Q1 2021 MARKET REPORT 04.30.2021 BACK WELCOME Table of Contents

Home , Hollywood, Hollywood Hotel, Sunset Gower Studios, Third Street Promenade

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 Q1 2021 Table of Contents Published April 2021 3

t the close of the first quarter, there is a real sense of optimism about the directionality of Hollywood’s economic recovery. Over six million Adoses of the vaccine have been distributed throughout Los Angeles County, with about 35% (2.13 million) of those being second doses. The unemployment rate has fallen to 10.9%, the lowest rate since the onset of the pandemic and a significant improvement from the 12.7% rate seen at the end of Q4 2020. In only a matter of weeks, Los Angeles County transitioned from the state’s COVID-19 Activity and Business Purple Tier, to the Red Tier, and now into the Orange Tier. The end of the quarter provided some momentous reopenings that provide excitement for the months ahead. Favorites such as Madame Tussauds, Larry Edmund’s Bookshop, and the TCL Chinese Theater reopened at the end of March, and Amoeba Music reopened in their new location on April 1. decide to conduct their business remains to be seen. Given the adoption of

Letter from the In the Orange Tier, businesses such as museums, restaurants, and movie work-from-home options at many large, well-known corporations, there is theaters can open their doors a little wider and accommodate 50% one thing for we know for certain: a return to the pre-pandemic norms of occupancy. Gyms and fitness centers can expand to 25% capacity, and exclusive, in-office work is a remnant of the past as companies are always President & CEO retailers can open without any reduction in capacity. Bars that do not serve seeking to distinguish themselves when it comes to attracting and retaining food were allowed to reopen for the first time since the onset of the pandemic, talented employees. though only for outdoor service. However, nonessential office-type workers are still encouraged to work remotely. A stroll through Hollywood on most Working to make Hollywood a place where these employees want to spend days highlights the absence of the daytime workers and happy hour spots, their days is more critical now than ever. The prospect of employee retention as the multidimensional neighborhood misses its eclectic mix of workers, is now an onus shared by more than just employers, it is a responsibility residents, and tourists. shared by everyone involved in place management. Knowing that employees can potentially choose to set up their laptop in Griffith Park or any place A return to work for the daytime office worker remains the most important they enjoy heightens our understanding of economic development. We and difficult to predict variable in getting Hollywood back to normal. used to compete for companies to locate in our community; now we, as Because everyone enjoys stretching their proverbial legs and feeling the are all cities, are also competing for the employees of those companies to southern California sunshine on their face, the tourist economy has shown simply choose to come to the office. that it will eventually rebound and has already started down that path. The office market, however, has been more sluggish to bounce back. Though This report from The Hollywood Partnership (The HP), like those that came we all enjoy fewer white-knuckle commutes, fewer workers moving around before it, captures the essence of the Hollywood market’s performance the neighborhood equates to a diminished number of daytime customers over the past quarter. As a snapshot, the report includes an overview of which create vibrancy on the sidewalks and support our local coffee shops the pipeline of long-term investments that will shape and transform our and eateries. According to Kastle Systems, only 25% of Los Angeles area cityscape, the total of which now exceeds $2.1B of projects under construction employees had returned to the office for the week ending on March 24, a and entitled within the Hollywood Entertainment District (HED). Given the figure which was down slightly from the week prior (27.9%). Relative to other nature of the ongoing recovery, this edition also features insights on how big cities in the U.S., the return-to-work figure for Los Angeles was a stitch businesses and others have pivoted through the pandemic. We have also higher than the national average of 24.2%. reorganized the content to make it less about buildings and more about the people that inhabit them, as the true character of the community is the Given its cluster of media and entertainment production companies, people that call it home for at least part of each day. We hope you find this Hollywood is buffered from the plight of markets such as NYC which have report a valuable and trusted resource. experienced only a 10% return to work of traditional office employees. According to FilmLA, film permitting activity increased by 45% from February Sincerely, to March, and the county recorded 7,011 shoot days in Q1 2021 (down only 3.3% vs. Q1 2020). However, Hollywood is not exclusively home to entertainment production companies and enjoys a significant share of the traditional office-type employees that typically work in multi-tenant office towers. Kristopher Larson, AICP How these employees, and the companies that hold office space leases, President & CEO

4 Hollywood Market Report Q1 2021 Visiting Hollywood Published April 2021 5 VISITING HOLLYWOOD

Visiting 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 and has changed with the times, evolving into an important epicenter of entertainment, culture, and technology. Those who visit Hollywood hail from nearby California cities and faraway countries, 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 potentially crossing paths with the superstars of today and tomorrow.

