Zombie Pharmacies with a Side of Key Lime

Net Takeaways with Feller & Harf

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.