How much does commercial real estate cost in Melbourne, Florida?

Costs vary by property type. Office space leases for $14 to $28 per square foot per year. Retail space runs $14 to $30 per square foot NNN. Industrial and warehouse space leases for $8 to $16 per square foot NNN. Commercial land ranges from $3 to $40 per square foot depending on zoning and entitlement status.

Do I need a commercial broker in Brevard County?

You are not legally required to use a broker, but tenant representation is free to you. The landlord pays the commission whether you have representation or not. A commercial broker provides market data, off-market access, and negotiates terms that most tenants would not know to request.

What is a NNN lease in commercial real estate?

A NNN (triple net) lease requires you to pay base rent plus three additional expenses: property taxes, building insurance, and common area maintenance (CAM). This is the standard lease structure for retail and industrial properties in Brevard County. NNN charges typically add $3 to $10 per square foot.

What is a 1031 exchange in Florida?

A 1031 exchange lets you defer capital gains taxes by selling one investment property and purchasing another like-kind property. You have 45 days to identify replacement properties and 180 days to complete the purchase. Florida has no state income tax, making 1031 exchanges here particularly advantageous.

What areas does Reach Commercial Real Estate serve?

Reach Commercial serves all of Brevard County including Melbourne, West Melbourne, Palm Bay, Viera, Suntree, Rockledge, Cocoa, Titusville, Merritt Island, Cocoa Beach, Cape Canaveral, and surrounding communities on Florida's Space Coast.

L3Harris FAA Contract Reinforces Melbourne Aerospace Office Demand

Cassandra Hartford
Jul 14
4 min read

L3Harris Technologies secured a Federal Aviation Administration contract for airspace surveillance modernization, according to a company press release. The contract tasks the Melbourne aerospace office giant with deploying advanced security systems to protect critical airspace data across FAA facilities. Work will be performed out of L3Harris's Melbourne headquarters, where the company maintains its largest operational footprint.

This is not a surprise win. L3Harris has deep roots in airspace surveillance technology and has held similar FAA contracts before. But every contract renewal or expansion matters for Brevard County commercial real estate because it validates continued headcount and facility investment in the Melbourne submarket.

What This Means for Melbourne Aerospace Office Space

L3Harris employs approximately 5,000 workers in Brevard County, making it the largest private employer in the region. The company's Melbourne campus spans multiple buildings along Palm Bay Road and includes office, R&D, and light manufacturing space. Every major federal contract win translates to job retention and often expansion, which flows directly into demand for Class A and Class B office space in the Melbourne corridor.

The aerospace and defense sector drives a significant portion of Brevard's office absorption. In deals I have worked in Brevard, aerospace tenants typically require specialized buildouts including SCIF-capable space, secure data rooms, and redundant power systems. These requirements limit their options to certain buildings and submarkets, concentrating demand around established aerospace corridors.

Melbourne's Palm Bay Road and NASA Boulevard corridors remain the primary destinations for aerospace office tenants. Vacancy in these corridors runs tighter than the county average because aerospace tenants sign longer leases and rarely relocate mid-contract. A contract announcement like this one signals that L3Harris is not downsizing, which removes a significant risk factor from the Melbourne office market.

RCRE Take

Federal contract wins do not always make headlines in commercial real estate circles, but they should. When a company like L3Harris secures multi-year work from the FAA, it means their Melbourne headcount is stable for the contract period. That stability ripples through the local CRE market in predictable ways: continued demand for office space, support for nearby retail and restaurant tenants who serve those employees, and confidence for landlords to invest in building improvements.

The Melbourne aerospace office market operates differently than traditional office markets. Tenants are stickier. Lease terms run longer. Buildout requirements are more specific. This creates a market where vacancy can appear low but actual available space is even tighter because so much square footage is tied up in long-term aerospace leases.

For investors considering Melbourne office properties, proximity to L3Harris and other defense contractors is a real value driver. Buildings within a 10-minute drive of the L3Harris campus command premium rents when they can accommodate secure tenants. We have seen this play out in Melbourne and Palm Bay repeatedly over the past five years.

Melbourne Aerospace Office Submarket Context

The Melbourne aerospace corridor benefits from multiple anchor tenants beyond L3Harris. Northrop Grumman, Collins Aerospace, and dozens of smaller defense contractors maintain operations in the area. Recent infrastructure investments, including ongoing expansion at Melbourne Orlando International Airport, add to the submarket's appeal for companies requiring easy air travel access.

Kennedy Space Center's continued growth in north Brevard also supports the broader aerospace ecosystem. The 66-acre astronaut training facility in Exploration Park demonstrates federal commitment to Space Coast aerospace infrastructure. These investments compound over time, making Brevard County increasingly attractive for aerospace tenants evaluating relocation or expansion.

Current commercial investment opportunities in the Melbourne submarket include office and flex properties positioned to capture aerospace tenant demand. The key is understanding which buildings can accommodate the security and infrastructure requirements these tenants bring.

If you are buying or leasing office space in Melbourne's aerospace corridor, call 321-514-0876 before you sign anything. Understanding which properties can serve defense tenants and which cannot is the difference between a good investment and a vacant building. Contact our team to discuss your requirements.

Frequently Asked Questions

How many employees does L3Harris have in Brevard County?

L3Harris employs approximately 5,000 workers in Brevard County. This makes them the largest private employer in the region and a significant driver of office space demand in the Melbourne submarket.

What types of office space do aerospace tenants require in Melbourne?

Aerospace and defense tenants typically require specialized buildouts including SCIF-capable space, secure data rooms, and redundant power systems. These requirements limit their options to certain buildings and concentrate demand in established aerospace corridors along Palm Bay Road and NASA Boulevard.

How do federal contracts affect Melbourne commercial real estate?

Federal contract wins stabilize and often increase headcount for aerospace employers like L3Harris. This translates to sustained demand for office space, support for nearby retail and restaurant tenants, and confidence for landlords to invest in property improvements.

What is the vacancy rate for Melbourne aerospace office space?

Vacancy in Melbourne's aerospace corridors runs tighter than the county average. Aerospace tenants sign longer leases and rarely relocate mid-contract, which reduces turnover and keeps actual available space scarce even when headline vacancy numbers appear moderate.

Where is L3Harris headquarters located in Brevard County?

L3Harris maintains its headquarters and largest operational footprint in Melbourne, Florida. The campus spans multiple buildings along Palm Bay Road and includes office, R&D, and light manufacturing space.