AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
Based on the situations, CBD Grade An office vacancy in Singapore is predicted to range in between 1.5% and 4.9% by 2030, compared to 4.4% as by the end of 2025. Meanwhile, rental activity for Grade An offices could range from 6.5% growth to a decline of 2.3% in 2030. In contrast, rents expanded by 2.2% in 2025.
Against this background, the firm expects demand for higher-quality work areas to be enhanced, even as some work gets replaced by AI. “As regular activities become increasingly automated, offices are expected to play a greater function in cooperation, innovation and client involvement,” Brown discussed.
In a September investigation report labelled AI Impact: Workplace Insights Singapore, the property services firm researched the prospective effect of AI fostering on Singapore’s economic climate, workforce and commercial real estate with to 2030.
The study looked at four circumstances with various presumptions connecting to the rate of AI adoption, together with economic and labour market impact. The situations stand for a spectrum of prospective outcomes– AI-led productivity expansion driving increased interest for office space on one end, and AI-driven labour displacement weakening renting demand on the other.
Among the 4 scenarios modelled in its study, Cushman & Wakefield posits a baseline scenario that thinks moderate efficiency gains from steady AI fostering, along with stable employment degrees sustained by continued hiring in office-intensive industries.
The series of outcomes shows a “durable” prime office market, with openings continuing to be listed below 5%, mentioned Dr Dominic Brown, head of international research study at Cushman & Wakefield. “It reveals why the influence of AI on real estate can not be understood with jobs alone– supply, productivity, business growth and the modifying role of the work environment all issue.”
Wynwood Grand condo floor plan
At the same time, new prime office supply remains minimal, which will better support the Grade A market. Cushman & Wakefield jobs job 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, rents are anticipated to increase 4.8% this year.
Regardless, Singapore’s placement as a hub for innovation, expert services and various other knowledge-intensive services offers it a benefit as AI adoption accelerates, claimed Natalie Craig, chief executive of Cushman & Wakefield Singapore.
Subsequently, as even more organizations gravitate to much better workspaces, the flight to high quality can expand the existing gap between prime and non-prime work areas. According to Cushman & Wakefield, Grade A workplaces command a rental costs of 48% over Grade B offices since 2026, boosting from 34% in 2019.
While the expanding adoption of AI is set to improve just how organizations utilize the workplace, it is unlikely to significantly minimize need for Grade A workplace in Singapore, according to Cushman & Wakefield.
“As businesses reassess just how and in which their people work, we expect need to become a lot more discerning, thereby putting an also greater costs on quality, connectivity and versatility,” she added.
