AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
The study evaluated four scenarios with different assumptions relating to the rate of AI adoption, together with economic and labour market influence. The scenarios represent a spectrum of possible results– AI-led efficiency development driving increased interest for office space on one end, and AI-driven labour displacement weakening renting need on the other.
Among the four scenarios designed in its study, Cushman & Wakefield presumes a standard scenario that thinks moderate productivity gains from consistent AI fostering, together with steady employment levels supported by ongoing hiring in office-intensive sectors.
In opposition to this backdrop, the firm expects need for higher-quality workspaces to be reinforced, even as some work gets replaced by AI. “As routine activities end up being increasingly automated, offices are expected to play a higher role in cooperation, innovation and client involvement,” Brown discussed.
In a September research record called AI Impact: Workplace Insights Singapore, the real estate companies firm studied the potential impact of AI adoption on Singapore’s economy, workforce and commercial real estate through to 2030.
“As companies rethink exactly how and where their people work, we expect need to turn into a lot more selective, thus putting an also higher premium on quality, connection and flexibility,” she added.
In any case, Singapore’s position as a hub for technology, specialist services and other knowledge-intensive businesses gives it a benefit as AI adoption speeds up, claimed Natalie Craig, chief executive of Cushman & Wakefield Singapore.
Consequently, as more services gravitate to better work areas, the flight to high quality might expand the existing gap in between prime and non-prime work areas. According to Cushman & Wakefield, Grade A workplaces regulate a rental costs of 48% over Grade B offices as of 2026, increasing from 34% in 2019.
Meyer Blue UOL Group Limited & Singapore Land
The variety of outcomes shows a “resilient” prime office market, with vacancy continuing to be below 5%, noted Dr Dominic Brown, head of international research study at Cushman & Wakefield. “It reveals why the effect of AI on real estate can not be recognized with jobs alone– supply, productivity, business growth and the changing role of the workplace all issue.”
Based on the situations, CBD Grade A workplace vacancy in Singapore is predicted 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 range from 6.5% growth to a decrease of 2.3% in 2030. In comparison, rents grew by 2.2% in 2025.
At the same time, brand-new prime workplace supply remains restricted, which will additionally support 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. Meanwhile, rental fees are forecast to increase 4.8% this year.
While the growing adoption of AI is readied to improve how organizations use the office, it is unlikely to considerably reduce need for Grade An office space in Singapore, according to Cushman & Wakefield.
