- Skydance hopes to save at least $2.2B by cutting real estate and facility overhead at Warner Bros. and Paramount, and consolidating offices across major markets.
- It controls about 13M SF across 120 properties and leases millions more, including 1.6M SF at 1515 Broadway in New York, through 2031.
- Third-party landlords such as Kilroy Realty, Worthe Real Estate Group and Stockbridge have exposure as the company moves workers into owned buildings.
Landlords of Hollywood and New York offices have a new risk to track: Skydance wants to consolidate its footprint, according to Bisnow’s report.
CoStar News reported, via Bisnow, that staff in rented space could shift into company-owned buildings across four markets: London, Atlanta, New York and Los Angeles.
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The Savings Target
On Monday’s earnings call, co-CEO Ynon Kreiz set a floor of $2.2B in savings. The target would come from cutting property and facilities costs across the Warner Bros. and Paramount units, according to Bisnow.
Kreiz identified five sites in New York, seven in LA, and several in Atlanta and London. He also sees room to consolidate across major markets.
A Big Footprint
The company was formed by combining Paramount and Warner Bros. Discovery. It owns roughly 13M SF across 120 properties, according to CoStar data cited by Bisnow. It also leases “millions of square feet” from third parties.
The $111B merger closed last month.
Where the Leases Sit
In New York, Paramount’s 1.6M SF lease at 1515 Broadway runs through 2031. A separate 185K SF space on West 57th Street expires in 2029.
In Los Angeles, the company has 797K SF at Columbia Square in Hollywood through 2028. Its Santa Monica offices run through 2034. Third-party landlords with exposure include Kilroy Realty, Worthe Real Estate Group and Stockbridge.
The Bigger Cost Push
The property changes support a broader plan to cut $6B in costs over three years. Skydance carries $80B of debt. The company also spent about $8B on corporate overhead this year, including real estate.
Zoom Out
Entertainment tenants are shifting their footprints. We covered how Paramount eyed Austin for its next studio move.
Meanwhile, the return-to-office trend has accelerated as employers tighten workplace rules.
What’s Next
Skydance hasn’t announced specific property decisions. Watch which leases the company lets expire, as the 2028 and 2029 expirations come first.
