AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
In opposition to this background, the firm expects demand for higher-quality offices to be reinforced, even as some work gets replaced by AI. “As routine activities become progressively automated, workplaces are expected to play a greater role in cooperation, innovation and client interaction,” Brown explained.
Based on the scenarios, 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 A workplaces could vary from 6.5% growth to a decline of 2.3% in 2030. In comparison, rents expanded by 2.2% in 2025.
The study looked at four scenarios with different presumptions relating to the price of AI adoption, along with economic and labour market effect. The circumstances represent a spectrum of prospective outcomes– AI-led efficiency development driving increased need for office space on one end, and AI-driven labour displacement weakening leasing need on the other.
At the same time, brand-new prime workplace supply remains restricted, which will additionally sustain the Grade A market. Cushman & Wakefield projects openings for Grade A workplaces in the CBD to tighten to 3.7% by the end of this year and fall below 2% beyond 2029. At the same time, leas are forecast to raise 4.8% this year.
While the expanding adoption of AI is readied to improve the way services use the workplace, it is unlikely to significantly reduce need for Grade An office in Singapore, according to Cushman & Wakefield.
Regardless, Singapore’s placement as a hub for technology, professional services and various other knowledge-intensive companies gives it a benefit as AI adoption speeds up, claimed Natalie Craig, chief executive of Cushman & Wakefield Singapore.
The range of results shows a “resilient” prime office market, with job continuing to be below 5%, noted Dr Dominic Brown, head of international study at Cushman & Wakefield. “It shows why the effect of AI on realty can not be understood with jobs alone– supply, productivity, business growth and the changing role of the workplace all issue.”
Amongst the 4 scenarios designed in its study, Cushman & Wakefield assumes a standard situation that presumes moderate productivity gains from constant AI adoption, together with secure employment levels supported by continued hiring in office-intensive sectors.
In a September research report labelled AI Impact: Office Insights Singapore, the property services firm examined the potential effect of AI adoption on Singapore’s economic climate, labor force and commercial realty through to 2030.
“As companies reassess exactly how and in which their individuals work, we expect demand to become extra discerning, thus placing an even greater premium on quality, connectivity and flexibility,” she added.
As a result, as more services move to much better work spaces, the trip to quality might broaden the existing space between prime and non-prime work areas. According to Cushman & Wakefield, Grade An offices regulate a rental premium of 48% over Grade B workplaces as of 2026, increasing from 34% in 2019.
