Update on
Burbank’s
Economy 2023
City Council
April 4, 2023
COMMUNITY
DEVELOPMENT
Update on Burbank’s Economy:
Overview
• Overview of Economic Development
• Update on Burbank’s Economy
• Laying the groundwork for the ED
Strategic Plan (2024 – 2028)
• Developed and presented to City
Council for approval in 2023
• Highlighting strengths and
opportunities
What Does Economic Development Do?
Economic Development focuses on improving the
standard of living by:
Facilitating the creation of jobs
Encouraging innovation and new deals
Attracting investment
Increasing sales tax revenue
Creating vibrant neighborhoods
Improving the quality of life for all
How Do We Support Burbank’s Economy?
Marketing and Social
Media Support
Site Selection and
Marketing Analysis
Assistance
Business Concierge
Services
ATTRACTION
RETENTION & EXPANSION
ENTREPRENEURSHIP
TOURISM
Facilitation of Business
Resources
Entrepreneurship
Programming
Tourism Growth
Downtown Development
• Create opportunity sites (promote underutilized
properties)
• Conduct direct developer and broker outreach
• Site selection (zoning) and marketing analysis
assistance
• Offer Business Concierge services
• Licensing, permitting assistance
• Facilitation of business resources
ATTRACTION
HEADQUARTERS
ATTRACTION – BUSINESS INCENTIVES
WWW.CHOOSEBURBANK.COM
• No City Income Tax
• No Gross Sales Receipt Tax
• Business Concierge Services
• Burbank vs. Los Angeles Comparison
• LEED Incentive Program
• Business Rebates
• CA Competes Tax Credits
RECENT ATTRACTION EFFORTS
HEADQUARTERS
HEADQUARTERS
• Business Concierge and Small
Business Development
• Outdoor Dining
• Marketing and Social Media
Support
• Holiday Décor and Event
Assistance
• Chamber of Commerce Collaboration
• Welcome to Burbank Program
• Business Visitation Program
RETENTION
• One-on-one consulting services
• Burbank Tech Talk events
• Upstart Valley
• A regional resource and
marketing partnership with
the City of Glendale
ENTREPRENEURSHIP
• Utilizing private funding from the
TBID to attract visitors and increase
sales tax and transient occupancy
tax revenues
• Marketing campaigns
• Partnership with Universal Studios
Preferred Hotel Program
• Social Media Influencer Campaigns
• Event Sponsorships
• Destination Development
TOURISM
• Utilizing private funding from the PBID
to attract visitors and increase sales tax
and transient occupancy tax
• Alfresco dining parklets
• Marketing and Events
• Hospitality and Social Outreach Services
• Business Concierge Services
• Business/Property Owner Outreach
• Leasing Support
• Maintenance and Placemaking
TOURISM
ECONOMIC UPDATE REPORT 2023:
• Provides an overview of Burbank’s economy
• Looks at strengths, opportunities and areas of future focus.
• Previews the groundwork for the update of the
Economic Development Strategic Plan
• Presented to City Council in late 2023.
• Focuses on
Jobs and Business Growth
Leisure and Hospitality
Office Sector
Retail Sector
Industrial/Flex Sector
Housing
BURBANK AT A GLANCE:
BURBANK SNAPSHOT:
TOP 10 INDUSTRIES
Industry Number of Jobs Entertainment 57,230
Health Care Services 18,722
Administrative and Support Services 9,456
Retail/Wholesale 8,533
Professional, Scientific, and Technical Services 7,895
Local Governments and Non -Profits 6,311
Food Service and Drinking Places 5,943
Real Estate 5,349
Manufacturing 4,499
Construction 3,299
BURBANK SNAPSHOT:
TOP 10 EMPLOYERS
Companies Number of Employees Warner Bros 5,000
Disney 4,065
Hollywood Burbank Airport 2,685
St. Joseph’s 2,507
BUSD 2,000
City of Burbank 1,419
ABC Inc 1,189
Deluxe Shared Services 754
Nickelodeon 705
Entertainment Partners 641
Jobs and Business Growth
• 142K Jobs vs 149K in 2019
• Most employees are physically in Burbank;
some hybrid, others completely remote.
• Five employers announced subleases;
Netflix, Hasbro, Cast & Crew, WeWork and
Aramark.
• Subleasing and continued working from
home may indicate a need for adaptive
reuse of office towers.
• Potential to grow jobs over the next five
years.
Jobs and Business Growth
144,412 144,173 149,033
124,793
141,932
60,472 58,086 60,745 53,357 57,251
0 20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2017 2018 2019 2020 2021
Burbank Jobs
2017 - 2021
Emsi
Total Jobs Media Jobs
Jobs and Business Growth
Current
Strengths
Entertainment
Jobs
Rich Jobs
Market
Areas for
Future Focus
Hybrid
Work
Policies
Workforce
Housing
Subleasing
and
Adaptive
Reuse
Leisure and Hospitality
• Continues to struggle.
• Decline in travel, and lack of workforce
caused adverse effects
• Growth in the tourism sector is moving in
the right direction.
• Bleisure Market
Pre-Pandemic Post-Pandemic
Occupancy 82.3% (2019) 73.3% (2022)
Rev Par $137 (2019) $132 (2022)
Visitor Count 3.5M (2018) 2.8M (2021)
Business Travel Count 374K (2018) 212K (2021)
Leisure and Hospitality
Current
Strengths
Above Average
Occupancy, Rev
Par and Average
Daily Rates
Visit Burbank
Destination
Marketing
New Routes at
Hollywood
Burbank Airport
Areas for
Future Focus
Slow Recovery from
Multiple Travel and
Tourism Restrictions
New Hotel
Projects
Art &
Cultural
Projects
Real Estate Sectors - Office
• Citywide office vacancy rates have
increased
• Most significant vacancy changes:
• Airport District 15.8%
• Downtown Burbank 14.2%.
