Thank you very much @Hardcawcanary!! I heard about the playset option however I could not get it to work before. I took a good second look and I think I have figured out the steps to get it to work!
I am not sure about all the settings however I did create the steps you can take to Save and Place the new Prefab in your Island. If anyone has any problems or suggestions to any steps or settings that should be changed let me know I will update the steps.
How to Create Prefab
Step 1
Create New Map
Step 2
Create the New Prefab
Step 3
In the Toolbar at the top, Click Window, Select World Settings
Step 4
World Settings Opens up next to the details panel
Step 5
Look for Creative Playset and select the arrow to open more options
Step 6
Next to “IsPlayset” make sure that is checked.
Step 7
Under Playset Settings, set Category to Prefab, in Name enter the name of your new Prefab, if you continue down you can enter a short or long description, small or large thumbnail
Step 8
Click on Creative Tags, and click on the + sign to enter a tag so you can select terms to make it easier to find your new Prefab.
Step 9
Under Creative Tags there is Automatic Bounding Box, Offset Type, Ground Snap Tolerance, and Generate Props.
I just left those since I do not know what those are for. If I should use these settings let me know and I will update the steps.
Step 10
Save your file! Ctrl + S
Note
You will get a warning saying you GridPlane1 Actor, GridPlane2 Actor, GridPlane3 Actor, GridPlane4 Actor, and IslandSettings0 Device have been excluded. Those are things that came with the Blank template and you do not want them included anyways. You may also want to delete any player Spawners if you have otherwise just take note that they will be saved on your Prefab and will also be added to the map when you add your Prefab.
Step 11
Go to Content Drawer, right click on the name of your Project, select Show in Explorer. This opens the folder where your project is saved. Select _Int Folder, Playsets, and this is where you will find your new Prefab file.
Step 12
To make it easier I would copy the file and save it to another folder where you keep all your custom Prefabs so they are all in one place.
Step 13
Open the island you want to add your new Prefab to, Select Content Drawer, Right Click on your project select Show in Explorer. Create a Meshes or Prefab Folder or whatever you want to call it, then copy the Prefab File into there. Now when you go to the Content Drawer this folder will show up under your project and the folder will contain the Prefab File.
NOTE
The Prefab will stay in that folder even if you add to the Island and Delete it. I’m not sure if it will take up any memory or not but if you decide not to use the Prefab you may want to remove it from that folder.