Toronto ($57/sqft, 17.6% vacancy) and Vancouver ($39/sqft, 11.2% vacancy) compete on different axes: Toronto on rent and tax and Vancouver on talent depth.
Toronto ($57/sqft, 17.6% vacancy) and Vancouver ($39/sqft, 11.2% vacancy) compete on different axes: Toronto on rent and tax and Vancouver on talent depth.
| Metric | Toronto | Vancouver |
|---|---|---|
| Region | Americas | Americas |
| Country | Canada | Canada |
| Class A rent (USD/sqft/yr) | $57 | $39 |
| Class A rent (local) | 78 CAD | 52 CAD |
| Vacancy | 17.6% | 11.2% |
| Trend | flat | flat |
| Prime yield | 5.5% | 5.2% |
| Premium flex / seat / month (USD) | $920 | $720 |
| Submarkets covered | 6 | 5 |
| Corporate tax | 26.5% | 27% |
| Metric | Toronto | Vancouver |
|---|---|---|
| Typical term | 10 yrs | 10 yrs |
| Typical rent-free | 18 mos | 10 mos |
| Lease norms | 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. | Net leases dominate (tenant pays opex, taxes, insurance separately). 10-year terms standard. Free rent of 8-12 months and TI of C$60-$110/sqft typical on a 10-year Class A deal. |
| Tax note | Combined federal + Ontario corporate tax 26.5%. Toronto Municipal Land Transfer Tax applies on purchase, not on lease. | 15% federal plus 12% British Columbia general corporate income tax for a combined rate of 27%. Vancouver Empty Homes Tax does not apply to commercial; provincial Property Transfer Tax applies on acquisitions. |
| Metric | Toronto | Vancouver |
|---|---|---|
| Talent index (0–100) | 80 | 84 |
| Talent note | Deepest financial-services and tech talent pool in Canada. Average all-in compensation indexes 80. | Deep tech, film and visual effects, mining, and real estate services talent. Strong feed from UBC, SFU, and the BCIT system. Cost-of-living premium versus Toronto and US Pacific Northwest is a meaningful tenant consideration. |
Toronto: TTC subway plus GO Transit commuter rail converge at Union Station. The PATH connects most Financial Core assets underground.
Vancouver: TransLink SkyTrain (Expo, Millennium, Canada Lines) plus SeaBus to North Vancouver and West Coast Express commuter rail. Downtown is highly walkable and SkyTrain-served.
Vancouver is the cheaper Class A market on a USD basis.
Vancouver has the deeper talent index (84/100 vs 80/100).
Toronto has the lower headline corporate tax (26.5% vs 27%). Local incentives can change the effective rate materially.
Toronto typical term is 10 years with 18 months free; Vancouver runs 10 years with 10 months free.
Toronto: TTC subway plus GO Transit commuter rail converge at Union Station. The PATH connects most Financial Core assets underground. Vancouver: TransLink SkyTrain (Expo, Millennium, Canada Lines) plus SeaBus to North Vancouver and West Coast Express commuter rail. Downtown is highly walkable and SkyTrain-served.
Score Toronto, Vancouver 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.