TECHNICOLOR BACKS OUT OLD NEWBERRY BUILDING'S NOT BIG ENOUGH FOR FILM GIANT.

Byline: Sylvia L. Oliande Staff Writer

BURBANK - Technicolor, announced with some fanfare two months ago as the new tenant for the old J.J. Newberry's building, is not coming to town after all.

The commercial real estate broker marketing the 20,000-square-foot storefront said Wednesday that the site, at San Fernando Boulevard and Magnolia Avenue, wasn't big enough for the film company's needs.

But Greg Whitney also said he's had a hard time leasing the property, which has been vacant more than two years. A glut of new space in and around the downtown area, he said, is causing retailers to hesitate about the Newberry's site and two other major vacancies on San Fernando Road.

``Our economy's strong, we've got good activity on the space, but you've also got a lot of alternatives that have distracted these retailers,'' said Whitney, of CB Richard Ellis.

Construction of an AMC movie complex on Palm Avenue about a block away from Newberry's should help, he said.

``It brings another anchor to the area and improves the retail district, but no one likes to make the first move.''

The J.J. Newberry's store has attracted interest from a number of potential tenants, but none has worked out so far. The property manager for Auburndale Properties, which owns the site, was out of town and did not return calls seeking comment.

City officials announced Technicolor as a tenant in July.

Whitney said the company needed approximately 30,000 square feet to accommodate its workers and combine some of its divisions.

Robert Tague, the city's director of community development, agreed that one of the big problems has been that retail tenants are taking a wait-and- see attitude, not wanting to enter into a lease until the AMC project is underway.

Local real estate brokers agree that at least until the shops in the AMC entertainment complex west of San Fernando Road at Palm Avenue are under construction, retailers are going to shy away from the San Fernando Road properties.

Whitney said another factor causing lessees to wait is the potential to get into the newly approved Empire Center retail project a few miles away. The site is across the Golden State freeway at Victory Place and Empire Avenue.

That shopping center will be anchored by several big-box stores such as Costco and Target.

Burbank officials have been trying to spur interest in that and two other properties on San Fernando Road, including offering financial incentives and creating marketing tools.

The old Inca computer store at Palm Avenue is leased to Blockbuster Video, which is looking to sublet the property. Through October, the store will house a Halloween store.

Crown Bookstore also has a temporary tenant, but its owners are looking for something permanent. Tague said the problem there is that the store will be at ground zero for the AMC construction expected to start in November and continue for at least 18 months. While the complex is being built, parking for the store will be virtually eliminated.