# Why speed is reshaping demand for city-fringe industrial space - **Source:** EdgeProp Singapore - **Published:** 2026-07-16T08:00:00.000Z - **Author:** Sally Tan - **Original:** https://www.edgeprop.sg/property-news/why-speed-reshaping-demand-city-fringe-industrial-space - **Topics:** Commercial & Industrial ## Featured rationale This hub-and-spoke shift may support rents and investment demand for functional assets in Kallang, MacPherson, Tai Seng and Bukit Merah that enable faster deliveries. ## AI summary Demand is increasing for selected city-fringe industrial space as occupiers add smaller fulfilment nodes near consumers to complement large warehouses in established logistics hubs. ## Original article For decades, Singapore’s industrial landscape has been shaped by a simple principle: larger facilities in established industrial zones offered the greatest operational efficiencies. Logistics occupiers gravitated towards major hubs such as Jurong, Tuas and Changi, where scale, connectivity and proximity to ports or airports supported regional distribution networks. Today, however, a subtle shift is emerging. As consumers increasingly expect faster delivery times and businesses seek greater supply-chain responsiveness, occupiers are re-evaluating where inventory should be stored and how goods move through Singapore. In some cases, speed and proximity are beginning to rival scale as key drivers of industrial location decisions. Read also: From Fujifilm Building to Orchid Hotel, investors stay active across industrial and commercial assets This is creating renewed interest in selected city-fringe industrial estates that were previously overlooked in favour of larger logistics hubs. Rise of the hub-and-spoke model The model is particularly relevant in land-scarce Singapore, where occupiers are balancing the cost efficiencies of large logistics facilities with the need to position inventory closer to customers. Rather than replacing traditional warehouses, these smaller facilities complement existing distribution networks by supporting faster fulfilment, managing seasonal demand spikes and improving responsiveness in densely populated catchments. The traditional logistics model was relatively straightforward. Large warehouses located in major industrial estates received, stored and distributed goods across Singapore and the wider region. While this model remains critical for many businesses, particularly those handling large inventory volumes, some occupiers are now supplementing these facilities with smaller distribution nodes located closer to consumers. Often described as a hub-and-spoke approach, the model combines a central warehouse with smaller fulfilment facilities positioned nearer to demand centres. These facilities are not intended to replace major logistics hubs. Instead, they support faster turnaround times, shorter delivery routes and greater operational flexibility. Read also: The most valuable part of the warehouse is the floor The approach has become increasingly relevant as e-commerce operators, retailers and third-party logistics providers face growing pressure to shorten fulfilment windows while managing transport costs. Why city-fringe industrial estates are benefitting The shift is helping to shine a spotlight on selected industrial precincts located closer to residential and commercial catchments. Areas such as Kallang, MacPherson, Tai Seng and Bukit Merah offer advantages that differ from traditional logistics hubs. While they may not provide the same scale as Tuas or Jurong, they offer proximity to consumers, established transport infrastructure, and shorter travel times to key population centres. For occupiers focused on last-mile delivery, these factors can translate into tangible operational benefits. However, proximity alone is not enough. Occupiers continue to assess buildings based on practical operational requirements such as loading configurations, vehicle circulation, cargo lift capacity and accessibility for delivery fleets. As a result, not every city-fringe industrial building will benefit equally from this shift in demand, particularly if existing specifications no longer support modern logistics operations. Read also: JTC launches B2 industrial GLS site at 6 Tuas Avenue 14 for tender Location is only part of the equation. Many city-fringe estates also contain industrial buildings that are suitable for smaller-scale storage, fulfilment and distribution activities. In some cases, these assets may offer opportunities for repositioning as occupier requirements evolve. What occupiers are looking for Importantly, demand is not simply shifting towards any city-fringe