Netflix is continuing its expansion across the Los Angeles area with a big commitment in Burbank.
The streaming giant is leasing 171,000 square feet for its first dedicated animation studio at Burbank Empire Center’s 2300 W. Empire Avenue, according to CoStar. The property is owned by the real estate investment arm of New York Life and managed by Lincoln Property Company.
It’s the biggest new office lease in Los Angeles this year, as the pandemic has sent many companies looking to reduce their footprints.
But Netflix, whose stock has soared during the coronavirus, is an outlier. It will take 150,000 square feet with plans to expand that by 21,000 square feet in the future, according to the report. The space includes the entire first floor of the seven-story building and spaces on three other floors that roughly add up to half of the 351,300-square-foot building.
CBRE, which represented New York Life in the deal, said the building is now fully leased. New York Life Real Estate Investors bought the property in 2017.
Netflix chose the building because of its proximity to animation studios run by rival companies, sources familiar with the deal told CoStar.
The streamer also leases about 33,000 square feet of space at neighboring buildings — relatively small outposts compared to the major studio and office spaces that Netflix leases around L.A.
As of the third quarter of 2019, Netflix had leased or committed to 1.6 million square feet of office and studio space across L.A.
That includes 722,300 square feet of office space and 388,000 square feet of studio space at properties owned by Hudson Pacific Properties and Blackstone. [CoStar] — Dennis Lynch