The proliferation of streaming services has prompted large block leasing from media and tech tenants alike in LA
The interplay between technology and media continues to unfold, as does the way in which entertainment is produced and consumed.
October 16, 2019
- The interplay between technology and media continues to unfold, as does the way in which entertainment is produced and consumed. Due to its storied history, talent and infrastructure, Los Angeles sits at the forefront of this evolution and has recently cemented itself as the best place in the country to create, produce and distribute new media content.
- With the recent explosion of streaming media, major technology companies who have migrated south from the Bay area in recent years have made large scale expansions in the market. Companies like Google, Apple, Netflix and Facebook have all set up operations in the region in an attempt to tap into the deep and specialized talent pool present in the market.
- Since the start of 2018 to the present, media and entertainment companies, lead by the likes of Warner Brothers, Disney, HBO and Netflix accounted for nearly 3.4 million square feet of leases.
- Technology leasing activity accounted for almost 2.7 million square feet of leases and included transactions from firms like Google, Facebook, Bytedance and Spotify.
- Coworking remains a large consumer of office space in the market, though the uncertainty surrounding one of the largest operators may temper future leasing activity.
Source: JLL Research