AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
In a September research report called AI Impact: Office Insights Singapore, the property companies firm researched the prospective effect of AI fostering on Singapore’s economic situation, labor force and commercial property with to 2030.
While the expanding adoption of AI is set to reshape how companies make use of the workplace, it is unlikely to significantly minimize demand for Grade An office in Singapore, according to Cushman & Wakefield.
The variety of results shows a “resilient” prime office market, with openings remaining listed below 5%, mentioned Dr Dominic Brown, head of international research study at Cushman & Wakefield. “It reveals why the effect of AI on property can not be recognized via jobs alone– supply, productivity, business growth and the modifying role of the work environment all issue.”
Subsequently, as more businesses move to far better offices, the trip to high quality could broaden the existing void in between prime and non-prime workspaces. According to Cushman & Wakefield, Grade A workplaces command a rental premium of 48% over Grade B offices as of 2026, boosting from 34% in 2019.
Regardless, Singapore’s placement as a center for innovation, expert solutions and other knowledge-intensive businesses offers it a benefit as AI adoption increases, said Natalie Craig, chief executive of Cushman & Wakefield Singapore.
Based upon the situations, CBD Grade An office vacancy in Singapore is predicted to range in between 1.5% and 4.9% by 2030, contrasted to 4.4% as at the end of 2025. Meanwhile, rental activity for Grade A workplaces could range from 6.5% growth to a decrease of 2.3% in 2030. In comparison, rents grew by 2.2% in 2025.
In opposition to this background, the firm expects demand for higher-quality offices to be strengthened, even as some work gets changed by AI. “As routine activities become progressively automated, work environments are expected to play a better function in collaboration, innovation and client engagement,” Brown explained.
“As services reassess how and where their individuals work, we expect need to become a lot more selective, thus placing an even greater premium on quality, connection and versatility,” she included.
Amongst the four scenarios designed in its study, Cushman & Wakefield posits a standard scenario that assumes moderate productivity gains from constant AI fostering, in addition to secure employment levels supported by ongoing hiring in office-intensive sectors.
The study looked at 4 situations with various presumptions associating with the price of AI adoption, together with economic and labour market effect. The scenarios stand for a range of possible results– AI-led productivity development driving increased demand for office space on one end, and AI-driven labour shift weakening leasing demand on the other.
At the same time, new prime workplace supply remains restricted, which will better 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 listed below 2% beyond 2029. On the other hand, leas are anticipated to increase 4.8% this year.
