Expanding real estate options for growing businesses in Singapore
Hi-spec industrial space, business parks and suburban offices are increasingly attractive alternatives for young companies
[SINGAPORE] The Republic has consistently positioned itself as a prime destination for startups and high-growth enterprises. In addition to government grants, efficient infrastructure and a supportive ecosystem, this manifests on the real estate front as well.
The government has played a pivotal role in creating an accommodating environment for business expansion. In the Budget 2025 statement, it was announced that about S$1 billion will be invested into Singapore’s research infrastructure, including revamping the biosciences and medtech research infrastructure in the one-north area, to enhance the Republic’s appeal to life science companies. There are also several incentives to attract and encourage enterprise growth, which could collectively help to boost the demand for office and industrial real estate.
Consistently ranked among the top countries when it comes to ease of doing business, Singapore is home to numerous high-growth enterprises. An analysis of 100 high-growth companies headquartered in Singapore indicate that they are predominantly in the financial services (17 per cent), artificial intelligence (15 per cent), as well as blockchain and cryptocurrency (9 per cent) industries. A large proportion of these companies (36 per cent) are located in industrial spaces – multiple-user factories and business parks.
Most of these high-growth companies (85 per cent) are in the seed or early-venture stages, and would likely have to be more mindful of spending. Consequently, an office in the Central Business District would probably exceed their budget, and with a headcount of more than 100, they would have outgrown traditional co-working spaces.
The new generation of high-specification multiple-user factories, business parks, and suburban offices can offer occupiers equivalent quality offices at a substantial discount to offices in the central region.
As at the fourth quarter of 2024, average rents at city-fringe business parks are at a 44 per cent discount to average Central Region Grade A office rents, while average outlying business park rents are at a 40 per cent discount to average Central Region Grade B office rents.
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With Singapore’s efficient transport network, these pricing advantages make business parks and high-specification multiple-user factories increasingly attractive options for cost-conscious firms seeking quality workspaces.
Over the past decade, the stock of business parks and multiple-user factories have also grown faster than office stock in both the Central and Outside Central Regions, which would appear fairly stagnant in comparison. This growth would provide occupiers with a wider range of options in these segments.
Future-proofing their workplaces would be critical for any corporate occupier trying to navigate the increasingly volatile market conditions, and the newer generation of industrial developments are designed with that in mind. Moreover, they come with all the green credentials for environmentally conscious tenants.
For example, Punggol Digital District (PDD) was built on an Open Digital Platform (ODP) which not only connects different smart technologies but also allows them to exchange data and share controls. This is especially useful to firms dealing with robotics, surveillance and sensors – for them to plug in to the platform and be controlled centrally. The ODP also provides a digital twin, which allows technology firms to test-bed and experiment with their solutions in real world conditions.
The development of PDD as a new enterprise hub follows the launch of one-north in 2001 as a science park focusing on scientific and technological research and development.
Biomedical hubs such as Geneo at the Singapore Science Park, and Elementum at Biopolis provide co-working labs for biomedical startups that need a fully equipped laboratory to test and experiment with their products. Such lab spaces also offer flexibility to more mature companies for smaller projects or for testing new products.
Towards the eastern side of Singapore, Tai Seng Exchange offers space with customised specifications to cater to research and laboratory requirements, as well as a wide range of industrial activities. It also provides “softer” touches in amenities, such as meeting rooms and event spaces in their club house, and a gym for tenants’ use.
For others with relatively lighter technical requirements in their operations, Mapletree Hi-Tech Park @ Kallang Way, a high-tech industrial precinct redeveloped from flatted factories, might be mistaken for modern city-fringe offices. Although classified for heavy industrial use, the buildings in this project are suitable for high value-add and knowledge-based businesses such as advanced manufacturing, biomedical science, as well as the information and communications technology sectors.
Singapore’s real estate landscape is evolving to meet diverse needs. Especially for young and high-growth companies that have to navigate increasingly volatile market conditions, the expanding range of cost-effective alternatives such as modern industrial spaces can provide more real estate options than ever before.
Tridiana Ong is head of tenant representation and Catherine He is head of research at Colliers Singapore
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