October 22, 2020
  • As the media & entertainment industry enters an era of accelerated demand, production facilities are an increasingly attractive commercial real estate investment.
  • Most of the 11 million sq. ft. of sound stage space in North America is concentrated in certain cities, states and provinces like Los Angeles and Georgia. Los Angeles alone accounts for half of this inventory.
  • Institutional investors have been increasingly attracted to the sound stage sector over the past decade, creating a burgeoning new asset class within commercial real estate.
  • The entertainment industry is a major space occupier and employs more than 3 million people in the U.S. COVID-19 restrictions that have limited entertainment production caused a temporary decrease in industry employment, but demand for production space is continuing to grow rapidly, largely due to a pandemic-related 74% year-over-year increase in streaming video demand.
  • Film production locations are increasingly far-flung, as tax incentive programs have helped states like Georgia and Louisiana become major production centers. However, traditional entertainment hubs like Los Angeles and New York remain prime sources of creative talent.

The Weekly Take

 

Say Hello to Hollywood: Where Commercial Real Estate Meets Entertainment

From TV & movies to gaming & tech, the entertainment industry has a voracious appetite for physical space. Victor Coleman, CEO of Hudson Pacific Properties, one of the largest owners of studio and tech space, and CBRE’s Lew Horne, Advisory Services President, Pacific Southwest, join Spencer to take us behind the scenes.

 

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