Understanding Self-Storage Use on JTC Industrial Land

Stay informed about the latest JTC Industrial Land Lease policy changes that aim to provide greater flexibility, certainty, and support for businesses. Below is a comprehensive overview of the enhancements and their implementation timelines.

1. Additional Three-Year Lease Tenure for New Greenfield Industrial Land Allocations

• Key Update: JTC will offer an additional three years of lease (with payable land rent/premium) for all new greenfield allocations requiring new building development. This ensures businesses can enjoy the full 20- or 30-year intended lease term.

• Why It Matters: Helps businesses cover building and development periods without sacrificing lease duration. Provides more predictability in operational and capital planning.

• Implementation Timeline: Immediate effect.

2. Introduction of the Flexible Lease Extension Initiative (FLEXI)

• Key Update: Eligible land lessees on 20-year JTC leases can extend their leases in up to two tranches of five years each. Businesses must demonstrate strong economic outcomes and commit to new plant and machinery investments to qualify.

• Why It Matters: Allows businesses to extend beyond the original 20-year term by up to an additional 10 years. Encourages sustained economic growth and investment within Singapore’s industrial landscape.

• Implementation Timeline: Targeted for 2H2025.

3. Earlier Lease Renewal Applications

• Key Update: JTC will bring forward the lease renewal application window from six years to ten years before the prevailing lease expiry.

• Why It Matters: Provides businesses with greater certainty about lease continuation well in advance. Facilitates long-term strategic planning, including expansion and technology upgrades.

• Implementation Timeline: Targeted for 2H2025.

4. Broader Recognition of Auditable Investments in Innovation and R&D

• Key Update: Beyond traditional Plant and Machinery (P&M) investments, JTC will recognize auditable investments in innovation, R&D, digital transformation, and Intellectual Property (IP) creation. This expanded definition aligns with evolving business models and supports value creation and productivity.

• Why It Matters: Encourages companies to invest in advanced technologies and IP, driving competitiveness and growth. Acknowledges modern forms of capital investments critical to innovation-driven enterprises.

• Implementation Timeline: Targeted for 2H2025.

Conclusion

These JTC Industrial Land Lease policy enhancements are designed to provide businesses with:

• Extended lease security for better long-term planning.

• Greater flexibility to adapt and grow.

• Incentives for innovation through recognition of diverse forms of investment.

For more information or to discuss how these changes can benefit your business, contact us or visit our website. Stay ahead with the latest updates and make the most of your industrial land lease tenure under JTC’s enhanced framework.

Thank you for your continued trust and partnership with Alliance Facilities Management Pte Ltd.

JTC Business 1 (B1) Zoned Sites

• Primary Purpose: Clean and light manufacturing activities (e.g., precision engineering, electronics assembly).

• Self-Storage Eligibility: Self-storage facilities may be considered only on selected B1 sites, subject to JTC’s approval and compliance with agencies such as the National Environment Agency (NEA) and Land Transport Authority (LTA).

• Exclusions: Certain B1 sites are strictly reserved for clean and light manufacturing. These locations are disallowed for any self-storage activity. Refer to the Map of restricted zones for more details.

JTC Business 2 (B2) Zoned Sites

• Primary Purpose: General industrial operations typically involving heavier manufacturing processes (e.g., metal stamping, chemical processing).

• Self-Storage Eligibility: Not allowed on any B2 sites due to the heavier manufacturing focus and associated operational requirements.

Business Parks

• Primary Purpose: Research & development, high-technology, and knowledge-intensive industries.

• Self-Storage Eligibility: Not permitted on any Business Park-zoned land.

Self-storage operators are not limited to JTC-owned industrial land. You may also explore:

• Commercial Sites: Seek private landlords for potential self-storage conversions, subject to URA guidelines.

• Privately Owned Industrial Sites: A viable alternative if the site is approved for warehouse use or if a successful change-of-use application is granted.

• Tip: Any change-of-use request requires URA’s review and assessment unless the existing premises is already approved for warehousing.

Change-of-Use Application

When a site is not already approved for warehouse usage, operators must submit a change-of-use application to the Urban Redevelopment Authority (URA). This process evaluates:

• Land Use Compatibility: Ensuring self-storage aligns with the broader urban planning objectives.

• Regulatory Compliance: Meeting safety and environmental standards (NEA, LTA, etc.).

Adherence to URA’s 60:40 Quantum Control

For self-storage developments in industrial zones, URA mandates a 60:40 split:

• At least 60% of the total gross floor area (GFA) must be allocated to core industrial activities.

• Up to 40% of the GFA can be used for ancillary, supporting uses, subject to agency approvals.

From 1 April 2025 onwards, the following guidelines apply:

New Sublets, Assignments & Lease Renewals

• Eligibility: Only B1 sites outside the reserved areas on the Map may be considered.

• Assessment Process:

JTC will review your proposal based on prevailing planning considerations and agency approvals.

Operators must comply with URA’s 60:40 quantum control and any additional conditions.

• Early Consultation: Lessees seeking to:

Sublet space for self-storage,

Change existing site usage,

Renew leases, or

Assign leases to a new self-storage operator,

are strongly encouraged to consult JTC in advance to clarify guidelines and expedite approvals.

Assignment & Lease Renewal Applications

• All new assignment and lease renewal proposals for self-storage use must meet JTC’s prevailing business assessment criteria.

• Change-of-Use Requests for self-storage activities should be submitted under an assignment application. JTC will evaluate the business proposal against its latest assignment criteria to ensure alignment with industrial land use priorities.

• Preservation of Industrial Capacity: JTC’s mission is to safeguard sufficient land for manufacturing—vital to Singapore’s economic growth.

• Balancing Competing Needs: Striking the right balance between core industrial uses and ancillary services ensures that essential manufacturing activities are not displaced.

• Regulatory and Safety Compliance: Heavy industrial zones require stricter safety measures, making them unsuitable for public-serving operations like self-storage.

• Urban Planning Objectives: Land-use planning in Singapore is holistic, ensuring cohesive development across different commercial, industrial, and residential areas.

• Identify Suitable B1 Sites: Verify if the location is within JTC’s approved zones for self-storage usage by referencing the Map of reserved and disallowed sites.

• Check Regulatory Requirements: Consult relevant agencies (NEA, LTA) and ensure your proposal aligns with environmental and transport guidelines.

• Prepare a Business Proposal: Develop a comprehensive plan for JTC’s assessment, demonstrating how your self-storage operations meet the 60:40 industrial-use guideline and other URA requirements.

• Submit Early for Pre-Consultation: Reach out to your JTC cluster officer early if you plan to sublet, assign, or renew a lease involving self-storage. This step can reduce approval times and streamline processes.

• Secure Official Approvals: Complete all necessary change-of-use submissions to URA (if required) and acquire final endorsements before commencing operations.