Top Transit Metrics for SMB Location Analysis

When evaluating SMB locations, transit accessibility is a key factor that impacts customer reach, employee retention, and overall costs. Here's what you need to know:

• Proximity to Transit: Ideal walking distances vary - 400 meters for bus stops, up to 1,000 meters for rail. Quality pedestrian infrastructure is just as important.
• Travel Times: Peak-hour travel times can differ significantly by city. Reliable transit schedules aligned with business hours improve accessibility.
• Transit Costs: Monthly transit expenses range from $47.25 in Houston to $132.00 in New York. Employer transit benefits can reduce costs for employees and businesses.
• Multiple Transit Options: Diverse transit modes (e.g., bus, rail) ensure accessibility even during service disruptions. Only 27% of workers in major U.S. metros can reach jobs via transit in under 90 minutes.
• Current Infrastructure & Upgrades: Planned projects, like new rail lines in Seattle and Los Angeles, can boost long-term value. However, funding gaps may delay improvements.

Key Tip: Use tools like Transit Scores or platforms like Kumo to compare locations based on transit metrics. This ensures a data-driven approach to SMB acquisitions.

Transit Accessibility to Destinations

1. Distance to Public Transit Stops

How close a location is to public transit directly impacts both employee and customer accessibility, reducing potential operational challenges. This factor sets the foundation for deeper evaluations related to transit access.

The type of transit determines how far people are generally willing to walk. For local bus stops, a distance of about 400 meters (roughly 1/4 mile) is considered ideal. Faster transit options, like rail services, can draw riders from up to 1,000 meters away - as long as pedestrian infrastructure supports safe and convenient access.

Research backs this up. A 2020 survey conducted in Germany revealed that most people are comfortable walking 5 to 10 minutes to reach a bus stop - approximately 0.25 to 0.5 mile. However, fewer than 10% of respondents were willing to walk 15 minutes for the same purpose.

Walking distance preferences can also vary by location type. Employees in urban or commercial zones are typically willing to walk about 15% shorter distances compared to those in suburban areas. This difference is a critical consideration when comparing downtown small business locations with those situated in suburban business districts.

But distance alone doesn’t tell the whole story. The quality of the walking experience matters just as much. Features like safe crossings, well-maintained sidewalks, and direct pathways significantly influence transit usage. Poor pedestrian infrastructure - such as unlit areas, busy intersections without proper signals, or obstructed walkways - can make even nearby transit stops feel inconvenient or unsafe, reducing their usability.

Having multiple transit options within walking range can further enhance accessibility. Alternate routes and flexible schedules become especially valuable during service disruptions or unexpected delays.

When assessing small business locations, it’s crucial to factor in both the straight-line distance and the actual walking route to transit stops. Barriers like highways, construction zones, or poorly designed pedestrian areas can make a seemingly short distance impractical. A thorough evaluation of walking routes ensures a more accurate understanding of accessibility, setting the stage for deeper insights into travel times and overall access.

"People are willing to walk up to 0.25 - 0.5 mile to a bus stop, but if they need to go farther than that, buses might become inaccessible for them." - Manyu Jiang, Data Journalist, Via

2. Travel Times and Access Ratings

When evaluating transit accessibility, it’s essential to look beyond just distances - peak-hour travel times can paint a much clearer picture of how accessible a location truly is.

Travel times during peak hours can vary widely depending on the city. For example, an analysis by Drivemode of 20 major U.S. cities found that New York tops the list with the longest evening commutes, averaging 55.77 minutes between 5–6 PM. In contrast, cities like Phoenix see shorter averages, with evening commutes around 45.92 minutes during peak hours. These disparities highlight why understanding travel times is critical when assessing transit accessibility.

The timing of peak congestion also differs from city to city. While most metropolitan areas experience the worst evening traffic between 4–5 PM, commutes tend to be much faster after 6 PM. Flexible work schedules could take advantage of these off-peak improvements, offering businesses a way to mitigate employee commute challenges.

Transit systems that align their schedules with business hours can make a big difference. For instance, Baltimore extends its transit service late into the night on weekends, and Minneapolis’s METRO Blue Line runs frequent service nearly 24/7[6]. These adjustments help ensure that transit is available when people need it most.

Frequency of service during peak periods is another crucial factor. In Baltimore, Orange Route buses arrive every 10 minutes, while Banner Route buses operate on a much less frequent 40-minute interval[6]. Such differences can significantly affect how reliable and accessible public transit is for both employees and customers.

