Paramount broke their 10-year lease for its Showtime headquarters at The Lot in West Hollywood, located at 1041 North Formosa Avenue, reports the Commercial Observer. Paramount is moving out of the 50,000 square feet space shortly after moving in in 2019. The financial details such as penalties for ending the lease early have not yet been disclosed.
Paramount, known for owning the cable television channel Showtime, and is currently involved in merging it with its Paramount+ streaming service, has been occupying the space at the CIM-owned building after Showtime previously vacated a Douglas Emmett building in Westwood. The relocation into West Hollywood happened shortly after after CBS’ $750 million sale of its Fairfax lot, CBS Television City, to Hackman Capital Partners. CBS still owns the Studio Center in Studio City but opted against consolidating Showtime over the hill according to The Hollywood Reporter.
The Lot at Formosa serves as a sizable 540,000-square-foot office and soundstage complex.The WeHo Showtime headquarters has glass-walled offices with several collaboration areas, a flood of natural light, lounges with Hollywood Hills views, a cafe and a state-of-the-art screening room. Reports suggest that CIM Group has been attempting to sell the property since the previous summer.
A notable development in 2021 saw HBO and HBO Max signing a long-term lease for approximately 161,000 square feet of sound stages and production office space at the same complex. This lease agreement allowed CIM Group to fully occupy all seven sound stages within the property.
Besides Paramount and HBO, other prominent tenants at the campus include Live Nation, Discovery, and the Oprah Winfrey Network.
The real estate market in Los Angeles has been experiencing an unprecedented surge in available office space. At the end of the second quarter, approximately 27 percent of all office space in Los Angeles County was up for grabs, as reported by Savills. The majority of this availability comes from an increase in sublease space, with nearly 2 million square feet of space hitting the market in the past year, as per Savills’ data.