COPT Defense Properties (CDP) announced a new 236,000‑square‑foot build‑to‑suit lease in its Maryland portfolio, a project that will be constructed to meet the mission‑critical requirements of a defense/IT tenant. The lease will generate rent beginning in the third quarter of 2028 and is backed by a $146 million capital commitment that expands CDP’s high‑security, SCIF‑capable footprint near key U.S. government installations.
The transaction adds a long‑term revenue stream to CDP’s already robust portfolio, which as of September 30 2025 comprised 198 properties totaling 22.6 million square feet and was 97.0 % leased. By adding this Maryland lease, CDP strengthens its strategic focus on defense‑centric real estate and reinforces its competitive advantage in a niche market where high‑security, mission‑critical spaces are difficult for competitors to replicate.
CEO Stephen E. Budorick highlighted the lease as a continuation of the company’s strong demand cycle, noting that the $277 million of capital commitments to new investments in 2025—including projects in San Antonio, Redstone Arsenal, Stonegate I, and 4400 River Road—demonstrate sustained investor confidence and a growing pipeline of build‑to‑suit opportunities. "We continue to see strong demand for build‑to‑suit development in our Defense/IT Portfolio," Budorick said, underscoring the company’s ability to secure large, long‑term tenants.
The lease aligns with CDP’s growth plan, which emphasizes proximity to key defense installations and the development of SCIF‑capable facilities. The $146 million investment is expected to generate incremental cash flow once the tenant moves in, supporting CDP’s high occupancy and retention metrics and providing a stable, diversified revenue base for the coming years.
While the deal is a positive development, CDP acknowledges potential headwinds such as construction cost inflation, the risk of tenant default, and shifts in federal defense spending priorities. The company’s management has emphasized disciplined cost control and rigorous tenant vetting as key mitigants to these risks, reinforcing confidence in the long‑term viability of the project.
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