AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
The variety of results shows a “durable” prime office market, with job continuing to be listed below 5%, noted Dr Dominic Brown, head of international research at Cushman & Wakefield. “It shows why the effect of AI on realty can not be understood with jobs alone– supply, productivity, business growth and the modifying role of the workplace all matter.”
“As businesses reassess just how and where their people work, we expect need to become more discerning, thus putting an also higher premium on quality, connectivity and adaptability,” she included.
In any case, Singapore’s position as a hub for modern technology, expert solutions and other knowledge-intensive organizations provides it a benefit as AI adoption speeds up, stated Natalie Craig, chief executive of Cushman & Wakefield Singapore.
While the expanding adoption of AI is readied to improve just how services utilize the work environment, it is unlikely to substantially lower demand for Grade An office in Singapore, according to Cushman & Wakefield.
Consequently, as more businesses gravitate to far better workspaces, the flight to top quality can widen the existing void in between prime and non-prime work areas. According to Cushman & Wakefield, Grade A workplaces regulate a rental premium of 48% over Grade B offices as of 2026, increasing from 34% in 2019.
Based on the situations, CBD Grade A workplace vacancy in Singapore is predicted to range in between 1.5% and 4.9% by 2030, compared to 4.4% as by the end of 2025. Meanwhile, rental activity for Grade An offices could range from 6.5% growth to a decrease of 2.3% in 2030. In contrast, rental fees grew by 2.2% in 2025.
At the same time, brand-new prime workplace supply remains restricted, which will additionally sustain the Grade A market. Cushman & Wakefield projects vacancy for Grade A workplaces in the CBD to tighten to 3.7% by the end of this year and fall listed below 2% past 2029. Meanwhile, rents are anticipated to increase 4.8% this year.
In a September research report titled AI Impact: Workplace Insights Singapore, the property services firm studied the prospective influence of AI fostering on Singapore’s economic climate, employees and business real estate with to 2030.
The study evaluated four circumstances with different assumptions connecting to the rate of AI adoption, along with economic and labour market impact. The circumstances represent a spectrum of possible outcomes– AI-led productivity expansion driving increased interest for office space on one end, and AI-driven labour displacement weakening leasing need on the other.
Amongst the four scenarios modelled in its study, Cushman & Wakefield posits a standard circumstance that thinks moderate efficiency gains from steady AI fostering, along with steady employment levels sustained by continued hiring in office-intensive sectors.
Against this backdrop, the firm expects demand for higher-quality work areas to be enhanced, even as some work gets changed by AI. “As regular activities end up being significantly automated, work environments are expected to play a higher duty in collaboration, innovation and client engagement,” Brown discussed.
