Dallas ($36/sqft, 24.3% vacancy) and Houston ($35/sqft, 26.7% vacancy) compete on different axes: Dallas on talent depth and Houston on rent and tax.
Dallas ($36/sqft, 24.3% vacancy) and Houston ($35/sqft, 26.7% vacancy) compete on different axes: Dallas on talent depth and Houston on rent and tax.
| Metric | Dallas | Houston |
|---|---|---|
| Region | Americas | Americas |
| Country | United States | United States |
| Class A rent (USD/sqft/yr) | $36 | $35 |
| Class A rent (local) | 36 USD | 35 USD |
| Vacancy | 24.3% | 26.7% |
| Trend | flat | softening |
| Prime yield | 7% | 7.6% |
| Premium flex / seat / month (USD) | $640 | $580 |
| Submarkets covered | 6 | 5 |
| Corporate tax | 22.5% | 22.5% |
| Metric | Dallas | Houston |
|---|---|---|
| Typical term | 10 yrs | 10 yrs |
| Typical rent-free | 16 mos | 18 mos |
| Lease norms | Modified-gross structures with operating-expense pass-throughs. 10-year terms standard. Free rent of 14-18 months and TI of $80-$140/sqft typical on a 10-year Class A deal. Concession-rich market. | 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% on margin. 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. |
| Metric | Dallas | Houston |
|---|---|---|
| Talent index (0–100) | 84 | 78 |
| Talent note | Deep finance, technology, healthcare, and consulting talent. Major university feed from UT Dallas, SMU, and the broader Texas system. Cost-of-living and tax advantage continues to drive in-migration. | 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. |
Dallas: DART light rail and TRE commuter rail. Uptown is served by the McKinney Avenue streetcar. Suburban submarkets (Legacy West, Las Colinas) are car-dependent with new managed-lane access.
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.
Houston is the cheaper Class A market on a USD basis.
Dallas has the deeper talent index (84/100 vs 78/100).
Tax rates are tied.
Dallas typical term is 10 years with 16 months free; Houston runs 10 years with 18 months free.
Dallas: DART light rail and TRE commuter rail. Uptown is served by the McKinney Avenue streetcar. Suburban submarkets (Legacy West, Las Colinas) are car-dependent with new managed-lane access. 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.
Score Dallas, 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.
Reviewed by Miriam Hollander — Lead market analyst. Last updated 2026-04-15. See our methodology and editorial standards.