San Francisco ($78/sqft, 31.5% vacancy) and Washington DC ($58/sqft, 19.4% vacancy) compete on different axes: San Francisco on talent depth and Washington DC on rent and tax.
San Francisco ($78/sqft, 31.5% vacancy) and Washington DC ($58/sqft, 19.4% vacancy) compete on different axes: San Francisco on talent depth and Washington DC on rent and tax.
| Metric | San Francisco | Washington DC |
|---|---|---|
| Region | Americas | Americas |
| Country | United States | United States |
| Class A rent (USD/sqft/yr) | $78 | $58 |
| Class A rent (local) | 78 USD | 58 USD |
| Vacancy | 31.5% | 19.4% |
| Trend | rising | flat |
| Prime yield | 6.5% | 6.3% |
| Premium flex / seat / month (USD) | $1,280 | $880 |
| Submarkets covered | 6 | 6 |
| Corporate tax | 27% | 27.1% |
| Metric | San Francisco | Washington DC |
|---|---|---|
| Typical term | 7 yrs | 10 yrs |
| Typical rent-free | 22 mos | 14 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 over a base year. Federal GSA leases are typically full-service with cap on operating-expense growth. Free rent of 14-18 months and TI allowances of $130-$150/sqft are typical on 10-year private-sector deals. |
| 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. | Federal corporate income tax of 21% plus DC franchise tax of 8.25% drives a combined effective rate of about 27%. Class A office tenants are also subject to DC personal property tax on FF&E. |
| Metric | San Francisco | Washington DC |
|---|---|---|
| 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 federal-services and policy talent pool in the world. Strong legal, lobbying, defense, and consulting concentrations. Tech talent has grown rapidly post-2020 driven by AWS, Amazon HQ2, and federal cloud contracts. |
San Francisco: BART, Muni, Caltrain, and the new Salesforce Transit Center anchor commute infrastructure. The Central Subway extension to Chinatown completed in 2023.
Washington DC: WMATA Metro (six lines) plus VRE and MARC commuter rail. Union Station anchors regional rail. Trophy office clusters all sit within a 5-minute walk of a Metro station.
Washington DC is the cheaper Class A market on a USD basis.
San Francisco has the deeper talent index (98/100 vs 92/100).
San Francisco has the lower headline corporate tax (27% vs 27.1%). Local incentives can change the effective rate materially.
San Francisco typical term is 7 years with 22 months free; Washington DC runs 10 years with 14 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. Washington DC: WMATA Metro (six lines) plus VRE and MARC commuter rail. Union Station anchors regional rail. Trophy office clusters all sit within a 5-minute walk of a Metro station.
Score San Francisco, Washington DC 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.