Los Angeles’s entertainment and commercial real estate industries are two disparate titans in their own right. And at a cursory glance, the two rarely meet. Yet, when you look at the responsibilities of a Hollywood location scout and those of an in-demand commercial real estate agent, you’ll find a surprising amount of overlap. Here’s why location scouts wouldn’t be crazy to consider careers as commercial real estate agents while LA’s entertainment industry is struggling to find its footing.
The Life of a Location Scout
If you’re unfamiliar with the role of a location scout, one’s responsibility is typically to determine the best setting for filming a particular production or scene. Often, they do this by breaking down a drafted script and consulting closely with the project’s production manager, director, and/or screenwriter to best guide the creative vision to a match.
Of course, it’s not as simple as just finding a pretty backdrop to set the action against. A cinematic eye helps, but there’s simply more to the job. For one, location scouts need to negotiate with property owners, much like commercial real estate agents. Negotiations may account for pricing, time frame, and legalities, all while hopefully maintaining a respectful and professional standing with the property owner.
When studios are looking to hire location scouts, they prioritize skills like strong communication (both written and verbal), networking (for permits and permission), negotiation (for securing locations at competitive prices and terms), and geographical familiarity (for site selection efficiency). For any commercial real estate agents reading this, please take a moment to recover from your deja vu before continuing.
Skills Similar to Commercial Real Estate Agents
Most experienced commercial real estate agents would agree that success in this industry requires being a self-starter, a creative problem solver, and a masterful negotiator. It also helps to have an analytical mindset, excellent communication skills, and a confident understanding of finance. Communication is particularly important, since many clients struggle with articulating specifically what they want in a property, relying instead on their agent to clarify.
Now, the location scouts are likely experiencing their own deja vu moment. They’re used to taking a director’s singular vision and translating it into tangible space. The parallel to helping an investor distinguish what they need from an office or retail environment is unmistakable. Location scouts will also find familiarity in the juggling act that commercial real estate agents perform when working multiple complex deals that often stretch on for months. Long hours devoted to multiple ongoing location negotiations are nothing new to these entertainment industry veterans.
Location Scouts Would Still Have Some Homework
However, location scouts will need to acclimate to certain responsibilities and skills particular to a career as a commercial agent. This means studying the intricacies of the different types of commercial leases, becoming comfortable with reading and interpreting financial data, and learning how to assess properties with their business potential in mind. There’s also a great deal of financial fluency to master. Concepts like cap rates, net operating income, and return on investment aren’t simply second nature. They require diligent, intentional study.
Practicing commercial real estate also requires a license. In California, this means completing all state-mandated coursework and the final real estate sales exam. Some experts have even suggested that novice commercial real estate agents devote their first two years to simply training and developing the skills necessary for success in Southern California’s competitive market.
Only in LA
The entertainment and commercial real estate industries aren’t exactly strangers. We see their nexus points in production warehouses, studio campuses, and even, more recently, in adaptive reuse properties. This can give location scouts transitioning into commercial real estate agents a real advantage in this market. They have a better understanding than most people of LA’s built landscape, and a keen eye for a property’s potential. Perhaps just as importantly, they are used to tight negotiations and building long-term relationships. So, if the entertainment industry continues to falter, location scouts may be able to build new, lucrative futures as insightful commercial real estate agents. And we know where to start.