6 Hollywood Market Report Q1 2021 Visiting Hollywood Published April 2021 7 Hotel Market Conditions Meet Alfred, the Dream Hotel's COVID-Conscious ith each month that passes in 2021, Hollywood’s hotels are seeing Concierge surges in guests visiting from nearby Dream Hotel guests have a new concierge welcoming them upon Southern California cities as COVID-19 Wtravel restrictions ease within the state. Compared 22% arrival. Alfred, a Savioke delivery robot, was introduced to the to Q4 2020, Hollywood saw a 22% increase in hotel increase in Hotel Dream Hotel lobby around the start of 2021 as a way to ensure occupancy. This jump in occupancy exceeds the Occupancy in Q1 that all guests are able to limit interactions so long as the percentage change for Los Angeles County hotels on compared to Q4 2020 pandemic is present. Alfred roves around the lobby, able and average quarter-over-quarter, which is hopefully an indication of a steady and healthy outlook for Q2 and ready to meet guests’ needs. Along with Alfred, the Dream Hotel Q3 in Hollywood. has also adapted their services to include touch-free check-in

An increase in occupancy also meant an and in-room technology, allowing guests to limit the amount of increase in RevPAR for hotels. RevPAR increased interaction with Dream Hotel staff. by 14%, a much-needed increase for the 13 Photo: Courtesy of Dream Hotel hotels within the HED and 64 hotels across greater Hollywood. However, Hollywood’s hotel performance remains below the Los Angeles County averages for occupancy, hotel room demand, and Hotel Market Conditions RevPAR. Based on previous visitor studies completed Hollywood Q1 2020 Q4 2020 Q1 2021 QoQ % Change YoY % Change in Hollywood, this discrepancy is likely associated with the reliance of Hollywood’s hotel industry on both Occupancy 63.30% 33.40% 40.80% +22.16% -35.55% domestic and international visitors. As vaccinations proliferate across the globe, there is likely to be a surge Room Demand 302,087 152,469 160,722 +5.41% -46.80% in international visitors to Hollywood’s hotels as 2021 820 Room Supply 477,066 456,872 393,878 -13.79% -17.44% progresses. In fact, the U.S. Travel Association advocates Hotel Rooms that “if travel from the top inbound markets to the U.S. ADR $199.39 132 $123.68 -6.54% -37.97% Under Construction is able to safely resume by July 4, 2021 and reach an in the HED RevPAR $126.26 $44.16 $50.47 +14.29% -60.03% average of 40% of 2019 levels for the remainder this year, it would accelerate economic recovery by adding Source: LATCB, Smith Travel Research $30 billion in incremental spending and bringing back 225,000 American jobs.” Hotel Development Despite the pandemic, hotel developers have remained HED HED HOLLYWOOD HOLLYWOOD confident in Hollywood’s hotel market. In Q1, there were Hotel Inventory # of projects # of rooms # of projects # of rooms 14 hotels in the pipeline for the HED and 17 across greater Under Construction 5 820 5 820 Hollywood. The hotel projects seeking entitlements in HED Hollywood 14 the HED did not waver in their commitment to build in Hotel Properties 13 64 Entitled 4 799 5 1,107 of the 17 Pipeline Hollywood over the last quarter. If all pipeline projects Hollywood Hotels will Hotel Room Inventory 1,985 5,422 Seeking Entitlement 5 588 7 705 reach completion over the next several years, the HED be in the HED will see a twofold increase in hotel room inventory, Source: The Hollywood Partnership, Zone Information TOTAL 14 2,207 17 2,632 ensuring the heart of Hollywood will remain a premier and Map Access System (ZIMAS), Los Angeles Tourism & destination for visitors. Convention Bureau (LATCB) Source: The Hollywood Partnership, ZIMAS

8 Hollywood Market Report Q1 2021 Visiting Hollywood Published April 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 Whisky 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

10 Hollywood Market Report Q1 2021 Visiting Hollywood Published April 2021 11 Pedestrian Counts

Daily Peak Location QoQ% Getting to Hollywood Hollywood Avg. Count & Highland M Hollywood & 5,815 15,180 -24% Hollywood Highland & Schrader entrally located within Los Angeles, Hollywood Hollywood & is a historical hotspot for travel, a high- Selma & 2,720 5,975 -9% Schrader density neighborhood, and an emerging Cahuenga Sunset & Vine locus for employers. Defined as a Regional CCenter within the City of LA’s regulatory framework, and Sunset & Vine 1,647 15,125 39% fortunate to have fixed-rail transit, the area is ripe with PEDESTRIAN COUNT LOCATIONS METRO

