1 Q2 2021 Market Report 07.30.2021

Q2 2021 MARKET REPORT MARKET REPORT Q2 2021

the SHOW

WILL 07.30.2021 GO ON

Q2 2021 Visiting Hollywood Published July 2021 1 Table of Contents

4 Letter from the President & CEO 6 Visiting Hollywood Hotel Market Conditions — 8 Hotel Development Map — 10 Getting to Hollywood — 12 14 Living in Hollywood Multifamily Market Conditions — 16 Multifamily Development Map — 18 Demographics — 20 22 Working in Hollywood Workforce Conditions — 24 Office Space Market Conditions — 26 Office Development Map — 28 Ground Floor Retail Market Conditions — 30 32 Spotlight on Hollywood 34 Appendix

2 Hollywood Market Report Q2 2021 Table of Contents Published July 2021 3

n behalf of The Hollywood Partnership (The HP), our Board of Directors, and the Advocacy and Economic Development OCommittee, thank you for your interest in learning more about the community and for reading our Q2 2021 Hollywood market report. The second quarter presented an opportunity to further expand the economy and get back to more of the pre-pandemic norms that were once taken for granted. Following the re-opening of the California economy in mid-June, the second quarter closed with many reasons for optimism which are articulated in this report. Letter from the The past three months have delivered a litany of good news stories and This report, like those that came before it, captures the essence of other indications for enthusiasm about the road ahead. Institutional the Hollywood market’s performance over the past quarter. As a

President & CEO and iconic businesses such as The Musso & Frank Grill and Madame snapshot, the report includes an overview of the pipeline of long-term Tussauds have reopened, and our beloved theaters and performing investments that will shape and transform our cityscape, while also arts venues will soon lift their curtains. Meanwhile, new attractions, featuring insights on how Hollywood is rebounding from the pandemic such as the Immersive Van Gogh Exhibition brought by Lighthouse relative to our peer set. We have also reorganized the content to make Immersive and Impact Museums, will attract tens of thousands of it less about buildings and more about the people that inhabit them, patrons to its space at 6400 Sunset when it opens on July 31. This cluster as the true character of the community is the people that call it home – of headline-worthy announcements inspired our theme for this report, for at least part of each day. "The Show Will Go On.” To that end, we have also included special content this month focused on the contributions of the performing arts Though we are not entirely out of the woods yet, we can see the clearing on the Hollywood economy. through the trees. I hope that you, like me, see the signs of recovery all around us and are thinking about what you can do next to help the On the vibrancy side, pedestrian counts significantly improved in Hollywood community rebound and thrive. Q2 2021 versus the previous quarter. At Hollywood & Highland, our pedestrian counters measured 164% more pedestrians during the Sincerely, months of April–June 2021 than within the three months prior. Data through the final week in June shows that vibrancy on the Walk of Fame has returned to levels comparable to the fall of 2019 (pre-pandemic), and about 62.5% compared to the same week in late June 2019. Kristopher Larson, AICP The second quarter also wrapped up with two critically important President & CEO legislative actions being approved by the Los Angeles City Council and designed to improve accessibility in the public realm. Given the impact of the homelessness crisis on Hollywood, these actions may not directly house individuals experiencing homelessness, but they will improve utilization of our sidewalks and public spaces by all Angelenos and those who visit our community.

4 Hollywood Market Report Q2 2021 Visiting Hollywood Published July 2021 5 VISITINGVisiting Hollywood

Since 1901, when the “Mother of Hollywood” Daida Wilcox helped establish Paul de Longpré’s gardens as its first tourist attraction, Hollywood has enticed visitors from around the globe. Since then, the community has changed with the times, and today serves as an important epicenter of entertainment and culture. Those who visit Hollywood hail from places both near and far, as this neighborhood’s many hotels and entertainment destinations appeal to all walks of life. From music, movies, and television to radio, theater, and fashion, Hollywood offers the opportunity to walk in the footsteps of legends long gone or cross paths with the stars of today and tomorrow. HOLLYWOOD

6 Hollywood Market Report Q2 2021 Visiting Hollywood Published July 2021 7 Drop the Mask, Hotel Market Conditions Dip into the Pool

As the dog days of summer carry on, several hotels within the HED offer superb pool facilities with spectacular views overlooking Los s the number of visitors to Hollywood continued to increase from Q1 to Angeles for visitors to beat the heat. As a sampling of the options, Q2, hotels also saw an increase in the W Hotel’s WET Pool facility offers patrons the opportunity to occupancy. Hotel occupancy increased enjoy the rooftop deck and pool space, with private cabanas and by nearly 50% and Revenue Per Available daybeds available to reserve for a minimum food and beverage ARoom (RevPAR) increased from Q1 by 98%. This reflects the nationwide trend of an increase in travelers purchase. The hotel hosts DJ performances Friday through Sunday visiting major metropolitan areas, as many have seen from 1–5PM. Loews Hollywood offers a 10,000 square foot pool their vaccination rates top 70%. As more people feel terrace on its fifth floor, with a maximum capacity of 550 patrons. comfortable traveling, hotel operators should expect Finally, the Dream Hotel’s retractable rooftop pool offers guests to see a steady increase in occupancy. This should provide an optimistic outlook for Hollywood’s business the ability to purchase a table or cabana on the pool deck directly community, as the increase in revenues will also assist through the venue’s website. Hollywood offers something for the city in providing essential services as Los Angeles everyone seeking to enjoy the water and generous Southern roars back to life. Room demand in Hollywood should California sunshine. continue to climb upon the return of international travelers to the U.S.

