Los Angeles ($65/sqft, 22.5% vacancy) and Sydney ($96/sqft, 12.6% vacancy) compete on different axes: Los Angeles on talent depth and Sydney on rent and tax.
Los Angeles ($65/sqft, 22.5% vacancy) and Sydney ($96/sqft, 12.6% vacancy) compete on different axes: Los Angeles on talent depth and Sydney on rent and tax.
| Metric | Los Angeles | Sydney |
|---|---|---|
| Region | Americas | APAC |
| Country | United States | Australia |
| Class A rent (USD/sqft/yr) | $65 | $96 |
| Class A rent (local) | 65 USD | 1480 AUD |
| Vacancy | 22.5% | 12.6% |
| Trend | flat | flat |
| Prime yield | 5.8% | 5.5% |
| Premium flex / seat / month (USD) | $1,080 | $990 |
| Submarkets covered | 6 | 6 |
| Corporate tax | 27% | 30% |
| Metric | Los Angeles | Sydney |
|---|---|---|
| Typical term | 7 yrs | 7 yrs |
| Typical rent-free | 14 mos | 30 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. | 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">fit-out contribution, or both. |
| Tax note | Combined federal + California corporate tax effectively 27%. LA City business license tax applies. | Federal corporate tax 30%. NSW payroll tax applies. No state corporate income tax. |
| Metric | Los Angeles | Sydney |
|---|---|---|
| Talent index (0–100) | 92 | 85 |
| Talent note | Deepest entertainment, streaming, gaming, and aerospace talent pool in the world. Average all-in compensation indexes 92 vs. New York. | Australia's deepest financial-services, technology, and professional-services talent pool. Average all-in compensation indexes 85. |
Los Angeles: Metro Rail expansion (Purple Line extension, K Line) is reshaping commute economics — but LA remains predominantly car-based.
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.
Los Angeles is the cheaper Class A market on a USD basis.
Los Angeles has the deeper talent index (92/100 vs 85/100).
Los Angeles has the lower headline corporate tax (27% vs 30%). Local incentives can change the effective rate materially.
Los Angeles typical term is 7 years with 14 months free; Sydney runs 7 years with 30 months free.
Los Angeles: Metro Rail expansion (Purple Line extension, K Line) is reshaping commute economics — but LA remains predominantly car-based. 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 Los Angeles, 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 Miriam Hollander — Lead market analyst. Last updated 2026-04-15. See our methodology and editorial standards.