Built by Walter C. Jordan, the Nederlander Theatre officially opened as the National Theatre on Sept. 1, 1921. Theatre ownership has changed hands several times over the years — from the Shubert Organization until 1956, to Harry Fomkes to Billy Rose in 1959 (who renamed the theatre after himself) — until the Nederlander Organization purchased the property in 1979. It was then briefly known as the Trafalgar Theatre until it was renamed after the founder of the Nederlander Organization David T. Nederlander in 1980.

The theatre was originally constructed as a carpenter's shop in 1920, and was converted into a theatre the following year.