COPT's $65M Project Fortifies National Security Hub at UMD

COLLEGE PARK, MD – January 06, 2026 – A major expansion for a top U.S. intelligence research laboratory is set to further cement the University of Maryland's Discovery District as a critical nerve center for national security innovation. COPT Defense Properties, a specialized real estate investment trust, has finalized a deal to construct a $65 million, 110,000-square-foot facility for the University of Maryland's Applied Research Laboratory for Intelligence and Security (ARLIS).

The new four-story, Class A development at 4400 River Road represents a significant footprint expansion for ARLIS, an existing tenant within COPT Defense's portfolio. Construction is slated to begin in the first quarter of 2026, with the shell of the building expected to be completed by the second quarter of 2027. This project underscores a deepening partnership between the university, its key research arms, and private developers focused on bolstering the nation's defense and intelligence infrastructure.

A Strategic Hub for National Security Innovation

This development is not an isolated project but the latest cornerstone in the ambitious growth of the UMD Discovery District. The district, a sprawling 150-acre research park, is a central pillar of the university's $2 billion "Greater College Park" initiative, a public-private effort to transform the area into a leading academic and economic hub. With an estimated 6,500 people already employed across its two million square feet of space, the district has become a magnet for federal agencies, technology firms, and research organizations.

COPT Defense's new building for ARLIS will be its fifth project in the district, bringing its total investment there to nearly $165 million. The existing four buildings, totaling roughly 415,000 square feet, boast a near-perfect 99.8% lease rate, signaling intense demand for space within this specialized ecosystem. The district is already home to a powerful cluster of scientific and security-focused tenants, including the NOAA Center for Weather and Climate Prediction and the FDA's Center for Food Safety and Applied Nutrition, creating a unique environment for cross-disciplinary collaboration.

The success of the Discovery District highlights the power of public-private partnerships in creating dynamic spaces that drive economic growth and serve national interests. By providing state-of-the-art facilities, the district helps attract and retain top-tier talent and organizations, strengthening Maryland's position as a leader in technology and defense.

Bolstering America's Intelligence Capabilities

The expansion is particularly significant because of the vital role ARLIS plays in the U.S. national security apparatus. Established in 2018, ARLIS is one of only 15 Department of War University-Affiliated Research Centers (UARCs) in the nation. These centers are considered strategic assets, tasked with conducting cutting-edge research and development to address complex security challenges.

ARLIS operates at the intersection of technology and human sciences, focusing on areas critical to modern intelligence and defense: artificial intelligence, machine learning, cybersecurity, quantum science, and human-machine teaming. Its mission is to provide an "engagement advantage" for the U.S. by operationalizing research and accelerating the transition of innovative technologies from the lab to the field. The new facility will provide the secure, advanced infrastructure needed to scale up this mission-critical work.

Beyond its research, ARLIS is a crucial component of the nation's defense workforce development strategy. It manages programs like the Research for Intelligence & Security Challenges (RISC) internship, which connects talented students with real-world security problems. By expanding its physical presence, ARLIS can enhance these programs, creating a more robust pipeline of skilled scientists, engineers, and analysts for the Intelligence Community and the Department of Defense. This investment ensures that the next generation of security professionals is prepared to tackle evolving global threats.

A Niche Real Estate Powerhouse at Work

For COPT Defense Properties, the ARLIS deal is a quintessential example of its highly successful and specialized business strategy. As a REIT focused exclusively on properties serving U.S. defense and intelligence missions, the company operates in a market with high barriers to entry and exceptionally stable tenants. While the broader commercial office market faces uncertainty, COPT Defense's portfolio remains robust, with a 97% lease rate across its 22.6 million square feet.

The company's competitive advantage lies in its ability to develop and manage facilities that meet the stringent security and operational requirements of government agencies and defense contractors. This expertise, which includes navigating complex regulations and obtaining necessary clearances, effectively creates a protective moat around its business, limiting direct competition. Some industry observers note that COPT is one of the few public REITs, if not the only one, with the demonstrated capability to deliver these highly secure, build-to-suit projects.

This strategic focus on mission-critical assets translates into strong financial performance and high tenant retention, which stood at an impressive 82% year-to-date in 2025. By securing long-term leases for projects like the ARLIS facility before breaking ground, the company ensures predictable revenue streams and minimizes development risk. This disciplined approach, combined with a portfolio concentrated in locations with durable government demand, has allowed COPT to deliver consistent growth, including a 6.2% increase in Funds From Operations (FFO) per share in 2024.

The ARLIS expansion not only reinforces COPT's relationship with a key national security tenant but also strengthens the economic vitality of the entire region. The $65 million investment will generate significant construction activity and will ultimately support the growth of high-paying, high-tech jobs within Prince George's County. This project is a tangible symbol of how targeted real estate investment can simultaneously serve investor interests, advance national security priorities, and fuel local economic development, solidifying the UMD Discovery District's role as an indispensable national asset.