both interest and opportunity for investment. Pedestrians & Cyclists Tracked M Metro Station Selma & 789 1,925 -9% Given the area’s appeal to tourists and gravitas for Pedestrians Only Metro Red Line Source: Hollywood Partnership Cahuenga media production, both domestic and international air travel figures are important indicators for tracking the region’s recovery. Q1 2021 saw a modest dip in both Walk of Fame Third Street Promenade Venice Beach Boardwalk Visitation Trends international and domestic air travel, likely due to at Popular LA traditionally heavy travel during the Q4 holidays. The Pedestrian counts at major Hollywood intersections also 150,000 continued pandemic and international travel restrictions improved each month throughout the quarter. Though Tourist Attractions dampen the attraction of international travelers for the figures are slightly lower than those of Q4, early which Hollywood is accustomed. January marked the peak of the second wave of the virus which duly impacted district vibrancy. However, 100,000 Travel within Los Angeles continues to show month- as the virus slowed through the month, vaccinations over-month ridership improvements across weekday, were performed, and the state’s business restrictions Saturday, and Sunday counts. Respectively, Metro loosened, people returned. Pedestrian counts increased Red Line ridership increased by 10% on weekdays and by 61% in March 2021 over January 2021 figures. 50,000 Sundays between January 2021 and March 2021, and Moreover, comparing pedestrian activity to two of Saturdays saw an increase of 17.6% during the same LA’s other tourism hot spots (Santa Monica’s Third period. Relative to pre-pandemic ridership norms, Street Promenade and the Venice Beach Boardwalk) 0 overall ridership on the Red Line still lags by 48%. The demonstrates the relative comparability of Hollywood’s JAN FEB MAR Metro Red Line has two stations within the HED, at rebound trajectory. Overall, pedestrian vibrancy within Hollywood/Vine and Hollywood/Highland. the HED has rebounded to 55% of pre-pandemic norms. Source: Placer.ai

Average Estimated 80,000 Weekday Saturday Sunday LAX Air Travel Ridership for the Metro Red Line Passenger Traffic Totals Q1 2020 Q4 2020 Q1 2021 YoY% Change QoQ % Change

Domestic 11,384,804 5,098,849 5,038,682 -55.74% -1.18% 40,000

International 4,501,569 1,003,955 912,085 -79.74% -9.15%

TOTAL 15,787,372 6,102,804 5,950,767 -62.31% -2.49%

Source: Los Angeles World Airports (LAWA) Traffic Comparison (TCOM) 0 3 4 5 6 7 8 9 10 11 12 1 2 3 Source: Los Angeles Metro 2020 2021

12 Hollywood Market Report Q1 2021 Visiting Hollywood Published April 2021 13 LIVING in HOLLYWOOD

Living in Hollywood

“You’ve arrived!” For many, living in Hollywood provides a sense of accomplishment, of being where the action is, and of being in the right place at the right time. With the convergence of creative industries, technology, and endless inspiration, dreamers work their way to Tinseltown in order to make it big. Of course, not everyone here is chasing that fantasy. Many have called the neighborhood their home for decades, while others have recently chosen the area because of its intimate, tight-knit, creativity-filled residential community.

14 Hollywood Market Report Q1 2021 Living in Hollywood Published April 2021 15 Multifamily Market Conditions

he Hollywood housing market held strong in corresponding with a slight increase in rents, interest in Q1 2021 despite the surge of COVID-19 cases in Hollywood’s housing is showing resilience after a year of Los Angeles at the end of 2020. Development uncertainty. projects continue to be announced across Tgreater Hollywood, and the vacancy rate has remained Construction has continued to push forward in Hollywood. 4x 26% Increase in Unit of Under Construction units in the HED constant quarter-over-quarter at 10.7%. For the first time In the HED, there are four multifamily projects under Absorption in Q1 are affordable, meaning they are set in a year, demand surged in Hollywood for multifamily construction and on track to be completed by the end Compared to aside for low, very low, or extremely housing and absorption increased by 196 units, a nearly of the year, introducing 700 new housing units to the Q4 2020 low-income tenants. 400% increase from Q4 2020. market. The Hollywood Arts Collective broke ground on Rental rates are slowly climbing up, defying rental its affordable housing project in early Q1. On Vine reports rate trends in comparable cities such as San Francisco that the housing component of the project will be wrapped and New York City, where rent remains far below up in May 2021, trailing the office space component of the Multifamily Market Conditions Pipeline Housing Units pre-pandemic rates. With the increase in demand project, which was delivered in Q1. QoQ HED Hollywood HED Hollywood Change Total Residential Under Construction 5,543 16,010 - Inventory (Units) Market Rate 654 2,095 Avg. Residential - 10.40% -0.3% Vacancy Rate (%) Affordable 232 477 Avg. Price per Hollywood Arts - $2.89 +$0.02 Square Foot (YTD) % Affordable 26% 18% Avg. Rental Rate Collective - $2,182 +$13 per Unit Total 886 2,592 Cap Rate (YTD) - 4.0% -0.3% Entitled A total of 232 affordable units are under construction in the Quarterly - 247 +196 Market Rate 2,018 3,699 HED as of Q1 2021, and a substantial amount of those units Absorption

are a part of the Actors Fund housing project, the Hollywood Sources: CoStar, The Hollywood Partnership Affordable 191 504

