Austin ($60/sqft, 27.8% vacancy) and Toronto ($57/sqft, 17.6% vacancy) compete on different axes: Austin on talent depth and Toronto on rent and tax.
Austin ($60/sqft, 27.8% vacancy) and Toronto ($57/sqft, 17.6% vacancy) compete on different axes: Austin on talent depth and Toronto on rent and tax.
| Metric | Austin | Toronto |
|---|---|---|
| Region | Americas | Americas |
| Country | United States | Canada |
| Class A rent (USD/sqft/yr) | $60 | $57 |
| Class A rent (local) | 60 USD | 78 CAD |
| Vacancy | 27.8% | 17.6% |
| Trend | softening | flat |
| Prime yield | 6.8% | 5.5% |
| Premium flex / seat / month (USD) | $720 | $920 |
| Submarkets covered | 5 | 6 |
| Corporate tax | 22.5% | 26.5% |
| Metric | Austin | Toronto |
|---|---|---|
| Typical term | 10 yrs | 10 yrs |
| Typical rent-free | 18 mos | 18 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. | Net leases — tenant pays a base rent plus a proportional share of operating expenses, realty taxes, and utilities (TMI). Rent-free of 12-24 months on a 10-year term is current market. Bank guarantees common for non-investment-grade 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. | Combined federal + Ontario corporate tax 26.5%. Toronto Municipal Land Transfer Tax applies on purchase, not on lease. |
| Metric | Austin | Toronto |
|---|---|---|
| Talent index (0–100) | 84 | 80 |
| 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 financial-services and tech talent pool in Canada. Average all-in compensation indexes 80. |
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.
Toronto: TTC subway plus GO Transit commuter rail converge at Union Station. The PATH connects most Financial Core assets underground.
Toronto is the cheaper Class A market on a USD basis.
Austin has the deeper talent index (84/100 vs 80/100).
Austin has the lower headline corporate tax (22.5% vs 26.5%). Local incentives can change the effective rate materially.
Austin typical term is 10 years with 18 months free; Toronto runs 10 years with 18 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. Toronto: TTC subway plus GO Transit commuter rail converge at Union Station. The PATH connects most Financial Core assets underground.
Score Austin, Toronto 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.