Singapore grade A office rents record strongest growth since 2022

CBD Grade A rents rose 1.4% in Q1 2026.

Singapore’s Grade A office market recorded its strongest quarterly rental growth in more than three years in Q1 2026, defying a backdrop of global uncertainty, according to Cushman & Wakefield.

The firm’s latest Singapore Office Marketbeat report shows CBD Grade A gross effective rents rose 1.4% quarter-on-quarter to S$11.36 per sq ft per month, while vacancy declined for a fourth straight quarter to 4.1%, down from 4.4% at end-2025.

Cushman & Wakefield attributed the performance to a structural shortage of high-quality space and continued occupier preference for premium, best-in-class buildings—trends that show little sign of easing.

Supply remains constrained, with no new Grade A completions in the CBD since Keppel South Central in early 2025 and only one major project, Shaw Towers, due in 2026. New supply is forecast to average just 0.4 million sq ft annually across 2026 and 2027, well below the market’s long-term demand levels.

Marina Bay led activity during the quarter, with vacancy tightening to 2.4% and rents reaching S$13.10 per sq ft per month, the highest in the CBD. Demand was supported by leasing activity from financial institutions and artificial intelligence-focused technology firms, reinforcing Singapore’s position as a regional business hub.

“Amid continued global uncertainty, office demand may ease in the near term as some occupiers delay decision-making,” said Natalie Craig, Chief Executive, Singapore at Cushman & Wakefield. “Nonetheless, Singapore’s structurally limited office supply calls for occupiers to adopt a more proactive and forward-looking approach to real estate portfolio planning.”

Jeryl Teoh, Senior Director, Commercial Leasing at Cushman & Wakefield, added that rising uncertainty may drive occupiers toward lease renewals and fitted spaces, as firms balance expansion plans against limited availability and cost pressures.

Despite macroeconomic headwinds, including elevated energy prices, the report notes that tight supply is expected to keep vacancy below 4% through 2026, supporting continued resilience in Singapore’s prime office market.