Los Angeles

The entertainment industry is one of the major drivers of office leasing activity in Los Angeles. The sector accounts for nearly 7% of regional office space, a total of 18 million square feet and an additional 5 million square feet of production space, and these tenants signed 6 million square feet of new leases in 2018 alone, according to research from CBRE. However, the pandemic has brought the industry to an abrupt halt. Media and entertainment companies shed 6,200 jobs in March due to stay-at-home guidelines.

"Media and entertainment firms have been expanding rapidly," Eric Willett, director of research and thought leadership at CBRE, tells GlobeSt.com. "COVID-19 looks likely to slow that pace as firms adjust to the new temporary reality with production halted and movie theaters shuttered. With more people seeking out content online, though, expansion by streaming services may prove to be the silver lining."

This silver lining scenario isn't unfounded. At-home streaming and content consumption is up because more people are staying home. Streaming companies already occupy 3.9 million square feet of space, nearly a quarter of the total entertainment market in Los Angeles. Expansion in this market segment could help to offset loss.