San Francisco ($78/sqft, 31.5% vacancy) and Seattle ($52/sqft, 26.4% vacancy) compete on different axes: San Francisco on talent depth and Seattle on rent and tax.
San Francisco ($78/sqft, 31.5% vacancy) and Seattle ($52/sqft, 26.4% vacancy) compete on different axes: San Francisco on talent depth and Seattle on rent and tax.
| Metric | San Francisco | Seattle |
|---|---|---|
| Region | Americas | Americas |
| Country | United States | United States |
| Class A rent (USD/sqft/yr) | $78 | $52 |
| Class A rent (local) | 78 USD | 52 USD |
| Vacancy | 31.5% | 26.4% |
| Trend | rising | softening |
| Prime yield | 6.5% | 6.7% |
| Premium flex / seat / month (USD) | $1,280 | $940 |
| Submarkets covered | 6 | 5 |
| Corporate tax | 27% | 21% |
| Metric | San Francisco | Seattle |
|---|---|---|
| Typical term | 7 yrs | 10 yrs |
| Typical rent-free | 22 mos | 16 mos |
| Lease norms | 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. | Modified-gross structures with operating-expense pass-throughs. 10-12 year terms standard for trophy. Free rent of 12-18 months and TI of $100-$150/sqft typical on a 10-year deal. |
| Tax note | Combined federal + California corporate tax effectively reaches 27%. San Francisco gross receipts tax applies to most occupiers; payroll tax is now phased out. | 21% federal corporate income tax. No Washington State corporate income tax. Washington B&O tax applies to gross receipts (rates vary by activity). Seattle JumpStart payroll expense tax applies to tenants with $7M+ payroll. |
| Metric | San Francisco | Seattle |
|---|---|---|
| Talent index (0–100) | 98 | 92 |
| Talent note | Deepest AI/ML and senior software engineering talent pool globally. Average all-in compensation indexes 98 vs. New York's 100. | Deepest cloud, AI, and SaaS engineering talent pool in North America. UW and a deep network of T-1 engineering programs feed. Cost-of-living advantage versus Bay Area is structural. |
San Francisco: BART, Muni, Caltrain, and the new Salesforce Transit Center anchor commute infrastructure. The Central Subway extension to Chinatown completed in 2023.
Seattle: Sound Transit Link light rail (1 Line) extended in 2024 to Lynnwood; East Link to Bellevue / Redmond opening 2025-26. Streetcar serves South Lake Union. King County Metro bus network anchors local commute.
Seattle is the cheaper Class A market on a USD basis.
San Francisco has the deeper talent index (98/100 vs 92/100).
Seattle has the lower headline corporate tax (21% vs 27%). Local incentives can change the effective rate materially.
San Francisco typical term is 7 years with 22 months free; Seattle runs 10 years with 16 months free.
San Francisco: BART, Muni, Caltrain, and the new Salesforce Transit Center anchor commute infrastructure. The Central Subway extension to Chinatown completed in 2023. Seattle: Sound Transit Link light rail (1 Line) extended in 2024 to Lynnwood; East Link to Bellevue / Redmond opening 2025-26. Streetcar serves South Lake Union. King County Metro bus network anchors local commute.
Score San Francisco, Seattle 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.