AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
Based upon the situations, CBD Grade An office vacancy in Singapore is projected to range between 1.5% and 4.9% by 2030, contrasted to 4.4% as at 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, rents expanded by 2.2% in 2025.
In opposition to this background, the firm anticipates need for higher-quality workspaces to be reinforced, even as some work gets replaced by AI. “As routine activities end up being increasingly automated, workplaces are anticipated to play a greater function in cooperation, innovation and client involvement,” Brown discussed.
“As businesses rethink just how and in which their people work, we expect demand to become a lot more careful, therefore putting an even higher costs on quality, connectivity and adaptability,” she added.
The range of outcomes shows a “resilient” prime office market, with job continuing to be listed below 5%, mentioned Dr Dominic Brown, head of international research at Cushman & Wakefield. “It reveals why the effect of AI on property can not be recognized through jobs alone– supply, productivity, business growth and the modifying role of the work environment all issue.”
The study looked at four situations with different assumptions associating with the rate of AI adoption, along with economic and labour market effect. The circumstances stand for a spectrum of potential outcomes– AI-led productivity development driving raised demand for office space on one end, and AI-driven labour shift weakening leasing need on the other.
At the same time, new prime workplace supply remains limited, which will additionally sustain the Grade A market. Cushman & Wakefield jobs vacancy for Grade A workplaces in the CBD to tighten to 3.7% by the end of this year and fall listed below 2% beyond 2029. At the same time, rental fees are anticipated to increase 4.8% this year.
In any case, Singapore’s placement as a center for innovation, specialist services and various other knowledge-intensive services gives it a benefit as AI adoption accelerates, claimed Natalie Craig, chief executive of Cushman & Wakefield Singapore.
Amongst the four scenarios designed in its study, Cushman & Wakefield assumes a baseline circumstance that presumes moderate productivity gains from steady AI adoption, together with steady employment levels supported by continued hiring in office-intensive sectors.
As a result, as even more organizations move to much better work areas, the trip to quality can expand the existing void in between prime and non-prime work spaces. 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.
While the expanding adoption of AI is set to reshape just how companies make use of the office, it is unlikely to dramatically reduce demand for Grade A workplace in Singapore, according to Cushman & Wakefield.
In a September research record called AI Impact: Workplace Insights Singapore, the real estate companies firm studied the possible impact of AI fostering on Singapore’s economic situation, employees and industrial property with to 2030.
