AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
In a September research record labelled AI Impact: Workplace Insights Singapore, the real estate services firm studied the potential impact of AI adoption on Singapore’s economy, employees and business real estate with to 2030.
At the same time, new prime workplace supply remains restricted, which will even more support the Grade A market. Cushman & Wakefield projects vacancy for Grade A workplaces in the CBD to tighten to 3.7% by the end of this year and fall listed below 2% past 2029. Meanwhile, leas are forecast to increase 4.8% this year.
Based on 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 by the end of 2025. Meanwhile, rental activity for Grade A workplaces could range from 6.5% growth to a decline of 2.3% in 2030. In comparison, leas grew by 2.2% in 2025.
In any case, Singapore’s placement as a center for innovation, specialist services and various other knowledge-intensive businesses provides it an advantage as AI adoption speeds up, claimed Natalie Craig, chief executive of Cushman & Wakefield Singapore.
“As companies reassess exactly how and where their people work, we anticipate need to turn into a lot more discerning, thereby putting an even greater costs on quality, connectivity and adaptability,” she added.
Among the four scenarios modelled in its study, Cushman & Wakefield assumes a standard situation that assumes moderate efficiency gains from steady AI adoption, in addition to steady work levels supported by continued hiring in office-intensive markets.
While the expanding adoption of AI is readied to reshape how services utilize the work environment, it is unlikely to significantly decrease need for Grade An office space in Singapore, according to Cushman & Wakefield.
The variety of outcomes suggests a “durable” prime office market, with vacancy remaining listed below 5%, mentioned Dr Dominic Brown, head of international research study at Cushman & Wakefield. “It reveals why the impact of AI on realty can not be understood with jobs alone– supply, productivity, business growth and the changing role of the work environment all matter.”
Subsequently, as more companies gravitate to much better work areas, the trip to high quality can broaden the existing void in between prime and non-prime offices. According to Cushman & Wakefield, Grade An offices regulate a rental costs of 48% over Grade B offices since 2026, increasing from 34% in 2019.
The study evaluated four scenarios with different presumptions associating with the rate of AI adoption, along with economic and labour market influence. The circumstances stand for a range of potential results– AI-led efficiency growth driving raised demand for office space on one end, and AI-driven labour shift weakening renting demand on the other.
Against this backdrop, the firm anticipates need for higher-quality work spaces to be reinforced, even as some work gets replaced by AI. “As regular tasks become increasingly automated, offices are expected to play a better duty in collaboration, innovation and client involvement,” Brown explained.
