AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
While the expanding adoption of AI is readied to improve how businesses use the workplace, it is unlikely to significantly lower need for Grade An office in Singapore, according to Cushman & Wakefield.
The series of results shows a “durable” prime office market, with vacancy continuing to be below 5%, mentioned Dr Dominic Brown, head of international research study at Cushman & Wakefield. “It shows why the effect of AI on real estate can not be recognized via jobs alone– supply, productivity, business growth and the changing role of the work environment all issue.”
As a result, as even more companies gravitate to far better work areas, the flight to top quality might broaden the existing void between prime and non-prime workspaces. According to Cushman & Wakefield, Grade An offices command a rental costs of 48% over Grade B workplaces since 2026, boosting from 34% in 2019.
Regardless, Singapore’s setting as a center for modern technology, expert services and other knowledge-intensive organizations offers it a benefit as AI adoption accelerates, said Natalie Craig, chief executive of Cushman & Wakefield Singapore.
Amongst the four scenarios designed in its study, Cushman & Wakefield posits a standard situation that thinks moderate efficiency gains from steady AI adoption, along with stable employment levels sustained by continued hiring in office-intensive sectors.
The study evaluated four situations with different assumptions connecting to the price of AI adoption, along with economic and labour market impact. The circumstances represent a range of prospective outcomes– AI-led productivity development driving increased need for office space on one end, and AI-driven labour shift weakening renting demand on the other.
In a September research report labelled AI Impact: Office Insights Singapore, the realty companies firm researched the possible effect of AI fostering on Singapore’s economic situation, labor force and business real estate via to 2030.
Based upon the scenarios, CBD Grade An office vacancy in Singapore is predicted to range between 1.5% and 4.9% by 2030, contrasted 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 comparison, rental fees expanded by 2.2% in 2025.
“As organizations reassess exactly how and where their people work, we expect demand to turn into more selective, thereby putting an also higher premium on quality, connection and adaptability,” she included.
At the same time, brand-new prime workplace supply remains restricted, which will even more support the Grade A market. Cushman & Wakefield jobs job for Grade An offices in the CBD to tighten up to 3.7% by the end of this year and fall listed below 2% past 2029. At the same time, rents are forecast to raise 4.8% this year.
Against this backdrop, the firm anticipates demand for higher-quality work spaces to be reinforced, even as some work gets replaced by AI. “As regular tasks become increasingly automated, offices are expected to play a greater duty in cooperation, innovation and client engagement,” Brown discussed.
