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JLL announces Baltimore expansion with CIB acquisition

JLL announced it has acquired CIB LLC and CIB Management LLC, which creates one of the largest commercial real estate firms in the greater Baltimore area.

The firms have entered into an agreement that stipulates the acquisition should be complete by January 2016. Financial details of the agreement are not being publicly released. But a team of about 80 brokers and property managers from CIB and CIB Management are expected to join JLL once the deal is complete. Tim Hearn, CIB group CEO, will also join JLL as the regional director of Mid-Atlantic property management.

The deal also greatly expands JLL’s property management portfolio. Prior to the acquisition JLL was handling about 2 million square feet of space locally. However, at the time of the acquisition CIB Management was overseeing 15 million square feet in the area. It will also allow JLL, which has a strong base in the city, to expand further into the Baltimore-Washington where CIB has a healthy presence in terms of agency leasing.

“CIB and CIB Management are well-regarded leaders in the Baltimore market whose people have a stellar reputation for their deep local knowledge and extensive client relationships,” Mark Levy, JLL’s market leader for Greater Baltimore said in a news release. “Bringing them into JLL will add supercharged property management and agency leasing services to our solid tenant representation and industrial property management capabilities. Their focus on integrity, excellence and client service make them a perfect fit in our organization and increase our ability to create real value for our clients.”

In a telephone interview, Levy said officials had been working on the deal for about a year. He said a large part of the transaction, beyond examining customer overlap and whether the firms’ services complemented one another, was making sure the firms’ cultures meshed.

He also said this acquisition is representative of how Baltimore’s shift toward more institutional owners of Class A office space, industrial and multifamily has pushed brokerages and property management firms to grow.

“I think that’s what investors have looked at is Baltimore is very opportunistic,” Levy said.

In October, it was announced that Colliers International was severing ties with its affiliate, Colliers International Baltimore (CIB). At that time the firm announced its intention to establish a company-owned office to strengthen its position in the Mid-Atlantic.

About Adam Bednar

Adam Bednar covers real estate and development for The Daily Record.