While former CAA head Michael Ovitz has been schmoozing at Sun Valley (If anyone knows what he’s doing there, please tell us), Sony BMG has been moving into CAA’s old office building in Santa Monica. Since Ovitz is the building’s landlord, we wondered how much he stands to make renting office space to the record label.
According to Variety, “Personnel from Sony’s and BMG’s labels, publishing and licensing will move into the 65,000-square-foot space, which has been empty since CAA left for its new HQ in Century City in 2007. Sony BMG has signed a 10-year lease on the property…Sony BMG will pay $4 per square foot and cover operating expenses of between $700,000 and $900,000 per year.”
That works out to $10.6 million.
Since the space was originally built for $25 million and Ovitz originally wanted to charge $5 per square foot, that’s not that great, but it’s not bad. Who says you can’t make money off of recorded music?
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