- Innovo Property Group has completed The Borden Complex, a 1M SF industrial and film studio development in Long Island City, amid a downturn in both sectors.
- Despite $435M in financing and no signed leases, Innovo remains confident the cyclical nature of real estate and entertainment markets will support long-term success.
- The project features 680K SF of industrial space and 233K SF of purpose-built studios, targeting e-commerce users and production companies as leasing efforts continue.
A Mistimed Delivery
According to Bisnow, Innovo broke ground on The Borden Complex in 2022, when warehouse demand and streaming-driven studio growth were peaking. By 2025, both markets had cooled. Tariffs and oversupply hurt warehouse activity. Meanwhile, labor strikes and rising costs pushed film production abroad.
Inside the Project
The site sits at 23-30 Borden Avenue near the LIE, BQE, and Midtown Tunnel. The six-story, 1M SF building includes 680K SF of industrial space across three lower levels, each with truck access. The top three floors offer 233K SF of studios, 70K SF of parking, and a rooftop prepped for solar panels.
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A Costly Bet With No Tenants (Yet)
Innovo bought the site in 2019 for $75M. It secured over $435M in financing from JPMorgan Chase and Starwood to build. The state issued a completion certificate in January. As of now, no tenants have signed, but Innovo is actively marketing the space.
Market Headwinds
Industrial vacancy in NYC rose to 6.1% in Q1 2025, up from 4% in 2022. No Class-A leases were signed in the quarter. At the same time, NYC’s studio sector lost up to 25,000 jobs in 2024. Many studios now choose lower-cost locations abroad.
Looking Long Term
Innovo’s Graham Stephens said both real estate and entertainment are cyclical. He believes NYC’s talent and unique setting will keep it competitive. The company is flexible on rents and open to customizing spaces to meet tenant needs.
Why It Matters
The Borden Complex highlights the risks of speculative development. It also shows how quickly real estate conditions can change. Innovo is betting on long-term demand in two volatile sectors.
