RESGroup was part of consultant team engaged by New Jersey Transit (“NJT”) through a multi-year on-call contract to analyze development opportunities to promote transit friendly and sustainable land use and development. The objectives were to attract development around transit stations and improve ridership for NJT.
The first phase of work created an evaluation tool to identify potential TOD opportunities along NJT’s extensive rail, light-rail and bus network on an on-going basis. RESGroup prepared the “Market Filter”, one of many categories of information used to evaluate a site’s potential for TOD. The Market Filter considered recent development activity and economic and demographic data to identify and/or monitor potential opportunities. For those areas identified as short-term opportunities, a high-level market evaluation template was created for different property types (office, residential, retail, hotel) to further understand TOD potential. The high-level market study framework identified specific real estate market metrics (inventory, vacancy/occupancy levels, rents, average daily rates, etc.) by use type, and refined the economic and demographic data considered. The first phase also identified constraints for TODs that must be addressed before moving forward. Case studies were completed to understand how Bus Rapid Transit (“BRT”) service impacted real estate development in different locations throughout the US.
The second phase of work considered locations identified as short-term opportunities by the evaluation tool, which included the areas around the Brick Church East Orange and Orange Train Stations in Essex County. RESGroup performed additional market research for residential and retail use to understand the financial feasibility of these property types, as well as the potential impact on the local community. Working with community stakeholders, local governments and landowners, the team recommended planning and economic development strategies.
Phase three of the work focused on the retail component at the Brick Church TOD, creating a strategy for future mixed use redevelopment. Working with a major grocery store tenant and the property owner, we sought to negotiate the construction of a new building to allow residential and new retail at the TOD site. This project is now under construction by Triangle Development.
Our most recent assignment focused on analyzing demand and creating a development strategy for a TOD in a confidential location in New Jersey. Recent changes in commuting patterns in the aftermath of COVID shut-downs have provided NJT an opportunity to evaluate TOD opportunities on commuter parking lots that are currently underutilized. TOD can provide alternative revenue streams, drive ridership, and help the agency meet public sector sustainability goals. RESGroup and the consultant team assisted NJT in identifying market demand and evaluating viable property uses, potential absorption, and potential building typologies for lots at confidential locations, working iteratively with the planner to develop alternative schemes. Once the development scheme was selected by NJT, RESGroup estimated the residual land value and real estate tax impacts from the project. RESGroup also provided a development strategy to maximize potential value and minimize potential negative community impacts.
