Artificial intelligence (AI) is poised to transform how businesses utilise office spaces in Singapore, but it is unlikely to significantly reduce demand for Grade A offices, according to Cushman & Wakefield’s latest study. The research, titled “AI Impact: Office Insights Singapore,” explores four potential AI adoption scenarios, each indicating a resilient future for Singapore’s Central Business District (CBD) Grade A office market.
The study projects that by 2030, Grade A office vacancies could range from 1.5% to 4.9%, depending on the pace and economic impact of AI adoption. Dr Dominic Brown, Head of International Research at Cushman & Wakefield, noted, “Even in a scenario where AI materially displaces professional employment, our modelling has Grade A vacancy below 5% by 2030.”
As AI automates routine tasks, workplaces are expected to focus more on collaboration and innovation, potentially increasing demand for high-quality, adaptable office spaces. This trend could widen the rental premium between Grade A and Grade B offices, which has already grown to 48% in 2026 from 34% in 2019.
The constrained supply of Grade A offices in Singapore further supports market resilience. Limited new developments until 2028 are expected to tighten vacancies, with rents projected to rise by 4.8% in 2026 and average 3.7% annual growth through 2030.
Cushman & Wakefield advises occupiers and investors to incorporate flexibility into their real estate strategies to adapt to AI’s evolving impact. This includes monitoring space utilisation and leveraging flexible workspaces to maintain adaptability in a changing market.
