AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
Based upon the scenarios, 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 at the end of 2025. Meanwhile, rental movement for Grade An offices could range from 6.5% growth to a decline of 2.3% in 2030. In comparison, rents grew by 2.2% in 2025.
“As companies reassess exactly how and where their people work, we expect demand to become more careful, thereby putting an also higher premium on quality, connection and adaptability,” she included.
Amongst the four scenarios modelled in its study, Cushman & Wakefield assumes a standard circumstance that thinks moderate efficiency gains from steady AI fostering, together with steady work degrees sustained by ongoing hiring in office-intensive industries.
Against this backdrop, the firm expects need for higher-quality workspaces to be enhanced, even as some work gets replaced by AI. “As routine tasks end up being increasingly automated, workplaces are expected to play a greater function in cooperation, innovation and client involvement,” Brown discussed.
The study evaluated 4 circumstances with various presumptions relating to the price of AI adoption, together with economic and labour market impact. The scenarios stand for a range of prospective outcomes– AI-led efficiency growth driving increased interest for office space on one end, and AI-driven labour displacement weakening leasing need on the other.
While the growing adoption of AI is set to improve the way companies utilize the office, it is unlikely to dramatically decrease need for Grade A workplace in Singapore, according to Cushman & Wakefield.
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Regardless, Singapore’s placement as a hub for innovation, expert solutions and other knowledge-intensive organizations gives it a benefit as AI adoption accelerates, said Natalie Craig, chief executive of Cushman & Wakefield Singapore.
Subsequently, as even more companies move to better offices, the trip to top quality could broaden the existing gap in between prime and non-prime workspaces. According to Cushman & Wakefield, Grade A workplaces regulate a rental premium of 48% over Grade B offices since 2026, increasing from 34% in 2019.
In a September research report titled AI Impact: Workplace Insights Singapore, the realty companies firm studied the potential influence of AI fostering on Singapore’s economy, employees and commercial realty with to 2030.
At the same time, brand-new prime workplace supply remains limited, which will further sustain the Grade A market. Cushman & Wakefield jobs openings for Grade An offices in the CBD to tighten up to 3.7% by the end of this year and fall below 2% past 2029. Meanwhile, rental fees are anticipated to raise 4.8% this year.
The series of outcomes suggests a “resilient” prime office market, with vacancy remaining listed below 5%, noted Dr Dominic Brown, head of international research study at Cushman & Wakefield. “It reveals why the influence of AI on realty can not be understood through jobs alone– supply, productivity, business growth and the modifying role of the work environment all issue.”
