AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
In opposition to this background, the firm anticipates need for higher-quality work areas to be strengthened, even as some work gets changed by AI. “As regular activities become significantly automated, workplaces are expected to play a greater duty in partnership, innovation and client involvement,” Brown discussed.
At the same time, new prime workplace supply remains limited, which will better sustain the Grade A market. Cushman & Wakefield jobs job for Grade A workplaces in the CBD to tighten up to 3.7% by the end of this year and fall below 2% beyond 2029. Meanwhile, rents are anticipated to boost 4.8% this year.
Based upon the situations, CBD Grade A workplace vacancy in Singapore is forecasted 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 An offices could range from 6.5% growth to a decrease of 2.3% in 2030. In contrast, rents grew by 2.2% in 2025.
“As businesses reassess exactly how and in which their individuals work, we anticipate demand to turn into more selective, consequently putting an even greater premium on quality, connectivity and adaptability,” she added.
Amongst the four scenarios modelled in its study, Cushman & Wakefield posits a standard circumstance that presumes moderate efficiency gains from consistent AI adoption, along with secure employment degrees sustained by ongoing hiring in office-intensive sectors.
While the growing adoption of AI is readied to improve the way services make use of the workplace, it is unlikely to substantially lower need for Grade An office in Singapore, according to Cushman & Wakefield.
The study evaluated four situations with different presumptions connecting to the rate of AI adoption, along with economic and labour market effect. The scenarios stand for a spectrum of possible results– AI-led productivity development driving raised interest for office space on one end, and AI-driven labour displacement weakening leasing need on the other.
In a September investigation report titled AI Impact: Office Insights Singapore, the realty services firm researched the potential impact of AI adoption on Singapore’s economic situation, labor force and industrial realty through to 2030.
Subsequently, as more businesses move to better work spaces, the trip to high quality could widen the existing void between prime and non-prime offices. According to Cushman & Wakefield, Grade A workplaces regulate a rental premium of 48% over Grade B offices since 2026, increasing from 34% in 2019.
Regardless, Singapore’s placement as a hub for modern technology, professional services and various other knowledge-intensive services provides it a benefit as AI adoption increases, said Natalie Craig, chief executive of Cushman & Wakefield Singapore.
The series of results suggests a “durable” prime office market, with job continuing to be listed below 5%, noted Dr Dominic Brown, head of international study at Cushman & Wakefield. “It reveals why the effect of AI on realty can not be comprehended via jobs alone– supply, productivity, business growth and the changing role of the work environment all matter.”
