The space tech industry is moving into aerospace real estate—andit could be good news for the asset class. Aerospace companiesoccupy more than 23 million square feet of space in the Los Angelesarea, but the pandemic has put pressure on the market. However,recent growth in space tech could help to insulate aerospaceproperties, according to research from CBRE.

"Los Angeles has long been a hub for aerospace talent and hasdeveloped deep ties with federal funding in the sector since thefirst half of the 20th century," Eric Willett,regional director of research and thought leadership at CBRE, tellsGlobeSt.com. "Since then, the industry's fortunes have waxed andwaned with the priorities of the federal government. Today,heightened federal support for space exploration has benefited thewide range of local groups specializing in the next generation ofspace technology including JPL, SpaceX, Rocket Lab, and VirginGalactic."

Los Angeles-based space technology companies are serving majororganizations, like NASA. "In a timely example of the region'sgrowing relevance, NASA relying on LA-based firms stands ready tonext week send astronauts to space from American soil—a feat notaccomplished since the Space Shuttle fleet was retired nearly adecade ago," says Willett.