Quixote Studios Leaves Atlanta, Shifts Assets to New York and LA
Quixote Studios has announced a significant shift in its operations, moving assets from Atlanta to New York and Los Angeles. This decision comes as the company plans to wind down its presence in the Atlanta market.
Phased Wind-Down of Operations
The company’s transition will result in the elimination of around 70 jobs across its Atlanta and Los Angeles locations. The phased wind-down aims to minimize disruption for clients relying on Quixote’s services.
Financial Implications and Cost Savings
- Hudson Pacific, Quixote’s parent company, is targeting up to $27 million in annual cost savings.
- The real estate investment trust acquired Quixote for $360 million in 2022.
- Production had surged post-COVID, with Atlanta emerging as a rapidly growing production hub.
Impact on Studio Locations
As part of the restructuring, Quixote will exit most of its leased sound stage facilities in Los Angeles, with the exception of Griffith Park. The company’s fleet, lighting, grip, production supplies, and communications rental services will remain active in New York and Los Angeles.
Current Studio Demand
Despite these changes, Hudson Pacific states that its Sunset Studios portfolio is stable. Key highlights include:
- Hollywood stages are 96% leased.
- New stages in Manhattan are fully leased at 100% capacity.
Strategic Focus
Mark Lammas, President of Hudson Pacific, emphasized their commitment to capital discipline and improving portfolio quality. Quixote’s strategic shift away from leased sound stages aligns with the company’s focus on high-performing segments of its studio business and office portfolio.
Future Updates
Hudson Pacific plans to share more details on its financial outlook during its Q2 earnings call on May 7. The company expects that cost savings from this transition will begin to materialize in the latter half of the year.
