Los Angeles ($65/sqft, 22.5% vacancy) and San Diego ($56/sqft, 18.4% vacancy) compete on different axes: Los Angeles on talent depth and San Diego on rent and tax.
Los Angeles ($65/sqft, 22.5% vacancy) and San Diego ($56/sqft, 18.4% vacancy) compete on different axes: Los Angeles on talent depth and San Diego on rent and tax.
| Metric | Los Angeles | San Diego |
|---|---|---|
| Region | Americas | Americas |
| Country | United States | United States |
| Class A rent (USD/sqft/yr) | $65 | $56 |
| Class A rent (local) | 65 USD | 56 USD |
| Vacancy | 22.5% | 18.4% |
| Trend | flat | flat |
| Prime yield | 5.8% | 6.4% |
| Premium flex / seat / month (USD) | $1,080 | $880 |
| Submarkets covered | 6 | 5 |
| Corporate tax | 27% | 27.9% |
| Metric | Los Angeles | San Diego |
|---|---|---|
| Typical term | 7 yrs | 10 yrs |
| Typical rent-free | 14 mos | 12 mos |
| Lease norms | 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. | Modified-gross structures with opex pass-throughs. 10-12 year terms common for life sciences. Free rent of 10-14 months and TI of $100-$160/sqft typical on a 10-year Class A deal; lab fitouts run materially higher. |
| Tax note | Combined federal + California corporate tax effectively 27%. LA City business license tax applies. | 21% federal plus 8.84% California corporate franchise tax for an effective rate near 27.9%. California property tax (Prop 13) base is set at acquisition; meaningful for long-term ownership. |
| Metric | Los Angeles | San Diego |
|---|---|---|
| Talent index (0–100) | 92 | 86 |
| Talent note | Deepest entertainment, streaming, gaming, and aerospace talent pool in the world. Average all-in compensation indexes 92 vs. New York. | Deep life sciences, biotech, defense, and intelligence talent. UCSD and the Salk / Scripps research cluster anchor. Deep naval and Marine veteran talent pool. |
Los Angeles: Metro Rail expansion (Purple Line extension, K Line) is reshaping commute economics — but LA remains predominantly car-based.
San Diego: MTS trolley (Blue, Green, Orange, UC San Diego Blue Line extension to UTC). COASTER and Sprinter commuter rail. Heavy car dependency outside the urban core.
San Diego is the cheaper Class A market on a USD basis.
Los Angeles has the deeper talent index (92/100 vs 86/100).
Los Angeles has the lower headline corporate tax (27% vs 27.9%). Local incentives can change the effective rate materially.
Los Angeles typical term is 7 years with 14 months free; San Diego runs 10 years with 12 months free.
Los Angeles: Metro Rail expansion (Purple Line extension, K Line) is reshaping commute economics — but LA remains predominantly car-based. San Diego: MTS trolley (Blue, Green, Orange, UC San Diego Blue Line extension to UTC). COASTER and Sprinter commuter rail. Heavy car dependency outside the urban core.
Score Los Angeles, San Diego 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.