Once a Stable Real Estate Base, Century City Now Faces Renewed Uncertainty
Century City, long considered a rare stronghold in Los Angeles’ struggling commercial real estate market, is bracing for a major transition, as reported by the Los Angeles Times. The Walt Disney Company is preparing to exit the iconic Fox Studio lot, a move that could reshape the district’s future and present a formidable challenge for its landlords—namely, Rupert Murdoch and his son Lachlan.
The property at 10201 West Pico Boulevard, a central piece of the Fox lot, generates up to $50 million annually in rental income. Disney has been the largest tenant since its 2019 acquisition of 21st Century Fox for $71.3 billion, a deal that allowed the Murdochs to retain ownership of the studio lot while Disney committed to a minimum seven-year lease. That commitment is nearing its end, and sources have confirmed that Disney plans to fully vacate the space by the end of this year—well ahead of the lease’s official March 2026 expiration.
The move reflects a broader strategic consolidation, with Disney centralizing its operations at its Burbank headquarters into what it calls a new “creative hub.” Departments, including FX and 20th Television, led by John Landgraf and Karey Burke, will also relocate, ending a decades-long connection to the Pico Boulevard location.
The impending vacancy comes at a time of upheaval in the entertainment industry. The landscape looks dramatically different from when the Disney-Fox merger was first announced. The initial streaming boom fueled a wave of content production and expansion, but recent years have brought setbacks. The COVID-19 pandemic halted production, and the dual strikes of 2023 dealt another blow to L.A.’s film economy. Cost-cutting across the industry has also squeezed studio budgets and operations.
Despite these challenges, there are glimmers of optimism. A proposal to double California’s film and TV tax credit—strongly backed by Gov. Gavin Newsom—has sparked hope for a production rebound in Southern California. If passed, the measure could offer a much-needed boost to a sector still regaining its footing.
In the meantime, interest in the soon-to-be-available space at the Fox lot remains high, according to sources familiar with leasing discussions. Fox has already demonstrated flexibility with its real estate, renting out sections like its “New York Street” for music videos, commercials, and other productions.
The Fox lot has been no stranger to change. Founded by William Fox in 1915, the site has undergone numerous evolutions. Perhaps its most defining transformation came in the 1960s when Fox, struggling with the costly production of Cleopatra, sold a 260-acre stretch of land to Alcoa. While Fox retained a portion for filmmaking, the remaining property was developed into what is now Century City—a mix of commercial towers, luxury residences, and the Westfield Century City shopping center.
