Gross Rents Up In Hollywood BID

The increase in gross rental receipts was one of a number of measures of change in the report, which confirms a "positive upturn in Hollywood's economic future," BID officials say.

The Hollywood Entertainment District is an 18-block business improvement district including Hollywood Boulevard from La Brea Avenue to Gower Street. The study, prepared for the BID by Economic Research Associates, measures the financial impact of the BID on the area year-over-year. BID executives say the report indicates that the BID, which is supported by assessments paid by property owners, "has had a considerable positive effect on the neighborhood's economic growth."

In citing the economic report, BID officials also note the resurgence of entertainment companies doing business in Hollywood: Twentieth Television has chosen to base its new live weekday show, "On-Air with Ryan Seacrest," from a new 12,000-sf production studio at Hollywood & Highland; and the ABC Network show "Jimmy Kimmel Live!" is already based there at the Disney Entertainment Center.

The new study shows that total commercial rent receipts rose to more than $51.6 million in 2002 from $39.1 million in 1999. Among the other statistics in the report: assessed property values within the BID increased 103% from 1998 to 2002; gross receipts from theater increased more than 127% from 1999 to 2002; parking tax revenues increased 203% from 1998 to 2002; sales tax revenues rose 242% from 1998 to 2002; and business license tax revenues increased 116% from 1998 to 2002.

The study also showed that daily room rates in the Hollywood hotel market have increased at a higher pace (52%) than in neighboring markets such as Downtown Los Angeles, West Hollywood and the San Fernando Valley.

Kerry Morrison, executive director of the Hollywood Entertainment District, says that another encouraging conclusion from the report is that tourism is returning to Hollywood Boulevard. "The summer of 2003 proved to be very strong for businesses throughout the area," Morrison says.

The Hollywood Entertainment District is a property-based BID financed by 210 property owners who are assessed $2.1 million annually to pay for security, maintenance services and marketing to promote the revitalization of the area. The entertainment district BID was formed in September 1996. Business leaders cite the BID as one reason that developers are now more willing to commit to projects in Hollywood, even in areas that lie outside the boundaries of the BID.