Varda Space Industries Inks 205K-SF Lease at Mattel R&D Space in El Segundo
The aerospace startup’s lease is an expansion of its headquarters, and builds on its roughly 55,000-square-foot lease in the coastal city last year
By Nick Trombola March 4, 2026 2:55 pm
reprints
Aerospace and defense contractors are taking flight once again in Los Angeles’ South Bay.
Varda Space Industries, which develops hypersonic re-entry systems and advanced pharmaceuticals in orbit, has inked a new 205,443-square-foot industrial and office lease at 2031 East Mariposa Avenue — the longtime design center of toy maker Mattel — in El Segundo. Landlord GPI Companies acquired the 9-acre campus in 2019 for $84 million, and Mattel plans to move out of the space later this year.
CBRE’s Bob Healy represented GPI Companies, and the brokerage’s Cameron Merrill represented Varda in the lease negotiations. Varda was founded in 2021 by former SpaceX employees.
“2031 East 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,” Mike Woods, a partner at GPI Companies, said in a statement.
“This move gives our teams increased capacity and infrastructure to scale production, accelerate mission cadence, and continue delivering for our customers,” Jonathan Barr, Varda’s chief operating officer, added.
Varda’s lease at the property serves as an expansion of its headquarters in El Segundo. The startup occupies roughly 60,000 square feet at 225 South Aviation Boulevard, and last year inked a roughly 55,000-square-foot sublease at Beyond Meat’s former El Segundo facility, at 888 Douglas Street. All three properties are within three miles of each other, just south of Los Angeles International Airport.
The aerospace firm’s new space, and El Segundo in general, have long histories of aerospace and defense innovation. Mattel has used the property as its research and development space for several decades, but it was originally constructed in 1940 as an aircraft facility. While the industry had declined in the region following the collapse of the Soviet Union, the coastal city has once again become a national leader in space innovation since the pandemic. El Segundo’s industrial vacancy last quarter, for example, was just 3.4 percent, per CBRE research.
“Varda’s continued expansion reaffirms that our city remains a strategic hub for industry-defining companies shaping the 21st century,” El Segundo Mayor Chris Pimentel said in a statement. “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.”
Nick Trombola can be reached at ntrombola@commercialobserver.com.
