The Streaming Wars May Save L.A.'s Office-Space Market

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While vacancies rise and rents decline dramatically across Los Angeles amid the downturn, especially on the Westside, Burbank is a bright spot, thanks partly to a major Netflix lease

When asked how the recession and pandemic have affected L.A.'s commercial real estate market, Ryan Patap, director of analytics at data group CoStar, is blunt:"It's bad. Over the past two quarters, we've seen vacancy rise at its fastest pace in more than a decade."

Submarkets in West L.A. also have seen disheartening numbers. In Santa Monica, rents have fallen for the first time since 2010, down a whopping 4.1 percent on a year-over-year basis. It hasn't been all doom and gloom. Burbank, a huge beneficiary of the streaming wars, has had a stellar year."Entertainment is everywhere in L.A., but if there's one place that it really is definitive, it's Burbank," Patap says. Burbank has been boosted by Netflix's new 171,000-square-foot lease at Burbank Empire Center for an animation studio.

 

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