--- title: "Dallas vs Houston: Class A office comparison" description: "Side-by-side Class A office comparison for Dallas and Houston — rent, vacancy, talent, tax, lease norms, transit, and top submarkets." canonical: https://classa.info/compare/dallas-vs-houston pageType: comparison lastUpdated: 2026-04-15T00:00:00.000Z license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)." --- > Dallas ($36/sqft, 24.3% vacancy) and Houston ($35/sqft, 26.7% vacancy) compete on different axes: Dallas on talent depth and Houston on rent and tax. ## TL;DR - Class A rent: Dallas $36/sqft vs Houston $35/sqft. - Vacancy: Dallas 24.3% vs Houston 26.7%. - Talent index: Dallas 84 vs Houston 78. - Corporate tax: Dallas 22.5% vs Houston 22.5%. - Premium flex/seat/month: Dallas $640 vs Houston $580. # Dallas vs Houston: Class A office comparison **Dallas ($36/sqft, 24.3% vacancy) and Houston ($35/sqft, 26.7% vacancy) compete on different axes: Dallas on talent depth and Houston on rent and tax.** ## TL;DR - [Class A](/glossary/class-a) rent: Dallas $36/sqft vs Houston $35/sqft. - Vacancy: Dallas 24.3% vs Houston 26.7%. - Talent index: Dallas 84 vs Houston 78. - Corporate tax: Dallas 22.5% vs Houston 22.5%. - [Premium flex](/topics/lease-vs-flex)/seat/month: Dallas $640 vs Houston $580. ## Market data side-by-side | Metric | Dallas | Houston| | Region | Americas | Americas| | Country | United States | United States| | Class A rent (USD/sqft/yr) | $36 | $35| | Class A rent (local) | 36 USD | 35 USD| | Vacancy | 24.3% | 26.7%| | Trend | flat | softening| | Prime yield | 7% | 7.6%| | Premium flex / seat / month (USD) | $640 | $580| | Submarkets covered | 6 | 5| | Corporate tax | 22.5% | 22.5%| ## Lease norms | Metric | Dallas | Houston| | Typical term | 10 yrs | 10 yrs| | Typical rent-free | 16 mos | 18 mos| | Lease norms | Modified-gross structures with operating-expense pass-throughs. 10-year terms standard. Free rent of 14-18 months and TI of $80-$140/sqft typical on a 10-year Class A deal. Concession-rich market. | Modified-gross structures with operating-expense pass-throughs. 10-15 year terms common for trophy energy tenants. Free rent of 16-24 months and TI of $80-$140/sqft typical. Heavy concession packages.| | Tax note | 21% federal corporate income tax. No Texas state income tax. Texas franchise tax of 0.75% on margin. Property tax burden is elevated — model carefully into occupancy cost. | 21% federal corporate income tax. No Texas state income tax. Texas franchise tax of 0.75% on margin. Elevated property tax burden — model carefully.| ## Talent | Metric | Dallas | Houston| | Talent index (0–100) | 84 | 78| | Talent note | Deep finance, technology, healthcare, and consulting talent. Major university feed from UT Dallas, SMU, and the broader Texas system. Cost-of-living and tax advantage continues to drive in-migration. | Deepest energy talent pool in the Americas. Strong engineering, healthcare (Texas Medical Center), and aerospace bases. Tech and finance talent depth is limited compared to Dallas / Austin.| ## Transit & commute **Dallas:** DART light rail and TRE commuter rail. Uptown is served by the McKinney Avenue streetcar. Suburban submarkets (Legacy West, Las Colinas) are car-dependent with new managed-lane access. **Houston:** METRORail (three lines) anchors Downtown / Texas Medical Center / Museum District. Park-and-ride bus serves Energy Corridor and the Galleria. Heavy car dependency outside the urban core. ## Top submarkets — Dallas - [**Uptown**](/cities/dallas/uptown) — [trophy tier](/topics/trophy-asset-selection) · $58/sqft/yr - [**Arts District / Downtown East**](/cities/dallas/arts-district) — trophy tier · $52/sqft/yr - [**Legacy West (Plano)**](/cities/dallas/legacy-west) — trophy tier · $50/sqft/yr ## Top submarkets — Houston - [**Downtown**](/cities/houston/downtown) — trophy tier · $52/sqft/yr - [**Texas Medical Center**](/cities/houston/texas-medical-center) — prime tier · $44/sqft/yr - [**Galleria / Uptown**](/cities/houston/galleria-uptown) — prime tier · $38/sqft/yr ## Decision criteria ### Pick by cost Houston is the cheaper Class A market on a USD basis. ### Pick by talent depth Dallas has the deeper talent index (84/100 vs 78/100). ### Pick by tax Tax data not available for comparison. ### Pick by lease optionality Dallas typical term is 10 years with 16 months free; Houston runs 10 years with 18 months free. ### Pick by transit Dallas: DART light rail and TRE commuter rail. Uptown is served by the McKinney Avenue streetcar. Suburban submarkets (Legacy West, Las Colinas) are car-dependent with new managed-lane access. Houston: METRORail (three lines) anchors Downtown / Texas Medical Center / Museum District. Park-and-ride bus serves Energy Corridor and the Galleria. Heavy car dependency outside the urban core. ## Run a 4-city comparison Score Dallas, Houston and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD. [**Run a 4-city comparison →**](/tools/city-comparator) ## Frequently asked questions ****Is Class A office cheaper in Dallas or Houston?**** : Houston is cheaper on a USD basis: $35/sqft vs $36/sqft. ****Which has better talent depth, Dallas or Houston?**** : Dallas indexes higher on talent depth (84 vs 78). ****Which has more sublease availability, Dallas or Houston?**** : Houston carries higher vacancy (26.7% vs 24.3%) and therefore typically more [sublease](/topics/sublease-strategy)">sublease overhang. ****What lease term should I expect in Dallas vs Houston?**** : Dallas typical term is 10 years with 16 months rent-free; Houston typical term is 10 years with 18 months rent-free. ****How does transit and commuter access compare?**** : Dallas: DART light rail and TRE commuter rail. Uptown is served by the McKinney Avenue streetcar. Suburban submarkets (Legacy West, Las Colinas) are car-dependent with new managed-lane access. Houston: METRORail (three lines) anchors Downtown / Texas Medical Center / Museum District. Park-and-ride bus serves Energy Corridor and the Galleria. Heavy car dependency outside the urban core. ## Editorial provenance Reviewed by [**Miriam Hollander**](/about/authors/miriam-hollander) — Lead market analyst. Last updated 2026-04-15. See our [methodology](/about/methodology) and [editorial standards](/about/editorial-standards). ### Primary sources for this page - [CBRE Marketview reports](https://www.cbre.com/insights) — CBRE - [JLL Office Insight](https://www.jll.com/en/trends-and-insights) — JLL - [Cushman & Wakefield Marketbeat](https://www.cushmanwakefield.com/en/insights) — Cushman & Wakefield - [Savills World Research](https://www.savills.com/research_articles/) — Savills - [Colliers Global Office Outlook](https://www.colliers.com/en/research) — Colliers [Full sources index](/about/sources) · [Submit a correction](/about/corrections) --- Citation: Source: Class A Atlas (https://classa.info/compare/dallas-vs-houston), updated 2026-04-15T00:00:00.000Z.