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Media outlets help fill up studios by leasing to smaller companies.


Media companies in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850.  County, struggling to remain competitive, are getting aggressive about leasing out their studio space to producers, refusing to allow any buildings to sit idle.

But at the same time, some television networks and major studios are expanding, which may lead to a glut of available space for TV production and falling lease prices.

"I don't think there's any question that they're going to have to get cheaper to attract people," said Richard Smith Richard Smith is the name of:
  • Richard Smith (journalist), associate editor of Gay Times magazine
  • Richard Smith (screenwriter/director), BAFTA-winning writer of Trauma
, president of the Burbank chapter of the National Association of Broadcast Employees and Technicians The National Association of Broadcast Employees and Technicians, or N.A.B.E.T. is a labor union. It began in 1934 when the Association of Technical Employees (ATE) began representing employees in Television, Radio, Film, and Production. .

"I think the danger is going to be, based on the economy, that somebody may be overbuilding and there may not be the interest in old-fashioned studio space," he said. "To me, there isn't a need for the studios. Much of the work is done in the field for reality-based programs now and live sports events, and there's less need for dramas."

Still, the building goes on.

Twentieth Century Fox, which already leases out much of its space, has plans for a major expansion project on its Century City lot that includes 25,000 square feet of new production facilities.

Warner Bros BROS Brothers
BROS Benefits and Retirement Operations Section (King County, Washington)
BROS Barnes and Richmond Operatic Society (London, UK) 
. and Walt Disney Noun 1. Walt Disney - United States film maker who pioneered animated cartoons and created such characters as Mickey Mouse and Donald Duck; founded Disneyland (1901-1966)
Disney, Walter Elias Disney
 Co. both have expansion plans in Burbank.

Warner Bros. plans to construct a new office building across the street from its main studio lot, which could open up studio space if administrative employees are moved to the new facility.

Ron Stein, vice president of production services for Warner Bros. Studios Facilities, said the company's lot has been busy in recent months with Warner shows and hasn't had much space for lease.

"This past television season, we've been extremely busy with partner companies -- Warner Bros. Television Warner Bros. Television is the television production and distribution arm of Time Warner's Warner Bros. Entertainment and The CW Television Network (in which Warner has a 50% ownership stake). , Warner Bros. Features, Lorimar," said Stein. "We do rent exterior sets. We are able to fit in third-party clients.

"My feeling is that your production companies are trying to, as much as possible, keep their productions here at home. I believe there is a shortage of space now. Is there too much expansion planned? I don't know Don't know (DK, DKed)

"Don't know the trade." A Street expression used whenever one party lacks knowledge of a trade or receives conflicting instructions from the other party.
."

Disney has only five sound stages on its Burbank lot and has stated that building up to six new sound stages will be the first phase of its $600 million expansion project.

"Even six new sound stages would not be sufficient to accommodate the total requirements of Disney's motion picture and television production activities," states a Disney brochure on the company's preliminary master plan. "As a result, the company will continue to explore other off-campus alternatives for meeting these requirements."

NBC NBC
 in full National Broadcasting Co.

Major U.S. commercial broadcasting company. It was formed in 1926 by RCA Corp., General Electric Co. (GE), and Westinghouse and was the first U.S. company to operate a broadcast network.
 in Burbank, which recently launched a program to pursue the leasing out of its unused studio space, plans to move hundreds of office employees to the yet-to-be-built NBC Plaza, a two-tower office project, freeing up even more studio space for lease.

According to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 its new contract with NABET NABET National Association of Broadcast Employees and Technicians , NBC may now accept "four walls" lease deals, renting out only buildings and allowing producers to bring in their own crews.

"The company (NBC) is almost desperate for work to fill its studios," said Smith. "They will have to cut their rates. NBC (charges) a higher rate because the equipment is there. Now they're talking about selling the equipment and really renting just the four walls."

Smith said he remains philosophically opposed to the four-walls concept, but "it doesn't do much good for me to charge windmills," he said.

Warner Bros. also offers a variety of lease options, including "four walls," equipment rentals and packages that include crews.
COPYRIGHT 1991 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Article Details
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Title Annotation:Quarterly Real Estate Property; television companies rent out building space to producers
Author:Rackham, Anne
Publication:Los Angeles Business Journal
Article Type:Industry Overview
Date:Dec 2, 1991
Words:576
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