Austin ($60/sqft, 27.8% vacancy) and Seattle ($52/sqft, 26.4% vacancy) compete on different axes: Austin on rent and tax and Seattle on talent depth.
Austin ($60/sqft, 27.8% vacancy) and Seattle ($52/sqft, 26.4% vacancy) compete on different axes: Austin on rent and tax and Seattle on talent depth.
| Metric | Austin | Seattle |
|---|---|---|
| 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% | 26.4% |
| Trend | softening | softening |
| Prime yield | 6.8% | 6.7% |
| Premium flex / seat / month (USD) | $720 | $940 |
| Submarkets covered | 5 | 5 |
| Corporate tax | 22.5% | 21% |
| Metric | Austin | Seattle |
|---|---|---|
| Typical term | 10 yrs | 10 yrs |
| Typical rent-free | 18 mos | 16 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. 10-12 year terms standard for trophy. Free rent of 12-18 months and TI of $100-$150/sqft typical on a 10-year deal. |
| 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 Washington State corporate income tax. Washington B&O tax applies to gross receipts (rates vary by activity). Seattle JumpStart payroll expense tax applies to tenants with $7M+ payroll. |
| Metric | Austin | Seattle |
|---|---|---|
| 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 cloud, AI, and SaaS engineering talent pool in North America. UW and a deep network of T-1 engineering programs feed. Cost-of-living advantage versus Bay Area is structural. |
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.
Seattle: Sound Transit Link light rail (1 Line) extended in 2024 to Lynnwood; East Link to Bellevue / Redmond opening 2025-26. Streetcar serves South Lake Union. King County Metro bus network anchors local commute.
Seattle is the cheaper Class A market on a USD basis.
Seattle has the deeper talent index (92/100 vs 84/100).
Seattle has the lower headline corporate tax (21% vs 22.5%). Local incentives can change the effective rate materially.
Austin typical term is 10 years with 18 months free; Seattle runs 10 years with 16 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. Seattle: Sound Transit Link light rail (1 Line) extended in 2024 to Lynnwood; East Link to Bellevue / Redmond opening 2025-26. Streetcar serves South Lake Union. King County Metro bus network anchors local commute.
Score Austin, Seattle 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.