The Hollywood Partnership released its 2020 Quarter 3 Hollywood Market Report on Oct. 30, which presents data and information about the greater Hollywood area market and the smaller Hollywood Entertainment District area.
At the close of Q3, signs of adaptation and recovery emerged around Hollywood. Long-term confidence is a constant refrain among investors in the area, though the pandemic and its resultant layers of uncertainty impact sectors such as hospitality, retail and office space in uneven ways. Still, the neighborhood shows signs of confidence, as longtime investors and new entries to the market provided reasons for optimism and an eventual economic rebound. A total of 77 development projects are slated for the Hollywood area, 38 of which are in the Hollywood Entertainment District.
The report highlights several notable trends and statistics. For instance, 735 residential units were under construction in the HED during Q3 2020, and the 17% office space vacancy in Hollywood compares to the Los Angeles office market average of 16.5%. In addition, 8% of office space under construction in Los Angeles is in Hollywood, and hotel room demand increased +93.9% in Q3 over Q2 in Hollywood. Also, 11% of storefront businesses temporarily closed at the end of Q2 reopened by the end of Q3 in Hollywood.
Few sectors are as affected by the COVID-19 pandemic as hotels, tourism and the storefront economy. While hotel occupancy figures now approach 50% at the end of Q3, several Hollywood-area hotels remain closed.
“Everyone wishes that they had a crystal ball to show us the future, perhaps never so much as right now. However, knowing where our economy is and has been will help us prepare for what’s ahead,” said Davon Barbour, vice president for advocacy and economic development at the Hollywood Partnership. “Six months from now, I want Hollywood’s small businesses better prepared and better resourced to navigate these uncertain times. I want our businesses leveraging technology and strengthening their online presences to connect with their current and future customers. We can’t go back to business as usual.”
By tracking these benchmarks and fully understanding the market conditions in Hollywood, the Hollywood Partnership is investing in the area’s stakeholders by preparing them to participate in the community’s economic recovery.
“This report builds off and expands the breadth of information we catalog about the Hollywood area. We believe that reliable, timely information is critical to supporting our neighborhood economy,” added Kristopher Larson, the Hollywood Partnership’s president and CEO.
For information, visit onlyinhollywood.org/wp-content/uploads/2020/10/201030_HP_Q3_fullreport_digital_compressed.pdf
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