Real estate investors eye space economy as the new frontier

Real estate investors are turning their gaze skyward in preparation to take part in upcoming needs of the space exploration and data sector.

This week, a CNBC report pointed to global real estate firm Hines and its recent acquisition of the Titusville Logistics Center — a nearly 250,000-square-foot industrial facility on Florida’s Space Coast.

The move highlights a growing trend of investment in real estate tied to the space economy, CNBC reported.

“We are in the early days of something that will be some major investments, and we’re creating these new rails of the future,” David Steinbach, global chief investment officer at Hines, told CNBC. “In this case, it’s more into orbit instead of on the ground, but when you think about it that way, think about all the nodes that are going to get developed and created.

“It’s exciting, and I think investors need to be thinking that way.”

Steinbach compared the moment to the expansion of railroads in the 19th century. He believes that infrastructure on Earth will be critical for supporting lunar and deep space missions — including manufacturing on the moon.

One emerging frontier, Steinbach added, is space-based data centers that could potentially harness unlimited solar energy and cooling from the vacuum of space, as opposed to stressing Earth-based power grids.

Companies are already building technology to make that vision possible. Texas-based ICON is working with NASA to develop 3D printing systems for construction on the moon and Mars — work that’s being funded through NASA’s Small Business Innovation Research program, according to CNBC.

California startup Ethos said it has developed a moon-ready cement made from anorthosite, a mineral found in lunar rock. CEO Ross Centers said the material could be used to build landing pads, roads, data centers and solar panel components.

“People are really excited about this vision,” Centers told CNBC. “This is something that people have been looking for. It’s not every generation you get a whole new continent to unlock.”

Earth-based warehouses are expected to support manufacturing and logistics for space missions, but the sector is facing headwinds. CNBC cited data from Yardi Research showing a national warehouse vacancy rate of 8.5% in May that’s attributed to tariff concerns.

New construction in the sector has slowed to levels not seen since 2018, CNBC said.

Steinbach acknowledged the softness in the U.S. industrial market — especially in big-box retail distribution. But he sees space-focused submarkets in Florida and Texas as significantly underbuilt.

“I think the capital is looking for great opportunities,” Steinbach said. “They’re looking for great returns, and this is one of them.”