Media District Commercial Vacancy Drops to Five-Year Low as Studios Drive Demand

Burbank’s Media District is experiencing its tightest commercial real estate market in five years, with vacancy rates plummeting to just 3.2% in the fourth quarter of 2024—down from 8.7% just two years ago.

The dramatic shift reflects the entertainment industry’s post-pandemic recovery and the ongoing streaming wars that have production companies and content creators competing for prime real estate near Disney, Warner Bros., and Netflix’s Burbank operations.

“We’re seeing bidding wars for office space that we haven’t witnessed since before COVID,” said Maria Gonzalez, a commercial real estate broker with Cushman & Wakefield who specializes in the Media District. “Companies are willing to pay premium rents to be within walking distance of the studios.”

Streaming Giants Fuel Demand

The surge in demand stems largely from the expansion of streaming platforms and their need for local production support services. Netflix alone has added 180,000 square feet of additional office space in Burbank over the past 18 months, while Amazon Studios has been quietly scouting locations for a new post-production facility.

“The proximity factor is huge,” explained David Chen, president of MediaSpace Properties, which manages several office complexes along Olive Avenue. “When you’re working on tight production schedules, being a five-minute drive from Warner Bros. instead of a 45-minute slog from Santa Monica makes all the difference.”

The rental rates reflect this premium. Class A office space in the Media District now commands an average of $3.85 per square foot monthly, up from $2.90 in late 2022. That’s still competitive compared to West Hollywood ($4.50) or Century City ($5.20), making Burbank an attractive middle ground for entertainment companies.

Local Businesses Cash In

The office boom has created a ripple effect throughout the Media District. Restaurants along Magnolia Boulevard report increased lunch crowds, while co-working spaces like The Lot on West Olive Avenue have waiting lists for the first time since opening.

“We used to have maybe 60% occupancy on a good day,” said Jennifer Park, manager of Creative Collective, a co-working space that caters to freelance editors and graphic designers. “Now we’re at capacity most days, and we’re getting calls from people in post-production who need flexible workspace between projects.”

The vacancy crunch has pushed some businesses to get creative. Visual effects company Pixel Dynamics recently converted a former automotive repair shop on West Alameda Avenue into a state-of-the-art rendering facility after striking out on traditional office listings.

Development Pipeline Responds

Developers are taking notice. Three new mixed-use projects totaling 850,000 square feet of office space are in various stages of approval, including a 12-story tower at the corner of Buena Vista Street and Alameda Avenue that would be the Media District’s tallest building.

“The demand is definitely there,” said Tony Ricci, a partner with Meridian Development Group, which is behind the Buena Vista project. “We’re seeing inquiries from companies that haven’t even started looking yet but know they’ll need space in the next two years.”

The new construction can’t come soon enough for many businesses. Burbank-based sound mixing company AudioCraft had to relocate to Glendale after their lease expired and no comparable space was available in their price range.

“We’d been in Burbank for 15 years,” said AudioCraft founder Mike Santos. “All our clients are here, our employees live here. But when your rent doubles and there’s nothing else available, you don’t have much choice.”

City Officials Optimistic

Burbank city officials view the commercial real estate surge as validation of their long-term economic development strategy focused on the entertainment industry.

“This is exactly what we hoped would happen when we invested in infrastructure improvements and streamlined our permitting process for media-related businesses,” said Councilmember Sharon Springer, who chairs the city’s Economic Development Committee.

The city has been proactive in supporting growth, recently approving a $2.3 million upgrade to fiber optic networks in the Media District and fast-tracking permits for entertainment industry tenants.

Looking Ahead

Real estate experts predict the tight market will persist through 2025, driven by continued streaming investment and the return of international productions that had shifted to other markets during the pandemic.

“We’re seeing Korean and European production companies setting up shop here again,” noted Gonzalez. “The global appetite for content isn’t slowing down, and Burbank remains the epicenter.”

However, some warn that rapid rent increases could price out smaller creative businesses that give the Media District its character.

“There’s a balance we need to strike,” said longtime Burbank resident and documentary filmmaker Sarah Kim, whose production company recently downsized to afford rising rents. “We want growth, but not at the expense of the creative ecosystem that made this area special in the first place.”

For now, though, the market shows no signs of cooling. With Netflix planning additional expansion and Disney reportedly scouting space for new digital content operations, Burbank’s Media District appears poised to remain one of LA County’s hottest commercial real estate markets.

The challenge for city planners will be managing growth while preserving the collaborative, creative culture that makes Burbank attractive to entertainment companies in the first place. But with development pipeline projects set to add significant inventory over the next three years, relief may be on the horizon for businesses seeking space in the heart of the entertainment industry.