Construction pipeline remains concentrated in media and tech rich markets
Developers who have built in markets with a presence of FAANG tenants focused on content generation have been rewarded.
November 27, 2019
- Developers who’ve concentrated their efforts in markets with FAANG tenants are reaping the rewards. Netflix has absorbed an unprecedented amount of new development in Hollywood. On the Westside, especially in Culver City and Santa Monica, most of the projects under construction have been spoken for by leading media and tech companies.
- Although a majority of the developments in the current cycle have been ground-up, large scale conversions and renovations have also gained traction. Most notably, Google committed to a massive aircraft hangar in Playa Vista converted to creative office a couple of years ago. More recently, the firm signed a lease for 580,000 square feet in a 1980’s vintage retail mall which will be rebranded as One Westside after the developer completely transforms the asset into a state-of-the art, creative office campus.
- New project announcements are also occurring in traditional entertainment pockets like Burbank. Warner Bros. has committed to nearly 800,000 square feet of new development adjacent to its lot.
Source: JLL Research