Industrial / Commercial Renting Guidelines

Industrial Classification

The Singapore government has divided our industrial landscape into 3 basic classifications:

1. B1 – Light and Clean Industry

2. B2 – General Industry

3. Business Park


As a business owner, you must know what category your business activity falls under. If your business activity falls under B2 and you operate in area that is designated for only B1 activity, you may be required to cease operations. You don’t want that to happen, especially after spending thousands of dollars setting up operation. More information about these requirements can be found on the Urban Redevelopment Authority web site (www.ura.gov.sg)

 

National Environment Agency (NEA) Approval

Regardless of the industry or business activity you operate under, prior to renting an industrial property you must submit an application to the Pollution Control Department of the NEA for approval. This is a statutory requirement. Approval usually takes up to 10 days.

Further information can be found on the NEA web site (www.nea.gov.sg)

 

Types of Industrial Property

Generally, there are 3 types of industrial properties in Singapore:

1.Privately owned industrial property

2.Housing and Development Board (HDB) industrial property (www.hdb.gov.sg)

3.Jurong Town Corporation (JTC) industrial property (www.jtc.gov.sg)

 

To rent HDB and JTC industrial properties, you will need their respective approvals on the rental. Please refer to their respective web sites for further information.

 

The Property and Facilities

There are quite a few issues to consider when it comes to the actual property. We will address the most important ones in the following sections.


Size

How many square feet do you need? If you are not sure, you should ask your agent to assist you in determining these details.


Ground Floor Floor / Upper Floors

First floor locations cost more to rent that upper floors.Is it important for you to be on the first floor, or is an upper floor acceptable or even desired?

 

Air Conditioning

Do you need air-conditioning? If so, will you operate in irregular hours? If you will, you will need separate air-conditioning controls.

 

Electrical Power

Do you need a clean or dirty electrical power? What do we mean by clean or dirty power? Well, some industrial electrical equipment like welders causes disturbances in the electrical power that causes problems to electronic equipment.Therefore, if you need to operate precision equipment and electronics, you need to make sure that the power supply is “clean”.Do you have a large power requirement? If so, you will need to make sure the mains is large enough to handle your requirements

 

Ceiling Height

What ceiling height do you need? Do you manufacture / handle large items? Do you use large forklifts for moving heavy items? If so, you need to check your requirements to ensure that you get a property with sufficient ceiling height.

 

Floor Loading

Floor loading refers to the mass that can be placed on the floor expressed as kN / square metreDo you manufacture / handle heavy items or use heavy equipment? If so, you need to check that the floor loading of a property is sufficient for your requirements.


Loading / Unloading Facilities

What sort of loading / unloading facilities do you need? Do you need a loading bay? Is a shared loading bay acceptable?

 

Overhead Cranes

Do you need overhead cranes? If so, what capacity to you need?

 

Open Space within Factory Compound

Do you need open space within the factory compound? 


Big Frontage

Do you need a large frontage?


Parking

How many car parking spaces do you need?

 

Property Type

What type of property are you seeking? Do you need a free-standing building, or is a multi-level shared building acceptable? Free-standing buildings are very hard to find and therefore it usually costs more to rent.

 

Condition

Are you looking for a newer facility, or is an older facility acceptable? What about the overall condition of the property? Do you need a well-kept property?Work Needed to be CompletedIs there existing infrastructure that needs to be removed?

 

Office Space

How much office space do you need with your factory or warehouse?

 

Location - Singapore Regions

When you are renting industrial property in Singapore, the properties are listed by Region:

Central (Paya Lebar, Ubi, Aljunied)

North (Sembawang, Senoko, Sungei Kadut)

South (Pasir Panjang, Bukit merah)

West (Jurong, Tuas, Bukit Batok)

East (Changi, Tampines, Bedok)

Prices vary between the regions, so ask your agent for general guidelines for pricing across these five regions.


Access to Suppliers and Customers

Where are your suppliers and customers?If you have existing facilities, you need to consider the implications of moving too far from the current location.Your current customers may not want to travel to your new location.You may have easy access to some key suppliers right now. What if you move? Will this affect your supply chain?

 

Public Transport

Is the facility close to public transport (MRT, bus)? Do you require a property that is close to public transport for your staffs or customers?


Access for Heavy Vehicles

Do you need heavy-vehicle access? Some facilities are located on streets that have restricted weight limits, so you must consider this.

 

Other Tenants

When you look at properties, find out who the adjacent tenants are. You want to make sure that they do not impact on your operations.

 

Commercial Considerations

Price

Obviously, the price per month is one of the most important factors to consider. If you compare a few properties in the same region, you will be able to assess whether the asking price is too high.

 

Term

The term of the agreement can be vastly different for different landlords. What term are you seeking? Are you looking for a long-term or short-term agreement?


Negotiation

There are several factors that can assist you in your negotiation of the agreement. If you know what these are, you can use them to your advantage.

Here are some of the important issues:

i) Length of time in business

ii) Financial condition of your company (both capital and profit / loss)

iii) Company ethics

iv) Reputation with previous landlords (for maintaining properties in good condition, etc)

 

Landlord

Who is the landlord? Does the landlord favour longer or shorter renting terms? Does he / she rent other properties. In some cases, if you have doubts about the landlord, you could check with other tenants and find out what the landlord is like to deal with.

 

Security Deposit

What sort of deposit is necessary? For some commercial landlords, they may impose desposit up to 6 month equivalent of rental amount if the tenant paid up capital is very low.


Agreement

What is the agreement that needs to be signed? Is it a standard type agreement or does it have some unusual requirements? Is legal fee payable?


Your Agent

Your agent is one of the most critical aspects to you getting the best property at the best price. Therefore, make sure you get a good agent that will help YOU get the best deal. 

 

Character

If you want to make sure that you get a good quality factory or warehouse, it is essential that you deal with an agent that is honest and trustworthy. If you are uneasy when talking to your agent, or things just don’t seem to be adding up, go and find another agent. When you rent a factory or warehouse, you will live with the decision for a long time.

 

Knowledge and Expertise

It is also important that you get an agent with good knowledge and expertise in Singapore real estate.In particular, make sure you deal with an agent that specializes in commercial / industrial properties. Remember that renting a factory / warehouse / commercial office is completely different to renting residential properties.

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agent image
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Jaren Chin 陳嘉樑
Associate Deputy Group Director - Commercial & Industrial (Since 2008)
ORANGETEE & TIE PTE LTD
jarenchin@gmail.com
CEA Licence No.:
L3009250K / R003281Z
+(65) 9747 7082