CBRE Facilitates 205,443-Square-Foot Lease in El Segundo to Varda Space Industries

CBRE announced that it has arranged a 205,443‑square‑foot lease at the industrial and office campus at 2031 E. Mariposa Avenue in El Segundo, California, for Varda Space Industries, the leader in orbital pharmaceutical processing and hypersonic reentry systems.

Bob Healey of CBRE represented the landlord, GPI Companies, which acquired the nine‑acre property in 2019 as part of its long‑term investment strategy in the El Segundo market. CBRE’s Cameron Merrill represented the tenant.

The new lease in the heart of El Segundo’s thriving aerospace corridor serves as an expansion of Varda Space Industries’ headquarters. The property provides Varda with additional capacity to manufacture spacecraft and reentry capsules at scale. The company also recently expanded into a 50,000 sq ft space focused on biopharma development at 888 Douglas, roughly a mile from the new site at 2031 Mariposa.

"This move gives our teams increased capacity and infrastructure to scale production, accelerate mission cadence, and continue delivering for our customers," said Varda's Chief Operating Officer, Jonathan Barr. "El Segundo has been an exceptional home for advanced aerospace and hard technology companies. We’re proud to deepen our roots in a community that understands how to build the future.”

Originally built in the 1940s as an aircraft facility, the site has deep roots in the aerospace and defense industries that have long shaped the South Bay. For the past several decades, the property served as a research and development center for a multinational toy manufacturer and entertainment company.

“2031 E. Mariposa has always been an exceptional property with a legacy tied to aerospace innovation, and leasing to Varda Space Industries feels like a natural continuation of that story,” said Mike Woods, Partner, GPI Companies. “We are proud to support a company that is genuinely pushing the boundaries of what’s possible, and we are excited to watch Varda grow and thrive here in El Segundo.”

According to CBRE Research, South Bay closed 2025 with 9.8 million square feet of total annual gross absorption, a 16.2% increase from 2024. El Segundo, now one of the region’s most active hubs for aerospace and defense innovation, recorded a vacancy rate of 3.4%, with tightening supply driven in part by demand from space companies, government contractors and technology startups attracted to the area’s proximity to LAX, leading research institutions and a deep talent pool.

“For nearly a century, El Segundo has been synonymous with aerospace excellence,” said El Segundo Mayor Chris Pimentel. “Varda’s continued expansion reaffirms that our city remains a strategic hub for industry-defining companies shaping the 21st century. This milestone is not merely about additional square footage. It’s about strengthening America’s competitive edge in space, scaling advanced manufacturing capabilities and proving that the next generation of space pioneers design and build in El Segundo."

“The South Bay remains one of the most important hubs for aerospace, defense and next‑generation manufacturing anywhere in the country,” Merrill said. “Varda’s commitment to this facility underscores the region’s continued momentum and its ability to attract companies that are redefining the future of space and advanced production.”