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 an industrialist, 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.
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.
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
3.Jurong Town Corporation (JTC) industrial property
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.
How many square feet do you need? If you are not sure, you should ask your agent to assist you in determining these details.
First 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?
Do you need air-conditioning? If so, will you operate in irregular hours? If you will, you will need separate air-conditioning controls.
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
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 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?
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 FrontageDo you need a large frontage?
How many car parking spaces do you need?
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 cost more to rent.
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?
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?
Is the facility close to public transport (MRT, bus)? Do you require a property that is close to public transport?
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.
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.
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.
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?
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:
Length of time in business
Financial condition of your company (both capital and profit / loss)
Reputation with previous landlords (for maintaining properties in good condition, etc)
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.
What sort of deposit is necessary?
What is the agreement that needs to be signed? Is it a standard type agreement or does it have some unusual requirements?
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.
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 industrial properties. Remember that renting a factory or warehouse is completely different to renting residential properties or even commercial office space. Call us now!