RES exam question on Leasing of Private Property: layouts are allowed
Kestrel Machining Pte Ltd wants to lease a 2,000 sq m unit in a B2 industrial building and asks its salesperson how it may lay out the space. Machining will be its main use, and it is weighing four layouts. Under URA's rule on industrial space, which layouts are allowed? (i) 1,300 sq m for machining and 700 sq m for its own offices and a product showroom. (ii) 1,100 sq m for machining and 900 sq m for its own offices that support production. (iii) 1,200 sq m for machining and 800 sq m for its own offices and a product showroom. (iv) All 2,000 sq m as a regional head office, with the machining moved to Johor.
- A(i) and (iii) only
- B(iii) and (iv) only
- C(i) only
- D(i), (ii) and (iii) only
Show answer & explanation
Answer
A. (i) and (iii) only
Explanation
Answer: (i) and (iii) only. At least 60% of the floor area must stay in the main industrial use, leaving up to 40% for supporting uses.(i) True. Machining gets 65%, above the 60% floor, so it complies.(iii) True. Machining gets exactly 60%, which complies, as the line sits at 60%.Rule: In B1 and B2 industrial developments, at least 60% of the gross floor area must be used for the predominant industrial use, leaving up to 40% for ancillary uses such as offices and showrooms that support it. JTC applies the same 60:40 rule to its premises.Source: URA, development control guidelines for B1 and B2 industrial developments (ura.gov.sg); JTC, Subletting your premises (jtc.gov.sg, read 1 October 2026)
Why the other options are wrong
- (ii) False. Machining gets only 55%, so its offices exceed 40%.
- (iv) False. There is no industrial use at all. A head office is a commercial use, and office-only use of industrial space is not allowed.
Study the concept behind this question: Commercial & Industrial Leasing (rent review, service charge, JTC)
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