5 Crucial Factors To Consider When Choosing Warehouse Space For Rent

Warehouses are merely a space. Many businesses scramble for a small B1 industrial space for rent in Singapore or vacant lots to build a warehouse because of its importance in the supply chain. But what are warehouses?

Warehouses are a space where manufacturers can store their items and products temporarily. The two types of warehouses are general and distribution. Warehouses serve several purposes, including storage.

Products that have been manufactured and prepared for dispatch the next day or weeks are stored in a warehouse. When businesses import products, they temporarily store the goods in a warehouse for inspection.

Warehouses also secure your products. For example, if your products are frozen meat, you cannot transport them for 24 hours straight. Otherwise, animal products may spoil along the road. Finding a warehouse for rent in Singapore halfway to your destination can help preserve the life of your products. You can re-freeze the products overnight in the warehouse and transport them the next day.

This article will discuss the crucial factors businesses should consider when choosing the right warehouse space for rent in Singapore.

5 Factors To Consider When Choosing Warehouse Space For Rent In Singapore

Your warehouse can be an expense or investment for entrepreneurs. If you want your warehouse to become an asset to your business, you must consider these several factors.

1. Location

Location is the most crucial factor when choosing a warehouse or small B2 industrial space for rent in Singapore. Here are the several categories you need to tick to determine whether you have the most strategic warehouse location.


Tax rates and incentives are different in cities and towns. Some may be higher or lower than others. Coincidentally, taxes affect the rent rates. The higher the tax rates, the higher the rent rates.

Availability of workforce

You don't want to build a warehouse in a remote area far from the city or community. Otherwise, you might be getting trouble hiring or transporting to the area daily. Pick a warehouse space for rent near the community, and you will never have an issue with the accessibility to labour.

Traffic status

Traffic matters in logistics. Expect a handful of trucks coming in and out of the warehouse. The question is can the traffic handle these trucks?

Trucks can be noisy, so warehouses near residential areas are a no-no. Most importantly, trucks are highly likely to hit pedestrians.

On the other hand, trucks can cause traffic on busy roads. Due to its size, it is difficult to manoeuvre the vehicle around smaller cars.

Lastly, if your warehouse location is near bridges, are the roads and bridges sturdy enough and capable of carrying heavy loads?

Proximity to ports

The last consideration for a warehouse for rent located in Singapore is its proximity to main ship ports, airports, and railways. As much as possible, these points of transportation should be near your warehouse.

Once you ticked all these boxes, it means that your warehouse location is the most strategic you can find.

2. Square Footage

Square footage refers to the entire size of the property, including the parking space and the building storey. Just remember that some landlords include the unusable area in the square footage estimate. When looking for a small B2 industrial space for rent in Singapore, always ask the landlord if the square footage measurement is usable space alone. You can read through the contract as well.

Besides the horizontal space, entrepreneurs must also consider the vertical space or simply the ceiling height. Choose a warehouse with high ceilings. It can be advantageous if you decide to stack your goods using tall equipment and lifters.

The door size matters as well. Machines, such as forklifts, cannot fit in narrow doors, especially if they carry multiple stacks of boxes. Besides square footage, consider the ceiling and doors.

3. Future expansion and modification

Due to increasing demand and growing business, some warehouses may need expansion and modifications. Ensure the warehouse space for rent is flexible and capable of expanding and design-altering.

For example, if the ins and outs of trucks become more frequent in your warehouse, can the landlord allow you to extend the space you are renting for extra parking space and loading docks? Is the contract flexible?

If you are seeking a long-term warehouse for rent in Singapore, you might as well choose a warehouse where you can expand and modify easily. Otherwise, you may need to find a bigger warehouse and transfer all your goods and pieces of equipment there.

4. HVAC and environmental conditions

Some goods require certain environmental conditions for shelf life. For example, storing rice grains in a moist and highly humid area will spoil the grains. Meat must be kept below zero temperature; otherwise, it will rot.

Find warehouse space for rent with an efficient HVAC system. The heating, ventilation and air conditioning help maintain the optimum environment for your goods and products.

What if the warehouse you lease does not have an HVAC unit? As long as the landlord allows it and as stated in the contract, the entrepreneur shoulders the HVAC system installation and maintenance.

But if the warehouse comes with an HVAC unit, guarantee first the system was inspected and maintained before signing the contract.

5. Operational expenses

Rent is a part of operational expenses. Rent usually depends on the square footage of the warehouse; however, the rent may still increase depending on the taxes, warehouse location, wastewater disposal, and utility maintenance.

Besides the rent, another part of operational expenses is the utility, such as electricity and water. The consumption of these utilities depends on the type of goods you store. For instance, meat products that need refrigerant 24/7 have higher electricity consumption.

Security is also included in the expenses. CCTV camera installation, door locks, and 24/7 security personnel need to be paid as well.

Labour costs are also part of the operational expenses. Businesses pay for their skilled workers, warehouse caretakers, and security personnel.


You can find the right warehouse and small B1 industrial space for rent in Singapore if you consider these things closely. Try it yourself!

LHN Group - Space Resource

Are you looking for warehouse space for rent? Visit LHN Group - Space Resource today.