Prologis Considering Developing Studio Space In LA's Arts District
Prologis' more than $90M purchase of the Downtown Los Angeles Greyhound bus terminal in early 2021 was billed as a redevelopment play but few likely would have guessed that Prologis — Amazon's preferred landlord — was planning studio space at the site.
The company announced its intent to explore building 10 soundstages and 291K SF of Class-A office and support space at the nearly 10-acre site last week, according to Urbanize LA. Relativity Architects is designing the project.
Prologis confirmed its plans to Bisnow, adding that its application includes two possible plans for the site: the studio plan and the construction of a "state-of-the-art logistics facility for warehousing and distribution of goods with research and development space and ground-floor commercial retail/restaurant space."
The dual plans come as the white-hot industrial market seems poised for at least a slight slowdown and media and entertainment companies are weathering layoffs and bracing for a recession.
"As is normal for the Prologis team, we’ll work with the community and community leaders as we consider the long-term project plan," Prologis Vice President, Investment Officer Lauren Achtemeier told Bisnow in an email.
Prologis did not respond to questions about why it, the biggest industrial landlord in the world, was considering jumping into the complicated world of studio real estate. In its most recent earnings call, company executives told investors that there was basically no industrial vacancy in Los Angeles and that its fundamentals were likely to remain strong regardless of broader market issues.
The bus terminal property, situated near the LA River and minutes from major freeways, would ostensibly be in an excellent location for warehouse and distribution space, particularly the coveted last-mile variety.
In January 2021, when Prologis bought the property, West Region President Kim Snyder told Bisnow in an email that the purchase was “part of our broader strategy of acquiring well-located assets in major gateway cities in close proximity to the urban core."
Snyder added that the property could lend itself to a variety of uses but listed only industrial ones: single or multistory industrial, "transportation logistics development, or renovation of the existing improvements to create a low-coverage last-touch facility."
In its third-quarter earnings call, Prologis also said it would be transitioning away from speculative projects and focusing on build-to-suit amid concerns that economic uncertainty would stifle the ravenous demand for industrial space that has characterized the last two or so years. Amazon and other major occupiers have already pressed pause on new warehouse leases.
The shuttered Greyhound bus terminal sits at Seventh and Alameda streets, on the edge of the Arts District, which has become something of a hub for planned studio projects, with a few others in the works nearby.
Further south, near Olympic Boulevard and Alameda, Atlas Capital received approval to build up to 17 soundstages and office space at the Los Angeles Times printing plant site. New York-based East End Capital is working at Sixth and Alameda to build 16 soundstages and nearly 300K SF of office and studio support space.
Prologis' announcement said it planned to file an application with the Los Angeles Department of City Planning on Nov. 22, but the application does not yet appear on the department's website. The project does not have an announced timeline, according to Urbanize.
