Is Netflix Making a Big Real Estate Move In L.A.?

Why It Matters

Owning a flagship studio would reduce Netflix’s reliance on external landlords and secure critical production capacity, while potentially reshaping Los Angeles’ commercial real‑estate landscape.

Key Takeaways

• Netflix may purchase historic Radford Studio Center in L.A.
• Hudson Pacific receives $27M annual rent from Netflix lease through 2031.
• Acquisition could replace Netflix's current lease on Sunset Studios.
• Studio‑lot demand faces AI and post‑strike uncertainty.
• Netflix invests $1B East Coast studio, expanding global production hubs.

Pulse Analysis

Netflix’s reported interest in buying the Radford Studio Center marks a strategic pivot from leasing to ownership of core production infrastructure. Radford, a 70‑acre historic lot once part of ViacomCBS, was sold in 2021 for $1.85 billion and later fell into the hands of Goldman Sachs after the previous private‑equity owner defaulted. By partnering with Goldman, Netflix could secure a permanent L.A. foothold, eliminating the $27 million annual rent it currently pays Hudson Pacific for the Sunset Studios complex. This acquisition would also align with the company’s broader push to internalize content creation resources.

For Hudson Pacific, Netflix represents its second‑largest tenant, contributing roughly $27 million a year to a portfolio dominated by tech giants like Google. A potential exit would force the landlord to seek a new anchor, a challenging task given the recent slowdown in studio‑lot occupancy caused by the 2023 writers and actors strikes and lingering uncertainty over AI‑driven production workflows. The shift underscores a broader trend where operators reassess the risk‑return profile of office‑centric assets versus purpose‑built soundstages, especially as content spend cycles become more volatile.

From Netflix’s perspective, owning Radford complements its expanding global studio network, which already includes ABQ Studios in New Mexico, a $1 billion East‑Coast campus in New Jersey, and new hubs in Mexico City, Buenos Aires, and Poland. Controlling a flagship L.A. lot enhances the company’s ability to schedule high‑budget productions, reduces dependency on third‑party landlords, and strengthens its competitive position against rivals that are also amassing studio assets. The move reflects a long‑term bet that vertical integration of production facilities will be essential to sustain its 325 million subscriber base and to navigate the evolving economics of streaming content.