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 realty services firm researched the possible influence of AI adoption on Singapore’s economy, employees and business real estate through to 2030.
While the expanding adoption of AI is set to improve how services use the workplace, it is unlikely to significantly lower need for Grade An office in Singapore, according to Cushman & Wakefield.
At the same time, brand-new prime workplace supply remains limited, which will better support the Grade A market. Cushman & Wakefield jobs openings for Grade An offices in the CBD to tighten to 3.7% by the end of this year and fall below 2% beyond 2029. At the same time, rents are forecast to boost 4.8% this year.
Against this background, the firm expects need for higher-quality offices to be reinforced, even as some work gets changed by AI. “As regular tasks end up being progressively automated, workplaces are anticipated to play a better function in collaboration, innovation and client involvement,” Brown clarified.
Among the 4 scenarios designed in its study, Cushman & Wakefield posits a baseline scenario that assumes moderate productivity gains from steady AI adoption, along with stable work degrees supported by continued hiring in office-intensive industries.
The study looked at four circumstances with different presumptions relating to the price of AI adoption, along with economic and labour market impact. The scenarios stand for a range of prospective results– AI-led efficiency development driving increased need for office space on one end, and AI-driven labour shift weakening leasing need on the other.
Based upon the situations, CBD Grade A workplace 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 vary from 6.5% growth to a decrease of 2.3% in 2030. In contrast, leas grew by 2.2% in 2025.
Subsequently, as even more businesses move to far better offices, the flight to top quality could expand the existing gap between prime and non-prime workspaces. According to Cushman & Wakefield, Grade An offices regulate a rental premium of 48% over Grade B workplaces since 2026, boosting from 34% in 2019.
In any case, Singapore’s setting as a hub for technology, expert services and other knowledge-intensive services provides it an advantage as AI adoption speeds up, stated Natalie Craig, chief executive of Cushman & Wakefield Singapore.
The range of outcomes suggests a “resilient” prime office market, with job continuing to be below 5%, noted Dr Dominic Brown, head of international research at Cushman & Wakefield. “It shows why the effect of AI on real estate can not be recognized through jobs alone– supply, productivity, business growth and the changing role of the workplace all issue.”
“As organizations reconsider exactly how and where their individuals work, we expect need to turn into much more careful, consequently placing an even greater costs on quality, connectivity and adaptability,” she added.
