The rapid growth of streaming video services for movies and TV has boosted LA’s office space market to record levels, says Bloomberg. According to the real estate firm CBRE, “The amount of office space the entertainment industry occupies in Los Angeles County has climbed to the most this decade.”
New numbers from the firm show that media companies take up about 25.5 million square feet of space in countywide—a jump of nearly 3 million square feet from five years ago.
The demand comes from companies such as Netflix, which rents more than 500,000 square feet—that’s “roughly the size of five Wal-Mart stores”!—at Sunset Bronson Studios in Hollywood. The CEO of Hudson Properties, which rents that space to Netflix, credits the “boom” to digital media and entertainment companies.
Bloomberg agrees, saying: “The convergence of entertainment and tech has created new outlets for production while also leading to greater use of office space,” as production workers increasing move behind computer screens.
The entertainment industry isn’t just interested in one corner of Los Angeles. The “surge” in leasing is spread across the city, with hotspots in Silicon Beach, Hollywood, and Downtown.
In Hollywood, Netflix is joined by Buzzfeed and a newly consolidated Viacom, which has taken up residence in the new Columbia Square development. In Playa Vista, there’s Google and Youtube, which have continued to help draw more new tenants to the area.
These companies seek out casual, open floor plans—spaces that are either built this way or overhauled to appeal to an often younger, entertainment industry crowd:
In Playa Vista, offices are spacious and relaxed, with young people in leggings and beanies working on their laptops while lounging on couches, sunk into beanbag chairs or perched on bar stools. Neon signs with inspirational phrases hang on the walls, while sliding doors link indoor dining rooms to outdoor patios strewn with hammocks and foliage. Employees’ dogs run from room to room.
More traditional office spaces aren’t faring so well. With their more formal vibes and layout, they continue to face high vacancies, says Bloomberg, as even more “traditional” tenants like lawyers start to want a fresh office style.