San Francisco ($78/sqft, 31.5% vacancy) and Toronto ($57/sqft, 17.6% vacancy) compete on different axes: San Francisco on talent depth and Toronto on rent and tax.
San Francisco ($78/sqft, 31.5% vacancy) and Toronto ($57/sqft, 17.6% vacancy) compete on different axes: San Francisco on talent depth and Toronto on rent and tax.
| Metric | San Francisco | Toronto |
|---|---|---|
| Region | Americas | Americas |
| Country | United States | Canada |
| Class A rent (USD/sqft/yr) | $78 | $57 |
| Class A rent (local) | 78 USD | 78 CAD |
| Vacancy | 31.5% | 17.6% |
| Trend | rising | flat |
| Prime yield | 6.5% | 5.5% |
| Premium flex / seat / month (USD) | $1,280 | $920 |
| Submarkets covered | 6 | 6 |
| Corporate tax | 27% | 26.5% |
| Metric | San Francisco | Toronto |
|---|---|---|
| Typical term | 7 yrs | 10 yrs |
| Typical rent-free | 22 mos | 18 mos |
| Lease norms | 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. | 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 reaches 27%. San Francisco gross receipts tax applies to most occupiers; payroll tax is now phased out. | Combined federal + Ontario corporate tax 26.5%. Toronto Municipal Land Transfer Tax applies on purchase, not on lease. |
| Metric | San Francisco | Toronto |
|---|---|---|
| Talent index (0–100) | 98 | 80 |
| Talent note | Deepest AI/ML and senior software engineering talent pool globally. Average all-in compensation indexes 98 vs. New York's 100. | Deepest financial-services and tech talent pool in Canada. Average all-in compensation indexes 80. |
San Francisco: BART, Muni, Caltrain, and the new Salesforce Transit Center anchor commute infrastructure. The Central Subway extension to Chinatown completed in 2023.
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.
San Francisco has the deeper talent index (98/100 vs 80/100).
Toronto has the lower headline corporate tax (26.5% vs 27%). Local incentives can change the effective rate materially.
San Francisco typical term is 7 years with 22 months free; Toronto runs 10 years with 18 months free.
San Francisco: BART, Muni, Caltrain, and the new Salesforce Transit Center anchor commute infrastructure. The Central Subway extension to Chinatown completed in 2023. Toronto: TTC subway plus GO Transit commuter rail converge at Union Station. The PATH connects most Financial Core assets underground.
Score San Francisco, 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.