The Washington Metropolitan Area Transit Authority (WMATA) released its first ever Strategic Plan for Joint Development, a detailed roadmap to increase private development opportunities on WMATA-owned land.
The 10-year initiative establishes a goal to execute 20 joint development agreements by 2032, strengthening coordination with local jurisdictional partners and streamlining processes for private development partners.
WMATA’s joint development program is critical to its mission to provide safe, reliable and affordable transportation and delivers valuable benefits for WMATA and the region by:
- Increasing WMATA ridership from new residents, workers and visitors;
- Generating new revenue from fares and real estate proceeds that support WMATA’s operations;
- Fostering sustainable regional growth and competitiveness by creating new housing and business opportunities near transit; and
- Generating new state and local taxes on formerly undeveloped and tax-exempt land.
“Transit-oriented developments not only support Metro operationally, but they also bring important stakeholders together to reinvigorate the region,” said Executive Vice President and CFO Dennis Anosike. “This strategic plan lays out a very clear roadmap that details our future priorities. I’m excited to see these transformations take shape and place accessibility to transit at the forefront of urban planning.”
Since 1975, WMATA says it has delivered more joint development projects than any other transit authority in the country, completing 55 buildings at 30 stations across the region. These projects, which include buildings at stations such as Gallery Place, Farragut North, Metro Center, Bethesda and Ballston, have created 17-million-square feet of mixed-use development that generates five million additional WMATA trips annually and $194 million in annual local and state taxes.
WMATA’s remaining joint development portfolio includes future opportunities at 40 stations. Development of these sites could multiply the program’s impact to date by producing:
- 31-million-square feet of new development;
- 26,000 new housing units;
- Nine million new annual WMATA trips and $40 million in annual WMATA fare revenue;
- $50 million in annual lease revenue to WMATA; and
- $340 million in new annual tax revenue to local and state jurisdictions.
“This strategic plan represents an important first step in realizing the full potential of Metro’s portfolio of real estate across the region,” said Liz Price, vice president of real estate, WMATA. “As we emerge from the pandemic, joint development presents a real win-win opportunity for Metro and the region.”
WMATA’s 10-year initiative to execute 20 new joint development agreements reflects an increased pace of activity. To achieve this ambitious objective, WMATA established four strategies:
- Partner with local jurisdictions – Delivering high-quality joint development that maximizes density and community benefits will require partnerships with local jurisdictions.
- Right-size transit facilities – Given the cost of replacing existing transit facilities such as commuter parking or bus facilities, evaluating the expected future need at each station and responding to new commuting and teleworking trends to right-size facilities will minimize costs while maximizing land-use efficiencies.
- Increase development readiness – Strategic investments prior to making sites available for development will address potential project challenges that maximize development value to Metro and its jurisdictional partners.
- Minimize implementation risks – Improving internal processes to minimize implementation risks will increase private developer interest and reduce the duration of the joint development solicitation process, from issuance to contract execution.
Central to these strategies is the recognition that WMATA cannot achieve its joint development goals alone. It will require support, co-investment and close coordination with local jurisdictional partners who also benefit from the tax revenue that joint development produces. Most of WMATA’s remaining joint development sites have existing transit facilities that must be relocated or replaced. They also have varied real estate market conditions and zoning allowances that impact their development potential. Addressing these challenges in partnership with jurisdictions will be critical to unlocking the full potential of WMATA’s real estate portfolio.
The plan also establishes a prioritization schedule based on the development potential, infrastructure needs, and market readiness of each station and a timeline for planning and solicitation activities while recognizing that specific conditions may change over the next 10 years and that WMATA can adjust station priorities accordingly.
The full plan can be viewed on WMATA’s website.
