New Hollywood Studio Aims to Revitalize Film Industry Amid California Exodus

A new $450 million studio complex, Echelon Studios Hollywood, is set to open next year, aiming to revitalize the film industry in Los Angeles. Developer David Simon is behind the ambitious project, which occupies a 10-acre studio lot within a five-acre footprint. The vertical design, conceived by architect Andrew Wright of RIOS, crams stages, office space, and other facilities into an industrial building.

Simon's investment comes at a time when film and television production in Los Angeles has seen a decline. According to a report by FilmLA, feature film shoots were down 20 percent in the second quarter of the year, while TV shoots decreased by 30 percent. Despite these figures and warnings about the changing landscape of Hollywood, Simon expressed confidence in the market.

"Everybody I talk to in this industry would like nothing more than to stay home and film in LA," said Jamie Crosbie, who will head studio operations at Echelon. Simon believes that artists want the opportunity to create close to home and that Echelon will differentiate itself from other studios. The project is also supported by expanded state tax credits and the potential for a 20 percent federal tax credit for filming.

The Echelon complex will feature five soundproof stages, office spaces, a cafe, screening rooms, and a base camp for trucks and equipment. A unique design element includes old-style bungalows at the top of the building, reminiscent of early Hollywood lots, intended to serve as office and dressing spaces. "We built this neighborhood in the sky based on this extremely Hollywood typology," Wright told The Los Angeles Times. The primary challenge in the vertical design was ensuring adequate soundproofing for the stages, which was addressed through layers of insulation, drywall, and thick concrete.

Simon, through his company Bardas Investment Group, is also planning a $600 million renovation and expansion at the Television Center, which he sees as an extension of the Echelon concept. He has already begun offering tours to potential tenants for the new studio space.

This investment occurs against a backdrop of a significant population outflow from California. Between July 2024 and July 2025, an estimated 53,934 people left Los Angeles County, with former residents citing high rents and crime rates as primary reasons. Governor Gavin Newsom has sought to counteract this trend and support the entertainment industry by expanding tax credits. In September, Newsom stated that California remains the nation's entertainment capital and is committed to supporting its creative community and infrastructure.

The Film and Television Tax Credit program, initiated in 2009, has reportedly generated $34.2 billion in economic activity and supports thousands of jobs in California.