Before signing that commercial lease in the Philippines, think about commute! A great location on paper might mean a terrible daily struggle for your employees and yourself. This article will help you understand how to choose a commercial space that’s not just good for business, but also easy to get to.
Location, Location, Location: But is it Really Good?
We’ve all heard the real estate mantra: “location, location, location!” But what does that really mean in the Philippine context, especially when it comes to commercial leases? Sure, being in a central business district (CBD) sounds fantastic. You’re close to clients, suppliers, and potential partners. But if that CBD is a traffic nightmare, you’re also close to stress, delays, and unhappy employees. A strategically placed office is important, but it should also consider the time of travel, cost, and hassle of the commute.
It’s not just about being “near” things. It’s about being easily accessible. Imagine your dream office at the heart of Makati. Sounds great, right? But what if the only way to get there during rush hour is a two-hour bus ride, followed by a 30-minute walk, plus potentially having to navigate a train station? Suddenly, that prime location loses its appeal. You could check the accessibility of your location by using transportation apps like Google Maps. These provide various navigation options and you can even select the time of day for more accurate travel time estimates.
Commute Costs: More Than Just Fare
Let’s talk money. Commuting in the Philippines isn’t cheap. Beyond the actual fare for buses, trains, jeepneys, or ride-hailing apps, there are hidden costs to consider. Longer commutes often mean employees are late or absent. This impacts productivity. Employees who take longer travel times for their commute also spend extra for their meals eaten outside and the higher consumption of electricity when they arrive home late. A 2018 study by the Japan International Cooperation Agency (JICA) estimated that traffic congestion in Metro Manila costs the Philippines approximately ₱3.5 billion per day.
Don’t just think about your own commute. Consider your employees. High transportation costs can lead to lower morale and higher turnover. People are willing to take a pay cut for an easier, quicker commute. Think about it: Which would you prefer, a slightly higher salary with a terrible commute, or a slightly lower salary with a stress-free journey to work? For many, the latter wins. Companies that prioritize employee well-being are more likely to retain their staff. This translates to reduced recruitment costs and increased institutional knowledge.
The Stress Factor: Why a Good Commute Matters
Let’s be real: commuting in Metro Manila (and many other Philippine cities) is stressful. Traffic jams, overcrowded public transport, and the constant fear of being late take a toll. This stress doesn’t stay on the road. It comes into the office with your employees, affecting their performance and overall well-being. If available in your location, consider areas near bus or train stops and terminals for a cheaper commute. Some cities implement park and ride facilities to allow car owners to travel to their final destination via public transit.
Happy employees are productive employees. A shorter, less stressful commute can lead to better focus, higher energy levels, and improved job satisfaction. This translates to better customer service, more creative ideas, and a more positive work environment. You’ll notice that offices that are located near transportation hubs result to more positive attitudes.
Doing Your Homework: Researching Commute Options
Before you sign that lease, do your homework! Don’t rely solely on the landlord’s sales pitch. Investigate the commute options yourself.
Visit the location at different times of day: See what the traffic is really like during rush hour, lunchtime, and dismissal time.
Try different transportation methods: Experience the bus, train, or jeepney route your employees would likely take.
Talk to potential employees: Ask them about their current commute and what they consider acceptable.
Use online resources: Google Maps, Sakay.ph, and other transportation apps can give you valuable insights into commute times and routes. Sakay.ph is a practical tool for navigating public transportation routes in Metro Manila and other Philippine cities. It provides detailed information on the fastest and most convenient routes, including the specific modes of transportation to use and estimated travel times.
Check for accessibility features: Are there sidewalks, crosswalks, and pedestrian-friendly zones? Is the building accessible to people with disabilities?
Don’t just focus on travel time. Consider the overall experience. Is the route safe? Is it comfortable? Is it affordable? A slightly longer commute that’s safe and comfortable might be preferable to a shorter, but stressful and dangerous one.
Public Transportation: Your Best Friend (or Worst Enemy)
Public transportation is a key factor in commute ease in the Philippines. The availability and reliability of buses, trains, jeepneys, and other modes of transport can make or break a location. Consider this example in Quezon City; an office near the MRT-3 Quezon Avenue Station is accessible via train but roads around are usually congested.
