Commercial Real Estate News
Exploding Streaming Demand Drives Need for Added Film Studio Space in New York City
Commercial real estate advisor CBRE is reporting this week as consumer demand for streaming video content has reached new highs in 2021, so has the need for high-quality film studio space. At 2.6 million sq. ft., New York City is one of the largest film markets in North America and nearly 60% of the production space is owned by the region's five largest studios.
"Brooklyn and Queens boast large soundstage facilities that have been purpose-built or are in large converted industrial facilities," said CBRE's Rocco Laginestra. "As these neighborhoods have become space-constrained, studios are looking for alternatives in the Bronx as well as New Jersey, Long Island, southern Connecticut and the Hudson Valley. The appetite for digital content is poised to continue for many years to come, and the New York Tri-State area is well-positioned to meet the growing demand for additional content creation needs."
According to the CBRE report, New York City is home to 150 independent production and post-production companies that occupy approximately two million sq. ft. of office space which combine with major networks, streaming platforms, and cable providers for a total of 17.1 million sq. ft.
Early in 2021 Apple TV+ inked a 75,000-sq.-ft. lease for production space at Kaufman Astoria Studios, along with an additional 15,000 sq. ft. of office space. Wildflower Studios and Netflix are also building purpose-built studio complexes in Queens and Brooklyn, respectively, while Lionsgate will be the sole tenant of a new studio complex under construction in downtown Yonkers.
In addition, Broadway Stages, the largest film studio in New York City with locations spread across Queens, Staten Island and Brooklyn, is planning an expansion, and Steiner Studios was selected by the NYC Economic Development Corporation as the operator of a 500,000 sq.-ft. film production hub under development in Sunset Park, Brooklyn.
"New York's film industry, which returned to work in the summer of 2020, is poised for success and is a true bright spot for the region as a whole," added Laginestra.
