Arlington Approves Ground Lease for E-Space Satellite Communications Company
A satellite technology company is one step closer to anchoring its North American operations in Arlington.
On Tuesday, Arlington City Council approved a ground lease for a 40-acre parcel at Arlington Municipal Airport that will serve as the North American headquarters of E-Space, a satellite communications company.
According to its website, E-Space is developing new satellite technology “to provide Essential and Smart-[Internet of Things] capabilities from basic messaging services up to voice, video and data for specialized applications.”
It also plans to launch thousands of satellites over the next few years “to meet customer requirements across a wide-range of industries.”
The company was founded by tech entrepreneur Greg Wyler, whose past satellite telecommunications ventures include O3b Networks, which was founded in 2008.
He also founded OneWeb, which filed for Chapter 11 bankruptcy in 2020 and was sold for $1 billion.
Plans for a 750,000 square foot facility housing E-Space on the airport’s west side have been in the works since 2024, and include a list of incentives Arlington is offering the company to take root in the city.
Others include a $50 million contribution for building the company’s new headquarters, which it will lease from the city for $2 million yearly, with a 3% increase every five years for the life of the 30-year agreement.
That means E-Space will be a tenant at the facility, since Federal Aviation Administration regulations prohibit airports from receiving federal grants for selling land to developers.
The city is also paying E-Space $2,000 for each Arlington resident hired at the company through 2026 up to $100,000.
It will also reimburse E-Space for 50% of the property taxes collected at the site.
In return, Arlington is requiring the company to establish 400 jobs paying minimum average salaries of $95,000, and anticipates the creation of 2,000 jobs within ten years.
The first phase of E-Space headquarters includes a 250,000-square-foot manufacturing and office facility, and 40,000 square feet of hangar space. Plans also call for potential second and third phase expansions of 200,000 square feet and 300,000 square feet, respectively.
An initial delivery date for the facility was slated for late 2026.
Last year, the city projected the economic impact from its partnership with E-Space would amount to $288 million in salaries at the ten-year mark, and $8 billion at the 30-year mark.
Growth of its aerospace technology sector is also part of Arlington’s economic development strategy.
The city is also angling to compete for “high-wage, high-impact” economic growth.
Sales taxes collected as a result of the project are valued at $560 million.
Representatives for E-Space and Arlington Economic Development Corp. did not respond to a request for comment.
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