How California’s $750M Film Tax Credit Boost Can Benefit the CRE Industry
California has voted to keep film and TV production local by expanding its tax credit program to $750 million. For the CRE industry, that means a potential boost in demand for studio space, office rentals, and production-related services across Greater Los Angeles.
What You Need to Know
California lawmakers have passed legislation to boost film and TV tax credits from $330 million to $750 million, with Governor Newsom signing it into law.
The change comes as film production in LA hit its second-lowest level in 2024, with over 17,000 jobs lost since 2022. Unions and industry leaders are pushing to bring filming back to California.
By more than doubling the tax credits, California hopes to bring back productions that moved to other states or countries for better deals.
How It Impacts You
This is a big opportunity for commercial real estate. More local filming means higher demand for:
- Sound stages, production offices, and converted warehouses
- Rentals near major studios
- Support services like food, transport, parking, and security
Property managers and service providers near Hollywood, the Valley, and other film areas might have to prepare for more interest and leasing activity.
More studio investment could also mean new projects, office upgrades, and custom spaces for entertainment tenants.
Stay Connected
As California aims to lead the film industry again, the CRE could get a boost, with increased demand for studio space, offices, and services supporting production driving new growth opportunities.
Stay connected to BOMA on the Frontline for more legislative updates and its potential impact on members.
