New York-based developer Tishman Speyer has canceled its plans to replace a warehouse complex in L.A.'s Arts District with a 10-story office building encompassing 222K SF.
The Department of City Planning has officially terminated entitlement proceedings for Tishman's project at 2159 East Bay Street, according to a report in Urbanize LA.
The project has been in the works for seven years. The small group of industrial buildings at the site was once the home of the startup Hyperloop One, the high-speed magnetic levitation train envisioned by Elon Musk in 2013.
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When the plans for the office complex in the Arts District originally were proposed in 2017, the area had become a magnet for new projects after Warner Music Group set up a new West Coast headquarters at a former Ford factory at 7th Street and Santa Fe Avenue.
While Tishman is withdrawing from the Arts District project, it has four mixed-use apartment buildings under construction in downtown Santa Monica.
The project at 501 Broadway, at the intersection of 5th Street and Broadway, is replacing a commercial building with an eight-story apartment tower that will encompass 89 units.
The new complex is one of eight downtown Santa Monica developments, encompassing a total of more than 600 units, which Tishman Speyer acquired from WS Communities in early 2022.
Three of those projects also are under construction, including 1430 Lincoln Boulevard, 1650 Lincoln Boulevard and 711 Colorado Avenue.
At the end of 2022, Tishman Speyer acquired for $31M a 3.5-acre site in Baldwin Hills that had been approved in 2018 for the headquarters of the Coffee Bean & Tea Leaf company.
There were a few signs of improvement in the office market in Greater Los Angeles in the first quarter, but you had to drill down into some gloomy numbers to find them.
On the negative side, the vacancy rate in Greater L.A. remains at nearly 24%. An additional 2.4M SF of space was put on the market in Q1, increasing total office availability 110 bps to another record high of more than 28, according to a market report from Colliers.
In Q1, the office market in Los Angeles recorded its third consecutive quarter of negative net absorption that was more than minus 1M SF—the Q1 tally dropped to minus 1M from the Q4 total of 1.12M—but the first quarter tally includes more than 424K SF of new supply, whereas no new supply arrived in 4Q 2023.
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