AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
Among the four scenarios designed in its study, Cushman & Wakefield posits a baseline circumstance that thinks moderate efficiency gains from steady AI fostering, in addition to secure employment levels supported by ongoing hiring in office-intensive markets.
Based upon 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 at the end of 2025. Meanwhile, rental activity for Grade A workplaces could vary from 6.5% growth to a decline of 2.3% in 2030. In comparison, rental fees grew by 2.2% in 2025.
At the same time, brand-new prime office supply remains restricted, which will even more sustain the Grade A market. Cushman & Wakefield projects vacancy for Grade An offices in the CBD to tighten to 3.7% by the end of this year and fall below 2% past 2029. Meanwhile, rental fees are anticipated to increase 4.8% this year.
In opposition to this background, the firm anticipates demand for higher-quality work areas to be enhanced, even as some work gets replaced by AI. “As regular activities become progressively automated, offices are expected to play a better duty in collaboration, innovation and client involvement,” Brown discussed.
As a result, as more services gravitate to much better offices, the trip to quality might broaden the existing space between prime and non-prime offices. According to Cushman & Wakefield, Grade An offices command a rental costs of 48% over Grade B offices since 2026, increasing from 34% in 2019.
While the growing adoption of AI is set to reshape just how companies use the work environment, it is unlikely to substantially reduce need for Grade A workplace in Singapore, according to Cushman & Wakefield.
“As organizations rethink just how and in which their individuals work, we expect demand to become much more careful, therefore placing an also higher premium on quality, connectivity and adaptability,” she added.
The study looked at 4 circumstances with different assumptions connecting to the rate of AI adoption, along with economic and labour market impact. The situations represent a range of potential outcomes– AI-led productivity growth driving raised need for office space on one end, and AI-driven labour displacement weakening leasing demand on the other.
In a September research record called AI Impact: Office Insights Singapore, the property services firm researched the possible impact of AI adoption on Singapore’s economic climate, labor force and business property through to 2030.
The series of outcomes shows a “durable” prime office market, with job remaining below 5%, mentioned Dr Dominic Brown, head of international research study at Cushman & Wakefield. “It shows why the impact of AI on realty can not be comprehended via jobs alone– supply, productivity, business growth and the changing role of the workplace all issue.”
In any case, Singapore’s position as a hub for innovation, specialist solutions and various other knowledge-intensive organizations offers it a benefit as AI adoption speeds up, stated Natalie Craig, chief executive of Cushman & Wakefield Singapore.