Train Stations: Locations near MRT, LRT, or PNR stations offer convenient access to different parts of the city. However, be aware of overcrowding, especially during peak hours.
Bus Terminals: Areas near bus terminals provide access to provincial routes, which can be beneficial if you have employees who live outside Metro Manila.
Jeepney Routes: Jeepneys are a ubiquitous mode of transport in the Philippines. Check if there are jeepney routes that pass near your potential office location.
Planned Infrastructure Projects: Keep an eye on upcoming infrastructure projects, such as new train lines or highways. These could significantly improve the accessibility of certain areas in the future. Regularly check government websites like the Department of Transportation for updates on these projects.
Beyond the CBD: Exploring Alternative Locations
Don’t limit yourself to the traditional CBDs. There are many other areas in the Philippines that offer a good balance of accessibility, affordability, and business opportunities, such as the Bonifacio Global City (BGC) and Ortigas Center. These locations have seen significant infrastructure improvements and are becoming increasingly attractive to businesses.
Consider these factors when evaluating alternative locations:
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Proximity to residential areas: Is your potential office location close to where your employees live?
Availability of amenities: Are there restaurants, shops, banks, and other amenities nearby?
Cost of rent: Is the rent more affordable than in the CBD?
Growth potential: Is the area experiencing growth and development?
A location that’s slightly further away from the CBD might be a better choice if it offers a more manageable commute and a more affordable rent. In some provinces, there are more opportunities, lower expenses, and more relaxed lifestyles. This provides your business a great opportunity to recruit staff and expand.
Negotiating Commute Considerations in Your Lease
You can even negotiate commute-related terms in your lease agreement! While this might seem unusual, it’s becoming increasingly common for businesses to prioritize employee well-being.
Parking spaces: Negotiate for an adequate number of parking spaces for your employees.
Shuttle service: Ask if the building management provides a shuttle service to nearby transportation hubs.
Bicycle parking: If you encourage cycling, request bicycle parking spaces and shower facilities.
Flexible work arrangements: Consider offering flexible work arrangements, such as telecommuting or compressed workweeks, to reduce commute stress.
While landlords may not always be willing to concede on these points, it’s worth asking! Highlighting the benefits of a happy and productive workforce can be persuasive.
Tech Solutions for Commute Woes: Embrace the Digital Age
Technology can be your ally in tackling commute challenges. There are numerous apps and tools that can help your employees plan their routes, avoid traffic, and stay informed about delays.
Navigation apps: Google Maps, Waze, and other navigation apps can provide real-time traffic updates and suggest alternative routes.
Ride-hailing apps: Grab, Angkas, and other ride-hailing apps offer convenient transportation options, especially for short distances.
Communication tools: Use communication tools like Slack or Microsoft Teams to keep employees informed about traffic updates and delays.
Remote work tools: Consider using remote work tools like Zoom or Google Meet to allow employees to work from home when necessary.
By embracing technology, you can empower your employees to navigate their commutes more effectively and reduce the impact of traffic on their productivity.
The Long-Term View: Planning for the Future
When choosing a commercial lease, think beyond the present. Consider how the area might change in the future. Will new infrastructure projects improve accessibility? Will the area become more congested? Think about your business structure as well. Is it only located in one area? Can it operate remotely without the office?
Population Growth: Research the population growth trends in the area. A rapidly growing population could lead to increased traffic congestion.
Infrastructure Development: Stay informed about planned infrastructure projects that could impact accessibility.
Zoning Regulations: Understand the zoning regulations in the area. Are there any restrictions on the type of business you can operate?
By taking a long-term view, you can make a more informed decision about your commercial lease and ensure that your business remains accessible to your employees and customers for years to come.
Walking and Biking: Overlooked Options
Don’t underestimate the power of walking and biking! Especially for employees who live nearby, walking or biking can be a healthy, affordable, and environmentally friendly way to get to work. If walking or biking is something that you and your employees want to explore, consider what the area has to offer – are sidewalks accessible? Do people feel safe walking or biking on the streets?