Arts Collective. The project broke ground this quarter, a major % Affordable 9% 12% milestone for the Actors Fund who has spent nearly a decade Total 2,209 4,203 manifesting the Hollywood Arts Collective. The Actors Fund, an organization committed to providing a safety net for those Pipeline Housing Projects Seeking Entitlement

working in the performing arts and entertainment industry, HED Hollywood Market Rate 1,860 2,351 pursued this 151-unit project as part of a larger portfolio of Under Construction 5 25 Affordable 201 246 work aimed at alleviating the financial strains faced by lower- Entitled 8 20 % Affordable 10% 9% wage workers in their industry. Along with housing units, the Hollywood Arts Collective project will feature gallery space Proposed 16 15 Total 2,061 2,597

and office space for nonprofit arts organizations, as well as the Total 19 57 MASTER TOTAL 5,156 9,392 Now Under Construction 86-seat Glorya Kaufman Theater. Source: The Hollywood Partnership, ZIMAS Source: The Hollywood Partnership, ZIMAS

16 Hollywood Market Report Q1 2021 Living in Hollywood Published April 2021 17 Under Construction Entitled

Multifamily Developments HED Boundary Seeking Entitlement

1 1621 N McCadden Pl 29 Modera Argyle

30 Palladium Residences 2 Hanover Hollywood (fka: 41 56 6200 Sunset Blvd) 31 Selma Place 25 3 Hollywood Arts Collective 32 1025 N Wilcox Ave 4 On Vine 48 33 1333 Tamarind Ave 40 5 Wallace on Sunset 34 1375 St Andrews Pl 6 1434 N Poinsettia Pl 28 16 35 5600 Hollywood Blvd 27 35 3 7 1130-1134 N Orange Dr 1 36 5817 W Lexington Ave 47 31 24 8 5245 Santa Monica Blvd 37 747 N Western Ave 46 29 9 5570 Melrose Ave 19 38 Citrus & Highland 30 45 43 10 5801-5809 Camerford Ave 39 39 Crossroads of the World 11 5806 Lexington Ave 40 The Lombardi 14 26 5 2 12 6535 Melrose Ave 6 41 Montecito II 34 42 13 700 Highland Ave 49 42 PATH Villas Hollywood 33 4 14 7500 Sunset Blvd 43 SunWest 52 53 15 901 Vine St 23 44 6001 Sunset Blvd 38 16 Alta Ink 45 6007 Sunset Blvd 51 20 17 Ariadne Getty Foundation 36 18 46 Artisan Hollywood Tower Senior Housing Hollywood Arts 11 47 The Bonnie 21 18 Common Paramount 7 54 17 48 Hollywood Center Collective 50 19 Inspire Hollywood 22 Now Under Construction 55 49 Hollywood Tower 20 La Mirada at Central Park 57 50 1114 N St Andrews Pl 32 21 Michael John Horne & Thomas E. Jones Youth 51 1233 N Highland Ave Housing 52 1301 N Cherokee Ave

22 MR2 Lofts 53 1310 Gordon St 15 23 The Rise Hollywood 54 5530 Virginia Ave

24 1601 North Las Palmas Ave 55 5537 Santa Monica Blvd

25 6220 Yucca St 56 5600 Franklin Ave

26 6400 Sunset Blvd (Amoeba 57 6104 Santa Monica Blvd 10 37 Tower) 13 58 7100 Melrose Ave 12 27 Hollywood & Gower

28 Hollywood & Wilcox 58 9

18 Hollywood Market Report Q1 2021 Living in Hollywood Published April 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 (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% Millennials make up 55% of 0% 29.28% is important to The HP to understand the demography of the area it 24.93% 2 person the population in the HED 2 person manages, the HED. Understanding the unique traits of the HED can lead Baby Baby Gen X Gen Z

compared to 36% in 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 1,849 (13%) Attainment $10-20k 6,829 (10.6%) $70,000 and Hollywood Trade Area who have 10,500 7,500 1,322 (9.3%) $20-30k 5,524 (8.5%) $60,000 attained a 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%) 3,214 (22.7%) $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% 4.6% 0.6% 0.7% vs. Renter- Owner-Occupied Owner-Occupied

Hollywood Trade Area Occupied Renter-Occupied Renter-Occupied Units 52.0% 29.6% 8.3% 5.8% 96.9% 82.06%

Source: MySidewalk Source: GIS Planning

20 Hollywood Market Report Q1 2021 Living in Hollywood Published April 2021 21 WORKING in HOLLYWOOD Working in Hollywood

Contrary to popular myth, not everyone who works in Hollywood hopped off a bus from the Midwest equipped only with bright eyes and big dreams. Hollywood features a diverse employment base, albeit with a strong cluster of entertainment production aligned with its global brand. True to form, you may indeed find yourself being served a latte by a future television star at one the neighborhood’s robust restaurant, retail, or hospitality offerings. However, the area is increasingly attracting information and technology firms in addition to healthcare and personal or professional services, rounding out many of the top industries that call the community home.

