--- title: "Austin vs Los Angeles: Class A office comparison" description: "Side-by-side Class A office comparison for Austin and Los Angeles — rent, vacancy, talent, tax, lease norms, transit, and top submarkets." canonical: https://classa.info/compare/austin-vs-los-angeles pageType: comparison lastUpdated: 2026-04-15T00:00:00.000Z license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)." --- > Austin ($60/sqft, 27.8% vacancy) and Los Angeles ($65/sqft, 22.5% vacancy) compete on different axes: Austin on rent and tax and Los Angeles on talent depth. ## TL;DR - Class A rent: Austin $60/sqft vs Los Angeles $65/sqft. - Vacancy: Austin 27.8% vs Los Angeles 22.5%. - Talent index: Austin 84 vs Los Angeles 92. - Corporate tax: Austin 22.5% vs Los Angeles 27%. - Premium flex/seat/month: Austin $720 vs Los Angeles $1,080. # Austin vs Los Angeles: Class A office comparison **Austin ($60/sqft, 27.8% vacancy) and Los Angeles ($65/sqft, 22.5% vacancy) compete on different axes: Austin on rent and tax and Los Angeles on talent depth.** ## TL;DR - [Class A](/glossary/class-a) rent: Austin $60/sqft vs Los Angeles $65/sqft. - Vacancy: Austin 27.8% vs Los Angeles 22.5%. - Talent index: Austin 84 vs Los Angeles 92. - Corporate tax: Austin 22.5% vs Los Angeles 27%. - [Premium flex](/topics/lease-vs-flex)/seat/month: Austin $720 vs Los Angeles $1,080. ## Market data side-by-side | Metric | Austin | Los Angeles| | Region | Americas | Americas| | Country | United States | United States| | Class A rent (USD/sqft/yr) | $60 | $65| | Class A rent (local) | 60 USD | 65 USD| | Vacancy | 27.8% | 22.5%| | Trend | softening | flat| | Prime yield | 6.8% | 5.8%| | Premium flex / seat / month (USD) | $720 | $1,080| | Submarkets covered | 5 | 6| | Corporate tax | 22.5% | 27%| ## Lease norms | Metric | Austin | Los Angeles| | Typical term | 10 yrs | 7 yrs| | Typical rent-free | 18 mos | 14 mos| | Lease norms | Modified-gross structures with opex pass-throughs. 7-10 year terms common; trophy can push to 12-15. Free rent of 14-22 months and TI of $100-$150/sqft typical. | 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.| | Tax note | 21% federal corporate income tax. No Texas state income tax. Texas franchise tax of 0.75%. Property tax burden is elevated — model carefully into occupancy cost. | Combined federal + California corporate tax effectively 27%. LA City business license tax applies.| ## Talent | Metric | Austin | Los Angeles| | Talent index (0–100) | 84 | 92| | Talent note | Deep tech engineering talent base anchored by UT Austin and a decade of in-migration. Strong concentrations in semiconductors (Tesla, Samsung, NXP), software, and gaming. | Deepest entertainment, streaming, gaming, and aerospace talent pool in the world. Average all-in compensation indexes 92 vs. New York.| ## Transit & commute **Austin:** Capital Metro bus + MetroRail (single Red Line). Project Connect light rail in early planning. Heavy car dependency outside the central core; downtown trophy tenants increasingly emphasize walkable amenity. **Los Angeles:** Metro Rail [expansion](/topics/cross-border-expansion) (Purple Line extension, K Line) is reshaping commute economics — but LA remains predominantly car-based. ## Top submarkets — Austin - [**Downtown**](/cities/austin/downtown) — [trophy tier](/topics/trophy-asset-selection) · $72/sqft/yr - [**South Congress (SoCo)**](/cities/austin/south-congress-soco) — prime tier · $58/sqft/yr - [**Domain**](/cities/austin/domain) — prime tier · $56/sqft/yr ## Top submarkets — Los Angeles - [**Beverly Hills & West Hollywood**](/cities/los-angeles/beverly-hills) — trophy tier · $130/sqft/yr - [**Century City**](/cities/los-angeles/century-city) — trophy tier · $105/sqft/yr - [**Santa Monica**](/cities/los-angeles/santa-monica) — prime tier · $88/sqft/yr ## Decision criteria ### Pick by cost Austin is the cheaper Class A market on a USD basis. ### Pick by talent depth Los Angeles has the deeper talent index (92/100 vs 84/100). ### Pick by tax Austin has the lower headline corporate tax (22.5% vs 27%). Local incentives can change the effective rate materially. ### Pick by lease optionality Austin typical term is 10 years with 18 months free; Los Angeles runs 7 years with 14 months free. ### Pick by transit Austin: Capital Metro bus + MetroRail (single Red Line). Project Connect light rail in early planning. Heavy car dependency outside the central core; downtown trophy tenants increasingly emphasize walkable amenity. Los Angeles: Metro Rail expansion (Purple Line extension, K Line) is reshaping commute economics — but LA remains predominantly car-based. ## Run a 4-city comparison Score Austin, Los Angeles and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD. [**Run a 4-city comparison →**](/tools/city-comparator) ## Frequently asked questions ****Is Class A office cheaper in Austin or Los Angeles?**** : Austin is cheaper on a USD basis: $60/sqft vs $65/sqft. ****Which has better talent depth, Austin or Los Angeles?**** : Los Angeles indexes higher on talent depth (92 vs 84). ****Which has more sublease availability, Austin or Los Angeles?**** : Austin carries higher vacancy (27.8% vs 22.5%) and therefore typically more [sublease](/topics/sublease-strategy)">sublease overhang. ****What lease term should I expect in Austin vs Los Angeles?**** : Austin typical term is 10 years with 18 months rent-free; Los Angeles typical term is 7 years with 14 months rent-free. ****How does transit and commuter access compare?**** : Austin: Capital Metro bus + MetroRail (single Red Line). Project Connect light rail in early planning. Heavy car dependency outside the central core; downtown trophy tenants increasingly emphasize walkable amenity. Los Angeles: Metro Rail expansion (Purple Line extension, K Line) is reshaping commute economics — but LA remains predominantly car-based. ## Editorial provenance Reviewed by [**Miriam Hollander**](/about/authors/miriam-hollander) — Lead market analyst. Last updated 2026-04-15. See our [methodology](/about/methodology) and [editorial standards](/about/editorial-standards). ### Primary sources for this page - [CBRE Marketview reports](https://www.cbre.com/insights) — CBRE - [JLL Office Insight](https://www.jll.com/en/trends-and-insights) — JLL - [Cushman & Wakefield Marketbeat](https://www.cushmanwakefield.com/en/insights) — Cushman & Wakefield - [Savills World Research](https://www.savills.com/research_articles/) — Savills - [Colliers Global Office Outlook](https://www.colliers.com/en/research) — Colliers [Full sources index](/about/sources) · [Submit a correction](/about/corrections) --- Citation: Source: Class A Atlas (https://classa.info/compare/austin-vs-los-angeles), updated 2026-04-15T00:00:00.000Z.