To provide a standardized way of comparing transit accessibility, accessibility scores aggregate key factors like transit frequency, travel time, and route efficiency. These scores are especially helpful when evaluating small-to-medium business (SMB) locations. Globally, people tend to spend about 1.2 hours per day traveling, so locations requiring longer commutes must offer compelling benefits to attract employees and customers.

Evening commutes often take longer than morning ones. For example, in Miami, drivers average 3.09 minutes per mile in the evening compared to 2.91 minutes in the morning. The difference between peak and off-peak travel times can also vary significantly by city. Tampa sees a 17.53% difference between its longest commute time (4–5 PM) and its shortest (6–7 PM), while Miami shows a much smaller variation of just 3.86%. Cities with larger gaps between peak and off-peak times may provide businesses with more flexibility in scheduling to avoid traffic bottlenecks.

Regional trends also emerge when examining commute data. Between 2019 and 2022, Western cities saw an average reduction of 5 minutes in one-way commute times, while Northeastern cities experienced a much smaller decrease of just 1.5 minutes. These shifts reflect changing work habits and the lingering effects of the pandemic, such as the rise of remote work.

To improve transit accessibility during peak hours, some systems have introduced supplemental routes or extended schedules. For example, the Antelope Valley Transit Authority operates from 5:00 AM to 12:45 AM on weekdays and offers additional routes during busy periods to reduce overcrowding. Enhancements like these can make a significant difference for businesses operating during peak travel times.

3. Transit Costs and Budget Impact

Transportation costs play a key role in shaping a business's financial health and its accessibility for both employees and customers. For small and medium-sized businesses (SMBs), understanding these expenses can provide valuable insights into location affordability. Let’s take a closer look at how transit costs vary across cities and systems.

Transit costs vary widely depending on the city. For example, in New York, monthly transit expenses average $132.00, which totals $1,584 annually. Compare that to Houston, where the monthly average is just $47.25, or $567 annually. This stark difference illustrates how location can significantly influence the cost of public transportation.

Mid-sized cities like Portland, Sacramento, Seattle, and Austin tend to have fares in the $96 to $100 range, offering a more predictable expense for budgeting purposes. However, the type of transit system also affects costs. In cities with combined bus and rail networks, fares are generally higher than those in bus-only systems. For instance, Milwaukee’s bus and streetcar system charges about $72.00 per month, while Madison, WI - a city of comparable size with a bus-only system - charges around $65.00 per month.

For many households, transit expenses are a notable financial burden. On average, American bus commuters spend about $600 annually, while those using rapid transit services face higher costs, averaging around $976 annually. These expenses can influence a business’s ability to attract and retain employees, particularly for entry-level roles where affordability is a key concern.

Employers can help mitigate these costs through transit benefit programs. Eligible employees can set aside up to $325 per month pre-tax for transit expenses, which effectively reduces their out-of-pocket costs to about $227. Such programs also encourage greater transit use. For example, SEPTA’s Key Advantage program led to a 40% rise in bus and metro trips and a 73% increase in regional rail usage over just 13 months. Similarly, in Boston, nearly half of all monthly transit passes are sold through the MBTA’s Perq program, showcasing the impact of these initiatives. Employers also stand to gain; for every $100 excluded from an employee’s taxable income through transit benefits, companies save approximately $7.65 in payroll taxes.

High transit costs don’t just affect employees - they also impact customer accessibility. For businesses targeting price-sensitive markets, reliable and affordable public transportation can make a difference. Between 2021 and 2022, public transportation commuting rose from 2.5% to 3.1% nationwide. Businesses situated in areas with accessible transit options may find it easier to attract both employees and customers. By factoring in transit costs, SMBs can make informed decisions about location and overall accessibility.

4. Multiple Transit Options and Backup Routes

Having multiple transit options acts like a safety net, keeping your business operations steady even when disruptions occur. When alternative transportation modes are readily available, your business becomes more reachable and adaptable.

A well-rounded transit network ensures that if one service experiences delays, maintenance problems, or even complete shutdowns, other routes can step in to maintain accessibility. This complements earlier evaluations of travel times and service reliability. Many cities achieve this by integrating buses, rail systems, and subways to provide extensive coverage.

