URA 60/40 Usage Classification Rule

What is URA 60/40 Rule?

To ensure that limited industrial land is used mainly for industrial uses, the URA requires at least 60% of the total floor area of an industrial building to be used for core industrial activities. However, URA recognises that certain non-industrial activities, such as ancillary offices, staff canteens and showrooms are needed to support the predominant industrial uses. Hence, such supporting non-industrial uses, together with ancillary areas (e.g. lift lobbies and circulation spaces) are allowed to occupy up to 40% of the total floor area of an industrial development. – URA

In short, the unit in industrial building is not allowed to be used 100% as office, shop front eg. travel and maid agencies, accounting firms, law firms, advertising agencies, tuition center, supermarket, religious activities, child care, etc. There need to be a predominant use of minimum 60% to be set aside for core industrial activities (see table below). The ancillary component is limited to a maximum of 40% for non-core or supporting uses such as office function eg. HR, admin, finance, sales and marketing, pantry. 

Please refer to the illustration below for a more comprehensive understanding of URA 60/40 Rule.


URA industrial 60 40 rule


Change of Use

If the prospective tenant  would like to use the industrial space differently from the above guideline, such as converting the space to be a showroom, fitness center/ gym, supermarket, tuition center, or other non-industrial activities, the company can apply for change of use online to URA. There will be a non-refundable processing fee and some documents required for the authority’s consideration. The application will be considered on a case-to-case basis and can be rejected or approved. Please note there might also be additional levy to industrial rates if the change of use application is approved. 

Comments are closed.