AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
The series of outcomes suggests a “resilient” prime office market, with job remaining listed below 5%, noted Dr Dominic Brown, head of international study at Cushman & Wakefield. “It reveals why the influence of AI on property can not be recognized with jobs alone– supply, productivity, business growth and the modifying role of the workplace all matter.”
At the same time, new prime workplace supply remains minimal, which will additionally support the Grade A market. Cushman & Wakefield projects job for Grade A workplaces in the CBD to tighten up to 3.7% by the end of this year and fall below 2% beyond 2029. Meanwhile, rents are anticipated to boost 4.8% this year.
In a September investigation record titled AI Impact: Office Insights Singapore, the real estate services firm examined the prospective influence of AI fostering on Singapore’s economic situation, workforce and industrial real estate with to 2030.
The study looked at 4 situations with various presumptions associating with the rate of AI adoption, together with economic and labour market impact. The circumstances stand for a spectrum of prospective outcomes– AI-led efficiency growth driving raised demand for office space on one end, and AI-driven labour displacement weakening renting need on the other.
Among the 4 scenarios designed in its study, Cushman & Wakefield presumes a baseline situation that presumes moderate productivity gains from steady AI fostering, along with stable work levels sustained by continued hiring in office-intensive sectors.
Based upon the situations, CBD Grade An office vacancy in Singapore is projected 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 range from 6.5% growth to a decrease of 2.3% in 2030. In comparison, rents grew by 2.2% in 2025.
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“As organizations rethink how and in which their individuals work, we anticipate need to turn into extra selective, thereby putting an also greater premium on quality, connection and adaptability,” she included.
Regardless, Singapore’s position as a center for technology, expert solutions and various other knowledge-intensive companies gives it an advantage as AI adoption speeds up, claimed Natalie Craig, chief executive of Cushman & Wakefield Singapore.
While the expanding adoption of AI is set to improve just how companies utilize the work environment, it is unlikely to substantially reduce need for Grade An office in Singapore, according to Cushman & Wakefield.
As a result, as more organizations gravitate to far better offices, the flight to top quality might expand the existing void between prime and non-prime offices. According to Cushman & Wakefield, Grade An offices command a rental premium of 48% over Grade B offices since 2026, boosting from 34% in 2019.
Against this background, the firm anticipates demand for higher-quality offices to be enhanced, even as some work gets changed by AI. “As regular tasks become increasingly automated, offices are anticipated to play a higher duty in collaboration, innovation and client involvement,” Brown discussed.
