Chicago ($52/sqft, 24.5% vacancy) and Los Angeles ($65/sqft, 22.5% vacancy) compete on different axes: Chicago on rent and tax and Los Angeles on talent depth.
Chicago ($52/sqft, 24.5% vacancy) and Los Angeles ($65/sqft, 22.5% vacancy) compete on different axes: Chicago on rent and tax and Los Angeles on talent depth.
| Metric | Chicago | Los Angeles |
|---|---|---|
| Region | Americas | Americas |
| Country | United States | United States |
| Class A rent (USD/sqft/yr) | $52 | $65 |
| Class A rent (local) | 52 USD | 65 USD |
| Vacancy | 24.5% | 22.5% |
| Trend | flat | flat |
| Prime yield | 7% | 5.8% |
| Premium flex / seat / month (USD) | $920 | $1,080 |
| Submarkets covered | 6 | 6 |
| Corporate tax | 28.5% | 27% |
| Metric | Chicago | Los Angeles |
|---|---|---|
| Typical term | 10 yrs | 7 yrs |
| Typical rent-free | 22 mos | 14 mos |
| Lease norms | Modified-gross with op-ex escalations over a base year. Rent-free 18-30 months and TI $120-$200/sqft on a 10-year term are current market. | 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 | Combined federal + Illinois corporate tax effectively 28.5%. Cook County personal property lease transaction tax applies. | Combined federal + California corporate tax effectively 27%. LA City business license tax applies. |
| Metric | Chicago | Los Angeles |
|---|---|---|
| Talent index (0–100) | 88 | 92 |
| Talent note | Deep professional-services, fintech, and trading talent pool. Average all-in compensation indexes 88 vs. New York. | Deepest entertainment, streaming, gaming, and aerospace talent pool in the world. Average all-in compensation indexes 92 vs. New York. |
Chicago: CTA L lines and Metra commuter rail. Union Station and Ogilvie anchor commuter rail; Loop Elevated lines circle the historic CBD.
Los Angeles: Metro Rail expansion (Purple Line extension, K Line) is reshaping commute economics — but LA remains predominantly car-based.
Chicago is the cheaper Class A market on a USD basis.
Los Angeles has the deeper talent index (92/100 vs 88/100).
Los Angeles has the lower headline corporate tax (27% vs 28.5%). Local incentives can change the effective rate materially.
Chicago typical term is 10 years with 22 months free; Los Angeles runs 7 years with 14 months free.
Chicago: CTA L lines and Metra commuter rail. Union Station and Ogilvie anchor commuter rail; Loop Elevated lines circle the historic CBD. Los Angeles: Metro Rail expansion (Purple Line extension, K Line) is reshaping commute economics — but LA remains predominantly car-based.
Score Chicago, 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.