Spy-Tech Demand Fuels Job Growth, Startups, Defense Expansion

The demand for military equipment capable of detecting spies, drones, and aircraft is surging, fueling job creation, the emergence of new startups, and the establishment of research centers. This growth has led to millions of square feet of real estate leased by defense and aerospace companies, particularly in California and Florida.

These sectors are expanding rapidly as the government increasingly outsources goods and services to private firms. According to Mordor Intelligence, the global defense and aerospace market is projected to reach a value of US$525.16 billion in 2025, climbing to US$694.86 billion by 2030.

Between late 2023 and the end of 2024, defense and aerospace firms leased 426,786 square feet of office space, outpacing the legal sector. In total, these companies leased 11.3 million square feet in 2024, up from 7.4 million in 2022, according to data from real estate firm JLL.

“We do believe the aerospace and defense industries, in particular, are going to be one of the demand drivers for new industrial space,” said Tom Taylor, head of aerospace and defense practice, JLL, in an interview with The New York Times.

The defense sector's expansion has been propelled by global conflicts. The US Department of Defense budget reached US$841 billion in 2024, compared to US$817 billion in 2023. While Defense Secretary Pete Hegseth has announced plans to cut at least 8% of expenses, the department is shifting its focus toward drones and autonomous weapons systems.

At the same time, the aerospace sector, once dominated by government entities, is witnessing greater private sector involvement. Companies like Blue Origin and SpaceX have paved the way for startups to enter the market. “It is often easier for the government to outsource these services than to manage them internally,” said Michael Soto, Vice President of Research, Savills.

In 2024, 274 startups in the aerospace and defense sectors secured funding, according to PitchBook. Cities across the United States are offering flexible permitting processes and incentives to attract investment from these fast-growing industries, which promise to deliver high-tech, high-paying jobs.