A Los Angeles independent production studio is headed to the auction block after filing for Chapter 7 bankruptcy, putting more space on the market as production slows in the nation's entertainment capital amid a strike by actors and writers.

Vista Studios — located in L.A.'s Playa Vista neighborhood — is auctioning off its equipment and its lease, according to a statement by ThreeSixty Asset Advisors and CA Global Partners, which are involved in the auction. The production studios' facilities include 50,000 square feet of live production space, 22,000 square feet of sound stages, production control rooms and audio control rooms.

Vista Studios, which filed for Chapter 7 bankruptcy in May, leased roughly 21,700 square feet in September 2020 at 5415 Jandy Place in Playa Vista, an office market known for its plethora of tech and entertainment tenants. Jeff Tanenbaum, president of ThreeSixty Asset Advisors, told CoStar News in an email that an auction is planned for equipment on a piecemeal basis at the end of August and that he's talking with a party that may want to buy the equipment and lease the facilities.

Randall Heer, the CEO and founder of Vista Studios, didn't respond to a request to comment from CoStar News via his LinkedIn page. However, the CEO has posted multiple times on his LinkedIn page about the struggles facing the film and TV business, which is being rocked by strikes and cost-cutting measures.

"It’s been a long time coming," Heer wrote on LinkedIn. "Cracks in traditional broadcast have become enormous fissures. Linear network ratings continue to drop as cord-cutting accelerates. COVID sped up the reallocation of broadcast advertising dollars to other, direct marketing options. Streaming, while focused exclusively on premium content, didn’t pick up the baton and begin ordering reality programming in higher volumes."

Entertainment-related soundstage and production space has faced weakening demand in greater Los Angeles during the ongoing writers' and actors' strikes. In the second quarter, Los Angeles film production shoot days fell 28.8% year over year, according to FilmLA, which tracks this data.

That said, when the strikes end, production real estate demand is expected to heat up as companies race to make up for lost shoot days.

"The last time production levels were this low, we were in the middle of a global pandemic," FilmLA President Paul Audley said in the statement. "Families and businesses affected then are again being tested today, lending urgency to the moment to sustain creative careers."

It's unclear what soundstage and production demand will look like in the long term and how that will affect the need for real estate catering to entertainment companies.

A surge of TV and films were produced in recent years as entertainment companies competed for market share while shifting content from cable and physical theaters to the internet. However, this transition was costly, and film and TV companies found streaming to be less profitable than cable TV and movies in physical theaters.

Entertainment industry publication Variety predicted this month that TV production had peaked.

"The talent pool has been stretched beyond its breaking point, and so have most of Hollywood’s balance sheets," according to Variety. "The entertainment industry in aggregate can’t afford to keep producing content at the pace of recent years, as evidenced by the astounding financial losses reported and cost-cutting campaigns underway at Disney, Warner Bros. Discovery, Paramount Global and to a lesser degree Comcast."