LOS ANGELES—SAE Institute has signed a lease for a 41,000-square-foot office space at Hollywood Media Campus, a 105,413-square-foot creative office building in the heart of Hollywood, CA. The lease transaction is one of the largest new office leases signed in Hollywood in the last several years.
SAE Institute moved from an approximately 25,000-square-foot space on Sunset Blvd. in Hollywood. It plans to build several production stages in the new space, which was formerly occupied by Eastman Kodak, before taking occupancy at the end of the year. “SAE was attracted to the historic nature of the property and that it was Eastman Kodak’s headquarters,” Nicole Mihalka, a JLL broker, tells GlobeSt.com. Mihalka represented the landlord, Lincoln Property Co., along with her JLL colleagues Carl Muhlstein and Hayley Blockley. CRESA represented SAE Institute.
One of the buildings SAE Institute leased was a 20,000-square-foot freestanding building that had a historic façade. “SAE thought that would be very attractive to their student base,” says Mihalka. SAE also rented a 15,000-square-foot clear-span warehouse with a 35-foot clear. “Maybe you would see that in a sound stage on a studio lot, but that is really second to none,” she adds.
More and more creative office tenants are seeking homes in the Hollywood market, especially entertainment companies like SAE Institute. “Tenants used to be primarily in a smaller size range, around 2,000 to 5,000 square feet, but in the last year or two, we have seen a jump to larger square footage, more 20,000 up to 100,000 square foot spaces,” says Mihalka. “So, the tenant size is growing and that is due to the improving economy, growing demand in Hollywood and the availability of space in the size range.”
GlobeSt.com recently reported on another Hollywood office development that will be increasing the availability of larger creative spaces. Kilroy Realty launched construction on the $380 million, 680,000-square-foot project earlier this year. Once complete, the property will have 350,000-square-feet of office space, 20,000 square feet of retail space and 200 luxury long-term and furnished short-term apartment rentals.