President, Chief Executive Officer & Director, Agree Realty
Search every verified Joel Agree interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. Joey Agree, president and CEO of Agree Realty, has been discussing the company's growth and his views on the retail real estate market. In September 2022, he stated that the company had raised approximately $500 million in common equity, bringing its total hedged capital to over $1.1 billion, and had raised its 2022 acquisition guidance to a midpoint of $1.5 billion. Agree described the company as a "singles and doubles hitter" focused on risk mitigation, and said that speculative development in an inflationary environment is "playing with fire." He also predicted a "true rationalization of industrial distribution space" over the next seven to ten years, and argued that brick-and-mortar retail is an integral part of an omni-channel world. In a 2021 interview, Agree said that during the pandemic the company raised over $1.2 billion in capital and deployed it by acquiring approximately $460 million in real estate in the third quarter, with over 80% of tenants being nationally recognized retailers such as Home Depot, Walmart, and TJ Maxx. He stated that the pandemic accelerated existing retail trends by five to seven years, and that online retail is often unprofitable for retailers due to high return rates and shipping costs. Agree also noted that Agree Realty required employees to return to the office five days a week, saying that "if you want a job you can work from home, but if you want a career, we need you in the office."
“Last week we raised approximately 500 million dollars in common equity bringing our total outstanding hedged capital to over 1.1 billion dollars, including about 800 million dollars in equity and 300 million dollars in forward starting swaps.”
“We recently raised our acquisition guidance for 2022 to a midpoint of 1.5 billion dollars, reflecting our confidence in continued growth and investment opportunities.”
“The real story for the next seven to ten years is going to be the true rationalization of industrial distribution space with brick and mortar locations for a true omni-channel future.”
“Amazon was predicted to kill pharmacy, grocery, and auto parts retail, but today Amazon is opening stores like the Amazon Fresh and Amazon Fashion concepts, showing that e-commerce and brick and mortar are converging.”
“Making money online is a paradox for retailers because 40% of goods ordered online are returned, which creates significant costs and challenges for profitability.”
“Our investment strategy focuses on e-commerce resistant industries and recession resistant durable goods and services that are necessity based, avoiding discretionary and luxury sectors.”
“Our portfolio today is 69% investment grade tenants, with the majority of non-investment grade tenants being unrated but financially strong retailers like Chick-fil-A, Publix, and Hobby Lobby.”
“We made the decision to come back to work five days a week without a hybrid schedule because we believe it's the most productive and efficient use for our business.”
“If you want a job you can work from home, but if you want a career, we need you in the office. We want people who want to be around leaders, transactions, and who want to learn and grow.”
“Development in an inflationary and rising interest rate environment, especially speculative development, is playing with fire. Duration equals risk, and risk equals a premium, so you must have the associated premium if you're going to develop.”
“What we're really challenging investors or retailers consumers to think about is retail brick and mortar retail being an integral part of an omni channel world. The pandemic has accelerated a lot of the trends we've seen historically, and brick and mortar is the linchpin for an omni channel world.”
“Retail real estate is going through fundamental changes in this country. We have 24 square feet per capita in this country, which is significantly higher than other countries like Canada or Western Europe. Strong retailers are getting bigger and stronger with the balance sheets and ability to invest in omni channel cap...”
“Omni channel means the consumer has multiple different points of entry to purchase a good or service, whether it's on your phone, on an app, on a mobile website, walking in the store, purchasing online, or buying and picking up in store. It's a full 360 degree experience for the consumer, and retailers must figure out...”
“The larger retailers have an inherent advantage when it comes to investing, access to capital, and cost of capital through public capital markets. Local merchants will have opportunities focusing on service and unique merchandising, but regional and weaker national players are the real losers stuck in the middle withou...”
“Retailers lose money online mostly due to shipping and returns. The only retailer that truly makes money online is eBay because they have no inventory and sell third-party goods. Retailers are trying to figure out how to make money online, and encouraging consumers to solve the last mile by driving to the store rather...”
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