AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
Amongst the 4 scenarios modelled in its study, Cushman & Wakefield assumes a standard scenario that presumes moderate productivity gains from steady AI fostering, in addition to stable work levels supported by ongoing hiring in office-intensive sectors.
As a result, as even more companies gravitate to better work areas, the flight to high quality could expand the existing gap in between prime and non-prime offices. According to Cushman & Wakefield, Grade An offices regulate a rental costs of 48% over Grade B offices as of 2026, increasing from 34% in 2019.
The series of outcomes shows a “durable” prime office market, with job continuing to be below 5%, mentioned Dr Dominic Brown, head of international research at Cushman & Wakefield. “It reveals why the impact of AI on realty can not be comprehended via jobs alone– supply, productivity, business growth and the changing role of the work environment all matter.”
Based upon the situations, CBD Grade A workplace vacancy in Singapore is predicted to range between 1.5% and 4.9% by 2030, compared to 4.4% as at the end of 2025. Meanwhile, rental activity for Grade An offices could vary from 6.5% growth to a decline of 2.3% in 2030. In comparison, rents expanded by 2.2% in 2025.
In a September investigation report called AI Impact: Workplace Insights Singapore, the realty companies firm examined the possible impact of AI fostering on Singapore’s economy, workforce and industrial real estate with to 2030.
“As services rethink just how and where their people work, we expect need to become extra selective, thereby placing an also greater costs on quality, connectivity and adaptability,” she included.
At the same time, new prime workplace supply remains minimal, which will even more support the Grade A market. Cushman & Wakefield jobs job 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, rental fees are anticipated to increase 4.8% this year.
The study evaluated 4 circumstances with various presumptions relating to the price of AI adoption, along with economic and labour market impact. The circumstances stand for a spectrum of prospective results– AI-led efficiency growth driving raised need for office space on one end, and AI-driven labour displacement weakening renting need on the other.
Regardless, Singapore’s setting as a hub for modern technology, expert services and various other knowledge-intensive companies provides it an advantage as AI adoption speeds up, stated Natalie Craig, chief executive of Cushman & Wakefield Singapore.
In opposition to this backdrop, the firm expects need for higher-quality offices to be reinforced, even as some work gets replaced by AI. “As regular tasks become increasingly automated, offices are expected to play a better duty in cooperation, innovation and client interaction,” Brown discussed.
While the expanding adoption of AI is set to reshape just how services make use of the work environment, it is unlikely to dramatically decrease need for Grade A workplace in Singapore, according to Cushman & Wakefield.
