Over 40% of Singapore organizations say rents are a primary cost driver. According to JLL, Singapore organizations prefer long-term commercial real estate transformation over short-term cost cutting. However, rising occupancy and technology costs are challenging this approach.
JLL’s 2026 Future of Work Survey reveals that 67% of Singapore organizations prioritize long-term commercial real estate transformation. Rising rents are a significant concern, with 42% of respondents identifying rental cost increases as a primary cost driver, 14 percentage points above the Asia Pacific average.
Energy and utility costs (44%), inflationary pressures (38%), technology infrastructure investments (34%), and operating expenses (32%) are also major cost drivers. As companies increasingly rely on technology for employee productivity, reliable technology infrastructure (44%) and advanced technology with AI support (43%) are top strategies.
Physical workplace features remain important, but rank lower in priority. 28% of respondents prioritize adaptable individual spaces, while 27% focus on wellbeing amenities. Kamya Miglani, JLL’s head of research for Real Estate Management Services, APAC, notes that organizations advanced in AI adoption are investing more in physical environments to support higher-value, cognitively demanding work.
The survey highlights that AI and technology skills gaps are a leading constraint for real estate transformation globally (36%) and across Asia Pacific (42%). Singapore’s figure is lower at 32%, indicating that coordinating existing capabilities across business units is a more pressing issue.
Talent availability remains a concern, with 56% of Singapore respondents expecting talent scarcity in the next three to five years, compared to 49% across Asia Pacific. To address affordability challenges, organizations are adopting various strategies, including operational optimization, strategic partnerships, and investments in upskilling and cross-functional collaboration.
