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Warehouse Space in Singapore 2026: Paying for Height You Never Use

By M&C Industrial Solution · August 2026
A man-up VNA forklift raised high in a very narrow guided aisle between tall pallet racking

Singapore industrial rent is at its highest level since 1996, and no new multi-user prime logistics building completes this year at all. For a warehouse running out of room in 2026, the usual answer — take another unit — has quietly stopped being available. So the question changes. Not "where do I find more space", but "how much of the space I am already paying for am I actually using?"

For most warehouses in Singapore the honest answer is: about half the height, and none of the aisle. That is not a criticism. It is what happens when racking is laid out around the truck you already own rather than around the building you are paying for.

Where the market actually is, August 2026

MeasureWhere it stands
JTC industrial price index, Q2 2026113.8 — up 0.6% on the quarter, 3.8% on the year
Multi-user factory pricesUp 1.7% q-o-q in Q1 2026, after 1.9% the quarter before
Industrial rentsHighest level since 1996, after five straight years of gains
Prime logistics rent forecast, 2026Up 2 to 3 percent, against 0.9 percent in 2025
New prime logistics space completing in 2026None
New space available to lease before 2027None
Prime logistics occupancy93.6%, up from 92.1% a year earlier

Sources: JTC quarterly statistics via CBRE, EdgeProp and JLL, read August 2026.

The new buildings are tall. Most fit-outs are not.

Take Skye @ Tuas, the B2 development at Tuas Link Close expected to TOP around the first quarter of 2027. Its published specification shows exactly what the market is now building:

Now put an ordinary fit-out inside that. A counterbalance forklift working a 3.5 metre aisle typically racks to about 6 metres. In a unit with 12.95 metres of clear height that leaves roughly half the building unused — and you pay for the whole envelope either way, because industrial space is priced on floor area regardless of how much of the height you reach.

The uncomfortable arithmetic. Height is the one thing you get for free once you have signed. Floor area is the thing you pay for every month. Every metre of racking you do not build is floor area you will eventually rent again somewhere else, at 2026 prices.

What the height is worth, in pallets

Rough figures at a 1.5 metre beam pitch, which is what most Singapore warehouses run:

Racked toBeam levelsPallets per bayTruck needed
6 m36Counterbalance, 3.5m aisle
8 m4 to 58 to 10Reach truck, 2.7 to 3.0m aisle
11 m6 to 712 to 14Reach truck or VNA
12.5 m7 to 814 to 16VNA, 1.6 to 1.9m aisle

Going from 6 metres to 12.5 metres is not a 20 percent improvement. It is roughly double the pallet positions on the same floor — before counting what narrowing the aisles adds on top.

And then the aisles

Aisle width is the second half of the same problem, and the half nobody notices, because an empty aisle does not look like waste.

TruckAisle neededWhat it costs you
Counterbalance3.5 m and upThe most floor given over to driving
Reach truck2.7 to 3.0 mRoughly a fifth of the aisle back
VNA1.6 to 1.9 mAround half the aisle becomes racking

Across several long aisles, every metre saved becomes a new run of racking. That is where the 30 to 40 percent figure in our warehouse storage capacity guide comes from. It is not the height alone and not the aisles alone. It is both at once.

When this does not work, and we will say so

We sell VNA trucks and we are Singapore's exclusive Zowell VNA agent, so treat what follows as the part we have no reason to write:

The four numbers that settle it

Take these yourself before anyone quotes you anything. Half an hour with a tape:

  1. Clear aisle width, measured between the pallets that overhang the racking, not between the uprights. Those are different numbers, and the difference decides which truck fits.
  2. Height to the lowest obstruction — sprinklers, lights, ducting — not the roof.
  3. Heaviest pallet, and whether it goes to the top level.
  4. Floor condition, and whether the slab is original or has been patched.

Send those four and we can tell you what fits, and whether it is worth doing at all, without anybody visiting your site.

Common Questions

How high can you rack in a Singapore warehouse?

It depends on the height to the lowest obstruction, not the roof. Sprinklers, lighting and ducting all take a share, and clearance is needed above the top pallet. Newer B2 developments are being built with about 8 metres of clear height and selected levels up to around 12.95 metres. A counterbalance forklift usually racks to about 6 metres, a reach truck to around 12.5 metres, and a VNA truck higher still.

Is it cheaper to rent more warehouse space or to rack higher?

Compare them properly: multiply the monthly rent of the extra space by the length of the lease, then price the racking and truck change against that single number. A conversion is paid once. Rent is paid every month, and Singapore industrial rents are at their highest level since 1996 with no new multi-user prime logistics space completing in 2026.

How much more can you store with a VNA truck?

Two effects stack. Racking higher roughly doubles pallet positions going from 6 metres to 12.5 metres at a standard beam pitch. Narrowing aisles from 3.5 metres to 1.6 to 1.9 metres turns roughly half the aisle into racking. Together that is commonly 30 to 40 percent more pallet positions on the same floor, though the real figure depends on the building.

Does my floor need checking before racking higher?

Yes, and it is the step most often skipped. The higher the mast, the more a small dip in the slab becomes a large sway at the top. A floor that is perfectly acceptable for a counterbalance truck at 3 metres can make a 10 metre lift feel unsafe. If the slab is old or has been patched, have it checked before committing to a high mast.

What is the ceiling height at Skye @ Tuas?

The developer's published specification gives an average of approximately 8 metres with selected levels reaching up to 12.95 metres, and heavy-duty floor loading of 25 kN per square metre. It is a B2 development at Tuas Link Close with around 309 units, expected to TOP in the first quarter of 2027. These are the developer's published figures and should be confirmed with them.

Is a VNA truck always the right answer?

No. VNA suits deep, orderly stock in a building with a good floor and racking designed for guided aisles. If you pick constantly across many lines with heavy movement in and out, a narrow guided aisle can slow you down. In many Singapore warehouses the sensible stopping point is a reach truck, which gets most of the height for a fraction of the change.

Send us the four numbers

Aisle width, height to the lowest obstruction, heaviest pallet, and whether the floor has been patched. We will tell you what fits before anyone visits.

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