Studio, that is, in later style (7)
I believe the answer is:
atelier
'studio' is the definition.
(atelier is a kind of studio)
'that is in later style' is the wordplay.
'that is' becomes 'ie' (abbreviation for id est, 'that is' in Latin).
'in' is an insertion indicator.
'style' indicates anagramming the letters (style can mean to shape or design).
'later' is an anagram of 'atelr'.
'ie' placed within 'atelr' is 'ATELIER'.
(Other definitions for atelier that I've seen before include "room for artist" , "Artist's workroom" , "Designer's workshop" , "Artist's workshop, studio" , "I relate to workshop used by artist" .)