San Francisco ($78/sqft, 31.5% vacancy) and Tel Aviv ($59/sqft, 12.4% vacancy) compete on different axes: San Francisco on talent depth and Tel Aviv on rent and tax.
San Francisco ($78/sqft, 31.5% vacancy) and Tel Aviv ($59/sqft, 12.4% vacancy) compete on different axes: San Francisco on talent depth and Tel Aviv on rent and tax.
| Metric | San Francisco | Tel Aviv |
|---|---|---|
| Region | Americas | EMEA |
| Country | United States | Israel |
| Class A rent (USD/sqft/yr) | $78 | $59 |
| Class A rent (local) | 78 USD | 220 ILS |
| Vacancy | 31.5% | 12.4% |
| Trend | rising | softening |
| Prime yield | 6.5% | 5.4% |
| Premium flex / seat / month (USD) | $1,280 | $880 |
| Submarkets covered | 6 | 5 |
| Corporate tax | 27% | 23% |
| Metric | San Francisco | Tel Aviv |
|---|---|---|
| Typical term | 7 yrs | 5 yrs |
| Typical rent-free | 22 mos | 6 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. | Net leases. 5-7 year terms standard. Free rent of 4-9 months and TI of ILS 600-1,200/sqm typical on a 5-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. | 23% Israeli corporate income tax. Approved Enterprise / Preferred Enterprise regimes provide reduced rates (7.5-16%) for qualifying R&D and high-tech activities. |
| Metric | San Francisco | Tel Aviv |
|---|---|---|
| Talent index (0–100) | 98 | 90 |
| Talent note | Deepest AI/ML and senior software engineering talent pool globally. Average all-in compensation indexes 98 vs. New York's 100. | Among the deepest tech, AI, cyber, and defense talent pools globally. Strong feed from Tel Aviv University, Technion, Hebrew University, and the IDF tech units (8200, Talpiot). English fluency is structural in tech. |
San Francisco: BART, Muni, Caltrain, and the new Salesforce Transit Center anchor commute infrastructure. The Central Subway extension to Chinatown completed in 2023.
Tel Aviv: Tel Aviv Light Rail Red Line (opened 2023), Israel Railways. Ben Gurion Airport (TLV) is rail-served. Tel Aviv Metro Lines 1, 2, 3 in planning. Bus network.
Tel Aviv is the cheaper Class A market on a USD basis.
San Francisco has the deeper talent index (98/100 vs 90/100).
Tel Aviv has the lower headline corporate tax (23% vs 27%). Local incentives can change the effective rate materially.
San Francisco typical term is 7 years with 22 months free; Tel Aviv runs 5 years with 6 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. Tel Aviv: Tel Aviv Light Rail Red Line (opened 2023), Israel Railways. Ben Gurion Airport (TLV) is rail-served. Tel Aviv Metro Lines 1, 2, 3 in planning. Bus network.
Score San Francisco, Tel Aviv 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.