What Is My Recording Studio Worth?

Recording studios combine specialized real estate, high-end equipment, and creative reputation into a unique business model. In Los Angeles, studio value is heavily influenced by room quality, gear inventory, and the caliber of artists and producers who book regularly.

Typical Valuation Ranges

Most recording studios sell for 2x to 3.5x SDE. Studios with exceptional rooms, premium gear collections, and strong reputations can exceed this range.

Factors that push toward the higher end:

• Purpose-built rooms with exceptional acoustics
• High-end analog and digital equipment (SSL, Neve, vintage outboard)
• Recurring bookings from labels, producers, and artists
• Revenue above $500K with consistent utilization
• Multiple rooms generating simultaneous revenue
• Owned real estate
• Diversified revenue (recording, mixing, mastering, podcast, voiceover)

Factors that push toward the lower end:

• Single room with limited booking capacity
• Aging or commodity equipment
• Low utilization rates (below 50%)
• Revenue concentrated around one engineer or producer
• Leased space with unfavorable terms
• No recurring client relationships
• Competition from home studios in the market

Key Value Drivers

Room acoustics and design are irreplaceable. Purpose-built live rooms, isolation booths, and control rooms with world-class acoustics are the core asset — they can't be replicated cheaply or quickly.

Equipment inventory — a premium console, vintage microphone collection, and curated outboard gear can represent substantial value. However, buyers will discount equipment that's poorly maintained or obsolete.

Client relationships — repeat bookings from labels, established producers, and artists provide revenue stability. A studio where major artists have recorded carries reputation value.

Utilization rate — a studio booking at 70%+ capacity demonstrates market demand. Low utilization signals pricing or marketing problems.

How to Increase Your Value

1. Diversify your rooms. Add podcast suites, voiceover booths, or mixing rooms to generate revenue beyond music recording.
2. Build recurring relationships. Long-term agreements with labels or production companies add stability.
3. Document your gear. Maintain a detailed equipment list with condition, service history, and replacement values.
4. Improve utilization. Off-peak pricing, block booking discounts, and production partnerships fill empty hours.
5. Invest in the space. Acoustic improvements and equipment maintenance protect your core asset.

Browse the valuation multiples guide for industry data, or schedule a free call for a confidential valuation.