Video Game Industry Boom Presents CRE Opportunities in Southern California

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As the local economy continues shows green shoots of recovery, there are plenty of commercial real estate opportunities in Southern California. More and more focus is on the video game industry. 

With Hollywood serving as the epicenter of the entertainment industry, it shouldn’t come as a surprise that more creative and tech brands are moving to this booming ecosystem. Video game and tech brands are almost growing in lockstep and attracting more creative talent to Greater Los Angeles and Silicon Beach.

Three trends are driving this growth:

Pandemic Produces a Video Gaming Boom

While most of the world was stuck inside for the majority of 2020, the video game industry benefited. Research from Nielsen found that nearly 55% of Americans turned to video games during the pandemic. 

Many found gaming a source of stress relief during a time of tension and anxiety. But games, especially interactive ones like Animal Crossing, Among Us, and Fortnite, also were a catalyst to bring people together socially. The same study found that 27% of respondents used video games to keep in touch and socialize with others.

More commercial real estate space is required for everything from office space to production studios and gaming facilities.

Gaming Working With Film & TV

The region is home to two of the biggest video game companies in the world, Activision Blizzard and Electronic Arts. Estimates are that video game marketers and producers claim approximately 3 million square feet of office space in the region.

As games have become more advanced, many are developing studios that use cutting-edge virtual-reality tools on large production sets to bring games to life. Games are becoming so realistic that they are turning into TV and film. Naughty Dog, makers of The Last of Us, out of Santa Monica, signed a deal with HBO to create a television adaptation based on the game. 

Epic Games, the creator of Fortnite, is one example of a gaming studio expanding its offerings. The video game company has a state-of-the-art 4k LED production studio now being used (and copied) by other studios. Based in North Carolina, Epic recently secured a deal to convert a 980,000 square foot space to its new headquarters. That shows at least some of the size and scope of the space video game companies are eyeing.

Many big-name Hollywood brands, including Disney and Netflix, turned to video game production sets and technology to produce shows and movies during the pandemic, including The Mandolorian and The Irishman. As LED screen production equipment becomes more accessible to smaller studios and gaming brands, expect to see more of these spaces built throughout Southern California.

eSport Brands Gobble Up Arena Space

One booming subset of the video game industry is eSports. This growing market needs more than space to create games; large footprints with space for areas are also key. Currently, Los Angeles is home to four eSports arenas, with more on the way.

Blizzard Arena is one example. Opened in late 2017, it has a footprint of 50,000 square feet and can accommodate approximately 450 fans. OGN Super Arena is another. It opened in 2019 in a 35,000 square foot space. There are also plans for similar projects right now in Philadelphia and Arlington, Texas. 

Interest in gaming is only growing, with mobile gaming devices, smartphones, and traditional consoles all expected to see significant growth in the coming years. As video game companies become more intertwined with Southern California’s tech and film industries, the synergies will continue to produce large-scale deals into the future. 


Mandri Capital has closed over $100 million in financing for in-demand and growing investments like creative office space, music studios, apartments, and more. 

If you’re interested in learning more, don’t hesitate to get in touch with Max Friedman via phone at (310) 554-6401 or email for a confidential discussion on your pending deal.


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