Institutional investors are focusing on the real estate and operations of film studios, says JLL.
"It's more than just the big screen capturing the imagination of investors. The race to produce content among major streaming platforms, from Disney+ to HBO, is pushing up demand for studio space. Netflix alone is estimated to have released more original productions in 2019 than the entire TV industry did in 2005," the firm says in a recent report.
Pointing out more about need, Carl Muhlstein, international director based in JLL's Los Angeles office, explains studios have high requirements for controlled environments to make content. "Soundstage occupancy has consistently been at about 95% since 2015, and with the current online content boom, the scramble is on for studio space, spilling over into vacant industrial and retail boxes."
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