London ($121/sqft, 8.6% vacancy) and Los Angeles ($65/sqft, 22.5% vacancy) compete on different axes: London on talent depth and Los Angeles on rent and tax.
London ($121/sqft, 8.6% vacancy) and Los Angeles ($65/sqft, 22.5% vacancy) compete on different axes: London on talent depth and Los Angeles on rent and tax.
| Metric | London | Los Angeles |
|---|---|---|
| Region | EMEA | Americas |
| Country | United Kingdom | United States |
| Class A rent (USD/sqft/yr) | $121 | $65 |
| Class A rent (local) | 95 GBP | 65 USD |
| Vacancy | 8.6% | 22.5% |
| Trend | rising | flat |
| Prime yield | 4.5% | 5.8% |
| Premium flex / seat / month (USD) | $1,380 | $1,080 |
| Submarkets covered | 7 | 6 |
| Corporate tax | 25% | 27% |
| Metric | London | Los Angeles |
|---|---|---|
| Typical term | 10 yrs | 7 yrs |
| Typical rent-free | 24 mos | 14 mos |
| Lease norms | 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. | 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 | 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. | Combined federal + California corporate tax effectively 27%. LA City business license tax applies. |
| Metric | London | Los Angeles |
|---|---|---|
| Talent index (0–100) | 96 | 92 |
| Talent note | Largest financial-services and technology talent pool in EMEA. Average all-in compensation indexes 96 vs. New York's 100. | Deepest entertainment, streaming, gaming, and aerospace talent pool in the world. Average all-in compensation indexes 92 vs. New York. |
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.
Los Angeles: Metro Rail expansion (Purple Line extension, K Line) is reshaping commute economics — but LA remains predominantly car-based.
Los Angeles is the cheaper Class A market on a USD basis.
London has the deeper talent index (96/100 vs 92/100).
London has the lower headline corporate tax (25% vs 27%). Local incentives can change the effective rate materially.
London typical term is 10 years with 24 months free; Los Angeles runs 7 years with 14 months free.
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. Los Angeles: Metro Rail expansion (Purple Line extension, K Line) is reshaping commute economics — but LA remains predominantly car-based.
Score London, 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 Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.