Drone manufacturing sublease

Neros Technologies has subleased 251,606 square feet at 19681 Pacific Gateway Drive in Torrance for a new drone-manufacturing hub. (theregistrysocal.com) (traded.co) The El Segundo company is using the Torrance site for “Project Millennium,” the factory build-out it unveiled on February 19, 2026. Neros said the building will become its new global headquarters. (neros.tech) (theregistrysocal.com) In its Project Millennium announcement, Neros said it had become the highest-output American drone manufacturer in 2025 while operating from a 15,000-square-foot footprint. It said the Torrance facility is meant to scale that capacity by 100 times. (neros.tech) The company said Millennium One, or M-1, is designed to produce American drones and components “not in the tens of thousands, but in the millions.” Neros also said it plans a multi-year build-out focused on assembly, testing, and domestic production of high-risk parts. (neros.tech) That expansion follows a fast run of defense business. Defense News reported in July 2025 that Neros was building about 1,500 Archer drones a month, with a goal of reaching 10,000 monthly by the end of that year. (defensenews.com) The same report said Neros had won a February 2025 contract from the International Drone Coalition to provide 6,000 drones to Ukraine over six months. It also said the company was supplying systems to the U.S. Marine Corps, Army, and Special Operations Command. (defensenews.com) Neros added more capital for that push in November 2025, when it announced a $75 million Series B led by Sequoia Capital. The company said the round brought total funding to more than $120 million and would help expand industrial capacity and a China-free supply chain. (neros.tech) (businesswire.com) The Torrance deal also fits a broader change in the South Bay industrial market. Kidder Mathews said in its first-quarter 2026 Los Angeles report that defense, aerospace, satellite, and advanced manufacturing users are actively expanding across Torrance, El Segundo, Hawthorne, and Long Beach. (kidder.com) Kidder Mathews listed Neros’ Torrance sublease and Varda Space Industries’ 200,000-square-foot lease of the former Mattel Design Center as two of the market’s notable transactions. The brokerage said advanced manufacturing users are now leading leasing activity across Los Angeles. (kidder.com) For Neros, the Torrance building is less a warehouse deal than a factory bet. The company is taking a logistics-sized box in coastal Los Angeles and refitting it around drone assembly, testing, and domestic parts production. (neros.tech) (theregistrysocal.com)