C
entury City's Unshakeable Reputation Shaken by Disney's Departure
A seismic shift is underway in Century City, a once-stable hub of commercial real estate that has long defied the turbulent market. The Walt Disney Company's impending exit from the iconic Fox Studio lot, as reported by the Los Angeles Times, threatens to upend the district's future and test the mettle of its landlords, Rupert Murdoch and his son Lachlan.
The Fox lot's crown jewel, a 10201 West Pico Boulevard property generating up to $50 million annually in rental income, is set to be vacated by Disney. The company's seven-year lease, secured as part of its 2019 acquisition of 21st Century Fox for $71.3 billion, is nearing its end, with sources confirming that Disney plans to fully depart the space by year's end – a full two years ahead of schedule.
Disney's decision reflects a broader strategic consolidation, as the company centralizes operations at its Burbank headquarters into what it calls a "creative hub." Key departments, including FX and 20th Television, will also relocate, marking an end to their decades-long presence on Pico Boulevard.
The impending vacancy arrives amidst a perfect storm of challenges in the entertainment industry. The COVID-19 pandemic and dual strikes of 2023 have dealt significant blows to L.A.'s film economy, while cost-cutting measures have squeezed studio budgets and operations.
Yet, there are glimmers of hope. A proposed doubling of California's film and TV tax credit has sparked optimism for a production rebound in Southern California, with Governor Gavin Newsom strongly backing the measure. If passed, it could provide a much-needed boost to an industry still recovering from recent setbacks.
Interest remains high in the soon-to-be-available space at the Fox lot, according to sources familiar with leasing discussions. Fox has already demonstrated flexibility with its real estate, renting out sections like its "New York Street" for music videos, commercials, and other productions.
The Fox lot's history is a testament to its adaptability. Founded by William Fox in 1915, it has undergone numerous transformations, including the pivotal sale of a 260-acre stretch of land to Alcoa in the 1960s. This deal paved the way for the development of Century City, a mixed-use district featuring commercial towers, luxury residences, and the Westfield Century City shopping center.
