Southern California’s aerospace demand is spilling out of its traditional corridors and into more pockets of Los Angeles County as defense spending ramps up nationwide.
ASC Process Systems, a maker of specialized equipment used by firms like Boeing and Lockheed Martin to make aircraft, has leased 80,317 square feet at Westcore’s 28144 Witherspoon Parkway at the Valencia Commerce Center in Valencia, California, bringing the company’s total manufacturing footprint to more than 300,000 square feet in the Santa Clarita Valley, 30 miles from downtown Los Angeles.
“We’re seeing increased engagement from aerospace and advanced manufacturing users in particular," said a statement from Colliers Executive Vice President Matt Dierckman, who represented both the landlord and the tenant in the deal.
ASC Processing Systems is part of a fleet of aerospace and defense companies drawn by Southern California's skilled workforce, according to local officials.
That expansion is occurring not only in established aerospace hubs such as El Segundo, Long Beach and parts of the San Fernando Valley, but also in the Santa Clarita Valley, according to CoStar research.
The Trump administration has announced plans to increase defense spending in fiscal year 2027 to $1.5 trillion, up from $900 billion in 2026 and $895 billion in 2025. The upswing in defense spending is fueling a wave of real estate expansion, with defense and aerospace firms opening factories, integration facilities and campuses from California to the East Coast.
The ASC Process Systems lease brings occupancy at the 189,250-square-foot Valencia property to 58%. Built in 2000 as part of a four-building complex, the site’s only other tenant is a set rental business occupying 64,000 square feet. Westcore acquired the property as part of a portfolio in 2023.
Still, while deals like ASC’s point to renewed expansion activity, they’re unfolding against a more cautious industrial backdrop in the Santa Clarita Valley, where higher costs and interest rates have tempered overall demand, Dierckman said.
Aerospace growth engine
Aerospace jobs in the Santa Clarita Valley have roughly doubled since 2020 to record levels, with more than 1,400 jobs added last year alone, according to officials.
Major employers draw firms to the Santa Clarita Valley, from precision parts makers such as Crissair and Aerospace Dynamics International to global players including Woodward, ITT Aerospace Controls and Curtiss-Wright.
“Being located within Southern California’s cluster of aerospace companies provides advantages, including access to specialized labor pools, knowledge transfer, shared suppliers and shared customers,” said Jesse Gundersheim, CoStar’s senior director of market analytics for Los Angeles.
San Diego-based Westcore has 166 mostly industrial properties totaling 23 million square feet, including seven properties in Los Angeles, according to CoStar data.
For the record
In addition to Dierckman, Colliers' David Harding, Greg Geraci, Billy Walk and Kevin Carroll represented both the landlord and the tenant in the transaction.