The rise of SpaceX, more-affordable rents, and Inglewood’s future pro football stadium are combining to transform Hawthorne’s industrial areas into a popular area. There are several companies that have moved into the industrial areas such as high-end motorcycle manufacturer Arch Motorcycle Co., co-owned by actor Keanu Reeves, and Urth Caffe, an organic coffee and tea chain that is relocating its headquarters this year to Hawthorne from downtown Los Angeles. Real estate experts and the city’s mayor credit Hawthorne’s redevelopment partly due to SpaceX, as well as the Tesla Inc. Design Studio. Andrew Dilfer, vice president at JLL, which specializes in commercial real estate services and investment management claims that the rent per square foot in 2009 and 2010 for older industrial warehouses in Hawthorne was about 50 cents, with the rent prices currently ranging from $1 to $1.50. Hoonie Kang, partner at Kearny Real Estate, which formerly helped revitalize the Hawthorne Municipal Airport and managed the nearby business park where SpaceX is located, stated,
Businesses like to say they’re located in Hawthorne. It’s become kind of a cachet name.
The low rents in Hawthorne and the people employed in the industrial areas have attracted restaurants, bars and other businesses to serve the workers, who are mostly young. Tony Morales, executive managing director of JLL, believes that the $2.6-billion Inglewood stadium being built for the Rams and the Chargers will be a new driver of development for Inglewood, as well as Hawthorne. There are two new Marriott hotels that are under construction on a lot adjacent to the Hawthorne library and City Hall, which should bring about more tourist traffic. The improvements to the Hawthorne Municipal Airport have also attracted fliers looking to avoid the busyness of nearby Los Angeles International Airport. Hawthorne, especially its industrial areas, is looking like a popular destination that has a bright economic future.