LA traffic jam at sea, DoorDash both delivereth and taketh away, Oak Hill Advisors’ big suburban office bet, housing price hikes seen continuing next year, some lowdown on Libor and CRE borrowing.
Today on Millionacres
Port of LA Now Operates 24/7: Will Other Cities Follow?
The White House this week helped broker an agreement for the Port of Los Angeles to become a 24/7 operation. And that could have a huge impact on retail inventory now threatened by a bottleneck that has ships waiting weeks to unload.
The Millionacres takeaway: Our Maurie Backman notes that the situation varies from port to port -- Houston, for example, has steered clear of the backups. But any relief at ports, she adds, will then encounter…a trucker shortage. It’s always something
DoorDash Now in the Booze Biz: Will Bars and Restaurants Suffer?
While DoorDash (NYSE: DASH) did recently overhaul its fees and introduce a new pricing model for food establishments, partnering with it is still an expensive prospect. But at least now you can drink to that.
The Millionacres takeaway: Maurie points out that it’s not just the one drink they’ll deliver that’s the problem. It’s the second one and more that diners and drinkers often enjoy on a night on the town that these businesses will be missing out on.
Oak Hill Advisors Makes Big Bet on Suburban Office Space in Pandemic Limbo
With so much uncertainty in the office sector, it was pretty surprising that Oak Hill Advisors (OHA) decided to take a $326.5 million gamble on Workspace (OTCMKTS: WKPPF), a company that specializes in leasing office space, our Kristi Waterworth writes.
The Millionacres takeaway: Oak Hill Advisors is private, but Workspace isn’t. If you like what it's thinking, you can show your approval with some real estate investment dollars of your own.
Also in Today’s News
Goldman Sachs: Home Prices Will Rise Another 16% in 2022
Home prices are currently up 20% year over year, but according to a new market forecast from Goldman Sachs, they may not have reached their peak yet. Not even close, says the economists cited in this report from Housing Wire.
The Millionacres takeaway: The big gun’s big brains see another 16% rise by the end of next year. Why? The math is simple: Supply will continue to lag demand for multiple reasons that will remain unchanged for now.
With Libor on Its Way Out, CRE Faces More Complex Lending Landscape
The deadline for lenders to phase out the Libor -- the rate that determines the interest paid on the majority of commercial real estate loans -- is less than three months away, and comparing loan deals may soon be more difficult than apples-to-apples, Bisnow reports [subscription required].
The Millionacres takeaway: It’s complicated stuff but might as well start thinking about it now, especially if you’re going to be seeking financing for projects in the months ahead.