Hotel projects under construction also continue to Hotel Market Conditions make significant progress. The frame for the 134-room Whiskey Hotel, just north of Hollywood Boulevard, has Hollywood Q2 2020 Q1 2021 Q2 2021 QoQ % Change YoY % Change quickly taken shape. Additionally, a new Hyatt hotel on Cahuenga Boulevard recently secured a $27 million Occupancy 23.7% 40.80% 60.30% +47.79% +154.8% bridge loan to continue construction. Five hotels are Room Demand 83,884 160,722 279,701 +74.03% +233.4% 830 currently under construction within the Hollywood Hotel Inventory Hotel Rooms Entertainment District (HED), with another 12 entitled or Room Supply 354,535 393,878 463,928 +17.78% +30.9% Q2 HED Q2 Hollywood Under Construction seeking entitlements within the greater Hollywood area. Hotel Properties 13 64 ADR $117.12 $123.68 $166.10 +34.30% +41.8% in the HED

Hotel Room Inventory 1,985 5,422 RevPAR $27.71 $50.47 $100.14 +98.41% +261.4%

Source: The Hollywood Partnership, Zone Information Source: LATCB, Smith Travel Research and Map Access System (ZIMAS), Los Angeles Tourism & Convention Bureau (LATCB) Hotel Development

HED HED HOLLYWOOD HOLLYWOOD # of projects # of rooms # of projects # of rooms 14 Under Construction 5 830 5 830 of the 16 Pipeline Entitled 5 862 5 1,162 Hollywood Hotels Will Be in the HED Seeking Entitlement 4 420 6 537

TOTAL 14 2,112 16 2,529

Source: The Hollywood Partnership, ZIMAS

8 Hollywood Market Report Q2 2021 Visiting Hollywood Published July 2021 9 Under Construction Entitled

Hotel Developments HED Boundary Seeking Entitlement

1 Godfrey Hotel 11 1700 N La Brea Ave

2 Hyatt's Unbound 12 1723 Wilcox Ave Collection Hotel 13 6445 W Sunset Blvd 3 Thompson Hotel 14 6751 Hollywood Blvd 4 Tommie Hotel 15 Palmer Hotel 5 Whiskey Hotel 16 6830 Sunset Blvd 6 Citizen M Chaplin Hotel 12 17 9 6 Ivar Gardens 7 5 14 8 Schrader Hotel 11 9 Whitley Hotel 15

10 Crossroads of the World 8 4

3 2 10 7 17 13

16

1

10 Hollywood Market Report Q2 2021 Visiting Hollywood Published July 2021 11 Pedestrian Counts

Daily Peak Location QoQ% Getting to Hollywood Hollywood Avg. Count & Highland M Hollywood & 14,688 24,663 +153% Hollywood Highland & Schrader entrally located within Los Angeles, the pandemic. Metro Red Line ridership increased by Hollywood & Hollywood is a historical hotspot for 16% on weekdays and by 23% on Saturdays and Sundays Selma & 4,463 8,260 +64% Schrader travel, a high-density neighborhood, between April and June 2021 relative to Q1 2021 ridership Cahuenga Sunset & Vine and an emerging locus for employment. estimates. Relative to pre-pandemic ridership norms, Defined as a Regional Center within the overall weekday ridership on the Red Line still lags by Sunset & Vine 1,169 2,578 -29% CCity of LA’s regulatory framework, and fortunate to approximately 50% and by 40% on weekends. PEDESTRIAN COUNT LOCATIONS METRO have fixed-rail transit accessibility, the area is ripe Pedestrians & Cyclists Tracked M Metro Station On the pedestrian vibrancy side, pedestrian counts Selma & with both interest and opportunity for investment. 1,588 3,713 +101% were significantly higher in Q2 2021 versus the previous Pedestrians Only Metro Red Line Source: The Hollywood Partnership Cahuenga quarter. The state’s June 15 “full reopening of the Given the area’s appeal to tourists and gravitas for economy” parlayed increased pedestrian vibrancy media production, both domestic and international air levels. Data through the final week in June shows that travel figures are important indicators for tracking the vibrancy on the Walk of Fame has returned to levels Visitation Trends at Popular Walk of Fame 3rd Street Promenade Venice Beach Boardwalk region’s recovery. Q2 2021 provided encouraging growth comparable to the fall of 2019 (pre-pandemic), and about in both international (+95%) and domestic (+103%) air LA Tourist Attractions 62.5% compared to the same week in late June 2019. At travel versus the previous quarter, likely due to the rapid Hollywood & Highland, pedestrian counters measured 240,000 expansion of vaccinations and pent-up demand for 153% higher during the months of April–June 2021 than personal travel. Domestic air travel in Q2 2021 is now within the three months prior. At the more local-serving 73% recovered compared to the pre-pandemic Q2 2019, intersection of Selma & Cahuenga, pedestrian counts whereas international travel is only 32% versus the same 160,000 were up by 101%. The daytime employee-centric Sunset quarter. The recent spike in delta variant cases and & Vine is the exception at -29% versus Q1 2021. reenacted international travel restrictions will continue to dampen the attraction of international travelers to This section also includes a chart comparing pedestrian which Hollywood is accustomed. activity in Hollywood to two of LA’s other tourism 80,000 hotspots (Santa Monica’s 3rd Street Promenade and Travel within Los Angeles continues to show month- the Venice Beach Boardwalk), which helps contextualize over-month ridership improvements across weekday, Hollywood’s rebound trajectory to comparable Saturday, and Sunday counts. LA Metro operates two 0 areas. As shown in the chart, pedestrian visits to the April 5th April 12th April 19th April 26th May 3rd May 10th May 17th May 24th May 31st June 7th June 14th June 21st Red Line stations within the HED, at Hollywood & Vine Walk of Fame run nearly parallel with those of the and Hollywood & Highland. Q2 2021 data reports the Source: Placer.ai 3rd Street Promenade. highest level of Metro rail ridership since the onset of

LAX Air Travel Average Estimated Weekday Saturday Sunday Ridership for the 80,000 Passenger Traffic Totals Q2 2020 Q1 2021 Q2 2021 YoY% Change QoQ % Change Metro Red Line

Domestic 1,655,729 5,038,682 10,233,966 +518.09% +103.11%

International 253,224 912,085 1,782,756 +604.02% +95.46% 40,000

TOTAL 1,908,953 5,950,767 12,016,722 +529.49% +101.94%

Source: Los Angeles World Airports (LAWA) Traffic Comparison (TCOM) 0 Source: Los Angeles Metro Q2 Q3 Q4 Q1 Q2 2020 2021

12 Hollywood Market Report Q2 2021 Visiting Hollywood Published July 2021 13 LIVINGLiving in Hollywood in HOLLYWOOD Few neighborhoods around the world carry the immediate

name recognition or lofty expectations as Hollywood. A community within central Los Angeles and tucked at the base of the Hollywood Hills, the neighborhood offers a picturesque landscape backdrop while providing good access and transit connectivity to all that the region has to offer. Within its core, the neighborhood features the high- density residential buildings and urban lifestyle options of a top-tier city. Surrounding the core, charming historic and eclectic single-family homes and lower-density neighborhoods stretch for miles and provide the community with an incredibly diverse housing stock to appeal to a broad array of Angelenos and their families.

