New Development Drives Creative Office Demand

HOLLYWOOD, CA—New office development in Hollywood is driving more companies to the market and, in turn, increasing demand for existing creative office space. The Lincoln Property Co. has signed a 65,000-square-foot lease with SIM Group at the historic Kodak building in Hollywood, which recently underwent a multi-million dollar transformation into a high-quality creative office campus. The property is now fully leased.

“The demand for office space is very strong; most projects under construction today are seeing significant pre-leasing activity,” David Binswanger, EVP at Lincoln Property Co., tells GlobeSt.com. “Companies who have left the area are now seeking to return to Hollywood, which has always been the center of the entertainment industry, both in Los Angeles and nationally. With all of the new development in Hollywood, companies in creative industries are eager to be a part of the action. Motivated by the increasing consumer desire for new content, savvy tech companies are rushing to Hollywood to marry technology and entertainment. The recent relocations of Viacom and MTV from Santa Monica to Hollywood are two examples of this shift, which is driving up the demand for office space in the heart of Hollywood.”

SIM Group's new facility was originally built for Kodak and was recently renovated by Lincoln Property Co. The property features editorial office space, post-production space, a DI theater and camera rental space. SIM Group will house all of its operations in the three-story building, including SIM Digital, on the first floor, Chainsaw and Bling Digital, on the second and third floors. “SIM Group was looking to consolidate their operations into a single building in the heart of the media district—where they've operated for a number of years,” adds Binswanger. “They wanted to enhance their brand through a vibrant new space in Hollywood, in close proximity to other large media and entertainment companies. The Kodak campus was perfect because it gave them the opportunity to bring their services together under one roof, allowing them to become one of the largest independent post production facilities in Southern California.”

Lincoln Property Co.'s renovation combined the historic charm of the building with modern technology, to make the property supremely functional for an entertainment or tech company. “We saw the increasing demand for office space in Hollywood,” says Binswanger. “Exciting things are happening in this market—the demand for residential, retail and commercial space is growing rapidly. The media district is the perfect place for post-production companies to relocate and expand their capabilities under one roof. In that sense, the Kodak project was unique. It's the only self-contained, all-inclusive campus of its kind in Hollywood.”

Matthew Miller, the managing principal at Cresa, represented SIM Group in the transaction. Lincoln Property Co. leased the remaining 40,000 square feet to SAE Institute earlier this year. At the time, it was one of the largest new office leases in Hollywood in recent years.