AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
The study looked at 4 situations with various presumptions connecting to the price of AI adoption, together with economic and labour market impact. The situations represent a range of potential results– AI-led productivity development driving raised need for office space on one end, and AI-driven labour displacement weakening leasing demand on the other.
While the growing adoption of AI is set to reshape how organizations utilize the workplace, it is unlikely to dramatically decrease demand for Grade A workplace in Singapore, according to Cushman & Wakefield.
Based on the scenarios, CBD Grade An office vacancy in Singapore is forecasted to range 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 decrease of 2.3% in 2030. In comparison, rents expanded by 2.2% in 2025.
“As organizations reassess just how and where their individuals work, we expect need to become much more discerning, therefore placing an also greater premium on quality, connectivity and versatility,” she added.
At the same time, new prime office supply remains restricted, which will additionally support 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% beyond 2029. Meanwhile, rents are anticipated to raise 4.8% this year.
In a September research record titled AI Impact: Office Insights Singapore, the realty services firm researched the possible impact of AI adoption on Singapore’s economic situation, workforce and industrial property with to 2030.
Consequently, as more organizations move to much better workspaces, the trip to top quality can widen the existing gap in between prime and non-prime workspaces. According to Cushman & Wakefield, Grade An offices command a rental premium of 48% over Grade B workplaces as of 2026, increasing from 34% in 2019.
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Against this backdrop, the firm anticipates need for higher-quality workspaces to be strengthened, even as some work gets replaced by AI. “As routine tasks become progressively automated, workplaces are anticipated to play a higher role in partnership, innovation and client involvement,” Brown clarified.
Amongst the four scenarios modelled in its study, Cushman & Wakefield presumes a baseline situation that presumes moderate efficiency gains from consistent AI adoption, along with steady employment levels sustained by continued hiring in office-intensive industries.
Regardless, Singapore’s setting as a center for modern technology, specialist solutions and various other knowledge-intensive businesses provides it a benefit as AI adoption increases, stated Natalie Craig, chief executive of Cushman & Wakefield Singapore.
The variety of results shows a “resilient” prime office market, with job remaining listed below 5%, mentioned Dr Dominic Brown, head of international research study at Cushman & Wakefield. “It shows why the effect of AI on realty can not be comprehended with jobs alone– supply, productivity, business growth and the changing role of the work environment all issue.”
