Austin ($60/sqft, 27.8% vacancy) and Chicago ($52/sqft, 24.5% vacancy) compete on different axes: Austin on rent and tax and Chicago on talent depth.
Austin ($60/sqft, 27.8% vacancy) and Chicago ($52/sqft, 24.5% vacancy) compete on different axes: Austin on rent and tax and Chicago on talent depth.
| Metric | Austin | Chicago |
|---|---|---|
| Region | Americas | Americas |
| Country | United States | United States |
| Class A rent (USD/sqft/yr) | $60 | $52 |
| Class A rent (local) | 60 USD | 52 USD |
| Vacancy | 27.8% | 24.5% |
| Trend | softening | flat |
| Prime yield | 6.8% | 7% |
| Premium flex / seat / month (USD) | $720 | $920 |
| Submarkets covered | 5 | 6 |
| Corporate tax | 22.5% | 28.5% |
| Metric | Austin | Chicago |
|---|---|---|
| Typical term | 10 yrs | 10 yrs |
| Typical rent-free | 18 mos | 22 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 over a base year. Rent-free 18-30 months and TI $120-$200/sqft on a 10-year term are current market. |
| 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 + Illinois corporate tax effectively 28.5%. Cook County personal property lease transaction tax applies. |
| Metric | Austin | Chicago |
|---|---|---|
| Talent index (0–100) | 84 | 88 |
| 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. | Deep professional-services, fintech, and trading talent pool. Average all-in compensation indexes 88 vs. New York. |
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.
Chicago: CTA L lines and Metra commuter rail. Union Station and Ogilvie anchor commuter rail; Loop Elevated lines circle the historic CBD.
Chicago is the cheaper Class A market on a USD basis.
Chicago has the deeper talent index (88/100 vs 84/100).
Austin has the lower headline corporate tax (22.5% vs 28.5%). Local incentives can change the effective rate materially.
Austin typical term is 10 years with 18 months free; Chicago runs 10 years with 22 months free.
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. Chicago: CTA L lines and Metra commuter rail. Union Station and Ogilvie anchor commuter rail; Loop Elevated lines circle the historic CBD.
Score Austin, Chicago 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.