Cinelease Studios to invest $95 million bringing more studio space to ABQ

Cinelease is continuing its growth in Albuquerque.

The entertainment service company opened Cinelease Studios at the former location of I-25 Studios in 2022.

On Monday, the company announced it will invest $95 million in New Mexico.

The expansion includes five soundstages and three ancillary buildings, which would double the company’s its space located at 9201 Pan American Freeway NE. The planned expansion will be completed in two phases over five years.

“New Mexico is an outstanding state for the entertainment business and is operating over current capacity. By expanding Cinelease Studios–Albuquerque, we are in a position to provide a home for future film and television in the state,” said Gannon Murphy, Cinelease Studios. “We’ll be working closely with the community and various programs to help empower and train the growing workforce.”

The deal is pending permitting approvals from the city of Albuquerque. Meanwhile, the Albuquerque Development Commission (ADC) will meet on Thursday to discuss Cinelease’s request for $115 million in Industrial Revenue Bonds. After the ADC meets, it will head to City Council for final approval. State funding is pending a Project Participation Agreement (PPA) between Cinelease, the stage and the city.

According to the city of Albuquerque, legislation packets for City Council are being put together with an introduction slated for March 4 and final action on March 18, though the dates can change, the city said.

If agreements are finalized as expected, the company plans to add 12 full-time employees in Albuquerque by 2033 and guarantee a production spend within the facility of at least $80 million a year, an amount sufficient to qualify as a New Mexico Film Partner, as defined by the Legislature under a 2019 law that amended the New Mexico film tax credits.

Pending final agreement, the state has pledged $6.7 million from EDD’s Local Economic Development Act, or LEDA, job-creation fund to support the expansion.

The city of Albuquerque has pledged an additional $1 million from its municipal LEDA funding. Under the agreement, Cinelease will provide no-cost equipment rentals, not to exceed $500,000 annually, to the New Mexico Media Collaborative in Downtown Albuquerque.

If all goes through, Cinelease would be New Mexico’s fourth film partner, joining Netflix, NBCUniversal and 828 Studios.

Cinelease’s spending in the state, along with the expansion that would capture productions now going to other states, would create a direct economic impact of $227 million over the coming decade, according to a New Mexico Economic Development Department analysis.

“Cinelease is yet another major company to recognize that New Mexico’s strong workforce and competitive business climate makes our state the place to be,” Gov. Lujan Grisham said in a statement. “This partnership will bring hundreds of productions to the state, supporting jobs in construction and film while bolstering economic activity to help New Mexico communities and families.”

The addition of five soundstages would help film productions find space to film — a problem that is seen industrywide. The New Mexico Film Office has been working with communities to expand soundstage space in the state.

“Every year, productions are eager to film in New Mexico’s unique landscapes, and sometimes that is not possible due to limited stage space,” said Amber Dodson, New Mexico Film Office director. “This obstacle can translate to lost opportunities for our booming film industry. The Cinelease expansion changes that equation. It’s an investment that ensures New Mexico can capture these productions, create thousands of good jobs, and continue growing the thriving cinematic infrastructure in New Mexico.”

Cinelease Studios has established itself as a premier studio model and boasts a portfolio of 42 soundstages, encompassing nearly 2 million square feet of studio space across six states. This expansion builds on the company’s Albuquerque footprint, which began almost 15 years ago, providing lighting and grip equipment to the industry.

“Expanding sound stages in Albuquerque is not just about creating space; it’s about cultivating a thriving film industry,” said Cyndy McCrossen, Albuquerque’s film liaison. “Attracting more productions to our area is absolutely dependent on the presence of more independent, purpose-built sound stages. This initiative is poised to draw in an even greater number of filmmakers.”