London ($121/sqft, 8.6% vacancy) and New York ($102/sqft, 17.4% vacancy) compete on different axes: London on rent and tax and New York on talent depth.
London ($121/sqft, 8.6% vacancy) and New York ($102/sqft, 17.4% vacancy) compete on different axes: London on rent and tax and New York on talent depth.
| Metric | London | New York |
|---|---|---|
| Region | EMEA | Americas |
| Country | United Kingdom | United States |
| Class A rent (USD/sqft/yr) | $121 | $102 |
| Class A rent (local) | 95 GBP | 102 USD |
| Vacancy | 8.6% | 17.4% |
| Trend | rising | rising |
| Prime yield | 4.5% | 5.6% |
| Premium flex / seat / month (USD) | $1,380 | $1,450 |
| Submarkets covered | 7 | 7 |
| Corporate tax | 25% | 27.5% |
| Metric | London | New York |
|---|---|---|
| Typical term | 10 yrs | 10 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. | Manhattan leases are predominantly modified-gross structures with operating-expense and real-estate-tax escalations over a base year. Free rent (12-18 months on a 10-year term) and tenant improvement allowances ($130-$180/sqft for high-spec build-outs) are core economic levers. Personal guarantees are uncommon at institutional tenant scale; Good Guy Guarantees remain standard for smaller suites. |
| 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 + New York State + NYC corporate income tax effectively reaches 27.5% for most C-corps. New York City Commercial Rent Tax (CRT) applies to Manhattan tenants south of 96th Street paying base rents above $250,000. |
| Metric | London | New York |
|---|---|---|
| Talent index (0–100) | 96 | 100 |
| Talent note | Largest financial-services and technology talent pool in EMEA. Average all-in compensation indexes 96 vs. New York's 100. | Deepest white-collar talent pool in the Americas. Average all-in compensation for senior knowledge workers indexes 100 (the global baseline used elsewhere in this Atlas). |
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.
New York: MTA subway lines, Metro-North, LIRR, and PATH converge on Midtown and the Financial District, anchored by Grand Central, Penn Station, and the Oculus. Class A landlords now factor commute time as part of their leasing pitch.
New York is the cheaper Class A market on a USD basis.
New York has the deeper talent index (100/100 vs 96/100).
London has the lower headline corporate tax (25% vs 27.5%). Local incentives can change the effective rate materially.
London typical term is 10 years with 24 months free; New York runs 10 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. New York: MTA subway lines, Metro-North, LIRR, and PATH converge on Midtown and the Financial District, anchored by Grand Central, Penn Station, and the Oculus. Class A landlords now factor commute time as part of their leasing pitch.
Score London, New York 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.