Netflix inks giant lease in Burbank for first dedicated animation studio

Streamer continues to gobble up space in LA as others downsize

Los Angeles /
Sep.September 22, 2020 11:51 AM
Netflix CEO Reed Hastings with the building (Credit: BENOIT TESSIER/POOL/AFP via Getty Images)
Netflix CEO Reed Hastings with the building (Credit: BENOIT TESSIER/POOL/AFP via Getty Images)

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


Related Articles

arrow_forward_ios
WeWork CEO Sandeep Mathrani and WeWork Lantana at 3000 Olympic Boulevard in Santa Monica (WeWork, Illustrtaion by The Real Deal with Getty)
WeWork, L.A. Chamber link for back-to-office push
WeWork, L.A. Chamber link for back-to-office push
621 Hawaii Street (LoopNet)
Office-industrial portfolio costs BLT Enterprises $150M
Office-industrial portfolio costs BLT Enterprises $150M
From left: Colliers' Sean Fulp, head of Western US David Josker, Mark Schuessler, and Ryan Plummer (Colliers, Newmark, Getty Images)
Colliers poaches Newmark capital markets team
Colliers poaches Newmark capital markets team
Philip Lawrence and Thomas St John and the three parcels on the corner of Sunset Boulevard and Highland Avenue in LA (Google Maps, Getty, CMNTY Culture)
Hollywood studio project garners $35M loan to buy land
Hollywood studio project garners $35M loan to buy land
2600-2800 Colorado Avenue in Santa Monica with Worthe Real Estate Group's Jeffrey Worthe and Lionsgate CEO Jon Feltheimer (Loopnet, Getty)
Lionsgate seeks to sublease part of Santa Monica HQ
Lionsgate seeks to sublease part of Santa Monica HQ
Rising Realty Partners' Christopher Rising and 9320 Telstar Avenue (Rising Realty Partners, Loopnet, Getty)
Rising Realty sells El Monte mixed-use complex for $70M
Rising Realty sells El Monte mixed-use complex for $70M
Worthe Real Estate's Jeff Worthe with 3201 W. Olive Avenue (Getty Images, Wolcott Architecture)
Prominent Burbank intersection to feature 144-unit apartment project
Prominent Burbank intersection to feature 144-unit apartment project
Brookfield’s Brian Kingston with 425 East Colorado Street (Brookfield's Real Estate Group, LoopNet)
Brookfield sells Glendale office building to owner-occupier
Brookfield sells Glendale office building to owner-occupier
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...