industrial building. Occupiers continue to prioritise operational functionality. Features such as loading bays, heavy-duty cargo lifts, direct vehicle access, adequate floor loading and clear ceiling heights remain critical considerations. For operators managing higher fulfilment volumes, connectivity to major expressways such as the Pan Island Expressway, Central Expressway and Kallang-Paya Lebar Expressway is equally important in reducing delivery turnaround times. As warehouse management systems and automation become more widely adopted, occupiers are also increasingly assessing whether buildings can support future operational upgrades through sufficient power provision and flexible floorplates. Businesses are increasingly evaluating industrial space based on how effectively it supports workflow efficiency and inventory movement, rather than on rental costs alone. This reflects a broader evolution in Singapore’s industrial market, where occupiers are placing greater emphasis on operational performance and supply-chain resilience. Opportunities for landlords and investors The growing relevance of city-fringe industrial space presents opportunities for landlords and investors willing to adapt. Not all older industrial buildings will benefit equally. However, assets that can support modern logistics requirements through upgraded loading infrastructure, improved circulation, enhanced power provision and flexible layouts may be better positioned to capture emerging demand. For investors, the trend also highlights the importance of looking beyond traditional industrial classifications and considering how changing occupier behaviour may influence future demand patterns. Industrial property has historically been valued according to location, tenure and building specifications. Increasingly, however, the ability of a property to support speed, flexibility and operational efficiency is becoming part of the equation. Looking ahead Large logistics hubs will continue to play a central role in Singapore’s industrial ecosystem. The rise of city-fringe fulfilment facilities does not diminish the importance of established logistics locations such as Tuas, Jurong, or Changi. What is changing is the way occupiers think about their distribution networks. As businesses balance cost, speed and resilience, industrial demand is becoming more nuanced. For selected city-fringe estates, this presents an opportunity to play a new role within Singapore’s evolving logistics landscape. The next phase of industrial demand may not be defined solely by bigger warehouses or lower costs, but by how effectively space supports the movement of goods in an increasingly time-sensitive economy. ## Chinese translation > Translation model: grok ### 为何“速度”正在重塑对城郊工业空间的需求 随着租户更重视区位邻近、配送速度与供应链韧性，城郊工业空间需求正在上升。 数十年来，新加坡工业格局一直遵循一个简单原则：在成熟工业区建设更大规模的设施，能带来最大的运营效率。 物流租户往往聚集在裕廊（Jurong）、大士（Tuas）和樟宜（Changi）等主要枢纽，这些地点的规模、连通性，以及对港口或机场的邻近性，支撑着区域分销网络。 然而，如今一种微妙转变正在浮现。 随着消费者日益期待更快的配送时效，企业也追求更高的供应链响应能力，租户正重新评估库存应存放在何处，以及货物如何在新加坡流转。在某些情况下，速度与邻近性已开始与规模并列为工业选址的关键驱动因素。 另读：从Fujifilm Building到Orchid Hotel，投资者在工业与商业资产上持续活跃 这使部分以往因大型物流枢纽而被忽视的城郊工业园区重新受到关注。 枢纽辐射模式兴起 该模式在土地稀缺的新加坡尤其相关——租户需在大型物流设施的成本效率与将库存更靠近客户之间取得平衡。 这些较小规模的设施并非取代传统仓库，而是通过支持更快履约、应对季节性需求高峰，以及提升人口稠密片区的响应能力，对现有分销网络形成补充。 传统物流模式相对直接：位于主要工业区的大型仓库负责接收、储存，并将货物配送至新加坡全岛乃至更广阔区域。 尽管该模式对许多企业（尤其是库存量大的企业）仍至关重要，部分租户现正以更靠近消费者的小型分销节点作为补充。 这一模式常被描述为“枢纽—辐射”（hub-and-spoke）：以中央仓库为核心，搭配更靠近需求中心的小型履约设施。这些设施并非要取代主要物流枢纽，而是支持更快周转、更短配送路线，以及更高运营灵活性。 另读：仓库最有价值的部分是楼面 随着电商运营商、零售商与第三方物流服务商面临缩短履约窗口、同时控制运输成本的压力，该模式愈发相关。 为何城郊工业园区受益 这一转变使更靠近住宅与商业集水区的部分工业片区成为焦点。 加冷（Kallang）、麦波申（MacPherson）、大成（Tai Seng）和红山（Bukit Merah）等地所具备的优势，与传统物流枢纽不同。它们或许不具备大士或裕廊同等规模，但更靠近消费者，交通基础设施成熟，前往主要人口中心的行程时间更短。 对聚焦最后一公里配送的租户而言，这些因素可转化为切实的运营效益。 然而，仅有邻近性并不够。租户仍会根据装卸配置、车辆动线、货梯运力，以及对配送车队的可达性等实务运营要求评估楼宇。 因此，并非所有城郊工业楼宇都会同等受益，尤其是当现有规格已无法支持现代物流作业时。 另读：裕廊集团推出大士大道14号6号B2工业总楼面面积地段招标 区位只是方程式的一部分。许多城郊工业园区也拥有适合小规模仓储、履约与分销的工业楼宇。在部分情况下，随着租户需求演变，这些资产可能存在重新定位的机会。 租户在寻找什么 重要的是，需求并非简单地转向任何城郊工业楼宇。 租户仍优先考虑运营功能。装卸湾、重型货梯、车辆直接进出、足够的楼面荷载与净高，仍是关键考量。 对履约量更高的运营商而言，与泛岛高速公路（PIE）、中央高速公路（CTE）和加冷—巴耶利峇高速公路（KPE）等主要快速公路的连通性同样重要，有助于缩短配送周转时间。 随着仓储管理系统与自动化更广泛采用，租户也日益评估楼宇是否具备充足电力供应与灵活楼面，以支持未来运营升级。 企业评估工业空间时，越来越看重其如何有效支持工作流程效率与库存流转，而非仅看租金成本。 这反映新加坡工业市场更广泛的演变：租户更强调运营表现与供应链韧性。 对业主与投资者的机会 城郊工业空间重要性上升，为愿意适应的业主与投资者带来机会。 并非所有较旧工业楼宇都会同等受益。但若资产能通过升级装卸设施、改善动线、增强电力供应与灵活布局来支持现代物流需求，则更有机会抓住新兴需求。 对投资者而言，这一趋势也凸显：除了传统工业分类，更应考虑租户行为变化如何影响未来需求格局。 工业物业历来按区位、地契年期与楼宇规格估值。但日益地，物业支持速度、灵活性与运营效率的能力，也正成为估值方程式的一部分。 展望未来 大型物流枢纽将继续在新加坡工业生态中扮演核心角色。城郊履约设施的兴起，并不会削弱大士、裕廊或樟宜等成熟物流地点的重要性。正在改变的，是租户对其分销网络的思考方式。 随着企业在成本、速度与韧性之间取得平衡，工业需求正变得更细致。对部分城郊园区而言，这是在新加坡不断演变的物流版图中扮演新角色的机会。 下一阶段的工业需求，或许不再仅由更大仓库或更低成本定义，而是取决于空间能否在越来越注重时效的经济中，有效支持货物流转。