A large film and television production studio is hitting the market in Santa Fe, New Mexico, where incentives have helped shape a growing hub for content creation.
Santa Fe Studios, a 65-acre media production site about 20 miles from New Mexico’s capital, is being listed for sale by CBRE. The turnkey facility includes two soundstages, 24,000 square feet of production offices and a 17,000-square-foot mill and warehouse.
The studio, opened in 2011, is led by producer Lance Hool, best known for his film “Man on Fire,” starring Denzel Washington. The Hool family developed and owns the property, which has hosted productions including HBO’s "Succession" and Netflix’s "House of Cards," reflecting the state’s emergence as a more cost-effective filming alternative to Los Angeles and Atlanta.
The property includes a fully approved second phase, with entitlements in place for more soundstages, postproduction facilities, and hospitality or retail components.
“This is a generational opportunity to acquire a fully operational, expandable studio campus in a top-tier production market,” said Anthony Jasenski, senior vice president and head of CBRE’s National Film Studio Practice, who represents the seller.
The listing comes during a global entertainment production slowdown, with film and TV project volume in 2024 still 11% below 2022 levels despite an 18% year-over-year increase, according to industry tracker ProdPro. The 2023 writers’ and actors’ strikes, which halted production for much of the year, continue to reverberate. Cities are vying for business among studios that are facing tighter budgets and reduced streaming investment.
Land of Enchantment
New Mexico’s rise as a production hub has been fueled by infrastructure, geography and a generous state incentive program.
The state's film tax credit provides up to 40% back to qualifying productions, higher than in California and New York. The current program cap is $130 million per year and is set to rise to $160 million by fiscal 2028. Since launching in 2021, the program has brought in $3.35 billion in direct production spending, according to the state film office.
More than 20 facilities with soundstages now operate in the state.
"New Mexico offers diverse landscapes, city settings, mountains, forests and deserts, providing a range of backdrops for different genres," John Boyd, a principal at The Boyd Co. who advises film and television clients on site selection across the country, told CoStar News.
Netflix alone has invested heavily in New Mexico, acquiring ABQ Studios in 2018 for $30 million and expanding it in 2024 with four new soundstages across 108 acres. The company has called the region a “thriving production ecosystem.”
The Santa Fe campus’s entitlements allow for substantial expansion, including retail, lodging or postproduction uses, an unusual feature for a regional studio. That could broaden appeal among buyers seeking a campus-style creative environment, Jasenski said.
A listing price was not disclosed. But in Los Angeles, a century-old studio with four soundstages is up for sale for $45 million; and a recent recapitalization of CIM Group's The Lot at Formosa in Hollywood, with seven soundstages, valued the property at $250 million.
Pros and cons
New Mexico’s proximity to Hollywood makes it easier for talent and equipment to move quickly compared to East Coast or offshore alternatives, Boyd said. Its lower cost of living offers a boon for productions as well, though its smaller population can be a challenge when casting extras or highly specific roles.
Some California-based unions have also raised concerns about lower prevailing wages in New Mexico, which could introduce uncertainty for studios focused on unionized productions, Boyd said.
Meanwhile, other states are stepping up their own incentive programs. Netflix recently broke ground on a $1 billion campus in New Jersey, where the tax credit cap is $450 million annually.
For comparison, New York's cap is $800 million in annual funding, California's recently expanded to $750 million, and Texas expanded its to $150 million.
Production spending in New Mexico fell to $323 million in fiscal 2025, from over $740 million in fiscal year 2024, reflecting the broader downturn in global production activity. Officials hope the scheduled increase in the annual tax credit cap will reverse that trend.
Efforts to expand production incentives in rival states have sometimes faltered. In June, Nevada lawmakers failed to pass bills that would have supported a proposed Sony and Warner Bros. studio campus in Las Vegas.
For the record
CBRE’s Sean Sullivan, Melissa Moock, Mike Longo and Jim Dountas are also representing the seller. Val Achtemeier and Greg Grant of CBRE Capital Markets are advising on financing strategy and placement.