New media companies are driving the development boom in Hollywood. In the last two years, new office product—particularly Columbia Square and ICON—has seen phenomenal success with leasing activity and strong rental rates. In fact, the Sunset-Vine office micromarket within the Hollywood submarket has a 2% vacancy rate while vacancy in the Hollywood submarket is in the single digits as well. That says volumes, considering L.A.’s office vacancy rate is approximately 14%. The success has prompted more spec office development, which is likely to peak in 2020, according to new research from JLL.

“The media and tech companies are growing in Hollywood because they want to be near the talent. Hollywood is the true center of L.A. and it has access to a lot of talent and millennial workforce,” Nicole Mihalka, managing director at JLL, tells “A lot of that talent lives on the eastside, and Hollywood is very accessible to that area. If you have a content driven media company, you also want to be near celebrity talent as well. There are studios and sound stages in Hollywood, and it is close to influencers and actors.”

Active developers include CIM, Hudson Pacific, Kilroy Realty Corporation and J.H. Snyder. 1.6 million square feet of office product has been added to the market since 2014, when the development boom started. This year, nearly 300,000 square feet of new office space will deliver, and in 2020, that number will spike to 900,000 square feet. “Kilroy has also strategically acquired larger sites to build campuses. Based on the success of other projects, specifically Columbia Square and ICON, created the next speculative office campuses,” says Mihalka. In 2019, development deliveries will take a pause, likely because of the limited land for development and competition from other asset classes. “Land is scarce in Hollywood. A lot of land has sold to multifamily developers and hotel developers,” adds Mihalka.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

More from this author



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.