Warehouses are a vital part of the supply chain globally. Their primary purpose is to store goods and surplus inventory before and after moving them in and out of the supply chain. Since not all businesses can’t invest in warehouses, some look for a warehouse for rent in Singapore. 

But the rental cost of each small B1 industrial space for rent in Singapore is not the same. Several factors affect the rates.

Here are the factors affecting the rental rates of warehouses:

1. PER SQ FT RENTAL RATE

Like any other real estate property, square footage is one of the biggest influences on the rental rate of a small B2 industrial space for rent in Singapore.

Most rentals price their warehouse per square foot. For example, a 10,000 sq ft warehouse costs SGD10 per sq ft monthly; therefore, the monthly rate will be SGD100,000. If the business decides they will only use half of the space of the warehouse, the cost will be more or less SGD50,000.

2. OPERATION COSTS

Businesses also pay some part of the operations costs. The operating expenses include the maintenance fee. Again, the maintenance cost depends on the square footage you rented. If you only rent half of the space, you will only pay for the maintenance of that space and not the entire facility.

Property taxes and insurance fees may also be included in the operations costs, but it all depends on the contract between the business and the landlord.

3. LABOUR COSTS

Besides the facility, many landlords also provide labour to businesses, so they don’t have to hire their staff themselves. These can be warehouse managers, unskilled labour, maintenance, and more.

So apart from the warehouse space for rent, the business should also pay for the staff’s salary, compensation, and benefits, which also add to their operating expenses.

4. IMPROVEMENTS

Some warehouses should meet specific environmental conditions. For example, for storing goods with shelf life, such as meat, warehouses must be super cold.

But some warehouses do not meet this condition; therefore, the business needs improvements to achieve the optimal environment. They may install giant fridges or improve the HVAC system.

It all depends on the contract between the landlord and the business on who is responsible for these improvements. The landlord may cut the rental rates to cover the improvement costs the client has paid for.

Remember, you can pay for the warehouse for rent in Singapore monthly, quarterly, or annually, depending on what the two parties have agreed upon.

LHN Group provides warehouse space for rent collections in Singapore. Find yours today with LHN Group.