COPT Defense Executes 110,000 Square Foot Build-to-Suit Lease at the University of Maryland’s Discovery District
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A build-to-suit lease is an agreement where a property owner or developer constructs a building or customizes space specifically to meet a tenant’s needs and then leases that finished space to the tenant under a long-term contract. Investors care because it locks in a tenant and steady rental income but also ties up construction costs and exposes the owner to risks if the tenant defaults or the custom asset is hard to re-let—think of a landlord building a custom house for a single renter.
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COLUMBIA, Md.--(BUSINESS WIRE)--
COPT Defense Properties (NYSE: CDP) (“COPT Defense” or the “Company”) executed a build-to-suit lease in December 2025 with the University of Maryland’s (UMD) Applied Research Laboratory for Intelligence and Security (ARLIS) at 4400 River Road in College Park, Maryland, located in the UMD Discovery District. The Company is expected to commence construction of the 110,000 square foot, four-story Class A office development in the first quarter of 2026 and is scheduled for shell completion in the second quarter of 2027. The Company’s anticipated capital commitment to this development project is $65 million. ARLIS is an existing tenant in COPT Defense’s UMD Discovery District portfolio and this project represents a material expansion of their footprint.
ARLIS is one of 15 Department of War University-Affiliated Research Centers (UARC) dedicated to advancing research, innovation, and technology transition to provide engagement advantage for U.S. national security.
The development of 4400 River Road marks COPT Defense’s fifth project in the UMD Discovery District, which is currently comprised of 4 buildings, totaling roughly 415,000 square feet that are 99.8% leased, and represents a total investment of nearly $100 million.
About the Applied Research Laboratory for Intelligence and Security (ARLIS)
The Applied Research Laboratory for Intelligence & Security (ARLIS) at the University of Maryland is a University-Affiliated Research Center (UARC) dedicated to advancing research, innovation, and technology transition to improve decision making for U.S. national security. ARLIS advances high‐value research and state-of-the-art infrastructure to provide engagement advantage. ARLIS combines deep scientific expertise with operational insight to address challenges in intelligence analysis, cybersecurity, artificial intelligence / machine learning, quantum science, and human-machine teaming. Researchers, scientists, engineers, and analysts at ARLIS collaborate with government agencies, industry partners, and academic institutions to deliver actionable insights and transformative solutions through research and development. ARLIS provides access to world-class students and researchers, expanding the pipeline of skilled talent essential to drive technological innovation and strengthen national capabilities. Employees at ARLIS work on projects of critical importance, contribute directly to the nation’s security, and are supported by a culture that values integrity, collaboration, and professional growth.
About UMD Discovery District
The University of Maryland Discovery District is an innovative research park that serves as the epicenter of academic, research, and economic achievement by leveraging public-private partnerships to create dynamic spaces and new amenities for the purpose of activating transformational impact. Maryland’s largest research park encompasses two million square feet, over 150 acres, and employs an estimated 6,500 people. The Discovery District is a key piece of the university’s Greater College Park initiative, a $2 billion public-private investment to revitalize the Baltimore Avenue corridor and academic campus.
About COPT Defense
COPT Defense, an S&P MidCap 400 Company, is a self-managed REIT focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government (“USG”) defense installations and missions (referred to as its Defense/IT Portfolio). The Company’s tenants include the USG and their defense contractors, who are primarily engaged in priority national security activities, and who generally require mission-critical and high security property enhancements. As of September 30, 2025, the Company’s Defense/IT Portfolio of 198 properties, including 24 owned through unconsolidated joint ventures, encompassed 22.6 million square feet and was 97.0% leased.
Forward-Looking Information
This press release may contain “forward-looking” statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on the Company’s current expectations, estimates and projections about future events and financial trends affecting the Company. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “believe,” “anticipate,” “expect,” “estimate,” “plan” or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. Although the Company believes that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, the Company can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements and the Company undertakes no obligation to update or supplement any forward-looking statements.
The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