22 Hollywood Market Report Q1 2021 Working in Hollywood Published April 2021 23 Restaurants 6.46% Top 5 Industries 200 companies Hollywood's Workforce in the HED Motion Pictures 5.20% 161 companies

Health & Medical Services 4.91% hile Hollywood’s economy is powered 152 companies by a number of diverse industries, the role of the entertainment industry is Real Estate 4.62% certainly core to the brand identity 143 companies Wof the area. Numerous production companies and entertainment venues have established their Professional Services 4.23% 131 companies home in Hollywood and created thousands of jobs. Photo: Courtesy of Netflix In fact, efforts are underway to expand and bolster the Source: GIS Planning Media District, which abuts the southern boundary of the HED. Recommendations to expand the area are included in the Hollywood Community Plan Update, Number of Businesses by Size in the HED the final approval of which awaits Los Angeles City Council action. 1-4 employees 67.88% 5-9 employees 18.33% A deeper dive into employment figures reveals 10-19 employees 6.49% the intellectual capital of Hollywood. Of the nearly 3,100 businesses located in Hollywood, 59% of the 20-49 employees 4.1% associated jobs are characterized as “white collar” Regional Center 50-99 employees 1.71% jobs. The top three jobs by occupation are as follows: 100+ employees 1.48%

1. Computer and Mathematical (4.28%) and Home to 0 500 1000 1500 2000 2500 2. Business and Financial Operations (4.02%) Small Businesses Source: GIS Planning 3. Architectural & Engineering (1.4%)

Given the rapid expansion of streaming content As defined by the City of Los Angeles, a Regional Center HED Boundary 203-269 driven by pandemic-captive audiences, one Small Business 4-70 269-335 can understand the need for computer and is a hub of regional commerce and activity and contains Density in the HED 70-137 335-402 mathematical skills to create algorithms and diverse uses, such as major entertainment and cultural 137-203 analyze data to understand viewer content desires. facilities, professional offices, retail commercial malls, Netflix, a major Hollywood employer, continues to and more. Regional Centers enable communities to be a leader in this field and has planted deeper roots into Hollywood with its 2020 acquisition of the accommodate a significant number of jobs. With its historic Egyptian Theatre. The facility is planned to rich transit connections, Hollywood is an attainable open in 2022. The theater provides a showpiece to employment destination and contributor to the regional debut content that will ultimately stream into the economy. Of note, small businesses are significant homes of viewers across the globe. employers in the HED. 98% of HED businesses are small businesses, according to the federal definition as they employ fewer than 100 employees. According to the U.S.

Small Business Administration’s 2020 California Small 81,398 People Business Economic Profile, small businesses comprise 99.8% of California’s businesses. in the HED Workforce Source: GIS Planning

24 Hollywood Market Report Q1 2021 Working in Hollywood Published April 2021 25 Office Market Conditions Office Space Market Conditions Hollywood Hollywood Hollywood QoQ YoY Q1 2020 Q4 2020 Q1 2021 Change Change

Overall Asking Rents (per SF) $4.41 $4.77 $4.75 -$0.02 +$0.36

Class A Asking Rents (per SF) - $4.80 $4.80 $0.00 - s a Regional Center designated by the owner of 6725 Sunset Boulevard also known as “The Inventory (SF) 4,369,143 4,833,377 4,905,763 +72,386 +536,620 City of Los Angeles, Hollywood is a center Park,” undertook a multimillion-dollar renovation and of commerce and an important economic subsequently obtained $28.1 million in refinancing for 2020 YTD Absorption -66,839 -157,355 -56,462 +100,893 +10,377 driver for Southern California. It comes to no the 73,835 square foot office building. Asurprise that the Hollywood office market, like that of Overall Vacant Space (SF) 699,063 1,061,337 1,190,183 +128,846 +491,120 With the state of California’s planned full reopening the nation, was battered over the last year with office Overall Vacancy Rate 16.00% 21.96% 24.26% +2.30% +8.26% buildings vacated as workers conducted business from on June 15, 2021, it is anticipated that the continued home. Hollywood’s office market remains on the road to vaccination of the working population will pace leasing 2020 YTD Leasing Activity (SF) 93,510 7,236 9,293 +2,057 -84,217 recovery. demand for office space. Source: Cushman and Wakefield While the pandemic nears an end, a full return to the office remains doubtful in the short term as both office tenants and their employees have become On Vine's office space has been accustomed to working from home. Many businesses delivered to the future tenants intend to implement hybrid work schedules to reduce concentrations of employees at any one time while who are now working on allowing for some degree of valuable in-person custom tenant improvements. collaboration to resume. Additionally, vaccination rates will ultimately dictate additional modifications on in- office working. At the end of Q1, the vacancy rate for the Hollywood office market increased slightly to 24.26%. Number of Projects By comparison, the vacancy rate in Q4 2020 stood at 21.96%. Despite the negative impact of the pandemic HED Hollywood on vacancy rates, both overall asking rents and Class A Under Construction - - asking rents held steady quarter-over-quarter at $4.75 A New and $4.80 respectively. Entitled - 1 WeWork Seeking Entitlement 5 6 There is Total 5 7 At the end of Q1, WeWork announced that it is becoming a Source: The Hollywood Partnership, ZIMAS 4,497,868 sq ft publicly listed company following a merger with special purpose of office space in greater Hollywood Pipeline Square Feet acquisition company, BowX Acquisition Corp. Valued at $9 billion, the acquisition will provide WeWork with about $1.3 billion in cash HED Hollywood Investment in the Hollywood office market continues to help execute the company’s growth plans. Despite the merger, throughout the waning pandemic. Six (6) projects, Under Construction - - BowX has agreed to rename itself “WeWork Inc.” at the completion

