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.
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.
Ian Carlton is a transportation and land use expert specializing in transit-oriented development (TOD). He helps clients - including transit agencies, planning departments, and landowners - optimize real estate development around transit.
Special thanks to Burt Gregory at Mithun for permission to use the Portland Streetcar image above.