AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
In opposition to this background, the firm anticipates demand for higher-quality work spaces to be strengthened, even as some work gets replaced by AI. “As regular activities end up being progressively automated, workplaces are expected to play a higher role in partnership, innovation and client engagement,” Brown clarified.
“As businesses rethink how and where their people work, we anticipate need to become a lot more selective, thereby putting an even higher premium on quality, connection and flexibility,” she included.
At the same time, brand-new prime workplace supply remains limited, which will even more support the Grade A market. Cushman & Wakefield jobs vacancy for Grade A workplaces in the CBD to tighten to 3.7% by the end of this year and fall listed below 2% past 2029. On the other hand, leas are forecast to enhance 4.8% this year.
While the growing adoption of AI is set to improve the way companies make use of the workplace, it is unlikely to dramatically lower need for Grade An office space in Singapore, according to Cushman & Wakefield.
Regardless, Singapore’s setting as a hub for innovation, professional services and other knowledge-intensive businesses offers it an advantage as AI adoption speeds up, claimed Natalie Craig, chief executive of Cushman & Wakefield Singapore.
Consequently, as even more organizations move to far better work spaces, the flight to high quality could broaden the existing space in between prime and non-prime work areas. According to Cushman & Wakefield, Grade An offices command a rental costs of 48% over Grade B offices since 2026, increasing from 34% in 2019.
Based upon the scenarios, CBD Grade An office 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 activity for Grade An offices could range from 6.5% growth to a decline of 2.3% in 2030. In comparison, leas grew by 2.2% in 2025.
Springleaf Residence Guocoland and Hong Leong Group
The study looked at four circumstances with various assumptions connecting to the price of AI adoption, along with economic and labour market impact. The circumstances stand for a range of prospective results– AI-led productivity development driving raised demand 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 real estate companies firm examined the potential impact of AI adoption on Singapore’s economy, labor force and commercial realty with to 2030.
The range of results indicates a “resilient” prime office market, with job remaining listed below 5%, noted Dr Dominic Brown, head of international study at Cushman & Wakefield. “It shows why the effect of AI on property can not be comprehended through jobs alone– supply, productivity, business growth and the modifying role of the work environment all matter.”
Amongst the 4 scenarios modelled in its study, Cushman & Wakefield assumes a baseline scenario that assumes moderate efficiency gains from consistent AI adoption, along with steady employment degrees supported by continued hiring in office-intensive industries.