• Notable vacancy statistic:
• Magnolia Park 2.8% in Q4 2022
• Rethink building purpose with
Adaptive Reuse (reusing an existing
building for a purpose other than which
it was originally built or designed)
Real Estate Sectors - Office
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
CITYWIDE DOWNTOWN MAGNOLIA PARK MEDIA DISTRICT AIRPORT DISTRICT Office Vacancy Rates
2019 Q4 2020 Q4 2021 Q4 2022 Q4
Real Estate Sectors - Office
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
Downtown Magnolia Park Media District Airport District
Office Lease Rates
per square foot
2019 Q4 2020 Q4 2021 Q4 2022 Q4
Real Estate Sectors - Office
Current Strengths
Multiple User Expansions
and Speculative
Development
Office Space in
Burbank Continues
to be in Demand in
the Medical and
Media Industries.
Areas for Future
Focus
Subleasing
Adaptive Reuse
Real Estate Sectors - Retail
• Retail sales revenues remained
strong.
• Sector remains stable despite the
Pandemic.
• Turnover of tenants provides
opportunities for new emerging and
established concepts like Finney’s,
Boba Time, Silverlake Ramen,
Mendocino Farms, Han Korean BBQ,
Roku Japanese BBQ.
Real Estate Sectors - Retail
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
Citywide Downtown Magnolia
Park
Media
District
Airport
District
Retail Vacancy Rates
2019 Q4 2020 Q4 2021 Q4 2022 Q4
Real Estate Sectors - Retail
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
Downtown Magnolia Park Media District Airport
District
Retail Lease Rates
Per SF
2019 Q4 2020 Q4 2021 Q4 2022 Q4
Real Estate Sectors - Retail
Current
Strengths
Strong list of
New Tenants
Outdoor
Dining
Strong Sales
Tax Base
Areas for
Future Focus
Vacancies in
Downtown Burbank
and the Airport District
Accelerating Shift to
Online Shopping
Real Estate Sectors – Industrial & Flex
• Airport District has the highest
concentration of Industrial and
Flex space.
• All of the industrial space at the
Avion has been leased.
• The addition of new Class A
space at Avion has helped raise
the office lease rate average in
the Airport District
Real Estate Sectors – Industrial & Flex
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
2019 Q4 2020 Q4 2021 Q4 2022Q4
1.20%
4.80%
3.50%
2.00%
Industrial/Flex Vacancy Rates
Airport District
Real Estate Sectors – Industrial & Flex
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
2019 Q4 2020 Q4 2021 Q4 2022 Q4
$1.45 $1.54
$1.72
$2.09
Industrial/Flex Lease Rates
Airport District (per. SF)
Real Estate Sectors – Industrial & Flex
Current Strengths
Low Vacancy
High demand for
Industrial & Flex
Space.
Areas for Future
Focus
The Need to
Accommodate for
more Industrial/Flex
Sites.
Real Estate Sectors – Housing
• Median sales price is $975,000.
• Burbank added 294 new units from
2010 to 2016.
• 2018 jobs to housing ratio = 3.36:1
• City Council goal of 12K units by
2035
• Currently 3,072 units under
consideration or construction.
• SB 330, SB 35, AB 2011, AB 2234
Real Estate Sectors – Housing
Burbank Average Rent (Monthly)
December/Year Studio
One
Bedroom
Two
Bedroom
Three
Bedroom
2018 $1,769 $2,025 $2,665 $3,468
2019 $1,756 $1,967 $2,564 $3,550
2020 $1,543 $1,811 $2,299 $3,567
2021 $1,826 $1,793 $2,565 $3,932
2022 $1,903 $2,263 $2,900 $4,000
5.5 Year
Percentage
Increase 7.57% 11.75% 8.82% 15.34%
Average Monthly Rent
Adjusted for Unit type $2,525
Dec 2018 – Dec 2022 Increase
Adjusted for Unit Type 9.94%
Real Estate Sectors – Housing
Year
Average
Household
Income
Median
Household
Income
2017 $92,568 $69,410
2018 $101,253 $76,211
2019 $106,039 $77,760
2020 $110,845 $80,372
2021 $115,966 $83,245
2022 $124,984 $88,712
Growth Percentage
2017 -2022 35.02% 27.81%
Real Estate Sectors – Housing
Burbank Affordability
Number of
Burbank
Households
that can
Afford to
Spend
Percentage of
Burbank
Households
that can
Afford to
Spend
Number of
Burbank
Households
that can
Afford to
Spend
Percentage
of Burbank
Households
that can
Afford to
Spend
30% of their Income Toward 50% of their Income Toward
RENT 20,076 47% 29,123 69%
PURCHASE 5,086 12% 11,962 28%
Real Estate Sectors – Housing
Current
Strengths
12,000
Units by
2035
3,072 Units Under
Consideration or
Construction
Areas for
Future Focus
Employee
Retention
Increasing
Housing
Rent Rate
State Bills that
Limit Local
Control
Future Outlook and Strategic Plans
• Optimistic about the long-term
future.
• Diversify and grow entertainment
industry and other sectors.
• Increase in jobs over the next five to
ten years increases the importance
for more workforce housing.
• Next Steps
• Economic Development Strategic
Plan Update
• Specific Plans
Thank you!
Mary Hamzoian
Economic Development Manager
Marissa Minor
Senior Economic Development Analyst
[email protected]
[email protected]
(818) 238-5180
[email protected]
www.visitburbank.com
www.dtnbur.com
Working together for a safe, beautiful, and
thriving community.