The numbers paint a clear picture of why backup transit options matter. In 2023, Americans made over 7.1 billion trips using public transportation, with an average weekday seeing 34 million trips. For instance, New York City recorded more than 3.6 million subway riders and over 1 million bus riders on a typical weekday in 2023. These figures highlight how important it is to have multiple transit options to ensure accessibility for employees and customers alike.

Offering diverse transit modes doesn’t just enhance accessibility - it expands your potential workforce and customer base, especially for individuals who don’t drive. However, challenges remain: in the 100 largest U.S. metropolitan areas, only 27% of workers can reach a typical job via public transit in 90 minutes or less.

The advantages go beyond just getting people from point A to point B. Multi-modal transit options contribute to safer roads, improve economic opportunities, and promote public health by reducing air pollution and noise levels. For small and medium-sized businesses, this creates a more appealing environment, helping with employee retention and customer satisfaction.

"Living near public transportation is more important to today's buyers and renters than it's been in at least the past several years. Still, it's likely not the deciding factor for many movers - more say living in a walkable neighborhood, living near leisure amenities and living near family are important to them." - Nicole Bachaud, Zillow senior economist

To make the most of these benefits, assess all transit options near your business. Identify local and express services, different transit agencies, and various transportation modes. Pay attention to how these systems connect and whether transfers are convenient and reliable. The goal is to keep your business accessible, even if primary transit routes face unexpected disruptions.

5. Current Infrastructure and Planned Improvements

Understanding the state of transit infrastructure and planned upgrades is crucial when evaluating a location’s long-term potential. Existing systems and future improvements directly impact accessibility, operational costs, and overall service reliability. For small and medium-sized businesses (SMBs), these factors can influence employee commutes and long-term expenses.

The U.S. transit infrastructure presents both challenges and opportunities. The American Society of Civil Engineers rated public transit with a "D" in its 2025 Report Card for America's Infrastructure, a slight improvement from the "D–" it received in 2021. While this progress reflects ongoing investments, there’s still a significant amount of work to be done.

Financial pressures across the country have taken a toll on public transit. In 2023, ridership levels were at just 73% of what they were in 2019, which has strained service quality and delayed expansion plans. To maintain and improve transit systems, agencies need $618 billion in upgrades by 2033, along with $20.3 billion annually to keep systems operational.

Federal funding has provided some relief. The Infrastructure Investment and Jobs Act allocated $108 billion for transit improvements. However, there’s still a $152 billion funding gap over the next decade. This shortfall could lead to service cuts, higher fares, or canceled projects - factors that might affect your business’s accessibility in the long run.

Despite these challenges, cities are making targeted investments to improve transit. By 2025, several major projects are expected to enhance accessibility:

• Kansas City: The Main Street streetcar line will more than double in length.
• Los Angeles: Extensions to the A Line and new D Line subway service will connect additional neighborhoods, including Pomona and the Mid-Wilshire district.
• Seattle: Line 2 will expand north to Redmond and west into downtown Seattle.
• Phoenix: The South Central Corridor will introduce a new light rail branch.

Bus rapid transit (BRT) systems are also gaining traction as cost-effective solutions. Cities like Atlanta and Austin plan to launch enhanced bus routes in 2025, while Minneapolis will debut its B Line, which includes dedicated lanes for quicker travel. These projects are often completed faster than rail expansions, making them an attractive option for cities looking to improve transit access in the short term.

"Thanks to President Biden and the Bipartisan Infrastructure Law, crucial projects that communities across the country have long hoped for are finally becoming a reality." - U.S. Transportation Secretary Pete Buttigieg

Another challenge facing transit systems is workforce demographics. With 37.9% of transit workers over the age of 55, staffing shortages could impact service frequency and maintenance in the coming years.

When choosing a location, it’s important to research local maintenance schedules and construction plans. Infrastructure projects can cause significant delays; in fact, traffic congestion from construction costs the U.S. economy about $101 billion annually in lost time and fuel. Timing and planning are key to avoiding these disruptions.

Looking ahead, many cities are prioritizing sustainability in their transit initiatives. Programs focusing on renewable energy and zero-emission vehicle fleets are becoming more common. These efforts not only improve transit systems but also align with environmental goals that are increasingly important to employees and customers.

However, funding remains a major hurdle, as transit improvements must compete with other infrastructure needs for limited resources. To make an informed decision about a location, consult local transit agencies and review regional transportation plans. This will help you account for potential disruptions while also factoring in the benefits of future improvements.

