Austin ($60/sqft, 27.8% vacancy) and Washington DC ($58/sqft, 19.4% vacancy) compete on different axes: Austin on rent and tax and Washington DC on talent depth.
Austin ($60/sqft, 27.8% vacancy) and Washington DC ($58/sqft, 19.4% vacancy) compete on different axes: Austin on rent and tax and Washington DC on talent depth.
| Metric | Austin | Washington DC |
|---|---|---|
| Region | Americas | Americas |
| Country | United States | United States |
| Class A rent (USD/sqft/yr) | $60 | $58 |
| Class A rent (local) | 60 USD | 58 USD |
| Vacancy | 27.8% | 19.4% |
| Trend | softening | flat |
| Prime yield | 6.8% | 6.3% |
| Premium flex / seat / month (USD) | $720 | $880 |
| Submarkets covered | 5 | 6 |
| Corporate tax | 22.5% | 27.1% |
| Metric | Austin | Washington DC |
|---|---|---|
| Typical term | 10 yrs | 10 yrs |
| Typical rent-free | 18 mos | 14 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 over a base year. Federal GSA leases are typically full-service with cap on operating-expense growth. Free rent of 14-18 months and TI allowances of $130-$150/sqft are typical on 10-year private-sector deals. |
| 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. | Federal corporate income tax of 21% plus DC franchise tax of 8.25% drives a combined effective rate of about 27%. Class A office tenants are also subject to DC personal property tax on FF&E. |
| Metric | Austin | Washington DC |
|---|---|---|
| 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 federal-services and policy talent pool in the world. Strong legal, lobbying, defense, and consulting concentrations. Tech talent has grown rapidly post-2020 driven by AWS, Amazon HQ2, and federal cloud contracts. |
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.
Washington DC: WMATA Metro (six lines) plus VRE and MARC commuter rail. Union Station anchors regional rail. Trophy office clusters all sit within a 5-minute walk of a Metro station.
Washington DC is the cheaper Class A market on a USD basis.
Washington DC has the deeper talent index (92/100 vs 84/100).
Austin has the lower headline corporate tax (22.5% vs 27.1%). Local incentives can change the effective rate materially.
Austin typical term is 10 years with 18 months free; Washington DC runs 10 years with 14 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. Washington DC: WMATA Metro (six lines) plus VRE and MARC commuter rail. Union Station anchors regional rail. Trophy office clusters all sit within a 5-minute walk of a Metro station.
Score Austin, Washington DC 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.