--- title: "London vs New York: Class A office comparison" description: "Side-by-side Class A office comparison for London and New York — rent, vacancy, talent, tax, lease norms, transit, and top submarkets." canonical: https://classa.info/compare/london-vs-new-york pageType: comparison lastUpdated: 2026-04-15T00:00:00.000Z license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)." --- > London ($121/sqft, 8.6% vacancy) and New York ($102/sqft, 17.4% vacancy) compete on different axes: London on rent and tax and New York on talent depth. ## TL;DR - Class A rent: London $121/sqft vs New York $102/sqft. - Vacancy: London 8.6% vs New York 17.4%. - Talent index: London 96 vs New York 100. - Corporate tax: London 25% vs New York 27.5%. - Premium flex/seat/month: London $1,380 vs New York $1,450. # London vs New York: Class A office comparison **London ($121/sqft, 8.6% vacancy) and New York ($102/sqft, 17.4% vacancy) compete on different axes: London on rent and tax and New York on talent depth.** ## TL;DR - [Class A](/glossary/class-a) rent: London $121/sqft vs New York $102/sqft. - Vacancy: London 8.6% vs New York 17.4%. - Talent index: London 96 vs New York 100. - Corporate tax: London 25% vs New York 27.5%. - [Premium flex](/topics/lease-vs-flex)/seat/month: London $1,380 vs New York $1,450. ## Market data side-by-side | Metric | London | New York| | Region | EMEA | Americas| | Country | United Kingdom | United States| | Class A rent (USD/sqft/yr) | $121 | $102| | Class A rent (local) | 95 GBP | 102 USD| | Vacancy | 8.6% | 17.4%| | Trend | rising | rising| | Prime yield | 4.5% | 5.6%| | Premium flex / seat / month (USD) | $1,380 | $1,450| | Submarkets covered | 7 | 7| | Corporate tax | 25% | 27.5%| ## Lease norms | Metric | London | New York| | Typical term | 10 yrs | 10 yrs| | Typical rent-free | 24 mos | 14 mos| | Lease norms | London leases are predominantly Full Repairing and Insuring (FRI). Tenant pays service charge and is responsible for dilapidations on lease end. Rent reviews to open-market rent every 5 years are standard. Rent-free periods of 18-30 months on a 10-year term are typical, with 'capped' rent-free for break-clause certainty. Personal guarantees are uncommon for institutional tenants; rent deposits are common for younger covenants. | Manhattan leases are predominantly modified-gross structures with operating-expense and real-estate-tax escalations over a base year. Free rent (12-18 months on a 10-year term) and tenant improvement allowances ($130-$180/sqft for high-spec build-outs) are core economic levers. Personal guarantees are uncommon at institutional tenant scale; Good Guy Guarantees remain standard for smaller suites.| | Tax note | UK corporation tax is 25% (19% small profits rate). Business rates are a major occupancy cost — ~50% of rateable value annually, levied separately from rent and service charge. | Combined federal + New York State + NYC corporate income tax effectively reaches 27.5% for most C-corps. New York City Commercial Rent Tax (CRT) applies to Manhattan tenants south of 96th Street paying base rents above $250,000.| ## Talent | Metric | London | New York| | Talent index (0–100) | 96 | 100| | Talent note | Largest financial-services and technology talent pool in EMEA. Average all-in compensation indexes 96 vs. New York's 100. | Deepest white-collar talent pool in the Americas. Average all-in compensation for senior knowledge workers indexes 100 (the global baseline used elsewhere in this Atlas).| ## Transit & commute **London:** The Elizabeth Line transformed cross-London commute times. Heathrow to Liverpool Street is 35 minutes; Paddington to Canary Wharf is 17 minutes. Crossrail-adjacent assets command a measurable rent premium. **New York:** MTA subway lines, Metro-North, LIRR, and PATH converge on Midtown and the Financial District, anchored by Grand Central, Penn Station, and the Oculus. Class A landlords now factor commute time as part of their leasing pitch. ## Top submarkets — London - [**Mayfair & St James's**](/cities/london/mayfair-st-james) — trophy tier · £165/sqft/yr · ≈ $210 PSF/yr USD - [**City of London**](/cities/london/city-of-london) — trophy tier · £95/sqft/yr · ≈ $121 PSF/yr USD - [**Fitzrovia & Soho**](/cities/london/fitzrovia-soho) — prime tier · £110/sqft/yr · ≈ $140 PSF/yr USD ## Top submarkets — New York - [**Plaza District**](/cities/new-york/plaza-district) — trophy tier · $145/sqft/yr - [**Hudson Yards**](/cities/new-york/hudson-yards) — trophy tier · $130/sqft/yr - [**Midtown**](/cities/new-york/midtown) — trophy tier · $128/sqft/yr ## Decision criteria ### Pick by cost New York is the cheaper Class A market on a USD basis. ### Pick by talent depth New York has the deeper talent index (100/100 vs 96/100). ### Pick by tax London has the lower headline corporate tax (25% vs 27.5%). Local incentives can change the effective rate materially. ### Pick by lease optionality London typical term is 10 years with 24 months free; New York runs 10 years with 14 months free. ### Pick by transit London: The Elizabeth Line transformed cross-London commute times. Heathrow to Liverpool Street is 35 minutes; Paddington to Canary Wharf is 17 minutes. Crossrail-adjacent assets command a measurable rent premium. New York: MTA subway lines, Metro-North, LIRR, and PATH converge on Midtown and the Financial District, anchored by Grand Central, Penn Station, and the Oculus. Class A landlords now factor commute time as part of their leasing pitch. ## Run a 4-city comparison Score London, New York 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 London or New York?**** : New York is cheaper on a USD basis: $102/sqft vs $121/sqft. ****Which has better talent depth, London or New York?**** : New York indexes higher on talent depth (100 vs 96). ****Which has more sublease availability, London or New York?**** : New York carries higher vacancy (17.4% vs 8.6%) and therefore typically more sublease overhang. ****What lease term should I expect in London vs New York?**** : London typical term is 10 years with 24 months rent-free; New York typical term is 10 years with 14 months rent-free. ****How does transit and commuter access compare?**** : London: The Elizabeth Line transformed cross-London commute times. Heathrow to Liverpool Street is 35 minutes; Paddington to Canary Wharf is 17 minutes. Crossrail-adjacent assets command a measurable rent premium. New York: MTA subway lines, Metro-North, LIRR, and PATH converge on Midtown and the Financial District, anchored by Grand Central, Penn Station, and the Oculus. Class A landlords now factor commute time as part of their leasing pitch. ## 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/london-vs-new-york), updated 2026-04-15T00:00:00.000Z.