Houston ($35/sqft, 26.7% vacancy) and San Francisco ($78/sqft, 31.5% vacancy) compete on different axes: Houston on rent and tax and San Francisco on talent depth.
Houston ($35/sqft, 26.7% vacancy) and San Francisco ($78/sqft, 31.5% vacancy) compete on different axes: Houston on rent and tax and San Francisco on talent depth.
| Metric | Houston | San Francisco |
|---|---|---|
| Region | Americas | Americas |
| Country | United States | United States |
| Class A rent (USD/sqft/yr) | $35 | $78 |
| Class A rent (local) | 35 USD | 78 USD |
| Vacancy | 26.7% | 31.5% |
| Trend | softening | rising |
| Prime yield | 7.6% | 6.5% |
| Premium flex / seat / month (USD) | $580 | $1,280 |
| Submarkets covered | 5 | 6 |
| Corporate tax | 22.5% | 27% |
| Metric | Houston | San Francisco |
|---|---|---|
| Typical term | 10 yrs | 7 yrs |
| Typical rent-free | 18 mos | 22 mos |
| Lease norms | 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. | 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 | 21% federal corporate income tax. No Texas state income tax. Texas franchise tax of 0.75% on margin. Elevated property tax burden — model carefully. | Combined federal + California corporate tax effectively reaches 27%. San Francisco gross receipts tax applies to most occupiers; payroll tax is now phased out. |
| Metric | Houston | San Francisco |
|---|---|---|
| Talent index (0–100) | 78 | 98 |
| Talent note | 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. | Deepest AI/ML and senior software engineering talent pool globally. Average all-in compensation indexes 98 vs. New York's 100. |
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.
San Francisco: BART, Muni, Caltrain, and the new Salesforce Transit Center anchor commute infrastructure. The Central Subway extension to Chinatown completed in 2023.
Houston is the cheaper Class A market on a USD basis.
San Francisco has the deeper talent index (98/100 vs 78/100).
Houston has the lower headline corporate tax (22.5% vs 27%). Local incentives can change the effective rate materially.
Houston typical term is 10 years with 18 months free; San Francisco runs 7 years with 22 months free.
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. San Francisco: BART, Muni, Caltrain, and the new Salesforce Transit Center anchor commute infrastructure. The Central Subway extension to Chinatown completed in 2023.
Score Houston, 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.