Princetons merger may give boost to commercial real estate

The merger of Princeton Borough and Princeton Township is likely to have a positive effect, however slight, on the commercial real estate market in a locale that attracts companies and tenants who seek a prestigious address.

“The consolidation of the two towns, if nothing else, should have a positive impact on a few things in particular — primarily, the time it takes to get approvals, the timeline and the amount of time you need to prepare and consider locations if you are going to relocate and build out space,” said Adam Englander, a vice president with real estate services firm C.B. Richard Ellis. “You’re cutting through some of that red tape.”

The merger is likely to add efficiencies at the municipal level, and could slow growth in commercial tax rates, with rental rates becoming more predictable, Englander said.

But he said the changes won’t be reflected right away in what tenants or buyers pay.

The Princeton name carries with it a cachet for companies, Englander said.

“When tenants are in the great Mercer County area looking for space, there’s usually a high priority on having a Princeton mailing address,” Englander said.

In November 2011, voters in each of the municipalities approved the merger, which could save the combined entity as much as $3 million per year. The municipalities already have the combined Regional Planning Board of Princeton, and share about a dozen other services.