Long Wall's $75M Missile Defense Contract Puts Long Beach Industrial Back in the Spotlight

Long Wall, the Long Beach aerospace and defense company formerly known as ABL Space Systems, recently won a $75 million contract from the Missile Defense Agency. The money will fund flight testing of its Cyclops interceptor, according to the Los Angeles Business Journal. The contract is part of the Pentagon's broader "Golden Dome" missile defense effort.

The numbers worth noting

• The company says its production facilities span more than 160,000 square feet.
• It says that footprint could support more than 100 interceptors per year.
• It is looking to invest another $75 million in design and development.
• It also operates in Alaska and Alabama.

Why the model matters

Missile defense systems often cost more than the missiles they stop. Long Wall's pitch is mass production to bring unit costs down. Mass production needs real estate: large clear-span buildings, heavy power, secure yards and room to scale.

Golden Dome is bigger than one contract

By April, the Space Force had awarded $3.2 billion in agreements to 12 companies to develop space-based interceptor prototypes, per Space News. Funding is moving from prototype to production across the sector.

What it means for owners and tenants

• Defense tech companies that move from testing to production tend to need more space, and quickly.
• Buildings with strong power, high clear heights and secure, controlled layouts are the ones in demand.
• Landlords near Long Beach should expect more inquiries from growth-stage defense tenants, and should be ready to underwrite them.

If you own industrial space in the Long Beach area, or you are a defense tech company planning your next facility, I would be glad to talk through what the market looks like right now.

Source: Los Angeles Business Journal, "Long Wall Lands Deal With Feds."