Austin ($60/sqft, 27.8% vacancy) and London ($121/sqft, 8.6% vacancy) compete on different axes: Austin on rent and tax and London on talent depth.
Austin ($60/sqft, 27.8% vacancy) and London ($121/sqft, 8.6% vacancy) compete on different axes: Austin on rent and tax and London on talent depth.
| Metric | Austin | London |
|---|---|---|
| Region | Americas | EMEA |
| Country | United States | United Kingdom |
| Class A rent (USD/sqft/yr) | $60 | $121 |
| Class A rent (local) | 60 USD | 95 GBP |
| Vacancy | 27.8% | 8.6% |
| Trend | softening | rising |
| Prime yield | 6.8% | 4.5% |
| Premium flex / seat / month (USD) | $720 | $1,380 |
| Submarkets covered | 5 | 7 |
| Corporate tax | 22.5% | 25% |
| Metric | Austin | London |
|---|---|---|
| Typical term | 10 yrs | 10 yrs |
| Typical rent-free | 18 mos | 24 mos |
| Lease norms | Modified-gross structures with opex pass-throughs. 7-10 year terms common; trophy can push to 12-15. Free rent of 14-22 months and TI of $100-$150/sqft typical. | London leases are predominantly Full Repairing and Insuring (FRI). Tenant pays service charge and is responsible for dilapidations on lease end. Rent reviews to open-market rent every 5 years are standard. Rent-free periods of 18-30 months on a 10-year term are typical, with 'capped' rent-free for break-clause certainty. Personal guarantees are uncommon for institutional tenants; rent deposits are common for younger covenants. |
| Tax note | 21% federal corporate income tax. No Texas state income tax. Texas franchise tax of 0.75%. Property tax burden is elevated — model carefully into occupancy cost. | UK corporation tax is 25% (19% small profits rate). Business rates are a major occupancy cost — ~50% of rateable value annually, levied separately from rent and service charge. |
| Metric | Austin | London |
|---|---|---|
| Talent index (0–100) | 84 | 96 |
| Talent note | Deep tech engineering talent base anchored by UT Austin and a decade of in-migration. Strong concentrations in semiconductors (Tesla, Samsung, NXP), software, and gaming. | Largest financial-services and technology talent pool in EMEA. Average all-in compensation indexes 96 vs. New York's 100. |
Austin: Capital Metro bus + MetroRail (single Red Line). Project Connect light rail in early planning. Heavy car dependency outside the central core; downtown trophy tenants increasingly emphasize walkable amenity.
London: The Elizabeth Line transformed cross-London commute times. Heathrow to Liverpool Street is 35 minutes; Paddington to Canary Wharf is 17 minutes. Crossrail-adjacent assets command a measurable rent premium.
Austin is the cheaper Class A market on a USD basis.
London has the deeper talent index (96/100 vs 84/100).
Austin has the lower headline corporate tax (22.5% vs 25%). Local incentives can change the effective rate materially.
Austin typical term is 10 years with 18 months free; London runs 10 years with 24 months free.
Austin: Capital Metro bus + MetroRail (single Red Line). Project Connect light rail in early planning. Heavy car dependency outside the central core; downtown trophy tenants increasingly emphasize walkable amenity. London: The Elizabeth Line transformed cross-London commute times. Heathrow to Liverpool Street is 35 minutes; Paddington to Canary Wharf is 17 minutes. Crossrail-adjacent assets command a measurable rent premium.
Score Austin, London and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD.
Reviewed by Miriam Hollander — Lead market analyst. Last updated 2026-04-15. See our methodology and editorial standards.