Netflix plans to move into a bigger new office in Manhattan and open a Brooklyn production hub — all told, bringing up to $100 million in investments to New York City and resulting in hundreds of new jobs, according to New York State Gov. Andrew M. Cuomo.
Netflix’s new corporate offices in the Big Apple will take up 100,000 square feet at 888 Broadway in Manhattan’s Flatiron District. The offices will house 127 new executive employees in NYC that Netflix plans to hire by 2024 — including content acquisition, development, production, legal, publicity and marketing positions — in addition to the company’s 32 current New York-based employees.
In addition, Netflix has leased approximately 161,000 square feet to build six sound stages and support spaces at 333 Johnson Ave. in Brooklyn. Those are expected to house thousands of production jobs within five years, according to state officials.
Under the deal with Netflix, Empire State Development — the state’s economic development agency — has offered up to $4 million in performance-based tax credits over 10 years, which are directly tied to job creation. To receive the full incentive, Netflix must create the 127 jobs by 2024 at its new executive production office and then retain those new jobs (and their existing 32 office jobs) for another five years.
“Netflix is innovative, creative and bold — just like New Yorkers — and the expansion of this cutting-edge company in New York once again demonstrates the Empire State is open for business,” Cuomo said in a statement. “We’re proud Netflix chose New York to grow its business, and we look forward to the jobs, economic activity and world-class productions this project will bring.”
Jason Hariton, Netflix’s director of worldwide studio operations and real estate, said in a statement, “New York has created a film-friendly environment that’s home to some of the best creative and executive talent in the world, and we’re excited to provide a place for them at Netflix with our production hub.”
The building at 888 Broadway (located at 19th Street and Broadway) is owned by Normandy Real Estate Partners. According to Normandy, the building is undergoing a major renovation expected to be completed by summer 2019 that will include a new office lobby and the addition of a penthouse and rooftop patio space. Netflix’s existing New York City office is located in the Chelsea neighborhood at 245 West 17th St.
The Brooklyn location Netflix has leased, in the borough’s Bushwick section, is owned by real-estate developer Steel Equities, which acquired the warehouse property for $53 million last year from Normandy Real Estate Partners, Princeton Holdings and Royalton Capital, according to trade publication The Real Deal.
Netflix and its studio partners have already produced numerous originals in New York, including “Orange Is the New Black,” “Unbreakable Kimmy Schmidt,” “She’s Gotta Have It, Martin Scorsese’s “The Irishman,” “Someone Great,” “Private Life” and “Russian Doll.”
The tax breaks Netflix is receiving from New York State come under the same program it offered Amazon to open a major East Coast office in Long Island City, Queens. Amazon was set to get a $1.525 billion tax credit contingent on the creation of 25,000 jobs but bailed on the plan this February after political opposition to the ecommerce giant’s move into Queens.
For Netflix, the expanded NYC outpost is the latest in a series of recent real-estate moves beyond its headquarters in Los Gatos, Calif.
In L.A., the subscription-streaming company last fall signed a lease to fully occupy all 327,913 square feet of the 13-story EPIC building in Hollywood, adding to its footprint at nearby buildings ICON (325,757 square feet) and CUE (91,953 square feet) located on the Sunset Bronson Studios lot.
Netflix also has taken over ABQ Studios in Albuquerque, N.M., which it acquired for less than $30 million, and earlier this year signed leases for a total of nearly 250,000 square feet of studio and office space in Toronto at Cinespace Studios and Pinewood Toronto Studios.