Singapore’s Central Business District (CBD) Grade A office market experienced a 1.0% rental growth in the third quarter of 2026, according to JLL Research. This increase brings the year-to-date growth to 2.8%, as vacancy rates fell to their lowest in 10 quarters. The surge in demand is primarily driven by AI and technology firms, such as OpenAI, Sierra AI, and Manus AI, which have committed to large-scale leasing, reinforcing Singapore’s status as a regional AI hub.
The market is characterised by limited new supply until 2028, prompting large occupiers to begin renewal negotiations 18 to 24 months before lease expiry. JLL maintains its 2026 full-year CBD Grade A rent growth forecast at approximately 4%, with a projected cumulative growth of around 15% through 2030.
Michael Glancy, Country CEO of JLL Singapore & Southeast Asia, noted, “AI and technology firms are moving decisively to secure space, even amidst broader macroeconomic uncertainties.” This proactive approach is evident as companies like OpenAI negotiate for approximately 120,000 square feet at the newly completed Shaw Tower.
The scarcity of office space is expected to persist, with Newport Tower being the only non-strata development completing in 2027. Substantial new supply is anticipated in 2028 with projects like The Skywaters and The Clifford. Dr Chua Yang Liang, Head of Research and Advisory at JLL, highlighted Singapore’s strengthened economic backdrop, which is translating into increased occupier demand. As the market tightens, companies are re-evaluating their space usage, with a focus on unconventional, lifestyle-driven workspaces.
