As Snapchat consolidates its operations in Santa Monica, another tech startup is packing up shop in search of lower rents.
Ring, a smart video doorbell-maker, is relocating from Santa Monica to a 62,000-square-foot warehouse in Hawthorne, the company announced Monday. The company signed a 10-year lease with an option to renew at the property, located at 12515 Cerise Avenue.
The move to Hawthorne could dramatically lower Ring’s per-square-foot rental rate by up to 75 percent a year, according to Owen Fileti, a senior executive director at LA Realty who specializes in tech and entertainment leases on the Westside. “This is one of the most exciting tenants in the LA ecosystem” to keep a footprint in the LA marketplace, he said.
A spokesperson for Ring declined to comment on its reasons for the move to Hawthorne.
The technology firm, which was recently acquired by Amazon for a reported $1 billion, will move its 250 employees to the new space, which will serve as a hub for logistics and distribution. Ring, known for its video-streaming doorbells, also offers security systems and cameras to its 2 million users.
Vella Group, a real estate firm with properties in New York and Los Angeles, is developing the property. M-Rad Architecture designed the office campus, which will be fully leased by Ring.
Vella paid $13 million for the industrial property in March 2018, according to property records on Real Capital Analytics.
The South Bay city, known as a former aerospace hub, has seen a flurry of new construction projects recently, including a 221-room Marriott Courtyard and 133-room TownePlace Suites. It’s currently home to the headquarters of Elon Musk’s brainchild, SpaceX, as well as an Amazon shipping center.