If you're searching for office space in Singapore right now, you're feeling it: fewer options, firmer rents, and landlords who aren't in a rush to negotiate. The 2026 office market is shaping up to be one of the tightest in recent memory, and the country's biggest real estate advisory firms — CBRE, JLL, Cushman & Wakefield, and Savills — are all pointing in the same direction.
This article distils the key findings from their latest market reports and outlook publications, so you can plan your next lease move with confidence.
The Big Picture: A Landlord's Market
Singapore's economy expanded by approximately 4.8% to 5% in 2025, well above expectations. Office-using sectors — finance and insurance, information and communications, and professional services — all contributed to that momentum. GDP growth is expected to moderate to around 1% to 3% in 2026 as global tariff effects weigh on the economy, but lower interest rates, tight labour markets, and Singapore's standing as a regional safe haven should keep office demand resilient.
The result? Every major firm is projecting rental growth for CBD Grade A offices in 2026, though forecasts vary depending on how aggressively they expect supply constraints to bite.
vacancy by end-2026
completing in 2026
forecasts for 2026
What the Big Firms Are Saying
Here's a side-by-side look at the 2026 rental growth projections from the major advisory firms, based on their most recent published outlooks and market reports:
| Firm | 2025 CBD Grade A Rent Growth (est.) | 2026 Forecast | Key View |
|---|---|---|---|
| CBRE | ~2.9% | ~4.9% | Landlord-favourable market; vacancy to approach 4% |
| JLL | ~3.0–3.8% | 4–5% | Supply-demand imbalance supports aggressive rental strategies |
| Cushman & Wakefield | ~2.4% | 4–7% | Lowest new supply in over a decade; vacancy to fall below 4% |
| Savills | ~1.6–2.5% | ~2% | Market polarising; large corporates dominate Grade AAA space |
| Corporate Locations | — | ~3% | Quieter market but rents still rising; fitted space in high demand |
The consensus is clear: rents are heading up. The main disagreement is pace. Savills takes a more measured view, noting that margin pressures on smaller tenants and cautious corporate expansion could moderate demand. CBRE and Cushman & Wakefield are more bullish, pointing to historically low vacancy and the near-absence of new supply as reasons to expect stronger rent increases.
Why Supply Is the Story of 2026
The supply pipeline — or rather, the lack of one — is the single biggest factor driving this market. New office completions islandwide are projected to average just 0.5 million square feet annually in 2026 and 2027, according to Cushman & Wakefield. That's less than half the decade's average annual net demand of 1.3 million square feet.
In the CBD specifically, the only major completion scheduled for 2026 is Shaw Tower on Beach Road, delivering around 435,000 to 450,000 square feet of Grade A space. Since Shaw Tower sits in the fringe CBD, it doesn't even add to the Core CBD Grade A basket tracked by most consultancies. Limited pre-commitments have been announced so far, with flex operator The Great Room taking around 36,000 square feet.
For context: Cushman & Wakefield notes that CBD Grade A vacancy could fall below 4% in 2026 — the lowest in over a decade, excluding 2023. CBRE expects vacancy to reach near 4% by year-end, and describes it as one of the lowest levels in recent years.
The supply drought won't break until 2028, when three significant projects are due: Singtel's Comcentre redevelopment in Orchard, Singapore Land's Clifford Centre in Raffles Place, and The Skywaters by a Perennial Holdings-led consortium. Until then, tenants seeking large contiguous spaces — especially blocks exceeding 30,000 square feet — will find very few options.
Upcoming Supply Timeline
Demand: Who's Leasing and Why
Leasing activity in 2025 was broad-based, led by banking and financial services, technology firms, and professional services companies. CBRE's David McKellar notes that demand from AI companies is also emerging, fuelled by heavy venture capital investment and growing corporate adoption. JLL observed that notable expansions came from firms like blockchain payments company Ripple, quantitative trading firm Jane Street, tech company Zoom, and recruitment firm Odgers.
The dominant theme, however, is "flight to quality." Companies are gravitating towards modern, well-connected, ESG-compliant buildings that help attract and retain talent. This trend is especially pronounced as more digital-native workers enter Singapore's competitive job market. Savills observed that in 2025, Grade AAA CBD office rents outpaced both Grade AA and Grade A growth — a pattern that's becoming more pronounced each year.
Return-to-Office and AI: The Wild Cards
Much of the conversation in 2025 focused on whether generative AI would start reducing headcount and, by extension, office demand. Savills cautions that actual AI adoption in non-software industries is likely slower than many forecasts suggest, and that some corporate retrenchments attributed to AI may reflect cost-cutting rather than genuine automation. In practical terms, AI has not yet become a major drag on office demand.