14 Hollywood Market Report Q2 2021 Living in Hollywood Published July 2021 15 Multifamily Market Conditions

he housing market held strong in Hollywood affordable housing can be seen as a major step toward during Q2 of 2021. Development projects addressing the housing crisis in the region. In the HED, continued to progress, with several major 32% of residential units under construction are set aside developments completed and delivered for low, very low, or extremely low income tenants. This is to grow the local inventory. Continuing the 32% up from 26% in Q1 2021, and is a reflection of the projects of residential units under construction are Tpositive trend from last quarter, 613 residential units under construction at this particular point in time. Several affordable. These units are set aside for low, very were absorbed in Q2, up from 247 units in Q1 2021. major affordable housing developments currently under low, or extremely low income tenants. This is up construction include 69 units at 1621 McCadden Place from 26% in Q1 of 2021. Rental rates in Hollywood held steady, remaining higher by Housing Diversity Corporation and 151 units at the than the city average. The average monthly market- Hollywood Arts Collective by Thomas Safran & Associates. rate rent was $2,634 per unit within the HED, higher A major market rate residential development completed in than the rest of the Hollywood submarket. Q2 was Wallace on Sunset. Essex Property Trust delivered Multifamily Market Conditions Pipeline Housing Units

Housing construction continued to move forward the 200 units in a new community directly adjacent to the QoQ HED Hollywood HED Hollywood around Hollywood as well. Notably, the delivery of historic Earl Carroll Theatre on Sunset Boulevard. Change Total Residential Under Construction 7,432 16,721 - Inventory (Units) Market Rate 466 1,468 Avg. Residential - 10.60% +0.2% Vacancy Rate (%) Affordable 220 321 Avg. Price per - $2.92 +$0.03 Square Foot (YTD) % Affordable 32% 18% Avg. Rental Rate The Jardine - $2,134 -$0.48 per Unit Total 686 1,789 Cap Rate (YTD) - 4.0% 0.0% Entitled As the On Vine mixed-use development prepares to open its Quarterly - 613 +366 Market Rate 2,018 3,712 doors, its residential component, The Jardine, will offer tenants an Absorption urban oasis within the heart of Hollywood. The 200-unit, 20-story Sources: CoStar, Yardi Matrix, The Hollywood Partnership Affordable 191 306

building is made up of apartments, penthouse units, and club- % Affordable 9% 8% level penthouse homes. The Jardine will also feature amenities Total 2,209 4,018 such as a 24-hour valet, concierge services, and a rooftop pool with inspired design. This building marks the final site component Pipeline Housing Projects Seeking Entitlement

of the Kilroy Realty Corporation’s On Vine project, which also HED Hollywood Market Rate 2,023 2,485

includes 350,000 square feet of commercial office space, leased Under Construction 4 16 Affordable 201 201 entirely by Netflix. Entitled 8 17 % Affordable 9% 7%

Proposed 5 10 Total 2,224 2,686

Total 17 43 MASTER TOTAL 5,119 8,493

Now Leasing Source: The Hollywood Partnership, ZIMAS Source: The Hollywood Partnership, ZIMAS

16 Hollywood Market Report Q2 2021 Living in Hollywood Published July 2021 17 Under Construction Entitled

Multifamily Developments HED Boundary Seeking Entitlement

1 1621 N McCadden Pl 25 Selma Place

2 Hanover Hollywood (prev. 26 5806 Lexington Ave 32 42 6200 Sunset Blvd) 27 1333 Tamarind Ave 19 3 Hollywood Arts Collective 28 1375 St Andrews Pl 4 On Vine 38 29 5600 Hollywood Blvd 35 5 Citrus & Highland 30 5817 W Lexington Ave 6 1130-1134 N Orange Dr 22 13 31 Crossroads of the World 21 29 37 3 7 5570 Melrose Ave 1 32 Montecito II 25 18 8 5801-5809 Camerford Ave 36 33 PATH Villas Hollywood 23 9 1025 N Wilcox Ave 14 34 SunWest 24 35 34 10 700 Highland Ave 31 35 6007 Sunset Blvd 11 7500 Sunset Blvd 20 36 Artisan Hollywood Tower 11 2 12 901 Vine St 37 The Bonnie 28 39 33 13 Alta Ink 38 Hollywood Center 27 4 14 Inspire Hollywood 39 Hollywood Tower 15 La Mirada at Central Park 40 1114 N St Andrews Pl 5 16 MR2 Lofts 41 5530 Virginia Ave 15 17 747 N Western Ave 30 42 5600 Franklin Ave 18 1601 North Las Palmas Ave 26 43 6104 Santa Monica Blvd 41 6 19 6220 Yucca St 40 44 7100 Melrose Ave 16 20 6400 Sunset Blvd (Amoeba Tower) 43 9 21 Hollywood & Gower

22 Hollywood & Wilcox

23 Modera Argyle

24 Palladium Residences 12

The Jardine Now Leasing 8 17

10 44 7

18 Hollywood Market Report Q2 2021 Living in Hollywood Published July 2021 19 HED Generations Household Size

Hollywood Trade Area 60%

Demographic Data Los Angeles, CA 55% 50% 58.26% 1 person 42% 40%

30% his demographic analysis of Hollywood examines two 51.8%

geographies within the greater Hollywood area: the HED and 23% 1 person 20%

the Hollywood Trade Area (the Hollywood Neighborhood and 18% 20% 58.26% 1 person Hollywood Hills). The Hollywood Trade Area roughly includes 12% 11% Tthe area within a two-mile radius of Hollywood & Highland. 10% 8% 6% These areas are examined side by side for two reasons. The first — it 55% 5% of the HED population are 0% 29.28% is important to The HP to understand the demography of the area it 24.93% 2 person millennials, compared 2 person manages, the HED. Understanding the unique traits of the HED can lead Baby Baby Gen X Gen Z

to 36% of the city of Los Silent/ to more intentional and impactful services. Secondly, the Hollywood Angeles as a whole. Boomers Trade Area reflects the range of residents and employees that play an Millennials 16.81% 18.92% 3+ people 3+ people essential role in supporting the Hollywood economy. Gen Greatest Source: MySidewalk Source: GIS Planning

