Cinespace Studios Opens in Los Angeles Amid Industry Challenges

Los Angeles Mayor Karen Bass attended the grand opening of Cinespace Studios' new complex in Woodland Hills on March 2, 2026. The 180,000-square-foot facility features six soundstages and extensive production offices, marking a significant investment in the local entertainment industry. Bass emphasized the importance of the entertainment sector to Los Angeles' economy, stating, “When we invest in the [entertainment] industry, the industry invests in Los Angeles.” The studio's first tenant, the thriller "Nightwatching," has been utilizing the facility since early February.

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Cinespace Studios is strategically located in a bustling retail area, surrounded by essential services such as a Home Depot, which Eoin Egan, co-CEO of Cinespace, noted is frequently visited by production crews for supplies. The site has historical significance, as it was once part of Warner Ranch, a filming location for numerous Westerns in the early 20th century. The area has continued to serve as a backdrop for various productions, including notable films and television series.

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The opening of Cinespace Studios comes at a time of uncertainty in the film industry, following a post-pandemic boom that has since contracted due to strikes by the Writers Guild of America (WGA) and SAG-AFTRA in 2023. This situation has prompted Cinespace and other industry stakeholders to advocate for California's Film and Television Tax Credit Program 4.0, which was signed into law by Governor Gavin Newsom in July 2025. The revised program increased the annual cap on incentives from $330 million to $750 million and raised the base tax credit for qualified expenditures to between 35% and 40%.

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As of January 2026, the revised tax credit program has approved 119 projects, projected to generate approximately 25,000 crew hires and $4.1 billion in economic activity. Mayor Bass has also initiated measures to enhance the city's film-friendly approach, aiming to make iconic filming locations more accessible. However, challenges remain, as sound stage occupancy rates have significantly declined from 93% in 2021 to 63% in 2024, despite a 53% increase in sound stage square footage during the same period.

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Colleen Bell, executive director of the California Film Commission, expressed optimism about the gradual increase in production, stating, “When a project is accepted into [California’s incentive] program, they have 180 days to start principal photography.” This suggests that while immediate results may not be visible, a slow recovery in production activity is anticipated.

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Despite the positive outlook from some officials, concerns persist regarding the sustainability of the film industry in California. Critics point to the ongoing challenges posed by labor disputes and the potential for productions to relocate outside the U.S. as significant threats to local economic growth.

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• “productions are in and out of all the time for everything from gaffer’s tape to toilet paper to lumber,” — Eoin Egan, Co-CEO of Cinespace Studios

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• “There’s a gradual increase of production taking place, so stages will start to fill up slowly, but it’s happening.” — Colleen Bell, Executive Director of the California Film Commission

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