Ancillary Office
Understanding Ancillary OfficeÂ
Office Space Within Industrial Premises
Ancillary office usually means a secondary office space while the primary use of the industrial premises is primarily for industrial uses. The ancillary office space is usually located within an industrial space itself and not at a separate building or location.
Need Not Rent Separate Office Elsewhere
Having an ancillary office may be a good idea as your company need not look for a separate office space elsewhere. This may enable your company to streamline its operations and also encourage productivity. By having both your production space as well as office together, communication between colleagues and departments may also be much easier. It may also help to foster better relationships between your company’s employees or staff resulting in better bonding between colleagues.
Save on Rental
At the same time, by having such arrangements, your company may also be able to save on rental as you would not need to rent a separate office space elsewhere. Office spaces typically command higher rental rates due to the distinct corporate image and characteristics they can offer. While an ancillary office within an industrial premises may not offer the same kind of corporate image equivalent to that of office spaces, it may sometimes make sense for some companies especially if rental rate and productivity are your company’s main considerations or priorities.
More Details
I often get questions about the various components of industrial properties. One feature that tends to spark curiosity, especially among business owners and investors, is the ancillary office. Whether you’re looking to lease or purchase an industrial space, understanding what an ancillary office is, its purpose, and how it fits into Singapore’s industrial property landscape can help you make informed decisions. Let’s dive in!
What is an Ancillary Office?
In the context of industrial properties, an ancillary office refers to an office space that supports the primary industrial activities taking place within the property. Unlike standalone commercial offices, ancillary offices are not the main focus of the property—they are secondary to the industrial operations, such as manufacturing, warehousing, or logistics. Think of them as the administrative hub that keeps the industrial engine running smoothly.
In Singapore, industrial properties are tightly regulated by agencies like Jurong Town Corporation (JTC)Â & Urban Redevelopment Authority (URA). These bodies ensure that spaces are used according to their designated zoning and purpose. For an office to be considered “ancillary,” it must directly serve the industrial function of the property, such as housing staff who manage production, oversee logistics, or handle paperwork related to the business.
Why Are Ancillary Offices Important?
For businesses operating in industrial sectors, having an ancillary office within the premises offers several advantages:
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Operational Efficiency
Having an office on-site means that managers, supervisors, and administrative staff can work in close proximity to the production floor or warehouse. This reduces downtime and enhances communication between departments. -
Cost Savings
Instead of renting a separate commercial office space in a business district, an ancillary office allows you to consolidate your operations under one roof. In a high-cost market like Singapore, this can translate to significant savings. -
Flexibility
Ancillary offices can be tailored to your business needs—whether it’s a small corner for a few desks or a larger area for meetings and client visits. This adaptability makes industrial properties appealing to a wide range of businesses, from startups to established firms.
Rules and Restrictions in Singapore
While ancillary offices are a great feature, they come with strict guidelines in Singapore to prevent misuse of industrial-zoned land. Here’s what you need to know:
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Permitted Use: The office must support the industrial operations. For example, you can use it for administrative tasks, inventory management, or client meetings related to your industrial business. However, converting it into a general commercial office for unrelated activities (e.g., a call center or retail showroom) is not allowed without prior approval.
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Approval Process: If you plan to expand the ancillary office beyond the permitted guidelines or change its use, you’ll need to seek approval from the relevant authorities. This might involve submitting a Change of Use application to the URA, which can take time and may not always be granted.
Who Benefits from Ancillary Offices?
Ancillary offices are particularly valuable for businesses that require a blend of hands-on industrial work and back-end administration. Some examples include:
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Manufacturing Firms: Companies producing goods can use the office to manage orders, coordinate with suppliers, and handle compliance paperwork.
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Logistics Providers: Warehouses often need an office to track shipments, liaise with clients, and oversee staff schedules.
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Tech Startups: Some industrial spaces with ancillary offices appeal to tech companies working on IT or hardware development or prototyping, blending workshop and office needs.
Market Trends in Singapore
In recent years, demand for industrial properties with well-designed ancillary offices has been on the rise. With Singapore’s push toward high-value industries like advanced manufacturing, biomedical sciences, and precision engineering, businesses are seeking spaces that offer both functionality and convenience. Properties in industrial estates like Tuas, Woodlands, and Jurong have become hotspots, with modern developments often including sleek, efficient ancillary office spaces to attract tenants.
However, rental and purchase prices can vary widely depending on location, size, and amenities. For instance, a B1 industrial unit with a decent ancillary office in a prime area might command higher rates than a comparable space in a less central location. As a property agent, I’d recommend assessing your budget and operational needs before zeroing in on a property.
Tips for Choosing an Industrial Property with an Ancillary Office
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Check the Layout: Ensure the ancillary office is well-integrated with the industrial space and doesn’t disrupt workflow.
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Verify Compliance: Confirm that the office meets URA guidelines to avoid future headaches.
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Consider Accessibility: Look for properties with good transport links for staff and clients visiting the office.
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Future-Proof Your Space: If your business might grow, opt for a unit with flexibility to expand the office area (within regulations).
Final Thoughts
Ancillary offices are a key feature of industrial properties in Singapore, offering a practical solution for businesses that need both industrial and administrative spaces. They strike a balance between functionality and cost-efficiency, making them a smart choice in our space-scarce city. However, navigating the rules and finding the right property can be tricky—which is where an experienced property agent comes in!
If you’re exploring industrial properties with ancillary offices, feel free to reach out. I’d be happy to guide you through the options, from pinpointing the perfect location to ensuring compliance with local regulations. Let’s find a space that powers your business forward!