AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
In a September research record titled AI Impact: Office Insights Singapore, the real estate services firm examined the potential influence of AI adoption on Singapore’s economy, employees and commercial real estate with to 2030.
While the expanding adoption of AI is set to improve just how companies utilize the workplace, it is unlikely to significantly lower need for Grade An office in Singapore, according to Cushman & Wakefield.
Based on the scenarios, CBD Grade A workplace vacancy in Singapore is predicted to range between 1.5% and 4.9% by 2030, compared to 4.4% as by 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, rental fees expanded by 2.2% in 2025.
At the same time, new prime office supply remains limited, which will even more sustain the Grade A market. Cushman & Wakefield jobs vacancy for Grade An offices in the CBD to tighten up to 3.7% by the end of this year and fall listed below 2% beyond 2029. At the same time, rents are forecast to boost 4.8% this year.
The study evaluated 4 scenarios with various presumptions connecting to the rate of AI adoption, along with economic and labour market effect. The scenarios represent a spectrum of possible outcomes– AI-led productivity growth driving increased interest for office space on one end, and AI-driven labour shift weakening leasing demand on the other.
Among the 4 scenarios designed in its study, Cushman & Wakefield presumes a standard scenario that thinks moderate productivity gains from stable AI adoption, together with secure employment degrees supported by ongoing hiring in office-intensive industries.
Regardless, Singapore’s placement as a hub for innovation, professional services and various other knowledge-intensive businesses offers it a benefit as AI adoption increases, claimed Natalie Craig, chief executive of Cushman & Wakefield Singapore.
In opposition to this background, the firm anticipates demand for higher-quality work areas to be strengthened, even as some work gets changed by AI. “As regular activities end up being progressively automated, workplaces are anticipated to play a greater function in partnership, innovation and client engagement,” Brown described.
The series of results suggests a “durable” prime office market, with job remaining listed below 5%, noted Dr Dominic Brown, head of international research study at Cushman & Wakefield. “It reveals why the impact of AI on realty can not be comprehended with jobs alone– supply, productivity, business growth and the modifying role of the work environment all matter.”
As a result, as even more businesses gravitate to much better workspaces, the flight to quality could broaden the existing space in between prime and non-prime work areas. According to Cushman & Wakefield, Grade A workplaces command a rental premium of 48% over Grade B workplaces since 2026, boosting from 34% in 2019.
“As businesses reassess how and in which their individuals work, we expect need to turn into extra selective, consequently placing an also higher premium on quality, connection and flexibility,” she added.
