Jay Wellschlager's View of Baltimore

BALTIMORE, MD-Jones Lang LaSalle continues to build up its team in Baltimore, luring over a capital markets veteran from rival firm Cassidy Turley, Jay Wellschlager. He is joining the firm's Mid-Atlantic Capital Markets platform as managing director and will be be based in Baltimore, where he will focus on office and industrial investment sales in the area. For the office component Wellschlager will be partnering with senior managing director Bill Prutting who joined JLL in January of 2013. For industrial investment sales transactions, Wellschalager will partner with managing director Mark Levy, who joined JLL in November 2012 to lead JLL's regional industrial sector practice.

GlobeSt.com asked Wellschlager for his thoughts on the changing nature of the Baltimore market. Following are excerpts of his comments.

About the differences in investment trends between Baltimore and Washington DC: "Baltimore is considered a primary industrial market. Many of the same institutions who own and buy office in Washington DC also own and are pursuing industrial opportunities within the Baltimore metropolitan area."

About whether Baltimore's office market is "catching up" with DC among investors: "For office, Baltimore is considered secondary market, with DC considered a “gateway” market that attracts widespread interest from a worldwide grouping of investors. The yield premium for a well leased, well located Baltimore office asset is at least 150 to 200 basis points higher than a core Washington DC downtown building. What I expect to see in the coming year in Baltimore: Continued deal velocity in both the office and industrial sectors. Industrial remains strong and owners will continue to take advantage of the favorable seller's market."

About downtown versus suburban office in the area: "In downtown there have been some recent data points, which may encourage other owners in the market that have been waiting on the sidelines to test the waters. There will also be some suburban office trades of assets that are in good locations. In downtown Baltimore, the market has seen several buildings removed from the inventory to be converted to market rate apartment units. The addition of a residential nucleus, should strengthen the retail base and surround office uses. It's also encouraging that we are seeing some suburban tenants move back into town, likely to have greater access the newest generation of young talent who are trending towards a live/work/play living situation that only an urban setting can provide."

More about Baltimore's sweet spot of industrial: "The industrial market continues to tighten with limited large blocks of space. The market has experienced rent increases--as a result as we expect this to continue."