accounting for 1,524,375 square feet of proposed office Entitled - 95,000 of the transaction. According to CoStar, WeWork currently leases space, seek entitlement. Exterior work has begun on DJM a combined 110,197 square feet of space in Hollywood distributed and GAW Capital’s Ovation Hollywood whose upgrade Seeking Entitlement 1,388,175 1,524,375 over two locations: 1601 Vine Street and 7083 Hollywood Boulevard. includes a conversion of 100,000 square feet to creative Total 1,847,953 1,619,375 office space. Kilroy Realty Corporation has substantially completed construction of On Vine. Vanbarton Group, Source: The Hollywood Partnership, ZIMAS Source: CoStar, WeWork

26 Hollywood Market Report Q1 2021 Working in Hollywood Published April 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 Studioes

7 1000 Seward St

5 6

28 Hollywood Market Report Q1 2021 Working in Hollywood Published April 2021 29 % Storefront Businesses Re-Opened by Type

Ground Floor Retail 0% 25% 50% 75% 100% Market Conditions Food & Beverage Misc. Retail

Apparel

Gifts & Souvenirs

The underlying conditions necessary to facilitate an reported that 42.2% of California’s population has Fitness & Wellness 4 New Retail Openings economic recovery of the retail sector were in full received at least one dose of a COVID-19 vaccination. Grocery and 5 Entertainment force in Q1. First, the American Rescue Plan Act, a $1.9 Destination Retail Venue Reopenings in trillion economic stimulus bill, was signed into law. The Q1 ground floor retail inventory within the HED is the HED in 2021 One facet of the legislation provided $1,400 stimulus comprised of 707 spaces. Of this figure, 640 spaces Personal Business Service were occupied by operating businesses or were actively checks to qualifying households in the U.S. Additionally, Professional Offices with declining COVID-19 cases, Los Angeles County available for tenants. 552 (86%) of available spaces were Home Goods & Services graduated from the Purple Tier of the state’s Blueprint occupied by operating businesses. This percentage for a Safer Economy into the Red Tier. Within three weeks, remains unchanged from the prior reporting period Pharmacy & Healthcare Los Angeles County quickly progressed even further and despite the addition of several new businesses. The most Auto into the Orange Tier, which paved the way for outdoor notable addition to the district was the long-awaited Entertainment & Venue bar operations to commence and for expanded indoor reopening of revered local retailer Amoeba Records at capacity at restaurants and gyms. Finally, it has been its new location at 6200 Hollywood Boulevard. Source: The Hollywood Partnership

The Food The food and beverage sector was one of the industries most impacted Status of Available Retail Inventory during the shutdown. In fact, according to a recent report by the & Beverage Los Angeles County Economic Development Corporation, most of Road the filed unemployment claims (16.1%) at the end of Q1 were in the accommodation/food services sector. Early in Q1, outdoor dining Vacant to Recovery resumed after a shutdown in Q4 2020 due to rampant COVID-19 13.8% infections. Once Los Angeles County entered the Red Tier in January, indoor dining was allowed with a 10% occupancy. Once the county Temp. reached the Orange Tier in March, indoor capacity increased to 50% or Closed 200 people (whichever is fewer). Even with the jubilation of the return of 23.6% Open outdoor dining, many operators remained hesitant to reopen or limited 62.7% their hiring to minimize additional financial losses for fear of yet another shutdown. The combined myriad of government regulations and shutdowns created a tumultuous environment in which to operate a business. In Q1, of the 220 food and beverage businesses, 152 (69%) are 152 or 69% open. With the state’s planned full economy reopening on June 15, 2021, of Food & Beverage Businesses are Open the outlook for additional openings remains hopeful but uncertain.

30 Hollywood Market Report Q1 2021 Working in Hollywood Published April 2021 31 SPOTLIGHT Reopening on Hollywood 1 Hollywood's Hollywood’s businesses, like those located To bolster Hollywood’s food and beverage Economy throughout the Los Angeles region, weathered businesses throughout the pandemic as 1 a sea of ever-changing regulations as a result 2 well as to expand outdoor dining options of the widespread pandemic throughout throughout the HED, The HP launched a 2020 and into Q1 of 2021. However, in Q1, Los series of aid programs. The Outdoor Heaters 2 Angeles County continued a positive trajectory Support Program provides heaters to food Hollywood Al Fresco of reduced COVID-19 cases that resulted in and beverage businesses at a modest its promotion into the Red Tier of the state’s cost. The Outdoor Dining Support Program Blueprint for a Safer Economy. Shortly reimburses participating businesses up to 50% thereafter, Los Angeles County quickly entered ($3,000 max) for the purchase of furniture the Orange Tier, which paved the way for and fixtures for outdoor dining. At the time of even more business openings. With the this publication, six (6) restaurants secured governor’s announcement of a planned full heaters. Three (3) restaurants purchased reopening of the state’s economy by June 15, items to enhance their respective outdoor 2021, Hollywood looks forward to welcoming dining environments. patrons back.