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6. Combining Metrics for Location Comparison

To make smarter decisions about where to set up shop, combining transit metrics into a scoring system can give you a clearer picture of how locations stack up. A well-thought-out scoring framework helps you evaluate locations objectively and align them with your business needs.

Building Your Scoring Framework and Setting Priorities

Start by identifying which transit-related factors matter most to your business. Assign weights to these factors based on your priorities. For example:

• If customer accessibility is key, prioritize proximity to transit hubs.
• Restaurants and retail stores may focus on peak-hour accessibility and weekend service, since these align with customer traffic patterns.
• Professional services might value consistent commute times to keep employees happy.

Additionally, consider transit costs for areas with transit-reliant populations and backup route availability for businesses that need dependable options. Tailor your framework to reflect what matters most to your operations.

Creating a Practical Scoring System

Turn your weighted priorities into a scoring system. Use a simple scale - like 1 to 10 - for each metric. For example, a location with excellent transit proximity and short travel times might score higher for customer accessibility. You can also add bonus points for locations with infrastructure upgrades or committed funding for transit improvements.

Factoring in Local Transit Habits

Don't forget to adjust your scores based on local commuting trends and transit usage. Areas where public transit is widely used should naturally score higher than places where it’s less common. Seasonal variations, like increased ridership during certain times of the year, should also influence your scoring.

Testing and Refining Your System

Before fully relying on your scoring system, test it with locations that have a proven track record. Does it highlight successful sites and flag potential problem areas? If so, you've created a reliable tool. Be ready to tweak the system as your business evolves or as market conditions shift.

This scoring framework helps you weigh trade-offs effectively, making it easier to spot locations where strong transit accessibility might justify higher costs. It’s a dynamic tool that grows with your business and gives you the confidence to make data-driven decisions.

7. Using Kumo for Transit Data Analysis

When assessing small and medium business (SMB) acquisition opportunities, Kumo's deal sourcing platform integrates transit accessibility data with other key location factors into a single, streamlined view. This approach leverages the transit metrics mentioned earlier to help you make smarter, data-driven decisions.

With AI-powered analytics, Kumo simplifies the process of consolidating transit data from various sources. Instead of spending weeks manually compiling this information, you can access it instantly through Kumo's unified dashboard.

The platform's search filters make it easy to refine your acquisition targets based on specific transit-related criteria. For example, you can focus on businesses near major transit hubs, exclude locations with limited weekend service, or prioritize areas with upcoming infrastructure upgrades. These transit-focused filters work hand-in-hand with traditional business metrics like revenue and industry type, giving you a well-rounded view of each opportunity.

Deal alerts take this a step further by keeping you informed of opportunities that meet your transit accessibility standards. For instance, you can set alerts for businesses within 0.3 miles of a subway station or those serviced by three or more bus routes. This proactive feature ensures you stay ahead of the curve when it comes to prime locations with excellent transit access.

Kumo’s data analytics tools also allow you to identify trends across multiple locations. By analyzing patterns, you can pinpoint the transit characteristics that contribute to success in your portfolio. Plus, the platform’s export to CSV functionality lets you seamlessly apply your custom scoring system, ranking opportunities based on transit accessibility alongside other factors. This makes it easy to evaluate and compare multiple acquisition targets efficiently.

"The game changes completely when AI connects with business data. That's when we see the needle move. Real numbers, real ROI, and real business impact." - Vanja Josifovski, Co-Founder and CEO at Kumo.

This perspective highlights how Kumo transforms the way acquisition evaluations are conducted. With real-time insights, the platform keeps your transit data up to date as conditions change. Whether it’s new bus routes, service reductions, or construction projects, Kumo ensures your evaluations reflect the latest transit developments, preventing decisions based on outdated information.

For businesses with multiple locations or those exploring franchise opportunities, Kumo’s global coverage provides consistent transit analysis across cities and regions. Compare how a restaurant chain performs in transit-heavy urban areas versus car-dependent suburbs, helping you pinpoint the best markets for expansion.

Comparison Table

Explore how SMB locations stack up in terms of transit accessibility. The table below breaks down key transit metrics such as bus stop spacing, transit options, and transportation costs. Use this information to evaluate how each market meets your transit priorities.

