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Rail News: Passenger Rail
NJ Transit lease boosts non-farebox revenue
New Jersey Transit recently reached a new retail lease agreement with Top Shelf Wine and Liquor in Newark Penn Station.
The 10-year lease is anticipated to generate more than $2.1 million in non-farebox revenue, NJ Transit officials said in a press release.
The agreement "provides customers with conveniences and amenities at our stations, while also delivering critical funding resources that we can reinvest in our transportation network," said NJ Transit Executive Director Kevin Corbett.
In August 2018, the agency's board approved the lease of more than 1,000 square feet of retail space in Newark Penn Station to Starbucks Corp. — a deal expected to generate more than $1.6 million over 10 years. Starbucks also will make leasehold improvements worth about $750,000.
Expanded retail leasing opportunities increased annual revenue by more than $800,000 in fiscal-year 2018, NJ Transit officials said. In FY2019, property leases will generate more than $8.5 million, the agency estimates.
Nearly $50 million in non-farebox revenue is anticipated in FY2019 through property leases, advertising, parking fees and property permits.
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