What's driving the demand
Consolidation of F&B production is the headline story. Restaurant groups that once cooked in every outlet now centralise prep in a single licensed kitchen. Multi-brand operators use one food factory to run five delivery-only concepts.
Private-label growth — sauces, snacks, ready meals, bakery — is another driver. Modern trade requires SFA licensing, HACCP-ready facilities and traceable production, all of which push operators out of shophouse kitchens and into industrial.
What to look for in a food factory unit
Approved use is non-negotiable. The unit must have URA and SFA clearance for food processing. Not every B1 unit qualifies — many older factory buildings can't be retrofitted economically for grease traps, water discharge and ventilation.
Floor drainage, ceiling height for hood systems, water supply, three-phase power and the ability to install cold rooms all matter. Loading bay access for daily deliveries out is essential.
Rental and location
Food-approved B1 units command a premium. Rents in Ubi, Tai Seng, MacPherson and Woodlands central are up meaningfully over the last cycle, and vacancy in well-specified stock is short.
For new operators, the trade-off is between older stock at lower rent (higher fit-out cost) and newer developments where the base build already accommodates food use.
The takeaway
If you run an F&B brand and haven't reviewed your production footprint recently, you're likely paying too much per square foot at the outlet level. If you're a landlord with a B1 unit that could be food-approved, the tenant pool has never been broader.
Either side of the table, this segment is worth a proper conversation.
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