Hudson Pacific Properties executed exceptionally well in all aspects of our business in 2018, propelled by the continued strength of tech and media in West Coast markets. We are well situated in both our office and studio segments as we head into 2019. In the fourth quarter, we capped off a record year of office leasing, and we have now renewed, backfilled, or are in leases, LOIs or proposals on 50% of our remaining 2019 expirations, which are 18% below market. The momentum continues, and in the first few months of 2019, we signed a full-building lease for One Westside with Google and partial-building lease at Maxwell with WeWork. These deals bring our one million-square-foot-plus pipeline of under construction and near-term-planned value creation projects to 86% pre-leased. Our studios, in particular, are benefiting from streaming content creators’ growing demand for space. We’re seeing increases in occupancy, rents and ancillary revenue at all three studios. Streaming content companies, including Netflix, Amazon and Hulu, now contribute approximately 30% of our studio ABR, and roughly 50% of our studio ABR is attributable to long-term leases.
We sold nearly half a billion dollars of non-core assets in 2018, which we’ve used, in part, to purchase higher quality, well-located properties with better NOI growth potential. These include our joint venture with Macerich for One Westside and 10850 Pico in West Los Angeles and, in the fourth quarter, our joint venture with Allianz for the San Francisco Ferry Building. With significant asset sales behind us, a strong balance sheet, and a variety of joint venture partners, we have ample capital to fund both embedded and external growth going forward.
Victor Coleman
Chairman & CEO, Hudson Pacific Properties