AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
The series of outcomes suggests a “durable” prime office market, with openings remaining listed below 5%, noted Dr Dominic Brown, head of international research study at Cushman & Wakefield. “It shows why the impact of AI on property can not be recognized with jobs alone– supply, productivity, business growth and the changing role of the workplace all matter.”
“As companies reconsider just how and in which their individuals work, we anticipate demand to turn into more careful, thus placing an even greater premium on quality, connection and versatility,” she added.
Consequently, as even more companies move to better work areas, the flight to high quality can widen the existing gap between prime and non-prime offices. According to Cushman & Wakefield, Grade An offices regulate a rental premium of 48% over Grade B offices as of 2026, increasing from 34% in 2019.
Based upon the situations, CBD Grade An office vacancy in Singapore is forecasted to range 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 vary from 6.5% growth to a decrease of 2.3% in 2030. In contrast, rents expanded by 2.2% in 2025.
The study looked at four circumstances with different assumptions associating with the rate of AI adoption, together with economic and labour market effect. The circumstances represent a spectrum of possible outcomes– AI-led efficiency expansion driving increased interest for office space on one end, and AI-driven labour displacement weakening renting need on the other.
While the growing adoption of AI is set to reshape how organizations use the office, it is unlikely to dramatically reduce need for Grade A workplace in Singapore, according to Cushman & Wakefield.
In opposition to this background, the firm expects need for higher-quality work areas to be enhanced, even as some work gets changed by AI. “As regular tasks become progressively automated, work environments are expected to play a better role in partnership, innovation and client engagement,” Brown discussed.
At the same time, brand-new prime office supply remains minimal, 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 below 2% beyond 2029. Meanwhile, rental fees are forecast to raise 4.8% this year.
In a September investigation report called AI Impact: Office Insights Singapore, the realty services firm studied the potential effect of AI fostering on Singapore’s economic climate, workforce and industrial property via to 2030.
Among the four scenarios modelled in its study, Cushman & Wakefield presumes a standard circumstance that thinks moderate productivity gains from steady AI adoption, in addition to secure work levels sustained by ongoing hiring in office-intensive markets.
Regardless, Singapore’s setting as a center for innovation, specialist services and various other knowledge-intensive businesses provides it a benefit as AI adoption increases, stated Natalie Craig, chief executive of Cushman & Wakefield Singapore.