Location	Proximity to Transit	Transit Redundancy	Annual Transportation Cost
Philadelphia, PA	Excellent (214 m average bus stop spacing)	High (multiple options: bus, rail, subway)	-
Boston, MA	Very Good (dense stop distribution)	High (MBTA multi-modal network)	-
Las Vegas, NV	Poor (482 m average bus stop spacing)	Low (RTC bus only)	-
Washington, DC	Excellent (comprehensive transit network)	Very High (Metro, bus, rail)	$12,232
El Paso, TX	Fair (limited transit coverage)	Low (bus network only)	$5,821
Arlington, TX	Very Poor (no mass transit available)	None (39% of central area devoted to parking)	-

This table highlights the stark differences in transit accessibility across markets. For example, Philadelphia boasts tightly spaced bus stops at an average of 214 meters, making it highly walkable. On the flip side, Las Vegas averages 482 meters between stops, which points to a much less pedestrian-friendly setup. When it comes to transportation costs, Washington, D.C. leads with an average annual cost of $12,232, whereas El Paso offers a more affordable $5,821.

Transit redundancy also plays a major role in accessibility. Cities like Washington, D.C. and Boston stand out with robust networks offering various options - such as buses, rail, and subways - that ensure continued access even during service interruptions. By contrast, Arlington, Texas, which lacks mass transit entirely, forces residents to rely solely on personal vehicles. In fact, 39% of Arlington’s central area is consumed by parking.

These comparisons can guide your acquisition strategy. For example, businesses that thrive on foot traffic, like retail stores, might prioritize locations with dense, walkable transit networks. Meanwhile, service-oriented businesses could focus on markets with lower transportation costs to maximize efficiency.

Conclusion

Transit metrics play a key role in shaping the success of small and medium-sized business (SMB) acquisitions. They influence everything from customer accessibility and employee recruitment to controlling operational expenses. Savvy buyers know this and prioritize transit analysis right from the start. For example, retail businesses flourish in walkable areas, while service-based operations gain an edge with affordable transportation options and reliable, multi-modal systems.

Kumo simplifies this process by consolidating over 815,291 listings from thousands of brokers into one platform. With more than $538 billion in total annual revenue generated from these sourced deals, Kumo's AI-driven tools help you pinpoint businesses located in transit-friendly areas that align with your acquisition goals. This streamlined access to transit data lays a strong groundwork for making smarter, data-backed acquisition decisions.

FAQs

How can SMBs use transit data to improve employee satisfaction and attract more customers?

Small and medium-sized businesses (SMBs) can tap into transit data to make smarter choices about where to set up shop, benefiting both their teams and their customers. By looking at factors like foot traffic, public transit options, and commuting trends, SMBs can pick locations that are easier for employees to get to. This can help ease commuting stress and even boost job satisfaction.

For customers, transit insights highlight areas that are easy to access, which can lead to more visibility and increased foot traffic. This not only makes it more convenient for customers but can also drive sales and strengthen the brand. On top of that, SMBs can tackle commuting issues by offering perks like flexible work arrangements or transportation benefits, improving employee retention and overall productivity. By using transit data strategically, SMBs can better align their locations with the needs of their teams and customers, staying ahead in a competitive market.

What should businesses look for when assessing a location’s access to public transit?

Evaluating Access to Public Transit

When considering a location's suitability, access to public transit plays a crucial role. Businesses should pay attention to two main aspects:

• Service frequency: Regular and reliable transit schedules make it simpler for employees and customers to reach the location, boosting convenience and potentially increasing foot traffic.
• Proximity to transit stops: Being near bus stops, subway stations, or other transit hubs minimizes travel time and effort for visitors, making the location more appealing.

Both of these factors can directly influence customer accessibility, employee satisfaction, and the overall efficiency of operations. For small and medium-sized businesses, they are key elements to weigh during the acquisition process.

How do transit costs and infrastructure improvements affect the profitability and growth potential of a business location?

Transit costs and the state of infrastructure are key factors that can make or break a business location's potential for growth and profitability. When transit costs are high, they directly impact operational expenses, cutting into profits. On the flip side, upgrades to infrastructure - like better roads or expanded public transit - can lower these costs, improve accessibility, and boost local economic activity, all of which make a location more appealing to businesses.

Good infrastructure doesn't just save money - it saves time. Well-maintained systems reduce delays and logistical headaches, creating an environment that supports steady growth. However, outdated or neglected infrastructure can do the opposite, driving up transportation costs and dragging down productivity, which could jeopardize a location's long-term success. For businesses considering acquisitions, these elements are critical when evaluating the financial outlook of a potential site.

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