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The Real Deal Los Angeles

When it comes to expansion, Netflix has absolutely no chill

The company now leases two HPP-owned office buildings and several sound stages in Hollywood
January 05, 2017 05:36PM

Building at Sunset Bronson Studios and Hudson Pacific Properties CEO Victor Coleman (Credit: Spectra Company, HPP)

When it comes to expansion, Netflix has absolutely no chill.

The behemoth streaming servicer and content creator inked yet another lease in Hollywood. It will take the entirety of Hudson Pacific Properties’ under-construction “Cue” building on the Sunset Bronson Studios lot, the Los Angeles Times reported.

Terms of the deal for the 92,000-square-foot, five-story office complex at 5800 Sunset Boulevard were not disclosed, but the submarket average for new office buildings in Hollywood last year pencils out to be about $5.50 per square per month. That means the lease is worth at least $60.7 million if the length is the typical 10 years.

Cue is expected to be complete by the end of this year. Designed by Gensler, the building will feature terraced balconies, high ceilings, a rooftop deck, and — you guessed it — an open environment for creative tenants, according to the landlord.

Meanwhile, Netflix is set on dominating the entire Sunset Bronson Studios lot. Soon, it will move into the brand new Icon building next door, also owned by Hudson. The Real Deal reported in February 2016 that the company signed leases for all 323,000 square feet of the 14-story building. Additionally, Netflix leased several HPP-owned sound stages on the lot in October.

In September, the L.A. City Council approved Hudson’s plans for a 300,000-square-foot development down the street at 5901 Sunset Boulevard. Called “Epic,” the project is slated to break ground this year. [LAT]Cathaleen Chen