How a Disney/Fox Merger Could Impact L.A. Office

Tim Lee is the VP of corporate development and legal affairs at Olive Hill Group.

Office investors are keeping an eye on the potential merger between Disney and Fox. While the deal is months from going through—and includes a bid from Comcast—a Disney/Fox merger could mean significant office consolidation in Los Angeles at the beginning of next year. Olive Hill Group is one office investor that is watching the deal closely, and the firm is being cautious about new investments in Los Angeles submarkets, like Burbank, that might see an increase in supply.

“One of the things that we are keeping an eye on is the Disney and Fox potential merger,” Tim Lee, VP of Corporate Development and Legal Affairs at Olive Hill Group, tells GlobeSt.com. “Comcast has just jumped in to the ring in the last couple of weeks to submit and all-cash offer, and Disney is weighing its options. If Disney and Fox tie-up goes through as originally planned, there is some concern that there will be some consolidation and some giving back of space. There is a lot of overlap in the L.A. market between the two firms. If Fox goes to Comcast, there is not as much overlap, and ultimately that merger option might be better for the market because any kind of consolidation will be less severe than a Disney-Fox tie-up.”