- Varda Space Industries leased a 205,400 KSF facility in El Segundo for expansion.
- The building, a former Mattel R&D center, will support spacecraft manufacturing.
- Varda plans to construct 10 more spacecraft by next year in its new HQ.
- El Segundo’s industrial market vacancy has dropped to 3.4% amid aerospace demand.
Expansion in a Tight Industrial Market
Varda Space Industries signed a lease for a 205,400 KSF building at 2031 E. Mariposa Avenue in El Segundo. The property previously served as Mattel’s research and development center. According to The Real Deal, Varda will relocate from its smaller headquarters nearby. The company plans an extensive buildout to support expanded operations. Varda expects the construction and upgrades to take up to eight months. Once complete, the facility will help the company ramp up spacecraft production.
Growth in Space Manufacturing
The expanded El Segundo site will focus on large-scale manufacturing of Varda’s in-orbit pharmaceutical labs, supporting plans to launch at least 10 additional spacecraft within the next year. Varda’s automated capsule labs process pharmaceutical materials in microgravity, with missions planned through 2028 on SpaceX rockets for contracts with drug makers and the military.
Industrial Market Momentum
El Segundo continues to attract strong industrial demand, especially from aerospace and defense companies. Vacancy has fallen to just 3.4%, according to CBRE. This momentum reflects a broader shift as companies expand operations beyond traditional coastal hubs and into high-growth innovation corridors. The trend reinforces the value of properties like the Mariposa Avenue facility for aerospace manufacturing and research.
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