Hudson Pacific Properties, a Los Angeles-based real estate investment trust, is continuing to expand its studio space across the West Coast with the announcement of eight projects in its development pipeline. The projects were announced in a recently-released third quarter financial statement by the company. All of the projects, including those currently under construction as well as those in the planning process, total approximately 3.78 million square feet.
“We have been very focused on the continued expansion of our studio portfolio, and successfully executed on multiple transactions in the third quarter. We announced two new Sunset Studios locations—our Sunset Glenoaks Studios development in the Los Angeles area and our Sunset Waltham Cross Studios development in the UK. We also purchased Star Waggons and Zio Studio Services in two separate transactions, enabling us to provide enhanced services to our studio clients and capture additional on- and off-lot production-related revenue,” said Victor Coleman, CEO of Hudson Pacific Properties.
The Glenoaks Studios development, which was officially announced by the company in July, will be completed in partnership with Blackstone, and the project is expected to begin construction in the fourth quarter of 2021. Once complete, the property, located at 11070 W. Peoria Street in Sun Valley, will total 241,000 square feet and is likely to be delivered in the third quarter of 2023.
In addition, the company is currently working on plans for Element LA, an office campus planned at 12333 Olympic Boulevard. Located in West Los Angeles, the project is expected to reach 500,000 square feet across five buildings.
Hudson Pacific also announced several expansion plans for existing studios in Hollywood. Included in the list was a 19,816 square-foot expansion at Sunset Bronson Studios, a 478,845 square-foot expansion planned at Sunset Gower Studios and a 617,581 square-foot expansion at Sunset Las Palmas Studios. The studios are located at 5800 Sunset Boulevard, 1438 N Gower Street, and 1040 N Las Palmas Avenue, respectively.
With many projects in the planning process, the company is also wrapping construction on One Westside, a 584,000 square-foot creative office project in Los Angeles. Located at 10800 Pico Boulevard, the development is anticipated to reach completion in the first quarter of 2022.
In addition to the Los Angeles area projects, the company is in the process of planning creative office projects in both Seattle and San Jose. In Seattle, the company is planning its 1000 Washington project. Located in Denny Square, the property is anticipated to take up 1.7 acres, or an entire city block. The Class A office building is expected to be completed by the fourth quarter of 2022 and will total approximately 546,000 square feet.
In San Jose, Hudson Pacific will develop a modern office property called Cloud 10. Located at 1601 Technology Drive, the office property will total 369,000 square feet and offer 39,000 square-foot floor plates and approximately 8,000 square feet of onsite amenities. No timeline has been announced for the project, and no tenant has been secured at this time, either.
Overall, Hudson Pacific fared well during the third quarter of 2021. In addition to its development projects, the company announced increases in revenue for both office and studio assets. According to its financial statements, total revenue for office assets increased 11.7 percent to $201.9 million, while revenue for studio assets increased 65.5 percent to $25.8 million year-over-year.
In total, the real estate investment trust’s portfolio consists of more than 20 million square feet of studio and office space, including land for development. The company’s portfolio also contains a wide variety of leading tech and entertainment companies, including Google, Netflix, Riot Games, Square, Uber and more.
“Hudson Pacific remains very well positioned as we continue to navigate the pandemic and look to a return to office for most of our tenants by year-end or early 2022. Our studio and office tenants continue to pay rent and any deferrals,” Coleman said. “After completing nearly 320,000 square feet of office leasing this quarter with positive rent spreads, our stabilized office portfolio leased percentage remains north of 92 percent, and our remaining 2021 expirations equate to less than 2 percent of our annualized base rent. A further sign of our portfolio’s resiliency, we achieved robust double digit same-store office and studio cash NOI growth —nearly 11 percent and 46 percent, respectively.”