CBD Grade A office rents forecast to rise up to 7% in 2026
Cushman & Wakefield (C&W) forecasts CBD Grade A office rents to rise between 4% and 7% in 2026, compared to 2% to 3% in 2025. Vacancy rates are expected to fall below 4% amidst limited new supply. Shaw Tower will be the only new major Grade A office development completed in 2026. Leasing activity has picked up, led by demand from the wealth management sector. Fit-out costs in Singapore offices are projected to rise at a slower pace as inflation pressures ease.
Vacancy rates are expected to fall below 4% amidst limited new supply.
Cushman & Wakefield (C&W) projects CBD Grade A office rents to grow between 4% and 7% in 2026, compared with 2% to 3% in 2025.
New supply of CBD Grade A offices will be limited to 0.4 million square feet (msf) in 2026 and 0.2 msf in 2027, against historical net demand of about 0.9 msf annually, according to the report. Shaw Tower will be the only new major Grade A office development completed in 2026, with 18% pre‑commitment as of Q3 2025.
Vacancy rates for CBD Grade A offices stood at 4.7% in Q3 2025 and are expected to fall to 4.2% by year‑end. C&W noted vacancy could decline further to under 4% in 2026, the lowest in over a decade excluding 2023.
Leasing activity has picked up from 2024 lows, led by demand from the wealth management sector. IOI Central Boulevard Tower, completed in 2025 with 1.2 msf, is almost fully occupied.
Fit‑out costs in Singapore offices are projected to rise at a slower pace as inflation pressures ease. C&W reported average hybrid fit‑out costs at $191.32 per square foot, with advanced hybrid costs at $289.72 per square foot.
