Austin ($60/sqft, 27.8% vacancy) and Los Angeles ($65/sqft, 22.5% vacancy) compete on different axes: Austin on rent and tax and Los Angeles on talent depth.
Austin ($60/sqft, 27.8% vacancy) and Los Angeles ($65/sqft, 22.5% vacancy) compete on different axes: Austin on rent and tax and Los Angeles on talent depth.
| Metric | Austin | Los Angeles |
|---|---|---|
| Region | Americas | Americas |
| Country | United States | United States |
| Class A rent (USD/sqft/yr) | $60 | $65 |
| Class A rent (local) | 60 USD | 65 USD |
| Vacancy | 27.8% | 22.5% |
| Trend | softening | flat |
| Prime yield | 6.8% | 5.8% |
| Premium flex / seat / month (USD) | $720 | $1,080 |
| Submarkets covered | 5 | 6 |
| Corporate tax | 22.5% | 27% |
| Metric | Austin | Los Angeles |
|---|---|---|
| Typical term | 10 yrs | 7 yrs |
| Typical rent-free | 18 mos | 14 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. | Modified-gross with op-ex escalations. Rent-free 12-20 months on a 10-year term is standard. TI of $130-$200/sqft achievable. California Civil Code 1938 disclosure (CASp) is mandatory. |
| 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. | Combined federal + California corporate tax effectively 27%. LA City business license tax applies. |
| Metric | Austin | Los Angeles |
|---|---|---|
| Talent index (0–100) | 84 | 92 |
| 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. | Deepest entertainment, streaming, gaming, and aerospace talent pool in the world. Average all-in compensation indexes 92 vs. New York. |
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.
Los Angeles: Metro Rail expansion (Purple Line extension, K Line) is reshaping commute economics — but LA remains predominantly car-based.
Austin is the cheaper Class A market on a USD basis.
Los Angeles has the deeper talent index (92/100 vs 84/100).
Austin has the lower headline corporate tax (22.5% vs 27%). Local incentives can change the effective rate materially.
Austin typical term is 10 years with 18 months free; Los Angeles runs 7 years with 14 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. Los Angeles: Metro Rail expansion (Purple Line extension, K Line) is reshaping commute economics — but LA remains predominantly car-based.
Score Austin, Los Angeles 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.