Singapore Commercial Lease & Shophouse Rental Guide 2026

Complete guide to renting commercial office, retail, and shophouse space in Singapore. Explains lease agreements, security deposits, & URA Change of Use.

Statutory Overview & Legal Framework

Renting commercial space in Singapore—such as Grade A office space, industrial units, retail shops, or heritage shophouses—is governed by contract law and tenancy agreements. Typical commercial lease terms in Singapore include a 3-year tenure with option to renew, 3 to 6 months security deposit, rent-free fit-out periods, and reinstatement obligations upon lease expiry. Retail leases may include a Gross Turnover (GTO) rent component. Converting property use (e.g. office to restaurant or gym) requires Urban Redevelopment Authority (URA) Change of Use clearance where required. Use this guide to navigate commercial leasing in Singapore.

Core Statutory Criteria & Regulations

Commercial Tenancy Agreement TermsLease Agreement

Commercial leases are legally binding contracts specifying base rent, maintenance fees, lease tenure, and renewal options.

URA Change of Use Planning ClearanceURA Approval

Converting a commercial property's usage (e.g. office to F&B restaurant or fitness center) requires URA Change of Use clearance.

Security Deposit & Reinstatement ObligationsDeposit & Reinstatement

Landlords may require a security deposit, while reinstatement obligations depend on the specific terms of the tenancy agreement.

IRAS Tenancy Lease Stamp DutyLease Stamp Duty

Commercial tenancy agreements attract IRAS Lease Stamp Duty based on Average Annual Rent (AAR) and lease duration.

Qualification & Compliance Requirements

Applies to registered Singapore business entities (Pte Ltd, LLP) leasing commercial property.

Tenants must verify property zoning (Commercial, Business Park, Industrial) under URA Master Plan.

Renovations and fit-out works require Building and Construction Authority (BCA) and SCDF fire safety approvals where applicable.

Stamp Duty must be paid on IRAS myTax Portal within 14 days of lease execution.

Statutory Document & Application Checklist

ACRA Business Profile (issued within 3 months)

Commercial Tenancy Agreement & Letter of Offer

URA Change of Use Approval (if altering property usage)

SCDF Fire Safety Certificate (FSC) / BCA Fit-Out Clearance

IRAS Tenancy Lease Stamp Duty Certificate

Step-by-Step Filing & Compliance Process

Site Selection & URA Master Plan Zoning Check

Inspect commercial properties and verify URA zoning permits your intended business operations.

Issue Letter of Offer (LOO) & Negotiate Terms

Submit Letter of Offer specifying rent, fit-out period, security deposit, and renewal options.

Apply for URA Change of Use (If Applicable)

Submit Change of Use application on URA portal if converting property use category.

Execute Tenancy Agreement & Pay Stamp Duty

Sign formal Tenancy Agreement, pay security deposit, and remit IRAS lease stamp duty online.

Complete Fit-Out Works & Secure SCDF Clearance

Conduct interior fit-out works, obtain SCDF fire safety clearance, and commence business operations.

Frequently Asked Questions (FAQ)

Standard commercial leases in Singapore are typically granted for 3 years with an option to renew for a further 3 years at prevailing market rent.

Landlords commonly require a security deposit equivalent to 3 to 6 months of base rent, depending on tenant creditworthiness and lease length.

URA Change of Use approval is required if you plan to convert a commercial property into a different user category (e.g. converting an office into a restaurant or childcare center).

A reinstatement clause in a commercial lease may require the tenant to remove fit-outs and restore the premises to the condition specified in the tenancy agreement upon lease expiration.

Under standard tenancy agreements, the tenant pays IRAS lease stamp duty based on the Average Annual Rent (AAR) and lease term.