Hollywood Trade Area Household Income Distribution Average Household Income

Enrollment Numbers 1,380 (9.7%) 50% $80,000 Educational <$10k 5,138 (7.9%) of residents over age 25 in the HED and 1,849 (13%) Attainment $10-20k 6,829 (10.6%) $70,000 Hollywood Trade Area have attained a 10,500 7,500 1,322 (9.3%) $20-30k 5,524 (8.5%) $60,000 Bachelor's degree or higher. K-12: Public/Private Post-Secondary 1,196 (8.4%) $30-40k Source: MySidewalk 4,702 (7.3%) $50,000 1,229 (8.7%) $40-50k 4,754 (7.3%) $40,000 1,024 (7.2%) $50-60k 4,239 (6.5%) 1,495 (10.5%) $30,000 White Asian Two or More Races Other American Indian $60-75k 6,568 (10.2%) Race & Ethnicity 1,447 (10.2%) $20,000 Hispanic or Latino Black Single Race Other Hawaiian $75-100k 7,421 (11.5%) 3,2142 (2.7%) $10,000 >$100k 19,221 (29.8%) 1990 1995 2000 2005 2010 2015 2020 4.6% 0.6% 0.7% Source: GIS Planning Source: GIS Planning HED

46.4% 28.0% 8.2% 11.5% Owner- 3.1% 17.94% Owner-Occupied Owner-Occupied 3.58% 0.49% 0.13% 0.04% vs. Renter- Hollywood Trade Area Occupied Renter-Occupied Renter-Occupied Units 51.74% 29.91% 8.09% 6.02% 96.9% 82.06%

Source: MySidewalk Source: GIS Planning

20 Hollywood Market Report Q2 2021 Living in Hollywood Published July 2021 21 23 HOLLYWOOD Published July 2021 Working in Hollywood Working

Q2 2021 Q2 in throughout the neighborhood. throughout Hollywood Market Report Market Hollywood

Buoyed by a strong entertainment production production entertainment a strong by Buoyed

represents both a neighborhood and an industry, a neighborhood and an industry, both represents ecosystem and brandishing a priceless name that name that a priceless and brandishing ecosystem clusters include information and technology firms, firms, and technology include information clusters works in Hollywood (the place) works in Hollywood in Hollywood works (the place) in Hollywood works healthcare, personal and professional services, and services, and professional personal healthcare, Hollywood combines the best of laid-back Southern laid-back of the best combines Hollywood with its global brand, Hollywood (the place) features features (the place) Hollywood global brand, with its diversity of the workforce, which is always on display which is always the workforce, of diversity (the industry). Though the community does feature a does feature Though the community (the industry). That diversity of employment translates directly to the to directly translates employment of diversity That abundant retail and food and beverage industry jobs. and beverage and food retail abundant a diverse employment base. Other major employment employment major Other base. employment a diverse California culture with dedicated work, creative energy, energy, creative work, with dedicated culture California and drive. Contrary to popular belief, not everyone who everyone not belief, popular to Contrary and drive. strong share of entertainment production jobs consistent jobs consistent production entertainment of share strong

Working in Hollywood Working

WORKING WORKING 22 Hollywood’s Workforce Median Salaries in the Entertainment Industry Median Salaries Median Salaries

Art Directors $122,040 Technical Writers $85,890

Producers and Directors $110,580 Commercial and Industrial Designers $78,870 n Q2, Angelenos rejoiced at the return of indoor entertainment. The lifting of local health Lighting Technicians and Media and Choreographers $110,330 $73,720 restrictions, followed later by a statewide Communication recension of pandemic-related business Fine Artists, Including Painters and Special Effects Artists and Animators $97,200 $70,370 restrictions at the end of Q2, provided the Sculptors Ifoundation for the return of the performing arts Fashion Designers $87,520 Set and Exhibit Designers $68,190 within the HED. According to the Los Angeles Economic Development Corporation, half of non- Source: The Hollywood Partnership, Otis College of Art & Design, Los Angeles County Economic Development farm jobs created in the final month of Q2 were in Corporation, and U.S. Census Bureau the arts, entertainment, and recreation sector. One of Hollywood’s most beloved entertainment venues, Intermission the Hollywood Pantages Theatre, will reopen with its first production, Hamilton. These productions not is Over only create jobs within the entertainment sector,

but they also generate jobs in complementary Theater Seats sectors, such as food and beverage and hospitality, Hollywood’s which are heavily concentrated within the HED. El Capitain Theatre 998 More federal assistance was deployed across the nation Performance Venues to aid struggling live performance venues impacted by While patrons who come to Hollywood to escape Fox Theatre 647 reality through entertainment were excited COVID-19. Through its Shuttered Venues Operators Grant about a return to normalcy, the people who (SVOG), the Small Business Administration (SBA) provided The HED is home to the largest concentration Hollywood Palladium 4,000 work tirelessly behind the scenes to create magic of theater seats in Los Angeles, even surpassing funding for the following entities: were equally motivated to return, perform their the Broadway theater row in Downtown LA. Hollywood Pantages Theatre 2,703 craft, and maintain their livelihoods. According to • Live venue operators or promoters Specifically, there are 15,189 theater seats within 2021 research conducted by the Otis College of • Theatrical producers the HED. Iconic movie palaces like the TCL Chinese Ivar Theater 282 Art Design, there was a 27% increase in fine and • Live performing arts organization operators Theatre, the historic Hollywood Pantages Theatre, performing arts jobs in California from 2008-2019. and the state-of-the-art Dolby Theatre — home TCL Chinese Theatre 932 • Museum operators It should be noted that according to the U.S. Census to the Oscars — make Hollywood a showplace Bureau, the median household incomes of the City • Motion picture theater operators that draws audiences from around the globe. The Egyptian Theater 540 of Los Angeles and Los Angeles County are $62,142 • Talent representatives Legacy venues like the Hollywood Palladium and $68,142 respectively. The following chart on and the Fonda Theatre feature live music and Fonda Theatre 633 page 25 includes a sample of the top-earning events. Hollywood truly provides something occupations and wage levels for arts, design, Notably, the Broadway hit Hamilton, which will grace for everyone. Ricardo Montalbán Theatre 962 and entertainment-related professions within the audiences at the Hollywood Pantages Theatre beginning HED that exceed both the city and county median in August 2021, was awarded $30 million. The production Theatre of Note 42 household incomes. may potentially qualify for an additional $20 million for its remaining touring companies. Second City 50

