Netflix Considers Moving Out Of Longtime Hollywood Home While Expanding Real Estate Footprint

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For the last eight years, Netflix (NASDAQ:NFLX) has called a cluster of office buildings, centered around Sunset Boulevard home to its creative offices. Now, the streaming giant is contemplating looking for another base.

The godfather of streaming currently leases office space from Hudson Pacific Properties Inc. (NYSE:HPP). This has sparked tertiary businesses such as hotels, restaurants, and apartments in an area known for seediness, homelessness, and crime. With its lease set to expire in 2031, Netflix, whose corporate office is in Los Gatos in Silicon Valley, is considering its options, according to Bloomberg.

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One of those would be to buy its current premises from its landlord, which would mean negotiating with private equity behemoth Blackstone (NYSE:BX), which owns 49% of the properties. Hudson Pacific is a real estate investment trust that initially invested in office buildings before expanding into the entertainment business — specifically soundstages for film and TV. With production cutbacks and the 2023 writers and actors strike, that business suffered, according to Marketwatch.

Expanding Real Estate Portfolio

Whether Netflix chooses to stay where it is or move elsewhere, creating a campus-type office facility, possibly away from Hollywood, remains to be seen. However, the streamer has actively been increasing its national real estate imprint.

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Albuquerque, New Mexico

In 2018, it expanded its West Coast production hub with a new location in Albuquerque, New Mexico, which includes eight sound stages on 28 acres. Productions including “The Avengers” and “Sicario,” were partially filmed on the lot. It recently increased the lot, adding four new soundstages, three mills, one production office, two-stage support buildings, and two dedicated backlot areas across 108 acres powered partly by renewable energy.

Burbank, California

In 2020, Netflix signed a deal to lease a massive 171,000-square-foot space in Burbank for its first dedicated animation studio. The deal marked the biggest new office lease in all of Los Angeles County that year, according to a report in The Real Deal. When signing the deal, Netflix was already leasing 33,000 square feet in Burbank and its main animation office in Hollywood.

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Monmouth, New Jersey

Netflix is also building a huge East Coast production facility in New Jersey’s Monmouth County. Spread across a 289-acre site at a former Army base, the proposed site will cost $903 million.

The production facility will include 12 soundstages over almost 500,000 square feet, as well as production and office buildings, a cater, retail shops, and audio trailer parks. According to NJ.com, Netflix says the site will be similar to its Albuquerque facility and provide 3.500 construction jobs and 1400 full-time jobs.

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Retail Experiential Stores

In addition to offices and production facilities, Netflix is also entering the retail business with two “experiential” complexes called Netflix Houses. These will include elaborate events, themed gift shops, and restaurants themed around the streamer’s popular shows. The first two locations will open in 2025 at King of Prussia Mall outside Philadelphia and Galleria Dallas.

“At Netflix House, you can enjoy regularly updated immersive experiences, indulge in retail therapy, and get a taste — literally — of your favorite Netflix series and films through unique food and drink offerings,” Marian Lee, Netflix’s chief marketing officer, said on the company’s companion news website, Tudum. “We’ve launched more than 50 experiences in 25 cities, and Netflix House represents the next generation of our distinctive offerings. The venues will bring our beloved stories to life in new, ever-changing, and unexpected ways.”

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This article Netflix Considers Moving Out Of Longtime Hollywood Home While Expanding Real Estate Footprint originally appeared on Benzinga.com

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