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Hudson Pacific's EPIC Office Tower Fully Leased to Netflix

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Hudson Pacific Properties, Inc. (HPP - Free Report) announced that it has struck a lease agreement with Netflix (NFLX - Free Report) , per which the latter will fully occupy Hudson Pacific’s EPIC office tower.

Specifically, the company has agreed to rent out 327,913 square feet of space in its 13-story office development to the streaming giant. EPIC, situated at 5901 Sunset Boulevard in Hollywood, CA, is currently under construction and will likely be delivered in first-quarter 2020.

Netflix is expected to occupy the property in January 2020, through 2031. Simultaneously, the company also extended the lease term for office space occupied at ICON and CUE, through 2031.

Netflix occupies 325,757 square feet and 91,953 square feet of space at ICON and CUE, respectively. Notably, both buildings are situated on the landmark Sunset Bronson Studios lot, across the street from EPIC. Hudson Pacific owns Sunset Bronson and counts CBS and KTLA as long-term tenants.

When completed, EPIC will offer Class A state-of-the-art office space, with more than 25,000 square feet of outdoor capacity. In addition to this, the building’s strategic location is anticipated to have backed Hudson Pacific to ink this lease.   

In fact, the LA Metro Red Line offers convenient access to the development. Further, presence of residential, restaurant and retail space, along with numerous high-profile corporate neighbors, makes the location more dynamic.

While the deal enables Netflix to significantly boost its footprint in Hollywood, pre-leasing an entire property reflects favorable demand for the landlord’s assets.

Hudson Pacific carries a Zacks Rank #3 (Hold), at present.

Also, shares of the company have fell 2.9% as compared with the industry’s loss of 5.1%, over the past year.




Stocks to Consider

A few better-ranked stocks from the real estate investment trust (REIT) space are Corrections Corp. of America , Host Hotels and Resorts, Inc. (HST - Free Report) and W. P. Carey Inc. (WPC - Free Report) . While Corrections Corp. flaunts a Zacks Rank #1 (Strong Buy), Host Hotels and Resorts and W. P. Carey carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Corrections Corp.’ Zacks Consensus Estimate for 2018 funds form operations (FFO) per share remained unchanged at $2.32 in the last month. Its shares have gained 12.3% in the past six months.

Host Hotels & Resorts’ current-year FFO per share estimates remained unchanged at $1.75 over the last 30 days. Its shares have appreciated 18.3% over the past six months.

W. P. Carey’s FFO per share estimates for 2018 remained unchanged at $5.43 in 30 days’ time. The stock has inched up 1% in six months’ time.

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