4 Hollywood welcomed a number of new March marked a major turning point for businesses in Q1, including the long-awaited Hollywood’s long-shuttered destination After One Year, 3 Target at 7021 Hollywood Boulevard. Within 4 entertainment venues. As Los Angeles Entertainment the HED, four businesses opened their doors County’s COVID-19 business restrictions Venues Reopen in February and March, even after a period of entered the Orange Tier, the Chinese Theater, hardship for retail as COVID-19 cases reached El Capitan, Madame Tussauds Wax Museum, all-time highs in early 2021. The HED openings Larry Edmund’s Bookshop, Ripley’s Believe included Sneaker Garden, 7-Eleven, Smoke It or Not!, and Amoeba Music (in their new Shop Las Palmas, and Brothers Meatballs, location) opened their doors to the public a plant-based meatball restaurant from the towards the end of Q1. Each venue has its 3 brothers who founded Mauro’s Cafe at Fred respective COVID-19 protocols in place, Segal and co-own Fabiolus Cucina. ready to welcome back their Hollywood

Hollywood neighbors and visitors. Welcomes New Businesses in Q1

32 Hollywood Market Report Q1 2021 WorkingVisiting in Hollywood Hollywood Published April 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 than NOTE: Boundaries of the $7.2 million annually to pay for cleaning, safety, hospitality, placemaking, communications, research, marketing, advocacy, and Hollywood Trade Area include the Greater Hollywood economic development services. In 2019, the HED was renewed for a period of ten 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 ZIMAS, The City of Los Angeles, Department of City Planning Sources Zoom Prospector (GIS Planning) THE HP BOARD Bill Humphrey ADVOCACY & Kristopher Larson, AICP Hudson Pacific Properties ECONOMIC President & CEO Primary Source WORKING IN HOLLYWOOD C. Drew Planting DEVELOPMENT Goldstein Planting Amy Lemisch Davon Barbour California Employment Development Department COMMITTEE Netflix Vice President of Advocacy & The Hollywood Partnership Investments – Chair CoStar, costar.com Economic Development Chad Lewis Michael Gargano Katie Zandona Cushman & Wakefield, cushmanwakefield.com Ullman Investments – Klein Financial Corporation Committee Chair April Clemmer Secondary Sources Communications & Vice Chair Scott Blakeslee FilmLA Jeffrey Moghavem Administrative Coordinator Archway Holdings VISITING HOLLYWOOD Tony Zimbardi David Gajda Kastle Systems AMDA College And Cassie Hoeprich Los Angeles County Metropolitan Transportation Authority, Michael Nazzal Research Manager Los Angeles Economic Development Corporation Conservatory of Performing Rana Ghadban metro.net Arts – Secretary Yorkwood LLC Lorin Lappin WeWork Dina Goldstein Los Angeles Tourism & Convention Bureau, David Green Michael Pogorzelski Business & Finance Manager discoverlosangeles.com Zoom Prospector (GIS Planning) Nederlander West Coast – Academy of Motion Picture Dan Halden Arts & Sciences Ruben Lechuga, EMBA Treasurer Los Angeles Worlds Airports, lawa.org Bill Humphrey Vice President of Urban Place Joe Rehfeld Bill Humphrey David Lapidus Management Smith Travel Research Sources Hudson Pacific Properties – 6250 Hollywood Blvd Rich Sarian Immediate Past Chair Amy Lemisch U.S. Travel Association This report was composed by Kristopher Frank Stephan Place Enhancement Leslie Blumberg Clarett West Development Chad Lewis Manager LIVING IN HOLLYWOOD Larson, Davon Barbour, and Cassie Hoeprich. The Fonda Theatre Larry Wilkes Joseph Mariani Devin Strecker CoStar, costar.com Data research and analysis was led by Cassie Vaughn Davis Related Vice President for Hoeprich. Copy was produced by Kristopher Dream Hotel Peyton Nealis Communication CBRE EX-OFFICIO MEMBERS Larson, Davon Barbour, Cassie Hoeprich, Brian Folb Michael Nazzal LA Business Journal Rana Ghadban Paramount Contractors & Hollywood Chamber of Drew Planting MySidewalk, mysidewalk.com (American Community Survey, and Devin Tait Strecker. Special thanks to Developers Commerce Census Bureau of Labor) Marty Shelton the featured photographers and partners. David Gajda Dan Halden Placer.ai Hollywood Media Center If you have inquiries related to the data and Council District 13/Heart of Monica Yamada Michael Gargano Hollywood REbusinessonline.com information presented in this document, please Argent Ventures Colleen Jimenez Rent Cafe reach out to The HP’s Research Manager, Cassie Downtown Properties Chase Gordon Realtor.com Hoeprich, at [email protected]. Avison Young Monica Yamada Yardi Matrix, yardimatrix.com David Gordon Honorary Board Member 1645 Vine St Yieldpro.com

