Commercial & Industrial Properties

1. Intended Use Of The Property

Before purchasing, buyers should be clear on whether the property is meant for:
 

• Own business operations

• Rental income

• Capital appreciation

• Portfolio diversification

• Future business expansion

• Hybrid use, such as partial own use and partial rental

The intended use will affect the type of property, location, size, budget, financing, and exit strategy.

2. Zoning & Approved Usage

Commercial and industrial properties are subject to specific planning and usage requirements.
 

Buyers should do their due dilligence on  whether the property’s approved use is suitable for the intended business or tenant profile.
 

Important considerations include:
 

• Commercial, office, retail, F&B, medical, or showroom use

• B1 light industrial use

• B2 general industrial use

• Warehouse or logistics use

• Ancillary office limitations

• Change-of-use requirements

• Licensing requirements for specific businesses
   

This is especially important for business owners. A property may look suitable physically, but may not be approved for the intended use.

3. Tenure & Remaining Lease

Commercial and industrial properties in Singapore may come with different tenures, such as:
 

• Freehold

• 999-year leasehold

• 99-year leasehold

• 60-year leasehold

• 30-year leasehold

• Shorter remaining lease industrial properties
   

Tenure can significantly affect financing, valuation, resale demand, and long-term capital preservation.
 

Investors should consider whether the remaining lease supports their intended holding period and exit strategy. Business owners should consider whether the tenure aligns with their operational plans and future expansion needs.

4. Location & Accessibility

Location plays a major role in both investment performance and business usability.For investors, good accessibility may support stronger tenant demand and lower vacancy risk.

For business owners, location affects staff convenience, customer access, delivery efficiency, and operational productivity.
 

Key factors include:
 

• Proximity to MRT stations

• Access to expressways

• Nearby business clusters

• Visibility and frontage

• Parking availability

• Loading and unloading access

• Public transport options

• Staff commuting convenience

• Customer or client accessibility
   

For industrial properties, proximity to suppliers, ports, warehouses, logistics routes, or relevant business ecosystems may be additional factors to be considered.

5. Property Specifications & Operational Suitability

For own-use buyers, detailed specifications matter greatly.
 

Business owners should assess whether the unit supports their actual operations, including:
 

• Floor loading capacity

• Ceiling height

• Power supply

• Loading bay access

• Cargo lift availability

• Passenger lift access

• Vehicle access

• Air-conditioning requirements

• Ventilation

• Water points

• Exhaust or drainage requirements

• Layout efficiency

• Storage needs

• Expansion flexibility
   

A unit that appears affordable may become costly if significant fitting-out works are required or if it cannot sufficiently support the business operations.

6. Rental Yield & Investment Returns

For investors, rental performance is a key consideration.

Jereme helps clients assess:
 

• Expected rental income

• Current market rental rates

• Gross and net yield

• Vacancy risk

• Tenant demand

• Lease length

• Rental escalation potential

• Maintenance and management costs

• Property tax and other recurring expenses

• Future resale liquidity
   

A strong investment property should not only look attractive on paper, but also have realistic rental demand and sustainable income potential.

7. Tenant Profile & Lease Structure

For tenanted properties, buyers should review the quality of the existing tenancy.
 

Important considerations include:
 

• Tenant business profile

• Lease expiry date

• Rental amount

• Security deposit

• Renewal options

• Rent-free periods

• Maintenance obligations

• Reinstatement clauses

• Early termination clauses

• Whether rental is above or below market rate
   

A property with a high rental yield may not always be attractive if the tenant is weak, the lease is ending soon, or the rent is not sustainable.

8. GST, Stamp Duties & Tax Considerations

Commercial and industrial property purchases may involve additional tax considerations compared to residential property.
 

Buyers should consider:

• Whether GST is applicable on the purchase price

• Buyer’s Stamp Duty

• Property tax

• Corporate ownership structure

• Rental income tax implications

• Claimable expenses

• Holding structure for companies or individuals
   

For corporate purchasers and investors, it is important to review these matters early with appropriate tax, accounting, and legal advisors.