Quixote Studios Moves from Atlanta to Focus on New Opportunities in New York and L.A.
Quixote Studios Begins Operations Wind-Down in Atlanta
Quixote Studios has announced a reduction in operations in the Atlanta area, reallocating equipment and assets to its locations in Los Angeles and New York. The company is also set to exit most of its leased sound stage facilities in Los Angeles.
This decision comes in the wake of Hudson Pacific Properties’ acquisition of Quixote for $360 million in 2022, as production levels surged post-COVID-19. Atlanta had rapidly emerged as a thriving production hub, largely due to favorable incentives. However, this recent shift signifies ongoing disruptions within the industry.
Despite the downsizing in Atlanta, Quixote’s fleet services, including lighting and grip, along with production supplies and communications rentals, will remain operational in New York and Los Angeles. Hudson Pacific emphasized that its Sunset Studios portfolio, owned outright rather than leased, remains stable, with flagship Hollywood stages currently 96% leased and newly opened stages in Manhattan at full occupancy. The firm noted, “Best-in-class, purpose-built studio real estate in prime locations continues to attract strong tenant interest even amid more moderate production levels.”
Quixote will continue its operations at Griffith Park while winding down its other studio leases in Los Angeles. Mark Lammas, President of Hudson Pacific, stated, “We have been working with Quixote’s leadership to further streamline that business in alignment with our commitment to capital discipline and portfolio quality.”
He added that Quixote’s move away from leased facilities in markets facing structural cost or demand challenges will enable Hudson Pacific to focus on its office portfolio and the more lucrative segments of its studio business.
The publicly traded Hudson Pacific expects to see cost savings emerge in the latter half of the year and plans to provide further updates during its upcoming Q2 earnings call on May 7.
