“Disney and DreamWorks are both very important customers of ours, and any opportunity to be in close proximity with them is positive,” he said.
Technicolor is best known for processing film, but also does special effects and manufactures DVDs and Blu-ray discs, with roughly 17,000 workers in the United States, Canada, India, China and Europe. It has recently made significant investments in digital technology under the expectation that by the end of 2011, Berchtold said half of North American theaters will use digital projectors.
David Issaians, a Coldwell Banker Commercial broker who represented property owner Mar & Co. in the deal, said media firms are focusing on industrial sites, where the price per square foot is between 60 cents and 90 cents, about one-third of the local rate for commercial buildings.
“The production companies, post-production companies and similar operations tend to be focused on warehouse space,” Issaians said.
The building’s former occupant, Side Effects Clothing, will move its warehouse to a facility outside the San Fernando Valley, Issaians said.
Mike Maniscalchi, with Glendale’s Stevenson Real Estate Services, said the vacancy rate for industrial sites in Glendale and Burbank is between 6% and 7%, far lower than the 17.7% commercial vacancy rate in Burbank or the 23.6% commercial vacancy rate in Glendale.
“I am very pleased to see these high-paying, professional jobs coming to Glendale,” Councilwoman Laura Friedman said. “It fits right in with what we’re trying to create along San Fernando Road.”