Paramount Television Studios signed a lease for 70,000 square feet at Vornado Realty Trust’s Sunset Pier 94 Studios, the Commercial Observer reported. Vornado, together with joint venture partners Hudson Pacific Properties and Hudson Pacific Properties, developed the municipality’s only purpose-built film studio.
The lease covers approximately one-third of the facility, including 22,000 rentable square feet, six sound stages, support space and offices. Paramount plans to use the space to film the second season of the Michael C. Hall film “Dexter: Resurrection,” which will stream on Paramount+.
The duration and asking price of the lease were not disclosed and the studio’s owners could not immediately be reached for comment through the publication. According to JLL, the average asking rent for industrial space in Manhattan in the fourth quarter was $32.17 per square foot.
Blackstone and Hudson Pacific joined the studio project in August 2023. In addition to Vornado, the three companies invested $350 million in the venture, a public-private partnership with the city’s Economic Development Corporation.
The benefits offered to the developers included $73.5 million to repair and maintain the pier through 2060, as well as an initial rent of just $900,000 per year, which will only escalate to a peak of $2.8 million at the end of a 99-year lease.
There is also a state program that offers financial incentives to studios that produce two or more projects and spend at least $100 million in the state.
Vornado owns a 49.9 percent stake in the studio, while Hudson Pacific has a 25.6 percent stake and Blackstone owns the rest.
New York has long been a dominant player in the country’s studio space sector, despite Manhattan’s impenetrability due to high development costs and a lack of available space.
— Holden Walter Warner
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