Singapore’s industrial real estate market continues to attract attention from both investors and businesses seeking long-term operational and financial value. From logistics hubs and ramp-up warehouses to B2 factories, these assets combine stable tenant demand, scalable facilities, and strong redevelopment potential.

Supported by growth in e-commerce, high-value manufacturing, and supply chain decentralisation, industrial spaces offer opportunities for portfolio diversification and operational efficiency. Understanding asset types, zoning considerations, and tenant dynamics is key to unlocking value — whether you’re acquiring for investment or positioning your business for growth.

Types of Industrial Property for Sale

Strata-Titled Units

Strata units are appealing for funds exploring bite-sized acquisitions. These are individual units within flatted factories or industrial complexes, often with centralised maintenance and strata-titled ownership structures. They suit light manufacturing, packaging, or SMEs requiring self-contained units, and can be leased to stable mid-sized tenants. 

Ramp-Up Warehouses

Ramp-up warehouses are ideal investment assets for logistics or third-party logistics (3PL) tenants. With direct vehicular access to upper floors, these spaces command strong leasing interest from fulfilment providers and supply chain operators. Ramp-up formats provide operational convenience and reduce tenant churn, improving asset defensiveness.

Detached or Semi-Detached Factories

For funds with capital and long-term redevelopment horizons, detached factories offer full-site control, potential for value-add refurbishments, or consolidation of multiple tenancies. Typically found in B2 zones, these assets cater to high-impact industries and allow flexible lease structures.

Zoning & Tenure Considerations

B1 vs B2 Zoning

• B1: Suitable for clean or light industries, tech R&D, printing, and electronics.
• B2: Designed for heavier industrial activity including logistics, metalworks, and chemical processing.

Understanding URA zoning is essential. Misalignment can limit tenant use and future repositioning strategies. B2 zones often yield higher rent per square foot in niche sectors but require deeper due diligence on compliance and infrastructure.

Leasehold vs Freehold

Most Singapore industrial land is leasehold (30 or 60 years). Since freehold assets are rare and command premium pricing, funds must critically assess the land tenure of any potential acquisition.

Properties with a lease of fewer than 30 years often face significant refinancing hurdles and valuation caps, which can limit investment potential. In contrast, assets with a long remaining lease offer superior flexibility for active lease management, asset enhancement, and strategic exit planning.

Use Case Snapshot: Investment Targets by Sector 

Why Industrial Space Is a Strategic Buy 

Singapore’s industrial market stands out for its defensive profile: resilience during downturns, shorter development cycles, and strong government planning. Limited land supply, stable regulations, and a growing tenant base across tech, logistics, and clean manufacturing reinforce long-term value.

Beyond basic compliance and functionality, the real differentiator lies in securing assets that can attract resilient tenants, adapt to evolving needs, and deliver sustainable yields over time.

Talk to the Experts

Whether you’re building your first industrial fund or adding depth to your portfolio, Savills Industrial & Logistics team can help identify high-potential industrial spaces for sale. 

📎 Want to explore flexible leasing instead? Read our guide on Business Park for Lease for Occupiers to explore scalable rental strategies.

FAQ

Q: Can fund managers buy industrial properties in Singapore?

A: Yes, both local and foreign fund managers can purchase industrial assets in Singapore. However, it's important to note that certain properties, particularly those on JTC leasehold land, may have specific eligibility requirements or restrictions on subletting that must be carefully reviewed during due diligence.

Q: How are industrial assets typically financed?

A: Financing terms depend on asset type, land tenure, and your investment structure. Most banks offer commercial real estate loans, but freehold or longer leasehold tenures are preferred.

Q: Are strata-titled units suitable for institutional investors?

A: Yes, especially if you're building a portfolio of smaller assets. They offer diversification, rental granularity, and potential for en bloc redevelopment.

Q: What returns can I expect from industrial assets?

A: Returns vary by location, asset condition, and tenancy. Stabilised yields typically range from 4% to 6%, with additional upside from capital appreciation or repositioning.