Full Breakdown
Varda Space Industries Expands Operations in El Segundo
3/5/2026, 9:13:41 AM
Varda's New Facility and Its Significance
Varda Space Industries, a startup focused on pharmaceutical processing in microgravity, is expanding its operations by leasing a 205,443-square-foot facility in El Segundo, California, previously owned by Mattel. This site, located at 2031 E. Mariposa Ave., will serve as an extension of Varda's existing headquarters on Aviation Boulevard, allowing the company to scale its manufacturing capabilities for spacecraft and automated labs designed for orbital use.
The facility, originally constructed in the 1940s, has a rich history in aerospace and defense, situated near major contractors and Los Angeles Air Force Base. Varda's co-founder and CEO, Will Bruey, a former SpaceX engineer, emphasizes the importance of this location for the company's growth, as it will enable them to continue launching their spacecraft on SpaceX's Falcon 9 rockets from Vandenberg Space Force Base.
Operational Plans and Future Growth
Varda plans to take possession of the new facility in December 2026, with an estimated four to eight months required for renovations to create production and assembly spaces. The company anticipates constructing an additional ten spacecraft by the end of 2027. Currently, Varda operates a smaller lab space, having subleased approximately 55,000 square feet from Beyond Meat in El Segundo, which has allowed them to maintain a presence in the area while expanding.
The consolidation of Varda's operations within close proximity is expected to streamline logistics between manufacturing, launch, and recovery operations, enhancing efficiency in their orbital pharmaceutical processing endeavors.
Economic Impact on El Segundo
The leasing of the former Mattel facility highlights El Segundo's status as a hub for aerospace and defense innovation. According to real estate brokerage CBRE, the industrial property vacancy rate in the area has dropped to 3.4%, driven by demand from space companies and technology startups. Michael Woods, a partner at GPI Cos., which owns the property, remarked that leasing to Varda represents a continuation of the site's legacy in aerospace innovation.
Criticism and Concerns
Despite the positive outlook, some industry observers express concerns regarding the tight supply of large industrial spaces in the region, which could pose challenges for other startups seeking to expand. Bob Healey, a real estate broker at CBRE, noted that successful startups often face difficulties in remaining in the area as they grow.
Official Statements
Varda's Chief Operating Officer, Jonathan Barr, stated, “We already have Varda-branded shuttles running up and down Aviation Boulevard,” indicating the company's commitment to enhancing its operational infrastructure.
Verbatim Quotes
- “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,” — Michael Woods, Partner at GPI Cos.
- “We are proud to support a company that is genuinely pushing the boundaries of what’s possible, and are excited to watch Varda grow and thrive here in El Segundo,” — Michael Woods, Partner at GPI Cos.
What's Next
As Varda prepares to transition into its new facility, the company is set to ramp up operations significantly, with plans for multiple missions scheduled through 2028. The expansion reflects broader trends in the aerospace sector, as startups increasingly seek to establish a foothold in El Segundo's competitive industrial landscape.
