CHATHAM, NJ—Local and national representatives of DTZ are not talking, but independent observers of the New Jersey commercial real estate market tell GlobeSt.com that the announced merger with Cushman & Wakefield is probably going to be positive for the companies, and they say more consolidation in the industry is likely.

“I think the DTZ/C&W merger is a sound one for both parties,” says Peter Reinhart, director of the Kislak Real Estate Institute at Monmouth University, West Long Branch. “There does not seem to be too much geographic overlap so the growth will be accretive from the start. In this business, size can matter.”

Lorraine Gimblett, a representative of DTZ's public relations agency in Philadelphia, says the local management would not be available to comment, and referred inquiries to DTZ's corporate communications team.

Bailey Webb, corporate public relations director for DTZ in Atlanta, declined to expand on the merger, which the companies announced Monday morning. Webb also declined to discuss the merger's impact on New Jersey operations of DTZ or Cushman & Wakefield.

Caryl Communications, the public relations agency that handles Cushman & Wakefield's New Jersey press relations did not respond to a GlobeSt.com request for comment on the merger.

Other commercial real estate companies also declined to comment on the merger and its implications for the competitive environment.

“The interesting question will be whether a merger like this will trigger other players to consider merger,” says Monmouth's Reinhart. “It is happening in other industries like health care, so I would not be surprised in coming months to see other consolidation in the commercial real estate industry.”

“Getting rid of your competition is always a good strategy,” says economist Joel Naroff of Naroff Economic Advisors, Southampton, PA.  “Commercial real estate is coming back, so consolidation can be paid for by improving markets and earnings.  Probably a good time for it, especially since rates are so low.  Financing mergers in a year might be a lot more expensive.”

Both Cushman & Wakefield and DTZ have a significant presence in New Jersey. According to its website, DTZ has offices in Chatham (22 employees), Edison (17), Fanwood (1) and Iselin (12). Cushman & Wakefield, its website says, has offices in Edison (17 employees), East Rutherford (91), and Morristown (17).

Correction, 5/12/2015: An earlier version of this story incorrectly spelled the name of the director of Monmouth University's Kislak Real Estate Institute. He is Peter Reinhart, not Reinart.

 —