Thursday

07-17-2025 Vol 2024

Investors Tap into Space Exploration Real Estate Boom, Envisioning a New Frontier

The burgeoning field of space exploration is not just a domain for scientists and astronauts; it’s rapidly becoming an enticing prospect for real estate investors. As private companies such as SpaceX and Blue Origin advance their technologies for reusable rockets and set ambitious goals for lunar and Martian colonization, the related real estate market is experiencing a surge in interest. Investors are beginning to liken the current climate to the early days of railroad expansion when towns sprang up around new rail lines.

Among the most compelling opportunities in this new market are lunar and deep-space data centers. Notably, Hines, a global real estate investment, development, and management firm, has made significant strides by acquiring the Titusville Logistics Center, a Class A industrial property in Florida’s Space Coast submarket that spans almost 250,000 square feet and is fully leased to aerospace tenants.

David Steinbach, the global chief investment officer at Hines, emphasizes that a major transformation is taking place within the industry. As innovations are unlocked, companies are identifying ways to monetize space more extensively. According to Steinbach, both terrestrial infrastructure support and real estate ventures for manufacturing on the moon are under exploration, indicating a shift into a new era of investment.

In Steinbach’s view, these developments signify the early stages of what will become a substantial wave of investments. “We are creating these new rails of the future,” he noted, indicating that while these modern infrastructures may focus more on orbital pathways than those situated on solid ground, they will be critical to developing the future of space.

A key element in this emerging infrastructure is space-based data centers. With their rapid proliferation across the planet, conventional data centers now face significant energy demands that often surpass local grid capabilities. By relocating these facilities into space, investors can leverage what Steinbach identifies as a fully decarbonized energy solution.

“There is unlimited power in space due to sunlight, and the vacuum of space offers endless cooling,” Steinbach explained. He highlighted that there is also limitless real estate available for the placement of these data centers. These facilities could potentially be established on the moon where they could process data and then relay it back to Earth, creating a seamless connection between extraterrestrial operations and terrestrial users.

In anticipation of these developments, various companies are actively working on construction technologies suited for lunar environments. For instance, ICON, a construction technology startup based in Texas, is collaborating with NASA to develop 3D printing technologies tailored for use on both the moon and Mars. This initiative is supported by NASA through its Small Business Innovation Research program.

Moreover, another innovative startup based in California called Ethos claims it has created technology capable of producing moon-based cement utilizing the moon’s anorthosite, a prevalent type of rock. According to Ross Centers, Ethos’s CEO, the company transforms lunar geological resources into usable building materials. These materials are envisioned for a variety of applications, including landing pads, roads, and foundations for data centers.

“It’s a whole new world waiting to be developed,” Centers remarked, affirming the immense potential that lies ahead. Not only can anorthosite be used for construction, but it could also be the foundation for producing solar panels and other essential materials for data center infrastructure.

Centers believes that as space exploration initiatives continue to gain momentum, the frequency of rocket launches will multiply, further necessitating development and expansion in this sector. “People are really excited about this vision… it’s not every generation that you get a whole new continent to unlock,” he said.

Meanwhile, as industrial warehouses on Earth cater to the burgeoning space economy, they also face challenges. These facilities provide crucial space for components destined for space or manufactured products influenced by space exploration. However, the overall warehouse sector is witnessing a decline, with a national vacancy rate of 8.5% recorded in May—an increase of 290 basis points over the past year. In the same timeframe, only 86.9 million square feet of new warehouse space was initiated, marking a trend that could lead to the lowest total since 2018.

Steinbach acknowledges the headwinds facing the industrial sector in the United States, particularly among distribution centers for large retailers. However, he notes that certain markets, such as those supporting space industries in Florida and Texas, remain undersupplied and ripe for growth.

He advocates for the need for increased investment and development to establish the necessary infrastructure that will underpin the race for space real estate. Nonetheless, prevailing high-interest rates are currently stymying this progress. Steinbach believes that as rates decrease, so too will the flow of capital into this promising sector.

“The capital is looking for great opportunities, great returns, and this is one of them,” he stated, affirming the level of investor interest and optimism in the evolving space exploration real estate market.

image source from:nbclosangeles

Abigail Harper