Disney to Lease Space on the Fox Lot for 7 Years
The decision was announced in a town hall on Thursday morning.
Following the massive Disney-Fox deal that was announced Thursday morning, Disney revealed it plans on leasing space on the Fox lot for seven years.
As several outlets reported yesterday, the 53-acre lot on Pico Boulevard in Century City would not be part of today's deal and would remain under Fox ownership, making the announcement of a leaseback an obvious solution to avoid disruption of current production. The Fox lot has been one of the most active production facilities in the city. ABC's Modern Family, Speechless and Fresh Off the Boat currently shoot on the Century City lot, as does Fox's The Orville, The Mick and L.A. to Vegas, along with all of Ryan Murphy's FX shows, among others.
It is believed that the Fox employees who work for the businesses the company retained — Fox News, the Fox broadcast network and the FS1 sports channel — will remain on the property. There are more than 80 permanent buildings on Fox's lot, including soundstages, television production and programming facilities, executive offices and support facilities, amounting to nearly 1.8 million square feet of building space.
Seven years is a lifetime in the Los Angles real estate development world, but under current zoning laws it would be hard to imagine the lot being sold and redeveloped for some other purpose other than as office space, soundstages and production facilities. A local zoning law that applies specifically to Century City requires that any new development meet a "net zero traffic increase" requirement. That restriction would likely exclude the creation of any new high-rises — at least in the short term.