AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
In opposition to this background, the firm expects need for higher-quality work spaces to be strengthened, even as some work gets replaced by AI. “As routine tasks end up being significantly automated, offices are anticipated to play a higher duty in cooperation, innovation and client interaction,” Brown explained.
In a September research record called AI Impact: Office Insights Singapore, the real estate companies firm studied the prospective effect of AI adoption on Singapore’s economy, workforce and commercial realty with to 2030.
“As companies rethink just how and in which their individuals work, we expect demand to turn into extra selective, consequently putting an also higher premium on quality, connection and flexibility,” she included.
While the expanding adoption of AI is readied to reshape the way businesses utilize the workplace, it is unlikely to considerably lower demand for Grade A workplace in Singapore, according to Cushman & Wakefield.
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At the same time, brand-new prime workplace supply remains limited, which will better sustain the Grade A market. Cushman & Wakefield projects job for Grade An offices in the CBD to tighten to 3.7% by the end of this year and fall listed below 2% past 2029. Meanwhile, rents are forecast to increase 4.8% this year.
The series of outcomes indicates a “resilient” prime office market, with vacancy continuing to be listed below 5%, noted Dr Dominic Brown, head of international research at Cushman & Wakefield. “It reveals why the influence of AI on realty can not be recognized with jobs alone– supply, productivity, business growth and the modifying role of the work environment all matter.”
Regardless, Singapore’s position as a center for modern technology, professional solutions and other knowledge-intensive services provides it a benefit as AI adoption accelerates, said Natalie Craig, chief executive of Cushman & Wakefield Singapore.
The study looked at 4 situations with different assumptions associating with the price of AI adoption, along with economic and labour market effect. The situations stand for a spectrum of prospective results– AI-led efficiency expansion driving raised interest for office space on one end, and AI-driven labour shift weakening leasing need on the other.
Among the four scenarios designed in its study, Cushman & Wakefield assumes a baseline scenario that presumes moderate productivity gains from steady AI adoption, together with secure employment levels sustained by continued hiring in office-intensive industries.
Subsequently, as more businesses move to better offices, the trip to top quality could widen the existing gap between prime and non-prime workspaces. According to Cushman & Wakefield, Grade A workplaces command a rental costs of 48% over Grade B offices since 2026, boosting from 34% in 2019.
Based upon the situations, CBD Grade A workplace vacancy in Singapore is projected 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 A workplaces could range from 6.5% growth to a decline of 2.3% in 2030. In contrast, rents grew by 2.2% in 2025.
