In 2024, we ended the year with office leasing nearly 20% higher compared to the prior year, comprised of more than 2.0 million square feet of activity. Importantly, our leasing pipeline is currently more than 2.0 million square feet, including nearly 800,000 square feet of later stage deals. Paired with robust touring, this momentum gives us confidence that we should see ongoing progress in our efforts to raise occupancy as we move through the year. AI related leasing as well as broader in-office mandates from major employers continue to drive companies to evaluate the need for additional space in well-located, high-quality properties. As for our studios, following a slower than anticipated start to production this year due to the wildfires in Los Angeles, we are beginning to see high- caliber shows returning and looking to ramp up production later in the year. There is also strong and growing sentiment coalescing around the California governor’s film and television tax credit program that would go into effect in the second half of 2025 and could stimulate additional demand.
Beyond our strong focus on driving office and studio leasing, our strategic priorities in 2025 are to continue to execute on asset sales, look for additional cost savings and further strengthen our balance sheet. We are committed to achieving our targets, which will optimally position Hudson Pacific for reinvigorated future earnings growth.
Victor Coleman
Chairman & CEO, Hudson Pacific Properties