Dolby Theatre 3,400

15,189 total Total 15,189

theater seats in the HED Source: The Hollywood Partnership

24 Hollywood Market Report Q2 2021 Working in Hollywood Published July 2021 25 Office Space Market Conditions

Office Market Conditions

ollywood’s stature as the epicenter of On the leasing side, one notable lease transaction Hollywood Hollywood Hollywood QoQ YoY Q2 2020 Q1 2021 Q2 2021 Change Change the entertainment industry has been occurred at 1001 N Seward St, where post-production long solidified through the attraction of firm Company 3 signed a lease of 70,285 square feet Overall Asking Rents (per SF) $4.56 $4.75 $4.73 -$0.02 +$0.36 traditional production studios, new media from the Hudson Pacific Properties-owned Harlow office Class A Asking Rents (per SF) $4.09 $4.80 $4.93 $0.13 $0.84 companies, and upstarts that became development. Elsewhere in the HED, Netflix is finalizing giants. Like the rest of the region, Hollywood was also H tenant improvements within the newly constructed Inventory (SF) 4,369,143 4,905,763 4,906,969 1,206 537,826 not immune to the impacts of the pandemic. At the end building On Vine by Kilroy Realty Corporation. of Q2, the vacancy rate for the Hollywood office market 2020 YTD Absorption -70,320 -56,462 -252,587 196,125 182,267 stands at 22.10%. Although not ideal, this figure reflects Overall Vacant Space (SF) 714,542 1,190,183 1,084,526 -105,657 369,984 a slight improvement in occupancy relative to Q1 2020 (24.26%). For comparison, the Los Angeles central Overall Vacancy Rate 16.00% 24.26% 22.10% -8.90% 38.12% business district has a current vacancy rate of 22.8%. +2.16% 2020 YTD Leasing Activity (SF) 71,406 9,293 79,578 69,655 8,172 occupancy rate Despite the adverse pressure of the pandemic on Source: Cushman and Wakefield occupancy rates, both overall asking rents and Class Hollywood’s office occupancy A asking rents remain strong at $4.73 in Q2, despite rate improved by 2.16%. a minimal $0.02 decrease quarter-over-quarter. In fact, Hollywood enjoys some of the higher asking rents in the regional office market. It should also be noted that Hollywood’s average asking rent is well above the national average, which stands at $2.96. Number of Projects

HED Hollywood

Under Construction - - $4.73 per SF While some speculate about the short-term health of the regional Asking office rent remains strong Entitled 1 2 Onni Group’s office market, developer Onni Group recognizes the long-term at $4.73 per SF. Seeking Entitlement 3 4 strength of Hollywood. Onni has proposed an impressive project that will be situated at the northeast corner of Hollywood & Total 4 6 Hollywood High levels of available sublease space continue to Cahuenga. The existing and historic Security Pacific Bank Building, Source: The Hollywood Partnership, ZIMAS shadow over the region. Hollywood is one of several & Cahuenga which is located within the project footprint, is not part of the new areas with a high inventory of space available to sublet. construction and will continue to exist as office space. Pipeline Square Feet Nonetheless, Hollywood remains a highly attractive Office The development program for the new construction consists submarket to digital media and entertainment HED Hollywood of 217,769 square feet of office space and 6,500 square feet of industries. To that end, just south of the HED in the Under Construction - - Development restaurant space. 858 parking spaces are included in the project. Hollywood Media District, the former 200,000-square- Additionally, 9,987 square feet of open space and amenities will foot-campus Technicolor compound will receive an Entitled 628,000 818,000 upgrade by its new owner, BLT Enterprises. BLT has big be provided. The entitlement process for the project is currently Seeking Entitlement 760,175 896,375 plans for the property and is positioning it to serve the underway and completion is scheduled for Q4 2026. fast-growing needs of the entertainment industry. In Total 1,388,175 1,714,375 addition to physical improvements to the property, BLT is Source: The Hollywood Partnership, ZIMAS Source: City of Los Angeles rebranding the property as “The Hollywood Exchange.”

26 Hollywood Market Report Q2 2021 Working in Hollywood Published July 2021 27 Under Construction Entitled

Office Developments HED Boundary Seeking Entitlement

1 On Vine

2 Crossroads of the World

3 1235 N Vine St

4 6381 Hollywood Blvd 4 5 Sunset & Wilcox

6 Sunset Gower Studios

7 1000 Seward St

2

5 6

1

3

7

28 Hollywood Market Report Q2 2021 Working in Hollywood Published July 2021 29 Ground Floor Retail Visits Trend 800k Market Conditions 400k 7 New Retail Openings in the HED in 2021

combination of factors accelerated the tenants. 431 spaces (61%) were occupied by operating 200k pathway to long-term financial success businesses. This change reflects a minor decrease in for the retail, entertainment, and food and occupancy from the prior reporting period (-1.39%) beverage sectors. First, economic stimulus despite the addition of seven new businesses. Ground continued to flow from every level of floor occupancy is higher (73.2%) when evaluated Agovernment to assist small businesses. Next, the pace according to the percentage of available storefronts. 0 of COVID-19 vaccinations increased throughout Los % 72 of Food and Beverage June 7th June Angeles County, resulting in a rapid decline in infection 3rd May April 5th May 31st May June 21st June May 17th May May 10th May June 14th June May 24th May April 12th April 19th

