Haha. Yes, can be harmful to your wallet going against Grommit's opinion, based on his posts and results we've seen here over the past two (!) decades.
DEI: Bordered on the ocean, there's just no land to develop nearby. There's land going East, but traffic makes commuting difficult. There's infill in LA, and land/buildings can be repurposed. LA does have its problems, conjestion, expensive. More people likely moving out than moving in. Maybe LA doesn't need new office buildings.
OTOH, per DEI:
Ranks 3rd among the world’s cities, with GDP of approximately $1 trillion, behind only Tokyo and New York
Population of approximately 10,000,000, more than 43 states
World entertainment capital, with more than 200,000 employed in motion pictures and television
Largest U.S. tech center, with over 350,000 jobs, more than Silicon Valley
Largest U.S. manufacturing center, with more than 365,000 workers
Largest U.S. Port, LA/Long Beach handles 44% of all containerized US imports
World’s largest higher education concentration, with more than 112 colleges and research universities, which produce more Ph.D.s and graduate degrees than any other county in America
Diverse vibrant industries, such as international trade, entertainment, tourism, technology, education, healthcare services and manufacturing
Maybe LA isn't the place to be anymore, but I don't see the city dying. Perhaps there'll be less need for office buildings. To me there still will be a base here, people will still need some offices, and DEI properties in a constrained (but maybe reduced) market, should do ok. And the stock should recover from what I perceive are depressed levels. Perhaps I'm wrong. 7% dividend while holding offers some support. |
