NJ TRANSIT has introduced a comprehensive 30-year strategy to generate up to $1.9 billion in revenue by developing its extensive 8,000-acre real estate portfolio. The plan, announced on October 15, 2025, aims to create new funding streams independent of rider fares through projects like housing, retail, and industrial development.
Officials state the initiative could also deliver a significant economic boost to New Jersey, potentially adding up to $14 billion in economic activity, creating as many as 50,000 jobs, and leading to the construction of 20,000 new housing units across the state.
Key Takeaways
- NJ TRANSIT released a new strategy called The LAND Plan to develop its 8,000-acre property portfolio.
- The plan projects up to $1.9 billion in non-fare revenue over the next 30 years.
- Economic projections include up to $14 billion in statewide economic impact and the creation of 50,000 jobs.
- The strategy also outlines the potential for 20,000 new housing units and $1.6 billion in new municipal revenues.
- The plan identifies opportunities in transit-oriented development, industrial hubs, retail, and advertising.
A New Financial Roadmap for NJ TRANSIT
NJ TRANSIT unveiled its long-term real estate strategy, titled The LAND Plan: Leveraging Assets for Non-farebox Dollars, during an event at Metropark Station. The plan provides a detailed framework for generating sustainable income by leveraging underutilized land and properties owned by the agency.
The core objective is to reduce reliance on traditional farebox revenue and create a more financially resilient transportation system. The funds generated are intended to support service reliability and enhance the customer experience across the state's largest public transportation network.
“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.
Kolluri emphasized that the plan presents options rather than mandates. He stressed the importance of collaboration with local governments, stating, “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.”
Projected Economic and Community Impact
Beyond the direct revenue for NJ TRANSIT, the plan forecasts extensive benefits for the state's economy and local communities. The development projects are expected to be a major catalyst for job growth and housing construction over the next three decades.
Statewide Projections
- Economic Impact: Up to $14 billion
- Job Creation: Up to 50,000 new jobs
- Housing Development: Up to 20,000 new units
- Municipal Revenue: Up to $1.6 billion
State Senator Patrick Diegnan, who serves as the Senate Transportation Committee Chairman, praised the initiative's financial foresight. “This analysis provides a self-sufficient way to help keep NJ TRANSIT funded and is a major boost to New Jersey’s economy,” he said.
Local leaders also see potential benefits. Woodbridge Mayor John McCormac highlighted the plan's alignment with community needs. “Access to commuting options, housing, retail and now expanded health care options are what the entire state can benefit from through this plan,” McCormac stated.
Diverse Revenue Streams Identified
The LAND Plan outlines several distinct categories for development, each with its own revenue potential. The strategy diversifies income sources, ranging from large-scale construction projects to smaller, more immediate opportunities like advertising and temporary land use.
The most significant financial opportunity lies in Transit-Oriented Development (TOD). This involves creating walkable, mixed-use communities with housing and commercial space centered around transit stations. NJ TRANSIT estimates TOD could generate between $780 million and $1.1 billion.
Key Development Opportunities
The plan provides the following breakdown of potential non-farebox revenue over 30 years:
- Transit-Oriented Development: $780 million - $1.1 billion
- Industrial Hubs: $150 million - $300 million from warehousing and industrial uses on large parcels.
- Parking Optimization: $170 million - $230 million from fees at station lots.
- Advertising: $40 million - $130 million from digital displays, vehicle ads, and naming rights.
- Retail Concessions: $80 million - $100 million from rental income from tenants in transit facilities.
- Temporary Uses: $15 million - $30 million from short-term activities like events and filming.
Environmental and Energy Initiatives
The plan also includes opportunities for environmental stewardship and clean energy. It identifies the potential for Wetland Banking, which involves restoring 150-170 acres of wetlands to earn ecological credits. Additionally, the agency aims to develop solar power projects on its properties, with a goal of generating 5 megawatts from installations on rooftops and parking canopies.
Support from Business and Healthcare Sectors
The plan has already garnered support from private sector partners who see the potential for collaborative growth. Dan Kennedy, CEO of the commercial real estate development association NAIOP, affirmed his organization's backing.
“We support and stand ready to assist NJ TRANSIT leadership as it implements this blueprint to leverage its existing assets,” Kennedy said. “We believe strongly that the private sector can be a reliable partner in improving transit-oriented destinations where people, business, and innovation come together to thrive.”
The Metropark Station, where the plan was announced, serves as a prime example of a successful public-private partnership. Hackensack Meridian Health has already worked with NJ TRANSIT on a major facility at the site.
“Our project is a perfect example of the greater potential unlocked through NJ TRANSIT’s impactful real estate plan,” said Jose Lozano, Executive Vice President at Hackensack Meridian Health. “We look forward to continuing our partnership in the coming years.”
According to NJ TRANSIT, the revenue generated from these various initiatives will be reinvested into the transportation system to ensure reliable and high-quality service for the more than 925,000 weekday trips it provides across New Jersey, New York, and Philadelphia.
