Chicago ($52/sqft, 24.5% vacancy) and San Francisco ($78/sqft, 31.5% vacancy) compete on different axes: Chicago on rent and tax and San Francisco on talent depth.
Chicago ($52/sqft, 24.5% vacancy) and San Francisco ($78/sqft, 31.5% vacancy) compete on different axes: Chicago on rent and tax and San Francisco on talent depth.
| Metric | Chicago | San Francisco |
|---|---|---|
| Region | Americas | Americas |
| Country | United States | United States |
| Class A rent (USD/sqft/yr) | $52 | $78 |
| Class A rent (local) | 52 USD | 78 USD |
| Vacancy | 24.5% | 31.5% |
| Trend | flat | rising |
| Prime yield | 7% | 6.5% |
| Premium flex / seat / month (USD) | $920 | $1,280 |
| Submarkets covered | 6 | 6 |
| Corporate tax | 28.5% | 27% |
| Metric | Chicago | San Francisco |
|---|---|---|
| Typical term | 10 yrs | 7 yrs |
| Typical rent-free | 22 mos | 22 mos |
| Lease norms | 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. | Modified-gross with operating-expense escalations over a base year. Rent-free of 18-30 months on a 10-year term is current market for trophy assets in lease-up. TI of $150-$220/sqft is achievable. Termination options at year 5 are increasingly negotiable. |
| Tax note | Combined federal + Illinois corporate tax effectively 28.5%. Cook County personal property lease transaction tax applies. | Combined federal + California corporate tax effectively reaches 27%. San Francisco gross receipts tax applies to most occupiers; payroll tax is now phased out. |
| Metric | Chicago | San Francisco |
|---|---|---|
| Talent index (0–100) | 88 | 98 |
| Talent note | Deep professional-services, fintech, and trading talent pool. Average all-in compensation indexes 88 vs. New York. | Deepest AI/ML and senior software engineering talent pool globally. Average all-in compensation indexes 98 vs. New York's 100. |
Chicago: CTA L lines and Metra commuter rail. Union Station and Ogilvie anchor commuter rail; Loop Elevated lines circle the historic CBD.
San Francisco: BART, Muni, Caltrain, and the new Salesforce Transit Center anchor commute infrastructure. The Central Subway extension to Chinatown completed in 2023.
Chicago is the cheaper Class A market on a USD basis.
San Francisco has the deeper talent index (98/100 vs 88/100).
San Francisco has the lower headline corporate tax (27% vs 28.5%). Local incentives can change the effective rate materially.
Chicago typical term is 10 years with 22 months free; San Francisco runs 7 years with 22 months free.
Chicago: CTA L lines and Metra commuter rail. Union Station and Ogilvie anchor commuter rail; Loop Elevated lines circle the historic CBD. San Francisco: BART, Muni, Caltrain, and the new Salesforce Transit Center anchor commute infrastructure. The Central Subway extension to Chinatown completed in 2023.
Score Chicago, San Francisco 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.