Real Estate

Axiom Space Doubles Clear Lake Office to 63.8K Sq Ft Amid Growth

Axiom Space doubles its Clear Lake office footprint to 63,800 sq ft, fueling office market growth in Houston's space sector.

By Doug Elli

5/16, 12:19 EDT
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Key Takeaway

  • Axiom Space expands its Clear Lake office lease to 63,800 square feet, reflecting the space industry's growth in Houston.
  • The company holds significant space-related facilities in Houston, including a new 22-acre campus at the Houston Spaceport.
  • Clear Lake benefits from a low office vacancy rate of 11.6%, bolstered by the aerospace sector's expansion.

Space Industry Fuels Office Market Growth in Houston

The space industry, with its blend of innovation and exploration, is significantly impacting the office market in Houston, particularly near the NASA Johnson Space Center. Axiom Space, a Houston-based spacesuit manufacturer collaborating with Prada and building the first commercial space station with NASA, has notably expanded its lease in the Clear Lake area. This expansion not only doubles Axiom Space's footprint to 63,800 square feet at Hercules II, 1290 Hercules Avenue but also highlights the burgeoning demand for office space driven by the space sector. The full occupancy of the two-story building by Axiom Space, at a rental rate of $18 per square foot, underscores the vitality of this market segment.

Axiom Space's Growing Presence in Space City

Axiom Space's expansion in Houston is multifaceted, extending beyond the Clear Lake lease. The company inaugurated a campus at the Houston Spaceport in December, known as the Axiom Space Assembly Integration and Test Building. This 22-acre campus is a hub for office space, astronaut training, mission control, testing labs, and a production facility for Axiom Space Station modules. Additionally, Axiom Space has taken a significant step by leasing 180,000 square feet from JMK5 Holdings at 600 Gemini Street in Webster for its spacesuit lab, supporting NASA's Artemis program with a $228.5 million contract. These expansions reflect Axiom Space's strategic positioning within the space industry and its contribution to the local economy.

The Clear Lake Advantage

The space industry's influence on the Clear Lake office market is profound, with one of the lowest vacancy rates in the Houston metro at 11.6 percent, compared to the nearly 21 percent average in Greater Houston. This discrepancy highlights the unique appeal of the Clear Lake area, bolstered by its proximity to the NASA Johnson Space Center and the burgeoning Houston Spaceport. The presence of other significant players like Collins Aerospace and Intuitive Machines, along with Texas A&M University's plans for a new research and training facility, further cements Clear Lake's status as a pivotal space industry hub.

Broader Implications for Houston's Office Market

The expansion of Axiom Space and the overall growth of the space industry in Houston have broader implications for the city's office market. This sector's dynamism is attracting a diverse range of companies and fostering a competitive environment that benefits the local economy. The development of the Houston Spaceport and the influx of space-related businesses are creating new commercial space opportunities, driving down vacancy rates, and setting a precedent for future growth in this high-tech industry.