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LA Studio Real Estate Still Recovering After Writer's Strike
by Traded MediaShare
The Los Angeles Studio Real Estate Conference gathered industry experts to discuss the intertwined nature of studio real estate and the entertainment sector. Despite differing perspectives, panelists generally agreed that the industry has rebounded since the writers and actors strikes. Fox Corp.'s Matthew Michel noted a return to full stages and increased activity, signaling a recovery. However, production levels, though rising, still lag behind pre-strike figures, with a notable 36.4% decrease in fourth-quarter 2023 compared to 2022.
Financial Outlook and Adaptation
Analysts foresee a rise in content spending this year but anticipate it will not match 2022 levels, indicating ongoing uncertainty. This financial landscape prompts adaptation in production methods and space utilization. Amazon Studios' John Eddey emphasized the enduring necessity of soundstages while highlighting the resilience of studio real estate owners with diverse portfolios catering to various industries beyond entertainment.
Diversification and Resilience
Successful studio real estate owners thrive by offering versatile spaces suitable for diverse needs beyond traditional filming, such as hosting events or music video shoots. This adaptability ensures stability during market downturns, a sentiment echoed by Eddey.
Investment and Development
Recent investments underscore optimism in the studio real estate market. Fox Corp. is embarking on a $1.5 billion upgrade to its Century City studio lot, while Hackman Capital announced a $1 billion plan to redevelop Television City. East End Studios is constructing a nearly 400,000 square foot studio campus in the Arts District, reflecting continued confidence in the industry's future.
The discussion at the conference illuminates the dynamic relationship between studio real estate and the entertainment industry. Despite past challenges and ongoing market fluctuations, optimism persists, supported by strategic investments and a commitment to adaptability and diversification.
Published: April 12, 2024