Frankfurt ($60/sqft, 8.4% vacancy) and Luxembourg ($54/sqft, 4.8% vacancy) compete on different axes: Frankfurt on talent depth and Luxembourg on talent depth.
Frankfurt ($60/sqft, 8.4% vacancy) and Luxembourg ($54/sqft, 4.8% vacancy) compete on different axes: Frankfurt on talent depth and Luxembourg on talent depth.
| Metric | Frankfurt | Luxembourg |
|---|---|---|
| Region | EMEA | EMEA |
| Country | Germany | Luxembourg |
| Class A rent (USD/sqft/yr) | $60 | $54 |
| Class A rent (local) | 55 EUR | 50 EUR |
| Vacancy | 8.4% | 4.8% |
| Trend | flat | flat |
| Prime yield | 4.4% | 4.8% |
| Premium flex / seat / month (USD) | $1,080 | $720 |
| Submarkets covered | 6 | 5 |
| Corporate tax | 30% | 24.94% |
| Metric | Frankfurt | Luxembourg |
|---|---|---|
| Typical term | 7 yrs | 9 yrs |
| Typical rent-free | 9 mos | 6 mos |
| Lease norms | German leases run 5-10 years with break rights. Rent reviews are indexed to the CPI (Verbraucherpreisindex). Tenant pays Nebenkosten (operating costs) on top of base rent. Cautio (security deposit) of 3-6 months is typical. | Net leases. 9-year terms with break options at years 3 and 6 standard. Free rent of 6-9 months and TI of €60-€100/sqm typical. |
| Tax note | Combined federal + state + Gewerbesteuer (trade tax) effectively 30% in Frankfurt. | 17% federal corporate income tax plus 7% solidarity surcharge plus 6.75% Luxembourg City municipal business tax for an effective combined rate of 24.94%. Material participation exemption regime. |
| Metric | Frankfurt | Luxembourg |
|---|---|---|
| Talent index (0–100) | 88 | 88 |
| Talent note | Deepest banking-and-regulatory talent pool in continental Europe. Average all-in compensation indexes 88. | Deepest fund administration and private banking talent pool in the EU. Multilingual (French, German, English, Luxembourgish) professional base. Cross-border commuter labour from France, Belgium, and Germany makes up roughly 50% of the workforce. |
Frankfurt: Hauptbahnhof anchors S-Bahn, U-Bahn, ICE, and regional rail. Frankfurt Airport is 11 minutes by ICE.
Luxembourg: Free public transport nationwide (since 2020) — buses, tram, and CFL national rail. Luxembourg City tram connects Kirchberg to the historic centre. Luxembourg Airport (LUX) is bus-served.
Luxembourg is the cheaper Class A market on a USD basis.
Talent indices are tied at 88/100.
Luxembourg has the lower headline corporate tax (24.94% vs 30%). Local incentives can change the effective rate materially.
Frankfurt typical term is 7 years with 9 months free; Luxembourg runs 9 years with 6 months free.
Frankfurt: Hauptbahnhof anchors S-Bahn, U-Bahn, ICE, and regional rail. Frankfurt Airport is 11 minutes by ICE. Luxembourg: Free public transport nationwide (since 2020) — buses, tram, and CFL national rail. Luxembourg City tram connects Kirchberg to the historic centre. Luxembourg Airport (LUX) is bus-served.
Score Frankfurt, Luxembourg 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 Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.