Los Angeles ($65/sqft, 22.5% vacancy) and San Francisco ($78/sqft, 31.5% vacancy) compete on different axes: Los Angeles on rent and tax and San Francisco on talent depth.
Los Angeles ($65/sqft, 22.5% vacancy) and San Francisco ($78/sqft, 31.5% vacancy) compete on different axes: Los Angeles on rent and tax and San Francisco on talent depth.
| Metric | Los Angeles | San Francisco |
|---|---|---|
| Region | Americas | Americas |
| Country | United States | United States |
| Class A rent (USD/sqft/yr) | $65 | $78 |
| Class A rent (local) | 65 USD | 78 USD |
| Vacancy | 22.5% | 31.5% |
| Trend | flat | rising |
| Prime yield | 5.8% | 6.5% |
| Premium flex / seat / month (USD) | $1,080 | $1,280 |
| Submarkets covered | 6 | 6 |
| Corporate tax | 27% | 27% |
| Metric | Los Angeles | San Francisco |
|---|---|---|
| Typical term | 7 yrs | 7 yrs |
| Typical rent-free | 14 mos | 22 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 with operating-expense escalations over a base year. Rent-free of 18-30 months on a 10-year term is current market for trophy assets in lease-up. TI of $150-$220/sqft is achievable. Termination options at year 5 are increasingly negotiable. |
| Tax note | Combined federal + California corporate tax effectively 27%. LA City business license tax applies. | Combined federal + California corporate tax effectively reaches 27%. San Francisco gross receipts tax applies to most occupiers; payroll tax is now phased out. |
| Metric | Los Angeles | San Francisco |
|---|---|---|
| Talent index (0–100) | 92 | 98 |
| Talent note | Deepest entertainment, streaming, gaming, and aerospace talent pool in the world. Average all-in compensation indexes 92 vs. New York. | Deepest AI/ML and senior software engineering talent pool globally. Average all-in compensation indexes 98 vs. New York's 100. |
Los Angeles: Metro Rail expansion (Purple Line extension, K Line) is reshaping commute economics — but LA remains predominantly car-based.
San Francisco: BART, Muni, Caltrain, and the new Salesforce Transit Center anchor commute infrastructure. The Central Subway extension to Chinatown completed in 2023.
Los Angeles is the cheaper Class A market on a USD basis.
San Francisco has the deeper talent index (98/100 vs 92/100).
Tax rates are tied.
Los Angeles typical term is 7 years with 14 months free; San Francisco runs 7 years with 22 months free.
Los Angeles: Metro Rail expansion (Purple Line extension, K Line) is reshaping commute economics — but LA remains predominantly car-based. San Francisco: BART, Muni, Caltrain, and the new Salesforce Transit Center anchor commute infrastructure. The Central Subway extension to Chinatown completed in 2023.
Score Los Angeles, San Francisco 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.