Quixote Studios, which manages soundstages and production equipment facilities, has signed a lease for nearly 124,000 square feet of industrial and office space in Los Angeles’ San Fernando Valley with local powerhouse landlord Rexford Industrial Realty. Quixote will convert the warehouse portion into sets for studios.
The property, at 12154 Montague Street in the Pacoima neighborhood, is located around the corner from another one of Quixote’s production campuses. The deal includes 95,394 square feet of warehouse space and 28,580 square feet of office space, according to Newmark (NMRK), which represented Rexford in the agreement. Quixote can move in the third quarter.
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Due to the bottleneck in production, and the supply-demand imbalance for content creation space after 2020, market experts said studio users would step further into secondary markets and convert industrial properties into soundstages.
“It was the only available building larger than 100,000 square feet in the greater San Fernando Valley,” said Jeff Abraham of Newmark. “We knew its image, location and clear height would be attractive to the entertainment industry, so it’s no surprise we were able to secure a long-term lease with an entertainment company.”
The property is situated near other entertainment companies, such as Line 204, as well as Quixote Studios’ 75,000-square-foot campus at 10445 Glenoaks Boulevard. Quixote opened that space in mid-2019, showing how areas outside of Hollywood are seeking to get a piece of the film production action.
Rexford, a real estate investment trust based in West L.A., is one of the most prominent landlords in the market, due to its growing industrial portfolio of warehouse and logistics properties during a time when the asset class is seeing record-high demand.
With a total inventory of more than 1 billion square feet of industrial space, L.A.’s industrial vacancy rate has remained below 3 percent for 36 consecutive quarters, marking the lowest such rate in the nation, according to Newmark.
Abraham, along with Newmark’s John DeGrinis and Patrick DuRoss, represented Rexford.
UPDATE: This story has been updated to reflect Quixote’s plan to convert the warehouse space into studios.
