Netflix further expands Hollywood presence with lease of new office building
Video streaming giant Netflix Inc. will expand its presence in Hollywood by moving into another office building on the Sunset Bronson Studios lot.
Netflix will lease all 92,000 square feet in a five-story office complex under construction at 5800 Sunset Blvd., landlord Hudson Pacific Properties Inc. said Thursday.
The Los Gatos, Calif., company previously announced a major move of its Southern California offices from Beverly Hills to a nearly completed 14-story, 323,000-square-foot building on the Sunset Bronson Studios lot called Icon. Netflix is set to move into the building, another Hudson Pacific property, as the sole tenant this month.
The expansion reflects Netflix’s ambitions to solidify its position as one of the entertainment industry’s top players. Netflix says it is now the leading Internet television network with about 86 million subscribers in 190 countries.
The second, five-story building leased by Netflix, called Cue, should be ready by the middle of the year. The project, designed by architecture firm Gensler, will have a rooftop deck, terraced balconies, high ceilings, and large floor plates and windows intended to create an open and airy environment for tenants in creative businesses, Hudson Pacific said.
“Cue is an integral part of our long-term strategy to create office and studio production facilities in Hollywood to attract the industry’s most dynamic content producers,” said Victor Coleman, chairman and chief executive of Hudson Pacific.
Financial terms of Netflix’s lease at Cue were not disclosed, but landlords typically asked for $5.50 per square foot per month in rent for new office buildings in Hollywood in 2016, according to property brokerage CBRE Group.
Netflix has also leased and partially occupied another 99,250 square feet of existing space at Sunset Bronson Studios that includes multiple stages and production offices. The lot itself dates to the 1920s, when it was Warner Bros. Studio.
With both of its new office buildings in Hollywood spoken for, Hudson Pacific will start marketing a third planned office building to rise on a parking lot the company owns at 5901 Sunset Blvd. The Los Angeles company expects to break ground on the 15-story, 300,000-square-foot building called Epic by the end of the year, Coleman said.
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