New real estate plan could see NJ Transit increase its non-farebox revenue over time 

A new plan released by New Jersey Transit (NJ Transit) could see the agency increase its non-farebox revenue by $1.9 billion over the next 30 years through a combination of opportunities designed to unlock value from its 8,000-acre real estate portfolio. 

The agency says The LAND Plan: Leveraging Assets for Non-farebox Dollars could add up to $14 billion in economic impact to the state, 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.  

“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,” said NJ Transit President and CEO Kris Kolluri. “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.”  

Among the study’s key findings for non farebox revenue opportunities over the next 30 years:  

• Transit-oriented development: Walkable, mixed-use communities centered around transit hubs to boost ridership and generate revenue through land leases or sales. Additional revenue potential is anywhere from $780 million to $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 is anywhere from $150 million to $300 million. 
• Temporary uses: Short-term activities such as events, filming and pop-ups using land, structures and vehicles. Additional revenue potential is anywhere from $15 million to $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 is anywhere from $80 million to $100 million.  
• Advertising: Revenue streams include advertising on digital displays, within station facilities, on vehicles and through naming rights arrangements. Additional revenue potential is anywhere from $40 million to $130 million.  
• Parking optimization: Parking fees collected at station lots, sometimes shared with municipalities or private operators, provide additional revenue. Additional revenue potential is anywhere from $170 million to $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. The restored/preserved land would be anywhere between 150 and 170 acres.  
• Solar power: NJ Transit can provide development opportunities  for solar power generation projects across multiple redevelopment sites, including surface parking canopies and rooftop installations. The power generation potential is five megawatts. 

The estimates come from internal NJ Transit analysis. More information on the plan can be found on NJ Transit’s website.