Is Class A office cheaper in Austin or Houston?

Houston is cheaper on a USD basis: $35/sqft vs $60/sqft.

Which has better talent depth, Austin or Houston?

Austin indexes higher on talent depth (84 vs 78).

Which has more sublease availability, Austin or Houston?

Austin carries higher vacancy (27.8% vs 26.7%) and therefore typically more sublease overhang.

What lease term should I expect in Austin vs Houston?

Austin typical term is 10 years with 18 months rent-free; Houston typical term is 10 years with 18 months rent-free.

Austin ($60/sqft, 27.8% vacancy) and Houston ($35/sqft, 26.7% vacancy) compete on different axes: Austin on talent depth and Houston on rent and tax.

Class A rent: Austin $60/sqft vs Houston $35/sqft.
Vacancy: Austin 27.8% vs Houston 26.7%.
Talent index: Austin 84 vs Houston 78.
Corporate tax: Austin 22.5% vs Houston 22.5%.
Premium flex/seat/month: Austin $720 vs Houston $580.

Austin vs Houston: Class A office comparison

Austin ($60/sqft, 27.8% vacancy) and Houston ($35/sqft, 26.7% vacancy) compete on different axes: Austin on talent depth and Houston on rent and tax.

TL;DR

Class A rent: Austin $60/sqft vs Houston $35/sqft.
Vacancy: Austin 27.8% vs Houston 26.7%.
Talent index: Austin 84 vs Houston 78.
Corporate tax: Austin 22.5% vs Houston 22.5%.
Premium flex/seat/month: Austin $720 vs Houston $580.

Market data side-by-side

Metric	Austin	Houston
Region	Americas	Americas
Country	United States	United States
Class A rent (USD/sqft/yr)	$60	$35
Class A rent (local)	60 USD	35 USD
Vacancy	27.8%	26.7%
Trend	softening	softening
Prime yield	6.8%	7.6%
Premium flex / seat / month (USD)	$720	$580
Submarkets covered	5	5
Corporate tax	22.5%	22.5%

Lease norms

Metric	Austin	Houston
Typical term	10 yrs	10 yrs
Typical rent-free	18 mos	18 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 structures with operating-expense pass-throughs. 10-15 year terms common for trophy energy tenants. Free rent of 16-24 months and TI of $80-$140/sqft typical. Heavy concession packages.
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.	21% federal corporate income tax. No Texas state income tax. Texas franchise tax of 0.75% on margin. Elevated property tax burden — model carefully.

Talent

Metric	Austin	Houston
Talent index (0–100)	84	78
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 energy talent pool in the Americas. Strong engineering, healthcare (Texas Medical Center), and aerospace bases. Tech and finance talent depth is limited compared to Dallas / Austin.

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.

Houston: METRORail (three lines) anchors Downtown / Texas Medical Center / Museum District. Park-and-ride bus serves Energy Corridor and the Galleria. Heavy car dependency outside the urban core.

Top submarkets — Austin

Downtown — trophy tier · $72/sqft/yr
South Congress (SoCo) — prime tier · $58/sqft/yr
Domain — prime tier · $56/sqft/yr

Top submarkets — Houston

Downtown — trophy tier · $52/sqft/yr
Texas Medical Center — prime tier · $44/sqft/yr
Galleria / Uptown — prime tier · $38/sqft/yr

Decision criteria

Pick by cost

Houston is the cheaper Class A market on a USD basis.

Pick by talent depth

Austin has the deeper talent index (84/100 vs 78/100).

Pick by tax

Tax rates are tied.

Pick by lease optionality

Austin typical term is 10 years with 18 months free; Houston runs 10 years with 18 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. Houston: METRORail (three lines) anchors Downtown / Texas Medical Center / Museum District. Park-and-ride bus serves Energy Corridor and the Galleria. Heavy car dependency outside the urban core.

Run a 4-city comparison

Score Austin, Houston 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 →

Frequently asked questions

Is Class A office cheaper in Austin or Houston?: Houston is cheaper on a USD basis: $35/sqft vs $60/sqft.
Which has better talent depth, Austin or Houston?: Austin indexes higher on talent depth (84 vs 78).
Which has more sublease availability, Austin or Houston?: Austin carries higher vacancy (27.8% vs 26.7%) and therefore typically more sublease">sublease overhang.
What lease term should I expect in Austin vs Houston?: Austin typical term is 10 years with 18 months rent-free; Houston typical term is 10 years with 18 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. Houston: METRORail (three lines) anchors Downtown / Texas Medical Center / Museum District. Park-and-ride bus serves Energy Corridor and the Galleria. Heavy car dependency outside the urban core.

Editorial provenance

Reviewed by Miriam Hollander — Lead market analyst. Last updated 2026-04-15. See our methodology and editorial standards.

Primary sources for this page

CBRE Marketview reports — CBRE
JLL Office Insight — JLL
Cushman & Wakefield Marketbeat — Cushman & Wakefield
Savills World Research — Savills
Colliers Global Office Outlook — Colliers

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