Netflix will take over most of the Icon office tower in Los Angeles, slated to be completed in late 2016, announcing a long-term lease for about 200,000 square feet in the building at Sunset Bronson Studios.
Netflix’s lease with real-estate development company Hudson Pacific Properties for office and production space in the 14-story Icon building is the largest such pact ever signed in Hollywood in terms of square footage, according to the companies. A Netflix rep declined to disclose the length of the lease or financial terms.
The Sunset Bronson site is steeped in movie history, and the symbolism won’t be lost on Netflix watchers: It’s the original location of Warner Bros. Studios where “The Jazz Singer” was filmed in the 1920s.
“Icon is a state-of-the-art facility that places Netflix squarely in the middle of Hollywood’s creative culture to support our next stage of growth and content creation,” said Netflix CFO David Wells. “The property’s combination of office, stage and production space provides an ideal setting.”
Icon, located at 5800 West Sunset Blvd., will comprise 323,000 square feet total upon completion. Netflix plans to relocate its other Southern California operations, including its space in Beverly Hills, to the new building. The deal doubles the footprint of Netflix’s facilities in L.A.
In a statement, Los Angeles Mayor Eric Garcetti said Netflix’s deal for the Icon office tower “reaffirms that Los Angeles remains the nexus for innovative tech and creative companies, and that the future of the entertainment industry will call Hollywood home.” Garcetti added that his staff is assisting Netflix with relocation and permit approvals.
Netflix has shot several original series in or around Los Angeles, including “Arrested Development,” “Grace and Frankie” as well as upcoming series “Fuller House,” “The Ranch,” “Lady Dynamite,” “Flaked,” “Love” and “With Bob and David.” In addition, Netflix original film “Pee-wee’s Big Holiday” is being produced in L.A.
Hudson Pacific’s other projects under way at Sunset Bronson Studios include a 1,600-space parking structure and a five-story, 96,000-square-foot creative office building scheduled to be completed in mid-2017.
Netflix also is leasing more office space for its headquarters in Los Gatos, Calif. The company has signed a lease for 240,000 square feet in a new Los Gatos office complex starting in December 2015. Netflix has commitments of $151.6 million for its expanded headquarters and other commitments of $74.6 million for facilities under non-cancelable operating leases, which have expiration dates varying through approximately 2025, according to the company’s most recent 10-Q filing with the SEC.