Hasbro, Inc.

(NASDAQ Global Select)
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Somewhat Bullish +50

Hasbro ready to play in WeHo with 31K sf lease at The Lot at Formosa

AI-generated analysis

🧸 Hasbro has signed a long-term lease for over 31,000 square feet at The Lot at Formosa in West Hollywood.

🏒 The company will occupy the third and fourth floors of the Formosa West office building starting early next year.

πŸ’° Rent for the leased space is set at nearly $6 per square foot according to CBRE data.

πŸ“‘ Hasbro plans to relocate its Los Angeles teams focused on television, digital content, gaming, toys, and licensing to the site.

πŸ€– The new lease will also house Hasbro's artificial intelligence studio in the West Hollywood location.

🏠 The 112,000-square-foot Formosa West office building is now fully leased following Hasbro's commitment.

🌳 The Lot at Formosa property spans 11 acres and is approximately 95 percent occupied after the deal.

🎬 The historic campus was founded in 1918 by actors Mary Pickford and Douglas Fairbanks.

🏭 Warner Brothers purchased the site in 1980, while CIM Group acquired it later before selling it last year for $230 million.

πŸŽ₯ Famous productions including "Some Like It Hot" and "Euphoria" have been filmed at this historic studio lot.

πŸ–₯️ The property previously housed offices for industry figures such as George Lucas and Samuel Goldwyn.

πŸ“‰ Hasbro officially shifted its headquarters from Rhode Island to Boston last year before expanding in L.A.

πŸ™οΈ The move aligns with a trend of media companies moving into campus-style environments blending production and office space.

🦁 Other entertainment tenants like Puma, E.L.F., Skims, and Spotify are also building in-house content studios in Hollywood.

Bullish Signals
  • Hasbro is significantly expanding its Los Angeles footprint with a long-term lease for over 31,000 square feet at The Lot at Formosa.
  • The new facility will consolidate Hasbro's Los Angeles teams dedicated to television, digital content, gaming, toys, and licensing alongside its artificial intelligence studio.
  • This strategic move brings the 112,000-square-foot Formosa West offices to full occupancy, demonstrating high demand for this historic campus.
  • The property in its entirety is approximately 95 percent occupied, indicating a robust market for commercial space in West Hollywood.
  • Hasbro joins other major entertainment and lifestyle tenants like Puma, E.L.F., Skims, and Spotify who are capitalizing on the trend of campus-style environments blending production infrastructure with office space.
Risk Factors
  • Hasbro's move to Los Angeles adds significant expense burden as the company shifts its headquarters from Rhode Island to Boston and expands its LA footprint.
  • The lease involves nearly $6 per square foot for over 31,000 square feet of space, representing a substantial capital expenditure on real estate in a competitive market.
  • CIM Group sold The Lot at Formosa to a shell company it owns for $230 million as part of a recapitalization effort, suggesting potential financial engineering or asset stripping concerns surrounding the property's ownership structure.
  • While the property is 95 percent occupied, the sale to a related party for $230 million indicates that the market may not have valued the asset at full independent market prices prior to the transaction.
Full Analysis
Hasbro has signed a long-term lease for more than 31,000 square feet of space at The Lot at Formosa in West Hollywood, marking a significant expansion of the toy maker's physical presence in Los Angeles. The company will relocate its Los Angeles teams focused on television, digital content, gaming, toys, and licensing to the third and fourth floors of the Formosa West office building early next year, bringing with it its artificial intelligence studio as well. While Hasbro moved its corporate headquarters from Rhode Island to Boston last year, this deal confirms that it is actively increasing its footprint within the entertainment industry hub. The financial terms for the space are set at nearly $6 per square foot, according to CBRE data referenced by the report. This lease agreement brings the total occupancy of the 112,000-square-foot Formosa West office building to 100% and contributes to The Lot at Formosa property being roughly 95 percent occupied overall. Spanning 11 acres, the historic campus dates back to 1918 and was founded by actors Mary Pickford and Douglas Fairbanks before changing hands several times, eventually being sold to a shell company owned by CIM Group for $230 million last year as part of a recapitalization strategy. This development highlights a broader trend in Los Angeles where media and entertainment tenants are favoring campus-style environments that integrate production infrastructure with office space. The Lot at Formosa is known as a historic studio site where major films and TV shows such as "Some Like It Hot," "West Side Story," "Big Little Lies," and "Euphoria" have been filmed, including in offices previously used by Hollywood figures like George Lucas and Samuel Goldwyn. Other companies including Puma, E.L.F., Skims, and Spotify are similarly investing in building in-house studios within Hollywood to support content creation.