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There’s no room in Hollywood. Unprecedented low vacancy rates in the single digits equals a competitive race from soundstages to Class A creative office space from the Valley to the Pacific.
“The occupancy around town is at 97%, an all-time record,” says Jones Lang LaSalle’s Carl Muhlstein, an international director with the real estate and investment management services company. The veteran real-estate pro helped sign Viacom into Kilroy Realty’s Columbia Square and Netflix to Kilroy Realty’s ON Vine, the city block-sized, mixed use complex, with 16,500 square-feet of purpose-built studio and production space, under construction just south of Sunset Boulevard between Vine Street and Cahuenga Boulevard.
Giants - Netflix - Amazon - Google - Apple
Tech giants (Netflix, Amazon, Google and Apple) and their deep-pocketed investments into streaming and content production are driving the demand for entertainment biz-focused properties in L.A.’s red-hot commercial real estate sector. A dramatic change in leasing terms, per Muhlstein, is another factor: instead of booking soundstages as needed (once a show was picked up), the new norm is to lock in available square footage via long-term leases. “There’s been record pre-leasing by entertainment and media companies of new construction projects before completion,” he adds.
Feeding the frenzy...
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