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A Shared Facilities Agreement sets out the rules and responsibilities when multiple parties share common spaces or equipment in a building or complex. In the Philippines, these agreements are essential for commercial spaces, condominiums, and industrial parks where tenants or owners jointly use elevators, parking areas, security systems, or utilities.

The agreement spells out cost-sharing formulas, maintenance schedules, usage rights, and dispute resolution procedures. Under Philippine property laws, these contracts help prevent conflicts by clearly defining each party's financial obligations and access rights, while ensuring fair allocation of operating expenses among users of shared amenities.

Consider putting a Shared Facilities Agreement in place when multiple businesses or individuals plan to share common areas, equipment, or services in Philippine commercial spaces. This is particularly important before moving into shared office buildings, industrial complexes, or mixed-use developments where tenants split costs for elevators, security systems, and utilities.

The right time to draft this agreement is during lease negotiations or property purchase, before occupancy begins. Getting these terms settled early helps avoid disputes over maintenance responsibilities, prevents unexpected cost increases, and ensures fair access to shared resources. Many Philippine property managers now require these agreements as part of their standard leasing process.

• Basic Commercial Agreement: Covers shared spaces in office buildings, focusing on common areas like lobbies, restrooms, and parking. Usually includes cost allocation based on floor area.
• Mixed-Use Complex Agreement: Addresses facilities shared between retail, residential, and office tenants, with specific rules for each user type.
• Industrial Park Agreement: Details shared infrastructure like roads, security systems, and utilities among manufacturing or warehouse tenants.
• Condominium Complex Agreement: Manages shared amenities like swimming pools, gyms, and function rooms among residential unit owners.
• Technology Park Agreement: Focuses on specialized facilities like server rooms, backup power systems, and telecommunications infrastructure.

• Property Developers: Create initial agreements during project development and set baseline terms for facility sharing among future tenants.
• Building Managers: Implement and oversee daily operations of shared facilities, enforce rules, and manage maintenance schedules.
• Commercial Tenants: Sign and comply with agreements, pay shared costs, and coordinate with management for facility access and use.
• Legal Counsel: Draft, review, and update agreements to ensure compliance with Philippine property laws and protect client interests.
• Facility Management Companies: Execute maintenance plans and handle day-to-day operations of shared amenities.

• Facility Inventory: List all shared spaces, equipment, and utilities that will be covered under the agreement.
• Cost Analysis: Calculate maintenance expenses, utility rates, and determine fair cost-sharing formulas based on usage or floor area.
• Usage Patterns: Document peak hours, access requirements, and special needs of different tenants or users.
• Maintenance Schedule: Plan regular upkeep timelines and emergency repair procedures for shared facilities.
• Stakeholder Details: Gather complete information about all parties, including business permits and authorized representatives.
• Documentation: Collect building plans, permits, and existing facility management policies to ensure alignment.

• Parties and Premises: Complete details of all participating entities and exact description of shared facilities.
• Cost Allocation: Clear formula for dividing expenses, payment schedules, and utility cost distribution.
• Usage Rights: Specific terms for access, scheduling, and restrictions on facility use.
• Maintenance Obligations: Responsibilities for upkeep, repairs, and emergency procedures.
• Dispute Resolution: Process for handling conflicts under Philippine ADR Law.
• Term and Termination: Duration, renewal options, and exit procedures.
• Insurance Requirements: Mandatory coverage types and minimum amounts.
• Governing Law: Philippine jurisdiction and applicable property regulations.

A Shared Facilities Agreement differs significantly from a Facilities Management Agreement. While both deal with property management, they serve distinct purposes in Philippine real estate law.

• Scope of Coverage: Shared Facilities Agreements focus on rules and cost-sharing between multiple users of common spaces, while Facilities Management Agreements outline how a single provider maintains and operates an entire property.
• Party Relationships: Shared Facilities involves multiple equal parties sharing rights and costs, whereas Facilities Management establishes a service provider-client relationship.
• Financial Structure: Shared Facilities splits costs among users based on usage or area, while Facilities Management typically involves fixed management fees and operational budgets.
• Operational Control: Shared Facilities creates joint decision-making processes, but Facilities Management delegates authority to a professional management company.