Netflix Leases 323,000 SF in Hollywood
A major L.A. strength these days is the convergence of technology with media/entertainment. Our top 5 global tech ecosystem and our #1 entertainment sector are driving innovation and growth throughout L.A. From new startups looking to disrupt the way we currently do things, to heavyweights continuing to grow, this trend is on the move and nothing is slowing it down. Netflix is a great poster child of that and is helping make Hollywood one of the top submarkets in this dynamic city.
Netflix has pre-leased the entirety of the Icon office building Hudson Pacific Properties is constructing in Hollywood at Sunset Bronson Studios, HPP CEO Victor Coleman said today in a quarterly earnings report.
Last year, Netflix leased 200,000 square feet of the building at 5800 West Sunset Boulevard in a deal that many in the industry touted as evidence of Hollywood’s rise. Earlier this month, Netflix executed an additional 10-year lease for the remaining five floors of Icon, or another 123,000 square feet, Coleman told The Real Deal.
Icon is now 100 percent pre-leased. Coleman previously told The Real Deal that Netflix would pay the highest rent in Hollywood with their original lease. Some of the additional space was leased at the same rental rate, and a portion was leased at an even higher rate, Coleman said.
The property is expected to be completed late this year or early next year. The lease will commence in conjunction with the scheduled delivery date, according to CoStar Group.
“Our Netflix deal remains the largest lease ever signed in Hollywood in terms of square feet,” Coleman said. “This is a landmark deal for Hollywood, for our company, for the project and Sunset Bronson Studios. This lease exemplifies the convergence of tech and media in L.A., and how next-gen content providers are thinking about growth, business strategy, and the use of office and studio space.”
Hudson is also developing a 90,000-square-foot low-rise production building next door to the Icon tower, dubbed The Hub. There is speculation, for obvious reasons, as to whether Netflix will lease that building too. Especially because Netflix takes almost exactly that amount of space (91,000 square feet) at its Beverly Hills office at 335-345 Maple Drive, and may be looking to consolidate to Sunset Bronson.
*Shared by Jeff Vertun