Paramount, A Skydance Corporation, has signed a minimum 10-year lease to become the anchor tenant at 1888 Studios, a 1.6-million-square-foot production campus under construction in Bayonne, New Jersey. This is a strategic real estate lease that anchors Paramount’s East Coast production operations. The deal provides Paramount with over 285,000 square feet, including 23 soundstages, post-production facilities, offices, and a waterfront backlot. The move makes Paramount an official “Studio Partner” under New Jersey’s tax incentive program.

The primary parties are, Paramount, A Skydance Corporation (tenant), and the facility’s developer, Togus Urban Renewal, which is building and operating the campus as 1888 Studios. Key dealmakers include Togus Urban Renewal Chairman Arpad Busson and, from Paramount, Andy Gordon, Chief Strategy Officer and Chief Operating Officer.  “Scaling our production and expanding our slate of world-class entertainment is central to our long-term strategy,” Gordon said. Government figures central to the agreement are New Jersey Governor Phil Murphy, Bayonne Mayor Jimmy Davis, and NJEDA CEO Tim Sullivan.

The deal’s primary driver is financial. For Paramount, the lease unlocks access to New Jersey’s 40% film tax credit via the state’s “Studio Partner” designation. This incentive, one of the most aggressive in the U.S., creates a direct, massive reduction in production costs, making the state more competitive than traditional hubs like New York or California. For 1888 Studios, securing a global media giant as an anchor tenant de-risks the billion-dollar-plus development. This deal is precedented, following a clear trend of studios committing to New Jersey. Competitors and comparable deals include Netflix’s $903 million, 12-stage studio under construction at Fort Monmouth (May 2025) and Lionsgate’s two planned facilities in Newark and Yonkers (both with partner Great Point Studios). This move by Paramount heats up the regional competition for high-end studio space.

The facility will create a new, high-volume production hub in Bayonne, drawing productions, crew, and service vendors from New York City. This massive increase in soundstage inventory will concentrate labor and equipment demand, creating intense local competition for skilled crew (I.A.T.S.E. locals) and support services—from prop houses to catering—with established facilities in Brooklyn, Queens, Yonkers, and nearby Jersey City.

 This deal confirms that aggressive, long-term tax incentives are the single most powerful tool for attracting private infrastructure investment. This strategy is not unique to New Jersey; it mirrors successful models from other countries. The United Kingdom’s tax relief, for example, directly fueled a multi-billion-pound studio construction boom, expanding major hubs like Pinewood and Leavesden. Similarly, Canada’s federal and provincial credits (creating ‘Hollywood North’) and Hungary’s rebates built entire production ecosystems in Toronto, Vancouver,, and Budapest. Paramount’s 10-year lease is a vote of confidence in New Jersey’s stability, solidifying the state as a long-term, primary East Coast production corridor.