34 Hollywood Market Report Q1 2021 Appendix Published April 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 Y Hotel Hyatt's Unbound Collection PNK Group 1525 N Cahuenga Blvd 7 42,953 - 1,495 - - - - 64 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 Whisky 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% - Y Residential Hanover Hollywood Hanover Company 6200 Sunset Blvd 7 243,315 - 12,120 270 270 - 0% - (fka: 6200 Sunset Blvd) N Residential Hollywood Arts Collective Thomas Sanfran & Associates 1637 N Wilcox Ave 7 - - 6,586 151 - 151 100.0% - Y Residential Wallace on Sunset Essex Property Trust 6240 Sunset Blvd 7 177,300 - 4,678 200 188 12 6.0% - N Residential 1130-1134 N Orange Dr MCAP Partners 1130-1134 N Orange Dr 5 - - - 24 21 3 12.5% - N Residential 1434 N Poinsettia Pl Guy Etionzy 1434 N Poinsettia Pl - 7 7 - 0 - 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 5806 Lexington Ave Proper Development 5806 Lexington Ave 5 - - - 17 15 2 11.8% - N Residential 6535 Melrose Ave Melrose Highland, LLC 6535 Melrose Ave - - - - 33 30 3 9% - N Residential 700 Highland Ave Hakim Holdings 700 Highland Ave 4 - - 4,900 33 30 3 9.1% - N Residential 7500 SunsetBlvd Faring Capital 7500 Sunset Blvd 5 - - 30,000 200 180 20 10% 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 Ariadne Getty Foundation Sr. LA LGBT Center and Thomas Safran & 1127 N Las Palmas Ave 6 32,600 25 25 - Housing Associates N Residential Common Paramount Wiseman Management LLC 5637 Lexington Ave 4 32,000 - 37 34 4 11% - N Residential Inspire Hollywood Bond Companies 1522-1538 Cassil Pl 8 107,012 - 1,089 200 190 10 5% - N Residential La Mirada at Central Park Pedram Mehrian 5608 W La Mirada Ave - 18,915 - - 13 13 - - - N Residential Michaeljohn Home & Thomas LA LGBT Center and Thomas Safran & 1119 N McCadden Pl 6 69,585 - - 123 - 123 100% - E. Jones Youth Housing Associates N Residential MR2 Lofts Onni Group 6901 W Santa Monica Blvd 7 218,316 - 14,093 231 216 15 6% - N Residential The Rise Hollywood Cal-Coast Development and Rescore 1311 N Cahuenga Blvd 7 347,019 - 2,570 369 349 20 5.4% - 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% - Y Residential 6400 Sunset Blvd 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% -

36 Hollywood Market Report Q1 2021 Appendix Published April 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 Y Residential Selma Place HBCS 6753 Selma Ave 7 20,000 - - 51 43 8 15.7% - N Hotel, Office, 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 1025 N Wilcox Ave 1025 N Wilcox Avenue LP 1025 N Wilcox Ave 4 - - - 12 12 - 0% - N Residential 1333 Tamarind Ave Wiseman Residential 1333 Tamarind Ave 5 55,888 - - 45 41 4 8.9% - N Residential 1375 St Andrews Pl Nash-Holland 1375 St. Andrews 1375 St Andrews Pl 8 226,160 - 1,279 185 185 - 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 Citrus & Highland The Illulian Group 1242 North Citrus Ave 6 149,651 - 5,667 72 72 - 0% - N Residential The Lombardi MCAP Partners 1729 Bronson Ave 7 146,836 - - 86 86 - 0% - N Residential Montecito II Thomas Safran & Associates 6650 West Franklin Ave 6 53,370 - - 68 - 68 100% - N Residential PATH Villas Hollywood PVH LA LP 5627 Fernwood Ave 6 - - 60 - 60 100% - N Residential SunWest Reliable Properties 5525 W Sunset Blvd 6 - - 35,694 412 347 65 15.8% - 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% - 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% - N Residential 1233 N Highland Ave The Illulian Group 1233 N Highland Ave 6 12,160 72 66 6 8.3% - N Residential 1301 N Cherokee Ave Uncommon Developers 1301 N Cherokee Ave - - - - 18 18 - - - N Residential 1310 Gordon St Wiseman Residential 1310 Gordon St - - - - 60 55 5 8.3% - N Residential 5530 Virginia Ave Bang Ja Kim 5530 Virginia Ave - - - - 64 57 7 10.9% - N Residential 5337 Santa Monica Blvd The Santa Maria Group 5537 Santa Monica Blvd 6 80,000 -- 60 52 8 13.3% 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 Q1 2021 Appendix Published April 2021 39 hollywoodpartnership.com hollywoodpartnership hollywoodpship

The Hollywood Partnership 6562 Hollywood Boulevard Los Angeles, CA 90028 323.463.6767