A sizable lease in what has in recent years been a weak office market showed there's still demand for physical workstations despite the market softening overall.
Sony Pictures Animation is moving 700 jobs to Los Angeles' Miracle Mile office market after leasing roughly 225,000 square feet at 5750 Wilshire Blvd. The lease earned a 2024 CoStar Impact Award as judged by a panel of local industry professionals.
Sony Pictures plans to make the roughly 4-mile move from 9050 Washington Blvd. in Culver City in April 2024. The future office space is planned to host Sony Pictures Animation along with the company's visual effects company Imageworks and streaming service Crunchyroll.
The deal occurred despite the roughly 30% vacancy rate in the Miracle Mile office market, which is well above the greater L.A. average of 16%, according to CoStar data. The lease also was signed during a general weakening in demand for office space across the U.S. due to the popularity of hybrid work.
The lease was among the largest office leases in greater Los Angeles in 2023, according to CoStar data.
About the lease: Sony Pictures Animation leased roughly 225,000 square feet at 5750 Wilshire Blvd. in February 2023.
What the judges said: "This highlights the importance of the entertainment industry overall in L.A. Sony took a major position in a location (Mid-Wilshire) that is not typically known for entertainment," said Chris Fraley, chief investment officer of RealtyMogul.
They made it happen: Savills President Josh Gorin, Vice Chairman Mike Catalano and Executive Managing Director Alex Blue represented the tenant in the deal.
CoStar Market Manager Brian DeHart contributed.