URA Requirements

To ensure that limited industrial land is used mainly for industrial uses, the URA requires at least 60% of the total floor area of an industrial development to be used for core industrial activities. However, URA recognises that certain non-industrial activities, such as ancillary offices¹, staff canteens and showrooms are needed to support the predominant industrial uses. Hence, such supporting non-industrial uses, together with other ancillary areas (e.g. lift lobbies and circulation spaces) are allowed to occupy up to 40% of the total floor area of an industrial development.

Reference:  https://www.ura.gov.sg/Corporate/Guidelines/Development-Control/Non-Residential/B1/Use-Quantum

B1 Industrial Classification

In Singapore, industrial properties are classified into different categories based on their intended use and the level of environmental impact they may have. The B1 Industrial Classification refers to light and clean industrial activities that are non-polluting and have minimal impact on the surrounding environment. These buildings are designed to accommodate industries that do not produce significant noise, smoke, or other forms of pollution.

B2 Industrial Classification

B2 industrial classification in Singapore is designated for heavier industrial activities such as manufacturing, engineering, warehousing, and production that may involve higher noise or vibration levels. These zones support a wide range of industries that require robust infrastructure, higher power capacity, and flexibility for machinery or storage. B2 properties are essential for businesses with more intensive operational needs, offering affordable space within well-planned industrial estates while remaining safely distanced from residential areas.  Food Factory are also classified under B2 Industrial.

Current Market Conditions

Based on JTC 3rd Quarter 2025 report, overall industrial occupancy in Singapore inched up to 89.1%, helped by slightly higher demand and reduced stock from demolitions of older estates. Rents continued to rise but at a moderating pace, with the all-industrial rental index up 0.5% quarter-on-quarter and 2.3% year-on-year. Prices were 5.7% higher than a year ago, but quarter-on-quarter growth slowed to 0.6%, the weakest since 3Q 2024.

Land Sales, Pipeline and Outlook

Six industrial GLS tenders closed in 3Q 2025; all three multiple-user sites drew multiple bids and were awarded, signalling strong demand for such projects. About 0.2 million sqm of new industrial space is expected to complete in 4Q 2025 and another 1.2 million sqm in 2026, versus average annual supply and demand of roughly 0.8 million sqm and 0.6 million sqm over the past three years. Barring a sharp downturn, occupancy is expected to stay stable while rental growth continues to moderate.