Hudson Pacific Announces Phased Wind-Down of Quixote Subsidiaries in Atlanta
Hudson Pacific Properties announced its Quixote subsidiaries will commence the phased wind-down of leased sound stage facilities and Atlanta-area operations, along with other ongoing cost optimization efforts. Select equipment assets are expected to be redeployed from Atlanta to Los Angeles and New York where Quixote's fleet, lighting and grip, production supplies and communications rental services will continue. These actions, which will take place over the coming quarters to minimize disruption for Quixote clients, represent another approximately $21-$27 million in potential annualized cost savings. Sunset Studios, Hudson Pacific's separately owned studio portfolio, remains unaffected and continues to demonstrate resilient demand fundamentals. Sunset Studios' flagship Hollywood stages are 96% leased and the newly delivered Manhattan stages are 100% leased, underscoring that best-in-class, purpose-built studio real estate in prime locations continues to attract strong tenant interest even amid more moderate production levels. Hudson Pacific anticipates these cost savings will begin to materialize in the second half of the year and will provide an updated full-year outlook when it reports first quarter 2026 earnings.
