Hudson Pacific Posts $218.1M Net Loss in Q3
The real estate firm's third-quarter loss widened from a year earlier as it sold San Francisco office buildings and took impairments on several properties.
Updated on Nov. 6, 2026 in Commercial
Hudson Pacific Properties reported a third-quarter net loss of $218.1 million, up from $136.5 million a year earlier, on revenue of $180.9 million. The company also sold two San Francisco office buildings on Howard Street totaling 284,000 square feet for $65.5 million.
Why it matters
The loss was driven mainly by non-cash impairments and a loss on the sale of office properties rather than day-to-day operations. Office leasing and occupancy continued to improve, signaling demand for some commercial space even as the company trims its portfolio.
The company's third-quarter net loss was $218.1 million compared with $136.5 million a year earlier, against revenue of $180.9 million, down from $186.6 million. Los Angeles on-location shoot days fell 5% year-over-year and sit 29% below the five-year average, and the filing does not break out the impairment amounts.
The players
Hudson Pacific Properties
A Los Angeles-based real estate investment trust that owns and operates office and studio properties across major West Coast markets.
Gavin Newsom
The Governor of California, who proposed additional film tax credits that could expand production activity in Los Angeles.
The details
Hudson Pacific attributed the loss mainly to non-cash impairments on its San Jose Skyport Plaza and Seattle Hill Seven office properties, plus a loss on the sale of its 875 and 899 Howard St. buildings in San Francisco, which were 36% occupied at closing. The company signed more than 500,000 square feet of office leases during the quarter and has stopped counting rent from law firm Weil, Gotshal & Manges as a precaution, which will leave a 38,000 square foot vacancy at Redwood Shores.
Timeline
Third quarter 2025: prior-year comparison period with a $136.5 million net loss and $186.6 million in revenue.
Third quarter 2026: reported $218.1 million net loss and $180.9 million in revenue.
This week: Gov. Gavin Newsom proposed additional film tax credits that could increase Los Angeles production.
Commercial Real Estate Landscape
Office landlords across the West Coast are shrinking their portfolios through sales and impairments even as select leasing picks up. Los Angeles production activity has fallen well below its five-year average, which is the backdrop for the state's proposed expansion of its film tax credit program.
For renters and businesses tied to commercial space, the sale of older office buildings and the vacancy left by Weil, Gotshal & Manges may shift available space and lease terms in these markets. Los Angeles production crews and related local vendors could see more or less work depending on whether the proposed film tax credits are approved.
The takeaway
Commercial real estate performance increasingly depends on which properties owners keep versus sell, so tracking occupancy and asset sales offers a clearer picture than headline net losses alone.
Further reading
For more on the sector, see our Commercial real estate coverage.
Source note: This article includes information reported by Bisnow.
