter. Don’t forget to like, share, and subscribe to stay tuned for more episodes of Net Takeaways.

Introduction:

• BJ Feller and Isaiah Harsh open the episode with a casual conversation about Lollapalooza in Chicago.
• The hosts introduce the main topics: zombie pharmacies in NYC, unemployment and interest rates, and the impact of technology in commercial real estate.

Zombie Pharmacies in New York:

• Discussion on the New York Times article about 222 dark big-box pharmacies in NYC, with specific statistics on their distribution across boroughs.
• Analysis of the negative impact on urban retail vibrancy and sales tax revenue.
• Exploration of the rise of independent pharmacies filling the void left by major chains.

Economic and Market Updates:

• Review of the latest jobs report showing 110,000 jobs added in July, below the projected 170,000, and the potential implications for unemployment and Federal Reserve policy.
• Discussion on the drop in the 10-year Treasury yield and its impact on financing conditions in commercial real estate.
• Insights into how these economic shifts might affect cap rates, particularly in multifamily, retail, and office sectors.

Placer.ai and Real Estate Analytics:

• Debate on the growing reliance on Placer.ai data in the retail investment world.
• Concerns raised about the accuracy and overdependence on cell phone data for retail traffic analysis.
• Emphasis on the importance of considering traditional metrics like unit-level sales performance and market rent comps.

Closing Thoughts:

• The hosts conclude with a discussion on Q4 market expectations, highlighting the potential for increased deal activity due to lower interest rates.
• A light-hearted segment on favorite desserts, with a special mention of Joe's gluten-free options and RPM Steak's chocolate cake.

Listener Engagement:

• Encouragement for listeners to provide feedback and questions for future episodes.

This episode provides a comprehensive overview of current trends and challenges in the commercial real estate market, with a blend of serious analysis and entertaining banter.

• Who's got the best wings in Chicago? Isaiah puts his Upstate New York street cred to good use
• Dollar General's Big Announcement of 1000 store closure, what it means for the retail landscape
• Aldi's Big News of 800 new stores by 2028
• Walmart's plan to add 150 new large format stores over the next decade

Net Takeaways with Feller & Harf breaks down:

• The hottest restaurants from the travels in California and New Orleans
• The ICSC OAC (Outdoor Air Conference) takeaways:
  • Bullish Sentiment on Retail Leasing Outlook
  • Capital Markets Observations
• The recent news of the announcement by NYC that they will be sending state police and national guard personnel into the NYC subway systems, and what it means for the urban post-COVID recovery of America's biggest cities