Toronto ($57/sqft, 17.6% vacancy) and Washington DC ($58/sqft, 19.4% vacancy) compete on different axes: Toronto on rent and tax and Washington DC on talent depth.
Toronto ($57/sqft, 17.6% vacancy) and Washington DC ($58/sqft, 19.4% vacancy) compete on different axes: Toronto on rent and tax and Washington DC on talent depth.
| Metric | Toronto | Washington DC |
|---|---|---|
| Region | Americas | Americas |
| Country | Canada | United States |
| Class A rent (USD/sqft/yr) | $57 | $58 |
| Class A rent (local) | 78 CAD | 58 USD |
| Vacancy | 17.6% | 19.4% |
| Trend | flat | flat |
| Prime yield | 5.5% | 6.3% |
| Premium flex / seat / month (USD) | $920 | $880 |
| Submarkets covered | 6 | 6 |
| Corporate tax | 26.5% | 27.1% |
| Metric | Toronto | Washington DC |
|---|---|---|
| Typical term | 10 yrs | 10 yrs |
| Typical rent-free | 18 mos | 14 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. | 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 + Ontario corporate tax 26.5%. Toronto Municipal Land Transfer Tax applies on purchase, not on lease. | 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 | Toronto | Washington DC |
|---|---|---|
| Talent index (0–100) | 80 | 92 |
| Talent note | Deepest financial-services and tech talent pool in Canada. Average all-in compensation indexes 80. | 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. |
Toronto: TTC subway plus GO Transit commuter rail converge at Union Station. The PATH connects most Financial Core assets underground.
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.
Toronto is the cheaper Class A market on a USD basis.
Washington DC has the deeper talent index (92/100 vs 80/100).
Toronto has the lower headline corporate tax (26.5% vs 27.1%). Local incentives can change the effective rate materially.
Toronto typical term is 10 years with 18 months free; Washington DC runs 10 years with 14 months free.
Toronto: TTC subway plus GO Transit commuter rail converge at Union Station. The PATH connects most Financial Core assets underground. 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 Toronto, 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.