Rule 2 â€“ Limit geographic area and product type
- Stay within what we call the â€œDavis 50,â€ the geographic area bounded by a 50-mile radius from our Newport Beach corporate office. This area stretches from Chatsworth to north of downtown LA to the Inland Empire West and includes the Mid-counties and all of Orange County. Our only exception is established areas of San Diego.
- Focus on well-located office and industrial properties
- Place special emphasis on multi-tenant projects that require limited tenant improvement costs, such as industrial business parks. More small tenants with short-term leases is best because tenants have less negotiating leverage and rental rates can be adjusted most quickly to optimize occupancy.