--- title: "Frankfurt vs Luxembourg: Class A office comparison" description: "Side-by-side Class A office comparison for Frankfurt and Luxembourg — rent, vacancy, talent, tax, lease norms, transit, and top submarkets." canonical: https://classa.info/compare/frankfurt-vs-luxembourg pageType: comparison lastUpdated: 2026-04-15T00:00:00.000Z license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)." --- > Frankfurt ($59/sqft, 8.4% vacancy) and Luxembourg ($60/sqft, 4.8% vacancy) compete on different axes: Frankfurt on talent depth and Luxembourg on talent depth. ## TL;DR - Class A rent: Frankfurt $59/sqft vs Luxembourg $60/sqft. - Vacancy: Frankfurt 8.4% vs Luxembourg 4.8%. - Talent index: Frankfurt 88 vs Luxembourg 88. - Corporate tax: Frankfurt 30% vs Luxembourg 24.94%. - Premium flex/seat/month: Frankfurt $1,080 vs Luxembourg $720. # Frankfurt vs Luxembourg: Class A office comparison **Frankfurt ($59/sqft, 8.4% vacancy) and Luxembourg ($60/sqft, 4.8% vacancy) compete on different axes: Frankfurt on talent depth and Luxembourg on talent depth.** ## TL;DR - [Class A](/glossary/class-a) rent: Frankfurt $59/sqft vs Luxembourg $60/sqft. - Vacancy: Frankfurt 8.4% vs Luxembourg 4.8%. - Talent index: Frankfurt 88 vs Luxembourg 88. - Corporate tax: Frankfurt 30% vs Luxembourg 24.94%. - [Premium flex](/topics/lease-vs-flex)/seat/month: Frankfurt $1,080 vs Luxembourg $720. ## Market data side-by-side | Metric | Frankfurt | Luxembourg| | Region | EMEA | EMEA| | Country | Germany | Luxembourg| | Class A rent (USD/sqft/yr) | $59 | $60| | Class A rent (local) | 55 EUR | 50 EUR| | Vacancy | 8.4% | 4.8%| | Trend | flat | flat| | Prime yield | 4.4% | 4.8%| | Premium flex / seat / month (USD) | $1,080 | $720| | Submarkets covered | 6 | 5| | Corporate tax | 30% | 24.94%| ## Lease norms | Metric | Frankfurt | Luxembourg| | Typical term | 7 yrs | 9 yrs| | Typical rent-free | 9 mos | 6 mos| | Lease norms | German leases run 5-10 years with break rights. Rent reviews are indexed to the CPI (Verbraucherpreisindex). Tenant pays Nebenkosten (operating costs) on top of base rent. Cautio (security deposit) of 3-6 months is typical. | Net leases. 9-year terms with break options at years 3 and 6 standard. Free rent of 6-9 months and TI of €60-€100/sqm typical.| | Tax note | Combined federal + state + Gewerbesteuer (trade tax) effectively 30% in Frankfurt. | 17% federal corporate income tax plus 7% solidarity surcharge plus 6.75% Luxembourg City municipal business tax for an effective combined rate of 24.94%. Material participation exemption regime.| ## Talent | Metric | Frankfurt | Luxembourg| | Talent index (0–100) | 88 | 88| | Talent note | Deepest banking-and-regulatory talent pool in continental Europe. Average all-in compensation indexes 88. | Deepest fund administration and private banking talent pool in the EU. Multilingual (French, German, English, Luxembourgish) professional base. Cross-border commuter labour from France, Belgium, and Germany makes up roughly 50% of the workforce.| ## Transit & commute **Frankfurt:** Hauptbahnhof anchors S-Bahn, U-Bahn, ICE, and regional rail. Frankfurt Airport is 11 minutes by ICE. **Luxembourg:** Free public transport nationwide (since 2020) — buses, tram, and CFL national rail. Luxembourg City tram connects Kirchberg to the historic centre. Luxembourg Airport (LUX) is bus-served. ## Top submarkets — Frankfurt - [**Bankenviertel**](/cities/frankfurt/bankenviertel) — [trophy tier](/topics/trophy-asset-selection) · €60/sqft/yr · ≈ $64.8 PSF/yr USD - [**Bahnhofsviertel**](/cities/frankfurt/bahnhofsviertel) — trophy tier · €50/sqft/yr · ≈ $54 PSF/yr USD - [**Westend**](/cities/frankfurt/westend) — prime tier · €50/sqft/yr · ≈ $54 PSF/yr USD ## Top submarkets — Luxembourg - [**Kirchberg**](/cities/luxembourg/kirchberg) — trophy tier · €56/sqm/mo · ≈ $67.4 PSF/yr USD - [**Centre Ville**](/cities/luxembourg/centre-ville) — trophy tier · €54/sqm/mo · ≈ $65 PSF/yr USD - [**Gare District**](/cities/luxembourg/gare) — prime tier · €44/sqm/mo · ≈ $53 PSF/yr USD ## Decision criteria ### Pick by cost Frankfurt is the cheaper Class A market on a USD basis. ### Pick by talent depth Talent data not available for comparison. ### Pick by tax Luxembourg has the lower headline corporate tax (24.94% vs 30%). Local incentives can change the effective rate materially. ### Pick by lease optionality Frankfurt typical term is 7 years with 9 months free; Luxembourg runs 9 years with 6 months free. ### Pick by transit Frankfurt: Hauptbahnhof anchors S-Bahn, U-Bahn, ICE, and regional rail. Frankfurt Airport is 11 minutes by ICE. Luxembourg: Free public transport nationwide (since 2020) — buses, tram, and CFL national rail. Luxembourg City tram connects Kirchberg to the historic centre. Luxembourg Airport (LUX) is bus-served. ## Run a 4-city comparison Score Frankfurt, Luxembourg 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 Frankfurt or Luxembourg?**** : Frankfurt is cheaper on a USD basis: $59/sqft vs $60/sqft. ****Which has better talent depth, Frankfurt or Luxembourg?**** : Roughly comparable. ****Which has more sublease availability, Frankfurt or Luxembourg?**** : Frankfurt carries higher vacancy (8.4% vs 4.8%) and therefore typically more [sublease](/topics/sublease-strategy)">sublease overhang. ****What lease term should I expect in Frankfurt vs Luxembourg?**** : Frankfurt typical term is 7 years with 9 months rent-free; Luxembourg typical term is 9 years with 6 months rent-free. ****How does transit and commuter access compare?**** : Frankfurt: Hauptbahnhof anchors S-Bahn, U-Bahn, ICE, and regional rail. Frankfurt Airport is 11 minutes by ICE. Luxembourg: Free public transport nationwide (since 2020) — buses, tram, and CFL national rail. Luxembourg City tram connects Kirchberg to the historic centre. Luxembourg Airport (LUX) is bus-served. ## Editorial provenance Reviewed by [**Samuel Okafor**](/about/authors/samuel-okafor) — EMEA contributing editor. 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/frankfurt-vs-luxembourg), updated 2026-04-15T00:00:00.000Z.