New York ($102/sqft, 17.4% vacancy) and Washington DC ($58/sqft, 19.4% vacancy) compete on different axes: New York on talent depth and Washington DC on rent and tax.
New York ($102/sqft, 17.4% vacancy) and Washington DC ($58/sqft, 19.4% vacancy) compete on different axes: New York on talent depth and Washington DC on rent and tax.
| Metric | New York | Washington DC |
|---|---|---|
| Region | Americas | Americas |
| Country | United States | United States |
| Class A rent (USD/sqft/yr) | $102 | $58 |
| Class A rent (local) | 102 USD | 58 USD |
| Vacancy | 17.4% | 19.4% |
| Trend | rising | flat |
| Prime yield | 5.6% | 6.3% |
| Premium flex / seat / month (USD) | $1,450 | $880 |
| Submarkets covered | 7 | 6 |
| Corporate tax | 27.5% | 27.1% |
| Metric | New York | Washington DC |
|---|---|---|
| Typical term | 10 yrs | 10 yrs |
| Typical rent-free | 14 mos | 14 mos |
| Lease norms | Manhattan leases are predominantly modified-gross structures with operating-expense and real-estate-tax escalations over a base year. Free rent (12-18 months on a 10-year term) and fit-out-capex">tenant improvement allowances ($130-$180/sqft for high-spec build-outs) are core economic levers. Personal guarantees are uncommon at institutional tenant scale; Good Guy Guarantees remain standard for smaller suites. | Modified-gross structures with operating-expense pass-throughs over a base year. Federal GSA leases are typically full-service with cap on operating-expense growth. Free rent of 14-18 months and TI allowances of $130-$150/sqft are typical on 10-year private-sector deals. |
| Tax note | Combined federal + New York State + NYC corporate income tax effectively reaches 27.5% for most C-corps. New York City Commercial Rent Tax (CRT) applies to Manhattan tenants south of 96th Street paying base rents above $250,000. | Federal corporate income tax of 21% plus DC franchise tax of 8.25% drives a combined effective rate of about 27%. Class A office tenants are also subject to DC personal property tax on FF&E. |
| Metric | New York | Washington DC |
|---|---|---|
| Talent index (0–100) | 100 | 92 |
| Talent note | Deepest white-collar talent pool in the Americas. Average all-in compensation for senior knowledge workers indexes 100 (the global baseline used elsewhere in this Atlas). | Deepest federal-services and policy talent pool in the world. Strong legal, lobbying, defense, and consulting concentrations. Tech talent has grown rapidly post-2020 driven by AWS, Amazon HQ2, and federal cloud contracts. |
New York: MTA subway lines, Metro-North, LIRR, and PATH converge on Midtown and the Financial District, anchored by Grand Central, Penn Station, and the Oculus. Class A landlords now factor commute time as part of their leasing pitch.
Washington DC: WMATA Metro (six lines) plus VRE and MARC commuter rail. Union Station anchors regional rail. Trophy office clusters all sit within a 5-minute walk of a Metro station.
Washington DC is the cheaper Class A market on a USD basis.
New York has the deeper talent index (100/100 vs 92/100).
Washington DC has the lower headline corporate tax (27.1% vs 27.5%). Local incentives can change the effective rate materially.
New York typical term is 10 years with 14 months free; Washington DC runs 10 years with 14 months free.
New York: MTA subway lines, Metro-North, LIRR, and PATH converge on Midtown and the Financial District, anchored by Grand Central, Penn Station, and the Oculus. Class A landlords now factor commute time as part of their leasing pitch. Washington DC: WMATA Metro (six lines) plus VRE and MARC commuter rail. Union Station anchors regional rail. Trophy office clusters all sit within a 5-minute walk of a Metro station.
Score New York, Washington DC 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.