AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
The study looked at 4 situations with various presumptions relating 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 need for office space on one end, and AI-driven labour displacement weakening renting demand on the other.
While the expanding adoption of AI is readied to reshape how services use the workplace, it is unlikely to considerably reduce demand for Grade An office space in Singapore, according to Cushman & Wakefield.
Based on the scenarios, CBD Grade A workplace vacancy in Singapore is projected to range in between 1.5% and 4.9% by 2030, contrasted to 4.4% as at the end of 2025. Meanwhile, rental movement for Grade An offices could vary from 6.5% growth to a decrease of 2.3% in 2030. In contrast, rents grew by 2.2% in 2025.
The range of results suggests a “durable” prime office market, with vacancy continuing to be listed below 5%, noted Dr Dominic Brown, head of international research study at Cushman & Wakefield. “It shows why the impact of AI on property can not be comprehended via jobs alone– supply, productivity, business growth and the changing role of the workplace all matter.”
At the same time, brand-new prime office supply remains minimal, which will even more sustain the Grade A market. Cushman & Wakefield jobs openings for Grade An offices in the CBD to tighten 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.
In opposition to this backdrop, the firm expects need for higher-quality workspaces to be strengthened, even as some work gets changed by AI. “As regular tasks end up being increasingly automated, work environments are expected to play a better function in partnership, innovation and client involvement,” Brown described.
Regardless, Singapore’s setting as a hub for technology, expert solutions and other knowledge-intensive companies provides it a benefit as AI adoption increases, stated Natalie Craig, chief executive of Cushman & Wakefield Singapore.
Among the 4 scenarios modelled in its study, Cushman & Wakefield posits a standard circumstance that assumes moderate efficiency gains from consistent AI fostering, in addition to secure work levels sustained by continued hiring in office-intensive sectors.
Consequently, as more services gravitate to better workspaces, the flight to high quality might broaden the existing void between prime and non-prime work areas. According to Cushman & Wakefield, Grade An offices regulate a rental premium of 48% over Grade B workplaces as of 2026, increasing from 34% in 2019.
“As companies reassess exactly how and where their individuals work, we anticipate demand to turn into more selective, therefore putting an even higher premium on quality, connectivity and adaptability,” she included.
In a September investigation record titled AI Impact: Workplace Insights Singapore, the property companies firm examined the prospective influence of AI adoption on Singapore’s economy, workforce and industrial property through to 2030.