Consider providing incentives for employees who walk or bike to work, such as:
Secure bike racks: Install secure bike racks to encourage cycling.
Shower facilities: Provide shower facilities for employees who bike to work.
Walking clubs: Organize walking clubs to promote physical activity.
Transportation allowance for walking or biking: Provide monetary incentives for walking or biking that are equivalent or more than the costs they will incur if they ride public transport.
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By promoting walking and biking, you can reduce traffic congestion, improve employee health, and create a more sustainable workplace.
The Importance of Employee Feedback: Listen to Their Concerns
The best way to understand the commute challenges faced by your employees is to simply ask them! Conduct surveys, hold focus groups, or simply have informal conversations with your staff to gather feedback on their commute experiences.
Use this feedback to inform your decisions about office location, transportation policies, and employee benefits. Show your employees that you value their opinions and are committed to addressing their concerns. After all, they’re the ones who deal with it every day.
Negotiating Incentives with the Local Government
While less common, it may be possible to negotiate incentives with the local government to improve accessibility around your commercial space. This could involve improvements to public transportation, road infrastructure, or pedestrian facilities. Contact your local government to discuss potential partnership opportunities.
Impact of Remote Work on Office Leasing
The rise of remote work has undeniably impacted the demand for commercial office space. With many companies adopting hybrid work models, understanding the potential for remote collaboration and its effect on the office size you need is crucial. A hybrid model requires less office space, which affects business expenses on leases. This makes the issue of commuting less pertinent as staff don’t have to be physically present in the office for every single workday.
Future-Proofing Your Lease: Flexibility is Key
The business world is constantly evolving, and your commercial lease should be flexible enough to adapt to changing circumstances. Consider these factors when negotiating your lease agreement:
Shorter lease terms: Opt for shorter lease terms to provide greater flexibility.
Break clauses: Include break clauses that allow you to terminate the lease early under certain conditions.
Expansion options: Negotiate options to expand your space if your business grows.
By future-proofing your lease, you can protect your business from unforeseen circumstances and ensure that your office space continues to meet your needs for years to come.
FAQ Section
What if I’ve already signed a lease and realize the commute is terrible?
Unfortunately, breaking a lease can be costly. Try negotiating with your landlord to see if you can sublease the space or negotiate an early termination. Alternatively, consider implementing strategies to mitigate the commute challenges, such as offering flexible work arrangements or providing transportation assistance. You can also discuss with your landlord for options such as moving to another building within the area, if a more accessible one is available.
How do I factor commute ease into my budget?
Consider the cost of transportation allowances, parking spaces, potential lost productivity due to traffic delays, and the impact on employee morale and turnover. Factor these costs into your overall budget when evaluating potential commercial spaces. It might make sense to spend a little more on rent in a more accessible location to save money in the long run.
What resources are available to help me find a commercial space with an easy commute?
Consult with real estate agents who specialize in commercial properties. Use online resources like real estate websites and transportation apps to research commute options. Talk to other business owners in the area to get their insights on the local commute situation.
What can I do to improve the commute experience for my employees?
Offer flexible work arrangements, provide transportation allowances, subsidize parking costs, encourage carpooling, promote cycling and walking, provide secure bike racks and shower facilities, and stay informed about traffic updates and delays.
Is choosing a commercial space with a good commute more important than other factors, like cost?
It’s a balancing act. While commute ease is crucial, it’s not the only factor to consider. You need to weigh the importance of commute ease against other factors, such as cost, location, size, and amenities. The ideal commercial space is one that offers a good balance of all these factors.
References
Japan International Cooperation Agency (JICA), “The Study on Master Plan for Urban Transport System Development in Metro Manila and its Surrounding Areas (MUTSAP III).” 2018.
Your decision on where to lease a commercial space heavily influences your financial success and your staff’s well-being. Don’t rush to sign that lease; take your time and do your homework. Visit the location, try different commute options, and talk to potential employees. By making commute ease a priority, you can create a more productive, happier, and more successful business. Before you sign that lease, make sure you can answer this question with confidence: “Can my employees easily get to work?”. Contact a qualified real estate professional today to discuss your commercial leasing needs and find the perfect location for your business!
