Hollywood Races for Commercial Real Estate Spaces

Variety | 9/12/2019 | Kathy A. McDonald
Click For Photo: https://pmcvariety.files.wordpress.com/2019/09/palisades-village.jpg?w=700&h=393&crop=1

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...
(Excerpt) Read more at: Variety
Wake Up To Breaking News!
Sign In or Register to comment.

Welcome to Long Room!

Where The World Finds Its News!