Meanwhile, stricter return-to-office mandates across many multinational firms may actually increase space needs, as CBRE notes that some companies that cut space during the pandemic now need to add back footprint to accommodate fuller offices.
Market Polarisation: A Two-Speed Office Market
Perhaps the most important trend for tenants to understand is that Singapore's office market is becoming increasingly segmented. Savills describes a growing divide between large, financially strong corporates who can compete for premium space, and smaller firms that are feeling the squeeze of rising rents and margin pressures.
This polarisation plays out in several ways:
For larger corporates and MNCs: Premium Grade AAA buildings in Marina Bay, Raffles Place, and Tanjong Pagar remain the focus. These tenants are better positioned to absorb higher rents and tend to prioritise building quality, connectivity, and brand positioning. Family offices and frontier start-ups are also active in these spaces.
For mid-sized and smaller firms: Rising rents may prompt some to scale down, relocate to city-fringe locations, or explore alternatives like serviced and managed offices. Business parks and decentralised office options — such as those at Paya Lebar, one-north, or Mapletree Business City — offer meaningful cost savings.
Decentralised offices are getting attention too. Cushman & Wakefield notes that as CBD Grade A rents accelerate, decentralised locations may attract renewed occupier interest, especially from firms seeking value or larger floor plates. Paya Lebar Green, completed in 2025, is already fully occupied after Visa's relocation absorbed the remaining space.
The Rise of Fitted and Managed Offices
One practical response from landlords to softer demand among cost-conscious tenants is the growing availability of pre-fitted office space. According to Corporate Locations' Q1 2026 Market Review, many landlords are now offering fully fitted units on a "plug in and go" basis — typically at the standard gross rental, plus approximately $2.00 per square foot to amortise fit-out costs.
At the same time, the serviced and flexible office sector continues to consolidate. Some operators have been scaling down — Ucommune, WeWork, and others have given up space across several CBD locations. But other operators are expanding: ARCC at Bank of Singapore Centre, JustCo at 108 Robinson Road, The Executive Centre at Ocean Financial Centre, and The Work Project have all recently taken on new floors.
For tenants, this means more options between a traditional bare lease and a full-flex arrangement. In a market where trade disruptions, tariff uncertainty, and AI-driven workforce changes make long-range planning difficult, the ability to scale space without locking into a five-year commitment is a meaningful advantage.
What This Means for Tenants: Practical Takeaways
1. Start your search early
With vacancy tightening and supply constrained through 2027, waiting until the last quarter of your lease to explore options limits your leverage. Begin the process 12 to 18 months before your lease expiry to give yourself time to compare options and negotiate properly.
2. Think total occupancy cost, not just rent
Headline rent is only part of the picture. Service charges, property tax contributions, utility provisions, and fit-out costs all factor into your effective cost per square foot. Some landlords may offer fit-out subsidies or rental-free periods that bring the effective rate down meaningfully — but you need to ask.
3. Consider city-fringe and decentralised options
If your business doesn't require a Raffles Place or Marina Bay address, locations like Paya Lebar, Beach Road, one-north, and Harbourfront can offer Grade A quality at $6 to $9 psf per month — a significant discount to the $11 to $15 psf commanded by core CBD towers. Science park rents, in particular, grew 5.7% year-on-year in 2025, reflecting strong demand from tech and R&D firms.
4. Explore fitted and flex options
If capital preservation or flexibility is a priority, pre-fitted offices and managed suites let you move in quickly without the upfront cost and complexity of a full fit-out. This can be especially useful as a stop-gap while you wait for more supply to come online in 2028.
5. Negotiate with data
Even in a landlord-favourable market, informed tenants can still secure favourable terms. Understanding benchmark rents for specific buildings and districts, knowing what incentives peers have received, and having backup options all strengthen your position at the negotiating table.
Looking for Office Space in Singapore?
SparkSpace lists 500+ office spaces across CBD, city-fringe, and decentralised locations. Compare rents, view building details, and get connected to our team — all in one place.
Sources: CBRE 2026 Singapore Real Estate Market Outlook; JLL Singapore Office Market Set for Continued Growth (March 2026); Cushman & Wakefield Singapore Office MarketBeat Q4 2025 (January 2026); Savills Singapore Q4 2025 Office Market Report (February 2026); Corporate Locations Q1 2026 Singapore Office Market Review; EdgeProp / Real Estate Asia reporting. Data and forecasts as of March 2026.