In 2017, with things looking up in the Arts District, developer Tishman Speyer looked to capitalize on the neighborhood's rising tides with plans for a new office complex on the banks of the Los Angeles River. Seven years later, with the office market continuing to struggle in the wake of the pandemic, the New York-based developer has had second thoughts.

In a letter dated May 29, 2024, the Department of City Planning officially terminated entitlement proceedings for Tishman Speyer's proposed project at 2159 E. Bay Street. Plans had called for demolishing existing warehouses - once the headquarters of defunct Hyperloop One - to make way for the construction of a 10-story building featuring 217,189 square feet of offices and 5,000 square feet of retail space.

At the time the project was submitted to the City of Los Angeles, the Arts District had recently landed a whale in the form of Warner Music Group, which set up a new West Coast headquarters in a former Ford factory at 7th Street and Santa Fe Avenue. Not long afterward, Spotify inked leases for roughly 155,000 square feet of space within the At Mateo development.

2159 E Bay StreetLADCP

The 2159 Bay Street project came about as part of a wave of development applications for similar buildings in the near vicinity, including proposed developments from Onni Group, Jade Enterprises, and Skanska. Likewise, Hines is seeking approvals to build ground-up space adjacent to the Warner Music Group offices along Santa Fe Avenue.

While Tishman Speyer may be exiting the Arts District, the developer is still active in Los Angeles, with four mixed-use residential buildings now under construction in Downtown Santa Monica. Tishman Speyer has also acquired a vacant development site in Baldwin hills that was once slated to serve as a headquarters campus for Coffee Bean.

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