Los Angeles ($65/sqft, 22.5% vacancy) and Toronto ($57/sqft, 17.6% vacancy) compete on different axes: Los Angeles on talent depth and Toronto on rent and tax.
Los Angeles ($65/sqft, 22.5% vacancy) and Toronto ($57/sqft, 17.6% vacancy) compete on different axes: Los Angeles on talent depth and Toronto on rent and tax.
| Metric | Los Angeles | Toronto |
|---|---|---|
| Region | Americas | Americas |
| Country | United States | Canada |
| Class A rent (USD/sqft/yr) | $65 | $57 |
| Class A rent (local) | 65 USD | 78 CAD |
| Vacancy | 22.5% | 17.6% |
| Trend | flat | flat |
| Prime yield | 5.8% | 5.5% |
| Premium flex / seat / month (USD) | $1,080 | $920 |
| Submarkets covered | 6 | 6 |
| Corporate tax | 27% | 26.5% |
| Metric | Los Angeles | Toronto |
|---|---|---|
| Typical term | 7 yrs | 10 yrs |
| Typical rent-free | 14 mos | 18 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. | Net leases — tenant pays a base rent plus a proportional share of operating expenses, realty taxes, and utilities (TMI). Rent-free of 12-24 months on a 10-year term is current market. Bank guarantees common for non-investment-grade covenants. |
| Tax note | Combined federal + California corporate tax effectively 27%. LA City business license tax applies. | Combined federal + Ontario corporate tax 26.5%. Toronto Municipal Land Transfer Tax applies on purchase, not on lease. |
| Metric | Los Angeles | Toronto |
|---|---|---|
| Talent index (0–100) | 92 | 80 |
| Talent note | Deepest entertainment, streaming, gaming, and aerospace talent pool in the world. Average all-in compensation indexes 92 vs. New York. | Deepest financial-services and tech talent pool in Canada. Average all-in compensation indexes 80. |
Los Angeles: Metro Rail expansion (Purple Line extension, K Line) is reshaping commute economics — but LA remains predominantly car-based.
Toronto: TTC subway plus GO Transit commuter rail converge at Union Station. The PATH connects most Financial Core assets underground.
Toronto is the cheaper Class A market on a USD basis.
Los Angeles has the deeper talent index (92/100 vs 80/100).
Toronto has the lower headline corporate tax (26.5% vs 27%). Local incentives can change the effective rate materially.
Los Angeles typical term is 7 years with 14 months free; Toronto runs 10 years with 18 months free.
Los Angeles: Metro Rail expansion (Purple Line extension, K Line) is reshaping commute economics — but LA remains predominantly car-based. Toronto: TTC subway plus GO Transit commuter rail converge at Union Station. The PATH connects most Financial Core assets underground.
Score Los Angeles, Toronto 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.