The growth in dollar investment by global venture capital (VC) firms into space technology could lead to the mushrooming of a new category in real estate occupier and investment focus.
So says property services firm Savills, which explains in a new 'Impacts' report on the future of real estate how spacetech VC investment has grown 65% over the past three years. ‘It is therefore likely to drive a spate of new requirements for real estate globally,’ tipped the firm.
The firm draws parallels between spacetech and the extraordinary rise of investment in, and take-up of, life sciences in recent times.
The difference in dollar investment between the two is still vast: Between 2016 and 2021, some $227 bn (€215 bn) was raised by the pharmaceutical and biotechnology sector. The comparable figure for the spacetech sector is $21 bn.
However, Savills thinks the 65% growth for the past three years is predictive.
Spaceflight, satellites and exploration technology have been most notable among companies headquartered in the US, China, Japan, and – most notably for Europe – the UK.
But alternative locations are also emerging. They include Spain, Finland, Norway, Germany, and France.
Steven Lang, director in Savills commercial research team, said: ‘Satellites and the delivery of commercial services for observing Earth and providing locational services are crucial to some of the technologies that we already rely on.’
‘Drone delivery, logistics, ride-hailing and precision agriculture all depend, or will depend, on hyper-accuracy. The companies we’re seeing secure investment today are at the forefront of the sector and are looking to rapidly expand.’
‘It’s very exciting for the global real estate market. Launch sites are very specialised, and possibly something more for an infrastructure fund in partnership with public investment, but there are many R&D, academic-linked and corporate locations that will emerge as the ecosystem grows, akin to the life science sector.’
Tom Mellows, head of UK Science at Savills, added: ‘The space industry stories that grab the headlines are usually those involving billionaires, but there are many sub-sectors that employ thousands of people and have specific and significant real estate needs. In recent years, there has also been a spate of white papers outlining countries’ aspirations for this sector. This national government ambition will also drive the space ecosystem and rapidly increase the demand for real estate, from HQ offices to R&D/production and high-value manufacturing facilities.’
