Hollywood Property Lands 70 KSF Lease
- Apr 13, 2021
Hudson Pacific Properties has snagged a show business tenant for a new project that the landlord jointly owns with Blackstone, as media and entertainment firms continue to drive leasing in Hollywood’s office market.
Post-production firm Company 3 signed an 11-year lease for 70,285 square feet at the Class A building, dubbed Harlow, which was completed in the third quarter of last year. The lease spans more than half of the four-story, 130,000-square-foot building at 1040 N. Las Palmas Ave.
Located just off Santa Monica Boulevard, Harlow is part of Hudson Pacific’s Hollywood Media portfolio, a 2.2 million-square-foot collection of studios and Class A office buildings that the Los Angeles company assembled from 2007 to 2017. Blackstone Property Partners last June bought a 49 percent stake in the portfolio, which is valued at $1.7 billion.
Designed by RIOS, the building features 26,000-square-foot floorplates and a two-story mezzanine with 28-foot ceiling heights. The property also offers 16,000 square feet of outdoor workspaces with large terraces on every floor. Hudson Pacific noted in a prepared statement that it has seen “strong interest” in the balance of the building that hasn’t yet been leased out.
Harlow’s greenhouse-like design is LEED Gold, Platinum Wired and Fitwel certified and the building’s operations are 100 percent carbon neutral. The building sits on the Sunset Las Palmas production lot, one of three historic lots that Hudson Pacific has acquired and developed as part of the Hollywood Media portfolio. Netflix is the portfolio’s anchor tenant, leasing 700,000 square feet at the other properties, Sunset Bronson Studios at 5800 Sunset Blvd. and Sunset Gower Studios at 1438 N. Gower St.
The new lease expands Company 3’s presence in Los Angeles County, where it already occupies the entirety of Hudson Pacific’s 3401 Exposition, a 63,376-square-foot creative office building in Santa Monica, Calif. The company provides post-production services including picture finishing and color for features, commercials and music videos.
Office leasing in Los Angeles totaled a mere 2 million square feet in the first quarter as the COVID-19 situation continued to rein in activity, according to the latest market report by Savills. The city’s market-wide availability rose to a decade-long high of 23.6 percent, with availability in Hollywood even higher at 29.7 percent.
The lofty availability figures were driven by surging sublease availability—which rose 91 percent to 9 million square feet since the pandemic began—as well as short-term development bringing new direct space to the market. Despite this, the brokerage firm’s research found that asking rents rose 2.9 percent over the previous quarter, to $3.85 per square foot per month.