With high-end television production spending at an all-time high around the world, the film and television industry is becoming an important sector for owners.
In the UK, due to the weak British pound and the country’s well-known film industry tax breaks, Hollywood stars, production crews and crew are renting flats and houses in London and in its surroundings close to their respective studios. Especially now that there are an increasing number of television productions with longer shoots. The same is happening in North America as production filming ramps up in every state.
“Demand has already exploded,” said Harriet Gore, head of film and media team at Knight Frank. “The ratio of potential tenants to available properties is 10 to 1 and more in some areas. My message to landlords is that if you can furnish your property to a good standard, you can charge between 20% and 30% premium over the long term rental market.
The number of inquiries and deals made by the film and TV industry are expected to be more than a third higher this year than in 2019, Harriet said.
Film and television industry rentals are typically between six months and two years due to production. Due to the stable and growing nature of the industry, tenants are also considered very reliable.
The pandemic has caused noticeable pressure on productions, many of which have been delayed due to restrictions. Budgets have taken a hit on some shows as a result. Data from Knight Frank showed that in the first six months of this year, the average weekly budget for tenants in the film and television industry fell by 2% compared to the same period in 2019 , dropping from £2,870 ($3,346) to £2,810 ($3,277).
“The pandemic has meant productions have been delayed or stretched for longer periods of time, which has squeezed budgets,” Harriet said. “On top of that, more TV shows are on the air, which means an increasing number of rentals are being done on a long-term rental basis.”
According to figures released by the British Film Institute (BFI), spending on high-end film and TV in the UK was £2.84 billion ($3.31 billion) in 2020, compared to 2019, the numbers fell by a fifth. Even in light of that, however, £1.19 billion ($1.38 billion) was spent in the last quarter of 2021, the second highest three-month figure on record.
John Seaman of JC Property Professionals has successfully transformed his business into a one-stop-shop for all real estate needs, building the homes that have been transformed into bespoke dream homes for their clients.
Commenting on the growth of the sector through film, television and other industries, he said: “The current real estate demand problem stems from this shortage of craftsmen and people to build the houses, so the demand is amazing and the cash income is unlimited. because of that.”
“Making people aware of the financial opportunities that can come from entering the blue collar industry should now be a goal for all of us, it’s mutually beneficial for anyone who wants to keep a roof over their head. .”
He continued, “We expect to have over 100 units under management over the next two years. Additionally, we plan to do everything in our power to help deal with the current housing shortage and the inflation it is causing. Some specific projects include building specifications, house flips, and creating more multi-family housing.
In addition to generating real estate growth across the United States to help place people, Seaman also saw opportunity in the growth of his company’s demolition business. With the emergence of studios and other infrastructure in the creative industries and beyond, the opportunity for growth in other sectors to help facilitate these elements has been a factor for the company.
“We are now focusing our efforts on JC Grading and Demolition, where we offer all aspects of site work, demolition, lot clean-up, septic systems, retaining walls, drainage, driveways, commercial site preparation and more,” he said. “We want to continue to scale the grading and demolition business over the next 5 years until we completely dominate our market.”
Competition in the US real estate market – commercial or otherwise and with respect to the creative sectors or any other – is no small feat, with many players across the US aiming to claim their right and seeing that there are many opportunities for growth.
On his next steps, Seaman concluded, “One of the most important lessons I learned on the road to becoming a successful entrepreneur was that when it came to achieving your dreams, the most important thing important thing you had to do was start.”
“Overthinking the process will only kill your progress, and failures will happen no matter how hard you try to achieve perfection. The worst thing you can do is hold yourself back from moving forward because of an inconvenient doubt.