Hudson-Pacific Says ‘Hooray for Hollywood’
- Jun 03, 2015
By Barbra Murray, Contributing Editor
ICON, a 323,000-square-foot office project in Hollywood, will soon be ready for its close-up. Hudson Pacific Properties Inc. just broke ground on the $200 million development, which will carry an address on Sunset Blvd.
It’s a big project with a big price tag and Hudson is confidently moving forward at full steam without a big pre-lease commitment. A major spec office undertaking doesn’t scare the real estate company. “Hudson is one of Hollywood’s largest landlords. We’ve a track record of making investments that create value for our stockholders and enhance the community,” Victor Coleman, chairman & CEO of Hudson, told Commercial Property Executive.
Gensler Architects-designed ICON will be located on the Sunset Bronson Studios lot, the 10.6-acre property that was originally home to Warner Bros. Studios. Presently, the complex features 105,000 square feet of studio space, 100,000 square feet of office accommodations–including production and post-production space–and a 1,600-space parking structure is in the midst of sprouting up as well. ICON, like the rest of the Sunset Bronson property, will cater to the industry.
“[It’s] a state-of-the-art, LEED Gold-certified, vertical creative campus ideal for the next-generation tech, media and entertainment companies driving Hollywood’s new Golden Era,” said Coleman. Hudson expects the entire Sunset Bronson Studios development to take the position of gateway to the Sunset Media and Technology Corridor.
McCarthy is spearheading construction activity as general contractor and is on schedule to complete ICON in late 2016. In the meantime, Hudson is working on the tenant roster. “We’ve a robust pipeline of potential tenants in excess of 2 million square feet–several looking to lease more than a third of the tower’s available space–even with the project roughly 18 months away from delivery,” Coleman added. “These are all brand-name and several global tech, media and entertainment companies, looking to locate, expand or consolidate operations in Hollywood.”
Hudson’s long list of promising options likely comes as no surprise to market watchers. According to a first quarter 2015 report by commercial real estate services firm Transwestern, Hollywood, along with Playa Vista, is benefiting from strong growth in the entertainment, media and technology sectors, where creative office spaces and their accompanying amenities have become vital to recruiting and retention efforts.
Coleman added, “We continue to see strong demand for Class A, creative office product, particularly along the submarket’s Sunset Corridor, which combined with a lack of competitive supply makes us very confident we’ll be able to announce some significant deals in the not too distant future.”