London ($121/sqft, 8.6% vacancy) and Sydney ($96/sqft, 12.6% vacancy) compete on different axes: London on talent depth and Sydney on rent and tax.
London ($121/sqft, 8.6% vacancy) and Sydney ($96/sqft, 12.6% vacancy) compete on different axes: London on talent depth and Sydney on rent and tax.
| Metric | London | Sydney |
|---|---|---|
| Region | EMEA | APAC |
| Country | United Kingdom | Australia |
| Class A rent (USD/sqft/yr) | $121 | $96 |
| Class A rent (local) | 95 GBP | 1480 AUD |
| Vacancy | 8.6% | 12.6% |
| Trend | rising | flat |
| Prime yield | 4.5% | 5.5% |
| Premium flex / seat / month (USD) | $1,380 | $990 |
| Submarkets covered | 7 | 6 |
| Corporate tax | 25% | 30% |
| Metric | London | Sydney |
|---|---|---|
| Typical term | 10 yrs | 7 yrs |
| Typical rent-free | 24 mos | 30 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. | Standard 5-10 year lease. Gross or net structure (both common). Australian leases distinguish 'face rent' (headline) from 'effective rent' (face minus incentive). Incentives of 30-40% are now standard — typically structured as rent abatement, fit-out contribution, or both. |
| 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. | Federal corporate tax 30%. NSW payroll tax applies. No state corporate income tax. |
| Metric | London | Sydney |
|---|---|---|
| Talent index (0–100) | 96 | 85 |
| Talent note | Largest financial-services and technology talent pool in EMEA. Average all-in compensation indexes 96 vs. New York's 100. | Australia's deepest financial-services, technology, and professional-services talent pool. Average all-in compensation indexes 85. |
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.
Sydney: Sydney Metro and Sydney Trains converge at Wynyard, Town Hall, and Central. The new Sydney Metro City & Southwest line transformed core CBD commute capacity.
Sydney is the cheaper Class A market on a USD basis.
London has the deeper talent index (96/100 vs 85/100).
London has the lower headline corporate tax (25% vs 30%). Local incentives can change the effective rate materially.
London typical term is 10 years with 24 months free; Sydney runs 7 years with 30 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. Sydney: Sydney Metro and Sydney Trains converge at Wynyard, Town Hall, and Central. The new Sydney Metro City & Southwest line transformed core CBD commute capacity.
Score London, Sydney 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.