Hollywood is known to the world for entertainment. Recently, however, the Hollywood real estate market that has languished for years has made a remarkable comeback. Let’s take a look at how it happened and what this means for you.
How Hollywood Came Back
For years, it did not look like Hollywood would ever be considered a great real estate market again. Studios had moved on, new businesses were not coming to the area, and no new developments were in the works. However, when the Red Line came through in the early 1990’s, the revival began.
With the Red Line, the accessibility to freeways, and a brand that people recognize, Hollywood took off. Now, the area is known as a ‘live-work-play’ neighborhood, allowing residents to do everything within their own community. Due to this concept, major companies, such as Netflix, have moved into the area.
Additionally, Hollywood is known for its 24-hour entertainment and mixed-use facilities. This makes creative talent want to be here. In addition to new entertainment companies, the area’s growth also includes residential units, hotels, and restaurants. In fact, there is no slowdown for residential and commercial space in sight.
Keeping With History
Unlike new development in some areas of LA, new development in Hollywood works to preserve the history of the area. Rather than tear down old buildings, new developers are turning to adaptive reuse to preserve buildings loved by Westsiders. New developments also keep with tradition, adding in elements that tie into early 20th century buildings.
This is perfect for those already owning property in here. Homeowners can feel comfortable knowing that new development will not change the feel of the community.
To give you an idea of the scale of growth, let’s take a look at the hotel market in Hollywood. With 16 hotels in some stage of development, it is apparent that this is a travel destination as well as a center for living.
- Dream Hotel – 179 guest rooms opened the summer of 2015
- Hotel Argyle – 220 rooms currently under construction
- Thompson Hollywood Hotel – 220 under construction
- 1525 Cahuenga – 55 rooms still in planning
- 5600 Hollywood – 80 room European style boutique under construction
- Marriott – 275 Art-Deco rooms slated for development in 2019
- Millennium Hollywood – Two towers of 35 and 39 stories for mixed use including hotel, residences, retail, offices, and more
- Columbia Square – Half the rooms are extended stay
- citizenM – Microunit inn
- 6220 Yucca – 260 hotel rooms
- Tommie – 7-story hotel with a rooftop pool
- 1925 Wilcox – 159 rooms with a second-floor pool
- Crossroads of the World – 3-tower complex with one tower as a hotel with 308 rooms
- 6637 Hollywood – 167 rooms plus an art gallery
- 6421 Selma – 114 rooms
- 1717 Wilcox – 134 rooms across from the Walk of Fame
What Does This Mean For You?
What does all this mean for those with property in or around Hollywood? As developers continue to add mixed-use projects to the area, the Westside will continue to grow, and the market will continue to flourish. “Live-Work-Play” communities have great walkability scores, as well as the amenities the millennial generation and the retiring baby boomers seek when purchasing property.
In terms of homeownership, buying property here is a great investment as home prices continue to rise. With increased development in the area, this trend appears to be continuing.
For questions about Hollywood or other cities within the Westside, please give me a call. I’d love to talk with you about how I see current and future development shaping the real estate market.