San Diego ($56/sqft, 18.4% vacancy) and San Francisco ($78/sqft, 31.5% vacancy) compete on different axes: San Diego on rent and tax and San Francisco on talent depth.
San Diego ($56/sqft, 18.4% vacancy) and San Francisco ($78/sqft, 31.5% vacancy) compete on different axes: San Diego on rent and tax and San Francisco on talent depth.
| Metric | San Diego | San Francisco |
|---|---|---|
| Region | Americas | Americas |
| Country | United States | United States |
| Class A rent (USD/sqft/yr) | $56 | $78 |
| Class A rent (local) | 56 USD | 78 USD |
| Vacancy | 18.4% | 31.5% |
| Trend | flat | rising |
| Prime yield | 6.4% | 6.5% |
| Premium flex / seat / month (USD) | $880 | $1,280 |
| Submarkets covered | 5 | 6 |
| Corporate tax | 27.9% | 27% |
| Metric | San Diego | San Francisco |
|---|---|---|
| Typical term | 10 yrs | 7 yrs |
| Typical rent-free | 12 mos | 22 mos |
| Lease norms | Modified-gross structures with opex pass-throughs. 10-12 year terms common for life sciences. Free rent of 10-14 months and TI of $100-$160/sqft typical on a 10-year Class A deal; lab fitouts run materially higher. | 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 plus 8.84% California corporate franchise tax for an effective rate near 27.9%. California property tax (Prop 13) base is set at acquisition; meaningful for long-term ownership. | Combined federal + California corporate tax effectively reaches 27%. San Francisco gross receipts tax applies to most occupiers; payroll tax is now phased out. |
| Metric | San Diego | San Francisco |
|---|---|---|
| Talent index (0–100) | 86 | 98 |
| Talent note | Deep life sciences, biotech, defense, and intelligence talent. UCSD and the Salk / Scripps research cluster anchor. Deep naval and Marine veteran talent pool. | Deepest AI/ML and senior software engineering talent pool globally. Average all-in compensation indexes 98 vs. New York's 100. |
San Diego: MTS trolley (Blue, Green, Orange, UC San Diego Blue Line extension to UTC). COASTER and Sprinter commuter rail. 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.
San Diego is the cheaper Class A market on a USD basis.
San Francisco has the deeper talent index (98/100 vs 86/100).
San Francisco has the lower headline corporate tax (27% vs 27.9%). Local incentives can change the effective rate materially.
San Diego typical term is 10 years with 12 months free; San Francisco runs 7 years with 22 months free.
San Diego: MTS trolley (Blue, Green, Orange, UC San Diego Blue Line extension to UTC). COASTER and Sprinter commuter rail. 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 San Diego, 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.