Q2 also marked the beginning of new life for important April 26th rates. Third, tourism has rebounded in encouraging Businesses are Open commercial assets within the HED. First, Stockdale fashion. This trifecta catapulted the region through Capital Partners announced its purchase of the H Club, California Economy Fully Reopens HED three tiers of the state’s Blueprint for a Safer Economy, a high-end, private membership-based club which a system established to create operational standards closed only a year after opening due to the pandemic. for businesses based on local COVID-19 positivity rates. The higher the positivity rate, the stricter the One of the top retail leases in the Los Angeles retail restrictions were, including limited occupancy capacity market occurred in the HED. Impact Museums, curator of the highly celebrated Immersive Van Gogh exhibit, Outdoor Dining Storefront Businesses or, in some cases, complete business closure. Both Repened by Category consumers and businesses celebrated the end of signed a lease to occupy the 54,632-square-foot retail Is Here to Stay COVID-19 related business restrictions, which ceased building located at 6400 W Sunset Blvd, the former on June 15, 2021. As more businesses reopened in Q2, so home of Amoeba Music. This notable transaction will 0% 25% 50% 75% 100% did consumer presence within the HED. The Q2 ground return thousands of patrons to the Sunset corridor. Food & Beverage floor retail inventory within the HED is comprised of 703 spaces. Of this figure, 588 spaces were occupied Miscellaneous Retail by operating businesses or were actively available for Apparel Several policies and programs were launched to Gifts & Souvenirs provide a much-needed lifeline to the region’s food and beverage sector. At the federal level, the Small Business Fitness & Wellness Allowed Occupancy Orange Tier Status of Available Retail Inventory Yellow Tier Administration launched its Restaurant Revitalization Grocery Fund to provide up to $10 million per qualified business to Destination Retail 0% 25% 50% 75% 100% mitigate pandemic-related revenue loss. Additionally, both Temp. Personal Business Services Restaurants Closed the City of Los Angeles and the state took legislative action Professional Offices 16.36% to preserve opportunities for long-term outdoor dining, Bars Home Goods & Services Outdoor Only Vacant which became popular to both operators and diners. The Pharmacy & Healthcare 22.33% Movie Theaters Open HP continued its part in Q2 to help businesses throughout Auto 61.31% the HED expand outdoor dining. Through its Outdoor Entertainment & Venues Fitness Facilities Heaters Program, The HP provided 25 outdoor patio

heaters to nine businesses. Museums Source: The Hollywood Partnership

30 Hollywood Market Report Q2 2021 Working in Hollywood Published July 2021 31 3 SPOTLIGHT on Hollywood

Hollywood Lights Up: Walk of Fame Hollywood Premieres 1 Hollywood 2 Mural 3 4WRD 4 are Back!

The HP adopted its 2019 Hollywood Lighting On Friday, June 11, 2021, The Hollywood Chamber of In advancement of its mission to create systemic Some may say that “orange is the new black.” We say Master Plan to establish vision concepts for lighting Commerce unveiled the Hollywood Walk of Fame change and effectively address homelessness that “red is the new red.” One year ago, red carpet the HED. “Lights Up: Hollywood” is a matching Mural, designed to commemorate and celebrate in Hollywood through advocacy, innovation, premieres had come to a screeching halt due to the support program that provides up to $10,000 for the 60th anniversary of the iconic Hollywood Walk education, and service coordination, the Board growing threat of COVID-19. Now, they are roaring reimbursement of costs associated with eligible of Fame. The mural will beautify the wall along of Directors of Hollywood 4WRD selected Brittney back! At the end of Q2, there were four premieres in lighting projects on private properties throughout Hollywood Boulevard adjacent to and west of the Weissman to serve as its first-ever executive director. Hollywood for the following films: "Cruella," "F9: The the HED. In April 2021, The HP approved projects Roosevelt Hotel for the coming years. The 100-foot- Ms. Weissman has worked at the intersection of Fast Saga," "Luca," and "Black Widow." As theaters to be installed at eight separate properties. This long artwork was designed by Ian Robertson-Salt advocacy, healthcare, and public policy for 20 years, reopen and the community returns to normal, these unique public/private partnership will augment the (Anthroe) and curated by L.A. Art Share. The mural and will lead the implementation of Hollywood premieres are a welcome reminder of the grand vibrancy of the district with new lighting that provides tells a comprehensive story of Walk of Fame's history, 4WRD’s recently adopted strategic blueprint. Ms. allure that is Hollywood. for safety, functionality, and character. All approved from its creation through present day. The Walk of Weissman also chairs the Los Angeles County Mental lighting projects must be completed by December 31, Fame’s first coral pink terrazzo star, belonging to Health Commission, a volunteer body appointed by

2021, to maintain their eligibility for support. director Stanley Kramer, was installed in 1960. the County Board of Supervisors to advise and make

recommendations related to the delivery of quality

mental health care.

32 Hollywood Market Report Q2 2021 Spotlight on Hollywood Published July 2021 33 Greater Hollywood About The Hollywood Partnership & HED Boundaries

The Hollywood Partnership (The HP) is a 501(c)(6) nonprofit corporation that manages the Hollywood Entertainment District HED Boundary Property-Based Improvement District (HED). The HP is governed by a Board of Directors which includes dozens of property Greater Hollywood Boundary owners and stakeholders representing a diverse array of property types in the HED, including office, industrial, residential, hotel, retail, nonprofit, and government uses. The HED is funded by more than 600 property owners who assess themselves more NOTE: Boundaries of the than $7.2 million annually to pay for cleaning, safety, hospitality, placemaking, communications, research, marketing, advocacy, Hollywood Trade Area include the Greater Hollywood and economic development services. In 2019, the HED was renewed for a period of 10 years and expanded to include the area Boundary as well as the Hollywood Hills neighborhood formerly known as the Sunset & Vine PBID. to the north.

