Declining Soundstage Occupancy in Los Angeles Amidst New Openings

Los Angeles soundstages are experiencing significant challenges in leasing space for productions, with occupancy rates dropping to 62% in the first half of 2025. This decline follows a trend that began prior to the strikes by the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) and the Writers Guild of America in 2023. Despite the downturn, the region continues to expand its soundstage capacity, with new facilities opening, including East End Studios' five-stage Mission Campus in Boyle Heights and Cinespace Studios' six stages in Woodland Hills.

Variety Magazine

Just a few years ago, California faced warnings of a soundstage shortage, as occupancy rates soared above 90% during the streaming boom. In response, the California Legislature authorized a $150 million subsidy in 2021 to stimulate soundstage production, aiming to prevent filming from relocating to less congested areas. However, the industry's contraction has led to a dramatic decrease in production jobs, with figures dropping from 136,000 in 2022 to 82,000 by September 2025, marking a 40% decline.

Variety Magazine

Despite the decline in occupancy, Los Angeles County's soundstage space has increased to approximately 8.3 million square feet in 2025, up from 8 million the previous year. This figure represents the largest concentration of soundstages globally. In comparison, the United Kingdom has expanded its soundstage capacity from 7 million square feet in 2024 to 7.7 million in 2025, while New York has increased from 3.4 million to 4.4 million square feet in the same period.

Variety Magazine

FilmLA, the nonprofit organization responsible for processing film permits in Los Angeles, has noted a sharp decline in location shoots as well. The organization has access to extensive data on permit volumes, which reflects the broader challenges facing the industry.

Variety Magazine

Critics of the current state of the industry argue that the rapid expansion of soundstage facilities may not align with the actual demand for production space. The significant investment in new facilities raises concerns about the sustainability of such growth in light of declining production jobs and occupancy rates.

Variety Magazine

While FilmLA reports a 62% occupancy rate for soundstages, there is a lack of consensus on the long-term implications of this decline. Some industry experts suggest that the current oversupply of soundstage space could lead to further challenges in attracting productions, while others believe that the market will eventually stabilize as the industry recovers.

Variety Magazine

As the industry navigates these challenges, stakeholders will be closely monitoring production trends and occupancy rates. Future developments in soundstage projects and potential policy adjustments may play a crucial role in shaping the landscape of film production in Los Angeles.

Variety Magazine