Bill Mack, managing partner of Apollo Real Estate Advisors and chairman of Mack-Cali Realty, for example, said it "makes good economic sense." Noting CBRE's debt load, "I see some cost savings from the merger," he continued. He did caution against the "possible bureaucracy and infighting. It's a question of whether they can properly integrate."

Bill Cariste, managing partner of Newmark's New Jersey operations, meanwhile, called it a "good opportunity," citing Insignia/ESG's dominance in the New York/New Jersey market, and CBRE's dominance elsewhere. He suggested, though, that there will be "more musical chairs in the Northeast than elsewhere" resulting from the marriage.

And with those musical chairs, according to Charles Klatskin, chairman/CEO of Binswanger/Klatskin, "we may see many good employees coming out to work for other firms."

As far as market conditions, Cariste said the office market is showing "the worst occupancy levels since 1995, especially with the amount of sublease space on the market. The big news is the decay of the telecom industry."

Mack, meanwhile, said it's "a question of where do we go from here, and how long will it take. We have a lot of things to sort out in this country," he continued, noting everything from possible war, to threats of terrorism to the state of the economy. "The bad news is that people are waiting to see what's going to happen before making any decisions.

"2003 won't be a good year," Mack continued. "It will be the end of 2004 before there is any improvement, and for the office market, it will be two or three years after that to work off the inventory."

As far as the industrial market, "the big issue is whether rents are going up or down," Klatskin related. "We've already lost four deals because of the uncertainty." And in a larger sense, "cash is king," Klatskin said. "There is too much debt and the market is concerned."

But despite the problems, things could be a lot worse. "Every market is bad," Klatskin pointed out. "Every market but New Jersey and Southern California."

As far as the political landscape, "[Gov. James] McGreevey bit the hand that fed him," Klatskin asserted, referring to the governor's recent anti-development stance and tough budget cuts relating to business, coupled with the fact that his largest campaign contributors have been members of the real estate development community.

"With the huge budget deficit, the governor is pulling from everywhere he can," Mack interjected. Regarding a proposal to kill payroll tax rebates tied to job creation, including agreements already in place, "that creates a bad perception for New Jersey. The jury is still out, and I see a great deal of lobbying against that proposal."

Ultimately, "New Jersey's prosperity is tied to New York City, and New York is still the greatest city in the world," Mack concluded. "New York will overcome its difficulties and survive, which will mean continued prosperity for New Jersey."