HOLLYWOOD, CA — A new Quarter 3 Hollywood Market Report from the Hollywood Partnership shows reason for long-term optimism, even as the effects of the coronavirus pandemic remain all too apparent. The project points to development projects and the return of some storefronts as indicators that better results could be on the horizon.
According to the report, 735 residential units were under construction in the Hollywood Entertainment District during Q3. Additionally, 11% of businesses that had temporarily closed at the end of Q2 managed to reopen this quarter.
Although the hotel and tourism sector continues to be among the most heavily-hit, there was a notable boost in demand from the previous quarter. While several Hollywood hotels remain closed, those who are open saw a 93.9% increase in demand, nearing 50% occupancy in total.
The office sector didn't fare quite as well, with a 17% vacancy rate slightly above the overall Los Angeles average of 16.5%. According to the report, less than one-third of office employees have returned to work, as telecommuting remains prominent throughout the city.
"Everyone wishes that they had a crystal ball to show us the future, perhaps never so much as right now," said Davon Barbour, Vice President for Advocacy & Economic Development at the Hollywood Partnership. "However, knowing where our economy is and has been will help us prepare for what's ahead."
"Six months from now, I want Hollywood's small businesses better prepared and better resourced to navigate these uncertain times," he continued. "I want our businesses leveraging technology and strengthening their online presences to connect with their current and future customers. We can't go back to business as usual."