Entertainment Users Fuel Ultra-Low SFV Vacancy

LOS ANGELES—Entertainment industrial users are migrating to the San Fernando Valley, where industrial vacancy rates are below 1%. The San Fernando Valley is, in many ways, a smaller Inland Empire market, and according to Colliers International EVP John DeGrinis, entertainment users are a large segment of the demand and are helping to push the vacancy rates to all-time lows.

“Some of these users that are located in denser areas like Hollywood and adjacent, where we have older buildings that have been around since the 30s, 40s and 50s, some of the users are recognizing that the buildings need to be a little bit more modern,” DeGrinis tells GlobeSt.com. “We have seen a fairly steady transition for users coming from Hollywood and moving into the San Fernando Valley because the buildings are more modern, and number two, there is availability, which often times in Hollywood, you won’t find in an industrial building.”