Despite setbacks in the film industry, plans for studios in New Jersey and New York point to increased business for the region, according to a new research report.
“The rapid development of new soundstages in recent years alongside generous state incentives from New York and New Jersey has made the region one of the most competitive in the country for stage-based content production,” according to the “2026 Tri-State Film & Television Report” by CBRE Research.
The report acknowledges that production has slipped because of the pandemic, the 2023 Hollywood labor strike, and content cutbacks by domestic streaming services and studios. New challenges include a slow rebound for television and film employment, industry mergers, and a slowdown in streaming subscription growth.
Both New Jersey and New York are building production studios. Three of four studio construction projects are underway in New Jersey – Netflix in Fort Monmouth, Lionsgate in Newark and 1888 Studios in Bayonne. Netflix and Lionsgate are scheduled to open next year, and 1888 Studios the year after, according to the CBRE report.
Besides new studios, several other strengths of the region will mean a larger share of production, the report notes:
• More than $1.2 billion in government incentives offered between New Jersey and New York and an uncapped incentives program in Connecticut.
• About 52,000 qualified motion picture professionals.
• Home to 70 film studios and hundreds of production-related businesses.
• Existing environment for filming, including historic towns, bustling urban neighborhoods, sprawling suburbs and beach towns.
• Four distinct seasons for outdoor shooting.
After suspending the industry tax credit program in 2010, New Jersey relaunched it in 2018 and extended it through 2049 with an annual cap of $430 million in credits, the report states.
A focus of New Jersey credits, the report says, has been on attracting production studios “with dedicated occupancy.”
Transferable tax credits of 40%, with a potential 5% additionally in bonuses, in New Jersey have been directed at studio partners with site control of a production facility in the state with at least 250,000 square feet for at least 10 years, the report explains. The state has earmarked $100 million a year for the studio program.
“New Jersey’s generous film incentives program has rapidly made the state a major contender in the race to attract film and television productions. While a growing number of productions are flocking to the state, the industry’s growth is constrained by a lack of large and modern sound stage inventory – a limitation that is being rectified,” the report says.
The area “has been a leader in the post-strike recovery, with production 47% above pre-strike levels in Q4 2025 on a four-quarter rolling average basis,” according to the report. “While the region’s soundstages may be less busy than before, permits for outdoor location filming made a strong recovery in 2024 and stabilized in 2025.”
In 2024, the filmmaking output in the region was 37 theatrical releases, 20 streaming movies, and 13 scripted broadcast series. Each category was up over 2023.
“The region’s growing number of studios with streaming platform affiliations, including Apple TV+ at Kaufman Studios, Lionsgate at Great Point Studios in Yonkers and a future Netflix studio in New Jersey, suggest that (regional) soundstages will benefit from the shift to streaming platforms,” the report notes.
