Step 1: Know what your business actually needs
Before you look at a single listing, get clear on what your business needs from the space. This sounds obvious, but it saves you from viewing units that look good but don't work.
Think about:
- How much floor area you need (and room to grow)
- What you'll be doing inside — storage, light assembly, packing, a workshop?
- Loading needs — do you receive containers, pallets, or just parcels?
- Power supply — do you need three-phase power or high electrical load?
- Ceiling height — tall racking or machinery needs a higher floor-to-ceiling
- Staff parking and access for delivery vehicles
- Your monthly budget, including a buffer for utilities and maintenance
Step 2: Check the zoning matches your use
Industrial property in Singapore is zoned — mainly B1 (light) and B2 (heavy). The zoning tells you what activities are allowed in the unit. If your business activity isn't permitted under the zoning, you can't legally operate there, no matter how good the rent looks.
If you're not sure what zoning you need, that's one of the first things I'll check for you. Most small businesses — e-commerce, trading, light assembly, storage — fit B1.
Step 3: JTC vs private landlords
In Singapore, a lot of industrial land is managed by JTC Corporation, the government agency for industrial infrastructure. JTC rents out ready-built factories and flatted factories, as well as land for you to build on. Private landlords (often the strata owners of a building) are the other main option.
Both have their pros and cons. JTC units can be competitive on price but may have specific eligibility rules and approval processes. Private units give you more flexibility but the rent is set by the market and the owner. I'll walk you through which suits your situation.
Step 4: View the unit in person
Photos and listings never tell the full story. When you view a unit, look at the things that actually affect your day-to-day:
- The loading bay — can your delivery vehicles actually get in and turn?
- The lifts — are they cargo-rated for heavy goods, with enough capacity?
- Floor loading — can the slab take your machinery or racking weight?
- Power supply and where the distribution board sits
- Ceiling height and any beams or ducts that eat into it
- Mobile signal, ventilation, and natural light
- How the neighbours use their units (noise, fumes, traffic)
Step 5: Understand the lease terms
Common market examples for industrial leases are a term with an option to renew — say a 2+2 or 3+3 structure (an initial term plus an option period). These are common examples, not fixed rules, so the actual structure depends on what you negotiate. Read the key terms carefully:
- The rent and how often it's reviewed (often every 2–3 years)
- The security deposit (commonly a few months' rent)
- The option-to-renew mechanism and any rent escalation
- Who pays for utilities, maintenance, and property tax
- Any restrictions — subletting, alteration, change of use
- The handover condition and any fitting-out period
Step 6: Stamp duty and paperwork
Once you agree on the terms, the lease is drawn up and stamped. Stamp duty on a lease is payable to IRAS. Where the average annual rent exceeds $1,000, IRAS currently charges 0.4% of the total rent for leases of 4 years or less; for leases over 4 years or of indefinite term, 0.4% × 4 × the average annual rent. Average annual rent includes relevant maintenance or service charges and other consideration, but excludes GST. Legal, documentation or administrative fees may also apply — whether you engage a lawyer depends on the transaction and its complexity.
This is the part where having someone walk you through it helps — because the paperwork can feel heavy the first time. I'll make sure you understand what you're signing before you sign it.
Step 7: Move in and operate
After the lease is signed and stamped, you get the keys and can start your fitting-out. Depending on the building, you may need to submit plans or get approvals for renovations. Then you're up and running.
If you ever need to sublet, assign the lease, or change your use, those usually need the landlord's (and sometimes JTC's) consent — so keep that in mind for the future.