High-spec industrial rents to rise as AI startups crowd one-north

Huttons predicts AI Park will boost service providers and tighten business park space.

The planned AI Park in one-north, announced in Budget 2026, aimed to bridge research and business by providing dedicated space for AI companies and startups.

Cushman & Wakefield predicted that business parks at one-north and Science Park would attract higher interest, with one-north identified as the location for the larger AI Park.

Over time, newer business parks with modern specifications were expected to capture AI-driven demand, whilst older parks might have seen asset enhancement initiatives to remain competitive, the company noted.

High-tech or high-spec industrial developments with strong power capacity and sustainability credentials were expected to benefit from AI adoption, the report said.

The initiative was also expected to attract AI talent, including professionals from overseas, which could have increased demand for housing in the one-north area.

Huttons noted that the upcoming GLS tender in Dover Drive might have drawn greater participation from developers.

Huttons added that the push for AI adoption among companies could have led to growth in startups and service providers.

“The demand for high-spec industrial space and business parks may have increased, and rents could have risen over time,” the firm said.

At the same time, Singapore’s limited land and power capacity could have restricted certain developments, such as data centres.

Huttons pointed out that neighbouring regions, including Johor and Batam, were likely to have benefited from spillover demand.

The AI Park formed part of Singapore’s broader strategy to strengthen its AI ecosystem, linking research capabilities with commercial applications whilst influencing housing, industrial space, and business activity in one-north.