Additional 2.6m sq ft of film studios required in UK by 2028

An additional 2.6m sq ft of studio space is needed in the UK, despite the global slowdown in film and TV production. Analysis from Knight Frank shows the UK will experience a shortfall of space by 2028, even though production has stalled due to the US writers’ strike. The UK Film and Television Studios Market Report says production spend in the UK is forecast to increase by £2.4bn annually by 2028, requiring an additional 2.6m sq ft of studio space. Paul de Carvalho, head of studios at Knight Frank, said: “While the Hollywood writers’ and actors’ strikes have cooled demand for UK studio space in the short term, we anticipate demand to rebound strongly over the coming years with development of new facilities initially struggling to keep pace. “At the same time, the US strikes have highlighted the dependence of the UK industry on US productions, which studio developers will need to take into account.” Currently just 852,000 sq ft of the 3.8m sq ft development pipeline is under construction, as developers weigh up change in demand and cost increases. According to the research, every £1bn invested in film and television production requires 1.1m sq ft of additional space. Based on production spend figures from the British Film Institute, Knight Frank projects annual investment in production in the UK will increase from £6.3bn to £8.7bn per year by 2028, creating a requirement for around 2.6m sq ft of additional studio space. Just eight schemes were consented in the first half of 2023 compared with 17 in the same period last year. The firm said a sharp increase in build and financing costs is affecting the viability of some schemes. In addition, with some major streaming services signalling they have already secured the majority of the studio space they need, there is less confidence to deliver large-scale facilities speculatively. Instead, Knight Frank highlights the increased demand for conversions and smaller specialist facilities. Knight Frank capital markets partner Freddie Owen said: “The supply and demand fundamentals of the film studio market over the past few years has led to significant interest from investors for both operational assets and those let on a longer-term basis which offer more secure rental income. “With the expected growth in demand, driven by further content creation, there will be exciting development and investment opportunities, especially within the smaller scale, operational segment of the market.” To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews Image © Brands&People/Unsplash