Space Tech Advancement Will Float Aerospace Real Estate Market

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

“Los Angeles has long been a hub for aerospace talent and has developed deep ties with federal funding in the sector since the first half of the 20th century,” Eric Willett, regional director of research and thought leadership at CBRE, tells GlobeSt.com. “Since then, the industry’s fortunes have waxed and waned with the priorities of the federal government. Today, heightened federal support for space exploration has benefited the wide range of local groups specializing in the next generation of space technology including JPL, SpaceX, Rocket Lab, and Virgin Galactic.”