Full Breakdown
Paramount Skydance Establishes Major Production Hub in New Jersey
10/29/2025, 6:31:24 AM
Paramount's Strategic Move to Bayonne
Paramount Skydance has signed a minimum 10-year lease for over 285,000 square feet at 1888 Studios in Bayonne, New Jersey. This strategic decision aims to leverage the state's enhanced film tax incentives, which can provide tax credits of up to 40% for productions filmed in New Jersey. The 1888 Studios facility, currently under development by Togus Urban Renewal, is set to become the largest production campus in the Northeast, featuring 1.1 million square feet of production space, including 23 smart sound stages with a minimum of 40-foot clear ceilings.
Background and Context
The establishment of 1888 Studios marks a significant development in New Jersey's efforts to position itself as a premier production destination. Approved in May 2024, the studio was designated as New Jersey’s first Film-Lease Partner Facility, allowing tenants access to the state's competitive film and digital media tax credit program. This program, reinstated in 2018 after a hiatus, has been pivotal in attracting major studios, with productions spending a record $833 million in New Jersey in 2024.
Implications for New Jersey's Film Industry
Governor Phil Murphy emphasized that Paramount's commitment reflects the growing momentum of New Jersey's creative sector, solidifying its reputation as a global powerhouse in the entertainment industry. The partnership is expected to generate thousands of jobs and stimulate local economies, particularly benefiting small businesses. Senator Raj Mukherji noted that this project will anchor a self-sustaining creative economy in Hudson County.
Criticism and Opposition
While the move has been largely welcomed, some critics argue that the focus on large-scale production facilities may overshadow support for smaller, independent filmmakers in the region. Concerns have also been raised about the long-term sustainability of such tax incentive programs and their impact on state budgets.
Official Statements & Responses
In a statement, Andy Gordon, Paramount’s Chief Strategy Officer and COO, remarked, “Scaling our production and expanding our slate of world-class entertainment is central to our long-term strategy.” He expressed gratitude for the support from state officials, highlighting the importance of New Jersey's tax credit programs in making the tri-state area attractive for production.
Governor Murphy added, “By attracting world-class studios and productions, we are not only creating high-quality jobs but also investing in our communities and elevating New Jersey as a national leader in entertainment.”
Verbatim Quotes
- “Thanks to highly competitive tax credit programs like New Jersey’s, the tri-state area is more attractive than ever before for production as we work together to create new jobs and empower more domestic production for America’s creative workforce,” — Andy Gordon, Chief Strategy Officer and COO, Paramount
- “This is a big win for Bayonne, Hudson County, and the state of New Jersey,” — Jimmy Davis, Mayor of Bayonne
What's Next
Paramount's application for Studio Partner designation is currently under review by the New Jersey Economic Development Authority and is scheduled for board consideration on October 30, 2025. As New Jersey continues to attract major studios, the landscape of the film industry in the region is poised for significant transformation.