The HP Board Members & Committee Members The HP Staff Sources THE HP BOARD Amy Lemisch ADVOCACY & Kristopher Larson, AICP Netflix ECONOMIC President & CEO Primary Source C. Drew Planting DEVELOPMENT Goldstein Planting Chad Lewis Davon Barbour COMMITTEE Investments – Chair Klein Financial Corporation Vice President of Advocacy & The Hollywood Partnership Economic Development Katie Zandona Jeffrey Moghavem Michael Gargano Ullman Investments – Archway Holdings Committee Chair April Clemmer Secondary Sources Communications & Vice Chair Scott Blakeslee Michael Nazzal Administrative Coordinator Yorkwood LLC VISITING HOLLYWOOD Tony Zimbardi David Gajda AMDA College And Andrew Rodriguez Los Angeles County Metropolitan Transportation Authority, Michael Pogorzelski Conservatory of Performing Rana Ghadban Economic Development & metro.net Academy of Motion Picture Arts – Secretary Research Specialist Arts & Sciences Dina Goldstein Los Angeles Tourism & Convention Bureau (LATCB), discoverlosangeles.com David Green Lorin Lappin Nederlander West Coast – Joe Rehfeld Dan Halden Business & Finance Manager Los Angeles World Airports, lawa.org 6250 Hollywood Blvd Treasurer Bill Humphrey Ruben Lechuga, EMBA Smith Travel Research Frank Stephan Bill Humphrey Vice President of Urban Place Clarett West Development David Lapidus Hudson Pacific Properties – Management LIVING IN HOLLYWOOD Immediate Past Chair Larry Wilkes Amy Lemisch Rich Sarian This report was composed by Kristopher Larson, Related CoStar, costar.com Leslie Blumberg Chad Lewis Place Enhancement The Fonda Theatre Manager MySidewalk, mysidewalk.com (American Community Survey, Davon Barbour, and Andrew Rodriguez. Data EX-OFFICIO MEMBERS Joseph Mariani Census Bureau of Labor) Vaughn Davis Devin Strecker research and analysis was led by Andrew Rana Ghadban Dream Hotel Peyton Nealis Vice President for Realtor.com Hollywood Chamber of Rodriguez. Copy was produced by Kristopher Communication Commerce Michael Nazzal Yardi Matrix, yardimatrix.com Brian Folb Larson, Davon Barbour, Andrew Rodriguez, and Paramount Contractors & ZIMAS, The City of Los Angeles, Department of City Planning Dan Halden Drew Planting Developers Devin Tait Strecker. A special thank you to the Council District 13/Heart of Zoom Prospector (GIS Planning) Marty Shelton David Gajda Hollywood featured photographers and partners. If you have Hollywood Media Center Monica Yamada Colleen Jimenez WORKING IN HOLLYWOOD inquiries related to the data and information Michael Gargano Downtown Properties CoStar, costar.com presented in this document, please reach out to Argent Ventures Monica Yamada Cushman & Wakefield, cushmanwakefield.com Andrew Rodriguez at [email protected]. Chase Gordon Honorary Board Member Avison Young Zoom Prospector (GIS Planning) Los Angeles Economic Development Corporation David Gordon 1645 Vine St

34 Hollywood Market Report Q2 2021 Appendix Published July 2021 35 Under Construction Entitled Seeking Entitlement Active Developments Summary HED & Greater Hollywood Area

# TOTAL TOTAL OFFICE TOTAL RETAIL MARKET AFFORDABLE AFFORDABLE HOTEL HED TYPE NAME DEVELOPER ADDRESS STORIES SQ FT SQ FT SQ FT UNITS RATE UNITS RATE UNITS RATE % ROOMS Y Hotel Godfrey Hotel Oxford Capital Group 1400 Cahuenga Blvd 8 74,362 - 3,713 - - - - 220 Hyatt's Unbound Y Hotel PNK Group 1525 N Cahuenga Blvd 7 42,953 - 1,495 - - - - 64 Collection Hotel Y Hotel Thompson Hotel Relevant Group 1541 Wilcox Ave 11 109,502 - 9,000 - - - - 190

Y Hotel Tommie Hotel Relevant Group 6516 Selma Ave 8 36,656 - 8,500 - - - - 212

Y Hotel Whiskey Hotel Adolfo Suaya 1717 Wilcox Ave 7 62,213 ------134 Y Office, Residential On Vine Kilroy Realty 1341 Vine St 20 498,599 335,509 13,000 196 196 - 0.0% -

Y Residential 1621 N McCadden Pl Housing Diversity Corporation 1621 N McCadden Pl 8 37,100 - - 69 0 69 100.0% - Hanover Hollywood Y Residential Hanover Company 6200 Sunset Blvd 7 243,315 - 12,120 270 270 - 0.0% - (prev. 6200 Sunset Blvd) N Residential Hollywood Arts Collective Thomas Sanfran & Associates 1637 N Wilcox Ave 7 - - 6,586 151 - 151 100.0% -

N Residential 1130-1134 N Orange Dr MCAP Partners 1130-1134 N Orange Dr 5 - - - 24 21 3 12.5% -

N Residential 5570 Melrose Ave Crecent Capital Partners 5570 Melrose Ave - - - - 58 52 6 10.3% -

N Residential 5801-5809 Camerford Ave Empire Property Group 5801-5809 Camerford Ave 4 41,995 - 36 31 5 13.9% -

N Residential 700 Highland Ave Hakim Holdings 700 Highland Ave 4 - - 4,900 33 30 3 9.1% -

N Residential 7500 Sunset Blvd Faring Capital 7500 Sunset Blvd 5 - - 30,000 200 180 20 10.0%

N Residential 901 Vine St Massoud Shabahang 901 Vine St 5 75,411 - - 76 69 7 9.2% - N Residential Alta Ink Wood Partners 5750 Hollywood Blvd 7 166,800 - 5,700 161 147 14 8.7% -

N Residential Inspire Hollywood Bond Companies 1522-1538 Cassil Pl 8 107,012 - 1,089 200 190 10 5.0% -

N Residential La Mirada at Central Park Pedram Mehrian 5608 W La Mirada Ave - 18,915 - - 13 13 - - -

N Residential MR2 Lofts Onni Group 6901 W Santa Monica Blvd 7 218,316 - 14,093 231 216 15 6.0% -

N Residential 1025 N. Wilcox Ave 1025 N. Wilcox Avenue LP 1025 N Wilcox Ave 4 - - - 12 12 - 0.0% - N Residential Citrus & Highland The Illulian Group 1242 N Citrus Ave 6 149,651 - - 86 86 - - -

Y Hotel Citizen M Citizen M 1718 Vine St 14 73,440 - 3,600 - - - - 240 Y Hotel Ivar Gardens R.D. Olson Development 6407 Sunset Blvd 21 141,895 - 1,900 - - - - 275

Y Hotel Schrader Hotel Koar Institutional Advisors 1600 N Schrader Blvd 11 83,605 - 5,557 - - - - 191

