Chicago ($52/sqft, 24.5% vacancy) and Washington DC ($58/sqft, 19.4% vacancy) compete on different axes: Chicago on rent and tax and Washington DC on talent depth.
Chicago ($52/sqft, 24.5% vacancy) and Washington DC ($58/sqft, 19.4% vacancy) compete on different axes: Chicago on rent and tax and Washington DC on talent depth.
| Metric | Chicago | Washington DC |
|---|---|---|
| Region | Americas | Americas |
| Country | United States | United States |
| Class A rent (USD/sqft/yr) | $52 | $58 |
| Class A rent (local) | 52 USD | 58 USD |
| Vacancy | 24.5% | 19.4% |
| Trend | flat | flat |
| Prime yield | 7% | 6.3% |
| Premium flex / seat / month (USD) | $920 | $880 |
| Submarkets covered | 6 | 6 |
| Corporate tax | 28.5% | 27.1% |
| Metric | Chicago | Washington DC |
|---|---|---|
| Typical term | 10 yrs | 10 yrs |
| Typical rent-free | 22 mos | 14 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 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 | Combined federal + Illinois corporate tax effectively 28.5%. Cook County personal property lease transaction tax applies. | 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 | Chicago | Washington DC |
|---|---|---|
| Talent index (0–100) | 88 | 92 |
| Talent note | Deep professional-services, fintech, and trading talent pool. Average all-in compensation indexes 88 vs. New York. | 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. |
Chicago: CTA L lines and Metra commuter rail. Union Station and Ogilvie anchor commuter rail; Loop Elevated lines circle the historic CBD.
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.
Chicago is the cheaper Class A market on a USD basis.
Washington DC has the deeper talent index (92/100 vs 88/100).
Washington DC has the lower headline corporate tax (27.1% vs 28.5%). Local incentives can change the effective rate materially.
Chicago typical term is 10 years with 22 months free; Washington DC runs 10 years with 14 months free.
Chicago: CTA L lines and Metra commuter rail. Union Station and Ogilvie anchor commuter rail; Loop Elevated lines circle the historic CBD. 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 Chicago, 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.