Nadja Brandt, Los Angeles-based real estate reporter for Bloomberg News, shares some pretty staggering statistics in her Businessweek piece “Hollywood Seediness Fades as Developers Remake Media Hub.”
Current and planned projects amount to a total of a little over 2.5 million square feet, accounting for the largest Hollywood construction boom since the mid-1970s. Even more amazing is the fact that most of the current commercial and residential highrises are being built on spec:
Construction is being driven by office landlords hoping to lure media companies, and by apartment developers targeting young professionals willing to shell out as much as $10,000 a month in rent, noted Leron Gubler, president and chief executive officer of the Hollywood Chamber of Commerce.
“Here in Hollywood, we are willing to build on spec because we know of a significant amount of users who would be interested in a building like this,” said Thomas Dujovne, chief investment officer at J.h. Snyder Co.. “They are primarily from the entertainment and tech industry. There is a lot of interest in being in Hollywood because of its name, but also it’s very centrally located.”
Those future tenants will be following the lead of a long list of Hollywood-located media companies including CNN, TV Guide, Live Nation, Technicolor and Nielsen Holdings NV.