Y Hotel Whitley Hotel Whitley Apartments, LLC 1719 N Whitley Ave 10 99,375 ------156

Y Residential 1601 North Las Palmas Ave RW Selby & Company 1601 N Las Palmas Ave - 28,000 - - 202 133 69 34.2% -

Y Residential 6220 Yucca St Champion Development 6220 Yucca St 30 - - 7,700 269 252 17 6.3% - 6400 Sunset Blvd Y Residential GPI Companies 6400 Sunset Blvd 28 451,313 - 7,000 200 190 10 5.0% - (Amoeba Tower) Y Residential Hollywood and Gower Trammell Crow Company 6100-6116 Hollywood Blvd 22 197,503 - 3,270 220 209 11 5.0% -

Y Residential Hollywood Wilcox LeFrak Organization 6430 Hollywood Blvd 15 278,892 - 17,800 260 234 26 10.0% -

Y Residential Modera Argyle Mill Creek Residential Trust 1546 Argyle Ave 7 260,250 - 30,431 276 263 13 4.7% -

Y Residential Palladium Residences Crescent Heights 6215 Sunset Blvd 28 927,354 - 24,000 731 694 37 5.1% -

Y Residential Selma Place HBCS 6753 Selma Ave 7 20,000 - - 51 43 8 15.7% -

36 Hollywood Market Report Q2 2021 Appendix Published July 2021 37 Under Construction Entitled Seeking Entitlement Active Developments Summary HED & Greater Hollywood Area

# TOTAL TOTAL OFFICE TOTAL RETAIL MARKET AFFORDABLE AFFORDABLE HOTEL HED TYPE NAME DEVELOPER ADDRESS STORIES SQ FT SQ FT SQ FT UNITS RATE UNITS RATE UNITS RATE % ROOMS Hotel, Office, N Crossroads of the World Harridge Development Group 6671 Sunset Blvd 30 1,300,000 95,000 190,000 950 845 105 11.1% 308 Residential N Residential 1333 Tamarind Ave Wiseman Residential 1333 Tamarind Ave 5 55,888 - - 45 41 4 8.9% - Nash-Holland 1375 St. Andrews N Residential 1375 St Andrews Pl 1375 St Andrews Pl 8 226,160 - 1,279 185 185 - 0.0% - Investors, LLC N Residential 5600 Hollywood Blvd Hollywood Square, LLC 5600 Hollywood Blvd 7 28,371 - 32 29 3 9.4% -

N Residential 5817 W Lexington Ave 4D Development & Investments 5817 W Lexington Ave 5 - - - 21 19 2 9.5% -

N Residential 747 N Western Ave Lee Family Trust 747 N Western Ave 7,700 51 45 6 11.8%

N Residential Montecito II Thomas Safran & Associates 6650 West Franklin Ave 6 53,370 - - 68 - 68 100.0% -

N Residential PATH Villas Hollywood PVH LA LP 5627 Fernwood Ave 6 - - 60 - 60 100.0% -

N Residential SunWest Reliable Properties 5525 W Sunset Blvd 6 - - 35,694 412 347 65 15.8% -

N Residential 5806 Lexington Ave Proper Development 5806 Lexington Ave 5 - - - 17 15 2 11.8% -

Y Hotel 1700 N La Brea Ave PNK Group 1700-1710 N La Brea Ave 9 70,029 ------77

Y Hotel 1723 Wilcox Ave Korman, Nathan 1723 Wilcox Ave 7 43,163 ------81

Y Hotel 6445 W Sunset Blvd Nela Development 6445 W Sunset Blvd ------175

Y Hotel 6751 Hollywood Blvd Mehdi Bolour 6751 Hollywood Blvd 12 ------168

Y Hotel Palmer Hotel Artist Guild Hotels 6360-6366 Hollywood Blvd 10 ------87

Y Office 1235 N Vine St The Post Group and Plus Development 1235 N Vine St 8 124,800 117,000 7,800 - - - - -

Y Office 6381 Hollywood Blvd Onni Group 6381 Hollywood Blvd 14 217,269 210,000 6,500 - - - - -

Y Office Sunset & Wilcox MP/Shorenstein 6450 Sunset Blvd 15 445,158 433,148 12,141 - - - - -

Y Office Sunset Gower Studios Hudson Pacific Properties, Inc. 6050 W Sunset Blvd 18 628,000 628,000 - - - - 0.0% -

Y Residential 6007 Sunset Blvd CIM Group 6007 Sunset Blvd 7 45,000 - - 110 99 11 10.0% 239

Y Residential Artisan Hollywood Tower Artisan Realty Advisors 6350 Selma Ave 23 - - 6,576 270 243 29 10.0% -

Y Residential The Bonnie Michael Nazzal 6831 Hawthorn Ave 8 95,587 - 1,200 137 123 14 10.2% -

Y Residential Hollywood Center Millenium Partners 1720 Vine St 35 1,272,741 - 30,000 1,005 872 133 15.3% -

Y Residential Hollywood Tower Onni Group 1360 N Vine St 21 475,423 - 68,988 429 413 16 3.7% -

N Hotel 6830 Sunset Blvd Stay Hotels Group 6830 Sunset Blvd 6 ------24

Y Hotel Chaplin Hotel 7219-7225 West Sunset, LLC 7225 Sunset Blvd 11 ------93

N Office 1000 Seward St The Post Group and Plus Development 1000 Seward St 10 - 136,200 14,400 - - - - -

N Residential 1114 N St Andrews Pl Bang Ja Kim 1114 N St Andrews Pl - - - - 60 54 6 10.0% -

N Residential 5530 Virginia Ave Bang Ja Kim 5530 Virginia Ave - - - - 64 57 7 10.9% -

N Residential 5600 Franklin Ave Ilan Gorodezki 5600 Franklin Ave 6 - - - 60 54 6 10.0% -

N Residential 6104 Santa Monica Blvd three6ixty 6104 Santa Monica Blvd 6 - - - 76 69 7 9.21% -

N Residential 7100 Melrose Ave Markwood Enterprise 7100 Melrose Ave 4 15,962 - - 66 66 - - -

38 Hollywood Market Report Q2 2021 Appendix Published July 2021 39