Another rail yard, another joint development in the NYC metro

I've recently written about a major development occurring over the West Side Yards in New York City as well as Amtrak's review of the value capture potential on its properties up and down the eastern seaboard. This time around, New Jersey Transit is getting on board. Hoboken, New Jersey may be the next place in the U.S. where a rail yard becomes a major joint development.

The proposed plan for the Hoboken Yards was developed by a four-member City Council committee, incorporating extensive feedback from city stakeholders and the public. It would allow NJ Transit, which owns the land, to build up to 2.3 million square feet of new development, as well as three buildings potentially as tall or taller than the W Hotel. The W is the tallest building in Hoboken.

Read more: Hudson Reporter - Rail yard plan moves forward Planning Board endorses redevelopment despite objections to height traffic 

Land values in the New York metro are sky high. This affords opportunities to carry out major development projects--and value capture initiatives--that are the envy other U.S. markets. While these projects are impressive and would be wonderful to duplicate outside of NYC, other U.S. transit agencies should be thoughtful and realistic about their own real estate markets. Carrying out such colossal joint developments in most U.S. markets is unfathomable.