A first-of-its-kind comprehensive plan identifies opportunities to leverage NJ Transit’s statewide real estate assets to deliver housing, jobs, and recurring revenue.
NJ Transit could possibly realize as much as $1.9 billion in non-farebox revenue over the next 30 years through a combination of opportunities designed to unlock value from its 8,000-acre real estate portfolio, according to a new plan recently released by the agency.
Recent Successess
NJ Transit’s board voted in executive session in May to authorize Kolluri to move forward with the $14.4 million sale of a 4.66-acre parking lot in Lyndhurst to the state Economic Development Authority.
Online sports betting giant BetMGM became the only corporate sponsor of a rail line in the nation when it signed a three-year, $3 million partnershp deal with NJ Transit in 2022. The Jersey City-based company bought the naming rights to the Meadowlands Rail Line, plus extensive print and digital advertising at stations and throughout the NJ Transit system.
Hackensack-Meridian Health and NJ Transit recently collaborated on a first-of-its-kind major health and wellness center at the Metropark Station in Woodbridge. This $200 million project is one of three Transit Orientated Development projects with the township, said Woodbridge Mayor John McCormick.
Read more: Hackensack Meridian Health Tops Off Construction At Major Transit Hub
“At Hackensack Meridian Health, we understand the vital role public transportation plays in our communities and believe in the possibilities that emerge when the public and private sectors work together,” said Hackensack Meridian Health Executive Vice President & Chief Growth Officer Jose Lozano.
“We are proud of our partnership with NJ TRANSIT in creating an exceptional new facility at Metropark, expanding access and providing world class services for New Jerseyans. Our project is a perfect example of the greater potential unlocked through NJ TRANSIT’s impactful real estate plan. We look forward to continuing our partnership in the coming years,” Lozano said.
About the Land Plan
NJ Transit President and CEO Kris Kolluri, joined by local and state officials and other stakeholders, unveiled The LAND Plan: Leveraging Assets for Non-farebox Dollars, during an event at Metropark Station.
From Transit-Oriented Development (TOD) to retail concessions to industrial hubs and advertising, the plan offers a unique opportunity to generate essential funding by leveraging its underutilized assets for development, as well as enhancing its customer experience with retail offerings and advertising.
The plan presents a series of potential opportunities and suggested actions for consideration to maximize the associated potential revenue.
The LAND plan has the potential to add up to $14 billion in economic impact to New Jersey, up to an additional $1.6 billion in municipal revenues, and create up to 50,000 jobs and up to 20,000 new housing units, according to the plan.
“This first-of-its-kind plan delivers a roadmap for the next administration that maximizes non-farebox revenue opportunities for NJ Transit, the State of New Jersey and the municipalities we serve,” Kolluri said in a statement.
“The plan’s proposed actions are presented merely as options for consideration — not mandates — to support the plan’s full revenue potential. I have a deep respect for home rule in New Jersey and the legislative process, and look forward to working collaboratively with the Legislature, municipalities and elected officials across the state,” Kolluri added.
Why the Plan Matters
This plan has the potential to completely revolutionize how NJ Transit operates in a very positive way by allowing NJ Transit to reconsider how it utilizes its assets, funding, and role in the state economy.
This plan would effectively allow NJ Transit to create a new stream of income by utilizing its underused real estate for projects such as leasing, development, and partnerships. This is massive, especially considering how there are 8,000 acres of land to be utilized.
Break Down of the LAND Plan
Here is the break down of the estimated non-farebox revenue potential and benefits the LAND plan has the opportunity to generate over the next 30 years, according to NJ Transit:
- Transit-Oriented Development—Walkable, mixed-use communities centered around transit hubs boost ridership and generate revenue through land leases or sales.
- Additional revenue potential: $780 million-$1.1 billion
- Industrial Hubs—Certain properties are ideal for warehousing and industrial uses, requiring large, flat parcels with good road access and utilities.
- Additional revenue potential: $150 million-$300 million
- Temporary Uses—Short-term activities such as events, filming and pop-ups use land, structures and vehicles.
- Additional revenue potential: $15 million-$30 million
- Retail Concessions—Rental income is generated from retail tenants occupying concession spaces in NJ TRANSIT facilities, providing desirable customer amenities.
- Additional revenue potential: $80 million-$100 million
- Advertising—Revenue streams include advertising on digital displays, within station facilities, on vehicles and through naming rights arrangements.
- Additional revenue potential: $40 million-$130 million
- Parking Optimization—Parking fees collected at station lots, sometimes shared with municipalities or private operators, provide additional revenue.
- Additional revenue potential: $170 million-$230 million
- Wetland Banking—Restoring or preserving wetlands on suitable vacant land earns ecological credits, with the highest value in contiguous conservation areas and watershed management areas otherwise impacted by service development.
- Restored/Preserved land: 150-170 acres
- Solar Power—NJ TRANSIT can provide opportunities for development of solar power generation projects across multiple redevelopment sites, including surface parking canopies and rooftop installations.
- Power generation potential: 5 megawatts
For more information, see a briefing document at njtransit.com/landplan.
