Entertainment Facilities Go Mixed-Use

It is no secret that the entertainment industry is a major driver of jobs in Los Angeles, and entertainment facilities are in high demand. These facilities, however, require a different approach than a typical office building because of the specialty use. Klorman Construction recently completed a two-story animation studio at Universal Studios Hollywood and had experience building entertainment facilities. Bill Klorman, president at the firm, says that these properties are taking on a new look with more residential and retail components as a result of the live-work-play trend. We sat down with Klorman for an exclusive interview to talk about the construction of these properties, what it is like to develop new construction on an existing entertainment campus and his advice for developers looking to build entertainment facilities.

GlobeSt.com: Obviously, entertainment is one of the largest industries in Los Angeles. What is demand like for new entertainment properties like in Los Angeles? Bill Klorman: Entertainment focused developments, like most sectors in the commercial real estate sector in Southern California, remain highly sought after. We’re seeing the continuation of the trend whereby mixed-use developments are using the entertainment component as the main draw, and are then developing retail, office and residential components around that core concept. In short, the live, work, play concept remains alive and well, with developers, tenants and homeowners viewing properties that promote this concept favorably.

What is the development process like, and how is it different from a standard office property? Klorman: Development in Southern California can be a challenging process, but we’ve been able to utilize our partnerships and understandings of the nuances to help bring these types of projects to fruition. The key remains finding ways to seamlessly merge and connect the entertainment, office, retail and residential components.

GlobeSt.com: Do these projects often take place on an existing property, like this one? How do you overcome those challenges? Klorman: We were fortunate to be brought on take part in the renovation of the Universal Studios Animation store. The key challenge, especially on such a vibrant existing property such as Universal Studios, is to do our job with minimal interruption to the owner’s ongoing business operations. As you can imagine, that was not always easy at Universal Studios, given that more than half a million people visit the facility in a given month. At Klorman Construction, we’re used to dealing with such issues and helping alleviate clients’ concerns. In this particular case, we scheduled  major concrete pours at night, when we had to drive pumps and concrete trucks through the park while making sure there was no damage caused and completing it in time for the next morning’s park opening.

GlobeSt.com: What is your advice to developers or owner-users looking to build an entertainment-specific project? Klorman: First and foremost, I would advise anyone taking on such a project to be clear eyed about their vision for the project, with a disciplined approach to making sure they can stand out in a crowded marketplace. Secondly, and I would say this is no less important than the first point, you must assemble a team that understands and shares that vision, one experienced in the sector and that has a successful track record of bringing such projects to reality. Over the years, we have developed a teamwork-oriented approach in working with architects, engineers and other subs, so we’re well versed in the details of these types of projects.

GlobeSt.com: What is your outlook for development activity in this space this year compared to last year? Klorman: We are, thankfully, in the midst of a very strong market, with an economy that shows no sign of slowing down at this point. As with most developments in Southern California, finding suitable land that is well located and lends itself to such projects—at a price that makes sense—is and will always remain the key.