AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
The series of outcomes indicates a “durable” prime office market, with openings continuing to be below 5%, mentioned Dr Dominic Brown, head of international research study at Cushman & Wakefield. “It shows why the influence of AI on property can not be recognized with jobs alone– supply, productivity, business growth and the changing role of the workplace all matter.”
While the growing adoption of AI is set to reshape the way companies utilize the workplace, it is unlikely to substantially lower need for Grade A workplace in Singapore, according to Cushman & Wakefield.
Based on the scenarios, CBD Grade An office vacancy in Singapore is projected to range between 1.5% and 4.9% by 2030, compared to 4.4% as by the end of 2025. Meanwhile, rental activity for Grade A workplaces could vary from 6.5% growth to a decrease of 2.3% in 2030. In contrast, rental fees grew by 2.2% in 2025.
“As services reconsider how and where their individuals work, we expect demand to become much more discerning, thereby placing an also greater costs on quality, connectivity and adaptability,” she included.
At the same time, brand-new prime workplace supply remains restricted, which will additionally sustain the Grade A market. Cushman & Wakefield jobs vacancy for Grade A workplaces 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, leas are anticipated to enhance 4.8% this year.
The study looked at four scenarios with different assumptions relating to the rate of AI adoption, along with economic and labour market effect. The situations stand for a spectrum of potential results– AI-led efficiency growth driving raised need for office space on one end, and AI-driven labour shift weakening renting demand on the other.
Consequently, as more companies move to far better workspaces, the flight to top quality might expand the existing space in 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, increasing from 34% in 2019.
In any case, Singapore’s placement as a hub for modern technology, professional solutions and various other knowledge-intensive services provides it an advantage as AI adoption speeds up, claimed Natalie Craig, chief executive of Cushman & Wakefield Singapore.
In opposition to this backdrop, the firm anticipates need for higher-quality work spaces to be reinforced, even as some work gets replaced by AI. “As regular activities become progressively automated, offices are anticipated to play a higher role in collaboration, innovation and client engagement,” Brown explained.
In a September investigation record called AI Impact: Office Insights Singapore, the real estate services firm studied the prospective influence of AI adoption on Singapore’s economic situation, labor force and business realty via to 2030.
Among the 4 scenarios designed in its study, Cushman & Wakefield assumes a baseline situation that thinks moderate productivity gains from consistent AI adoption, together with steady employment levels supported by ongoing hiring in office-intensive sectors.
