San Francisco ($78/sqft, 31.5% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: San Francisco on talent depth and Tokyo on rent and tax.
San Francisco ($78/sqft, 31.5% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: San Francisco on talent depth and Tokyo on rent and tax.
| Metric | San Francisco | Tokyo |
|---|---|---|
| Region | Americas | APAC |
| Country | United States | Japan |
| Class A rent (USD/sqft/yr) | $78 | $113 |
| Class A rent (local) | 78 USD | 50000 JPY |
| Vacancy | 31.5% | 4.6% |
| Trend | rising | rising |
| Prime yield | 6.5% | 3% |
| Premium flex / seat / month (USD) | $1,280 | $980 |
| Submarkets covered | 6 | 6 |
| Corporate tax | 27% | 30.6% |
| Metric | San Francisco | Tokyo |
|---|---|---|
| Typical term | 7 yrs | 5 yrs |
| Typical rent-free | 22 mos | 4 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. | Tokyo leases are typically 5-7 years with a 2-year tenant notice. Standard leases are 'fixed-term' (teiki shakuya) or 'ordinary' (futsu shakuya) — fixed-term is increasingly common for Grade A. Rent is base + common-area maintenance billed separately. Restoration to original (genjo kaifuku) is contractual and significant. Personal seal (jitsuin) requirements apply. |
| 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. | Effective corporate tax rate 30.6% (national + local). Tokyo Metropolitan corporate inhabitant tax adds a meaningful local component. |
| Metric | San Francisco | Tokyo |
|---|---|---|
| Talent index (0–100) | 98 | 84 |
| Talent note | Deepest AI/ML and senior software engineering talent pool globally. Average all-in compensation indexes 98 vs. New York's 100. | The largest single-language white-collar talent pool in the world. Average all-in compensation for senior knowledge workers indexes 84 vs. New York's 100, though English-fluent bilingual talent commands a premium. |
San Francisco: BART, Muni, Caltrain, and the new Salesforce Transit Center anchor commute infrastructure. The Central Subway extension to Chinatown completed in 2023.
Tokyo: JR Yamanote loop plus 13 metro lines connect every Class A address. Shinkansen termini at Tokyo, Shinagawa, and Ueno support inter-city corporate networks.
San Francisco is the cheaper Class A market on a USD basis.
San Francisco has the deeper talent index (98/100 vs 84/100).
San Francisco has the lower headline corporate tax (27% vs 30.6%). Local incentives can change the effective rate materially.
San Francisco typical term is 7 years with 22 months free; Tokyo runs 5 years with 4 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. Tokyo: JR Yamanote loop plus 13 metro lines connect every Class A address. Shinkansen termini at Tokyo, Shinagawa, and Ueno support inter-city corporate networks.
Score San Francisco, Tokyo 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.