Anchor Tenant Lease Expirations And Debt MaturityLease expirations for a studio anchor tenant combined with a large loan coming due create material uncertainty about future cash flows and refinancing needs.
Generous Tenant Concessions Reducing ReturnsUnusually large tenant incentives and extended free rent packages reduce effective rent on new deals and compress net returns relative to peers.
Weak Occupancy And Studio Market PressureOccupancy levels remain well below prior peaks while slower studio production and pressure in key West Coast markets have left soundstages vacant, weighing on revenue and margins.