--- title: "San Francisco vs Tel Aviv: Class A office comparison" description: "Side-by-side Class A office comparison for San Francisco and Tel Aviv — rent, vacancy, talent, tax, lease norms, transit, and top submarkets." canonical: https://classa.info/compare/san-francisco-vs-tel-aviv pageType: comparison lastUpdated: 2026-04-15T00:00:00.000Z license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)." --- > San Francisco ($78/sqft, 31.5% vacancy) and Tel Aviv ($66/sqft, 12.4% vacancy) compete on different axes: San Francisco on talent depth and Tel Aviv on rent and tax. ## TL;DR - Class A rent: San Francisco $78/sqft vs Tel Aviv $66/sqft. - Vacancy: San Francisco 31.5% vs Tel Aviv 12.4%. - Talent index: San Francisco 98 vs Tel Aviv 90. - Corporate tax: San Francisco 27% vs Tel Aviv 23%. - Premium flex/seat/month: San Francisco $1,280 vs Tel Aviv $880. # San Francisco vs Tel Aviv: Class A office comparison **San Francisco ($78/sqft, 31.5% vacancy) and Tel Aviv ($66/sqft, 12.4% vacancy) compete on different axes: San Francisco on talent depth and Tel Aviv on rent and tax.** ## TL;DR - [Class A](/glossary/class-a) rent: San Francisco $78/sqft vs Tel Aviv $66/sqft. - Vacancy: San Francisco 31.5% vs Tel Aviv 12.4%. - Talent index: San Francisco 98 vs Tel Aviv 90. - Corporate tax: San Francisco 27% vs Tel Aviv 23%. - [Premium flex](/topics/lease-vs-flex)/seat/month: San Francisco $1,280 vs Tel Aviv $880. ## Market data side-by-side | Metric | San Francisco | Tel Aviv| | Region | Americas | EMEA| | Country | United States | Israel| | Class A rent (USD/sqft/yr) | $78 | $66| | 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%| ## Lease norms | 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.| ## Talent | 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.| ## Transit & commute **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. ## Top submarkets — San Francisco - [**Transbay**](/cities/san-francisco/transbay) — [trophy tier](/topics/trophy-asset-selection) · $105/sqft/yr - [**South of Market (SOMA)**](/cities/san-francisco/south-of-market) — trophy tier · $92/sqft/yr - [**Mission Bay & SoMa**](/cities/san-francisco/mission-bay-soma) — prime tier · $80/sqft/yr ## Top submarkets — Tel Aviv - [**Sarona / Da Vinci**](/cities/tel-aviv/sarona-da-vinci) — trophy tier · ₪260/sqm/mo · ≈ $78.3 PSF/yr USD - [**Bavli (Azrieli Center)**](/cities/tel-aviv/bavli-azrieli) — trophy tier · ₪250/sqm/mo · ≈ $75.3 PSF/yr USD - [**Rothschild & Allenby**](/cities/tel-aviv/rothschild-allenby) — trophy tier · ₪240/sqm/mo · ≈ $72.2 PSF/yr USD ## Decision criteria ### Pick by cost Tel Aviv is the cheaper Class A market on a USD basis. ### Pick by talent depth San Francisco has the deeper talent index (98/100 vs 90/100). ### Pick by tax Tel Aviv has the lower headline corporate tax (23% vs 27%). Local incentives can change the effective rate materially. ### Pick by lease optionality San Francisco typical term is 7 years with 22 months free; Tel Aviv runs 5 years with 6 months free. ### Pick by transit 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. ## Run a 4-city comparison 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. [**Run a 4-city comparison →**](/tools/city-comparator) ## Frequently asked questions ****Is Class A office cheaper in San Francisco or Tel Aviv?**** : Tel Aviv is cheaper on a USD basis: $66/sqft vs $78/sqft. ****Which has better talent depth, San Francisco or Tel Aviv?**** : San Francisco indexes higher on talent depth (98 vs 90). ****Which has more sublease availability, San Francisco or Tel Aviv?**** : San Francisco carries higher vacancy (31.5% vs 12.4%) and therefore typically more [sublease](/topics/sublease-strategy)">sublease overhang. ****What lease term should I expect in San Francisco vs Tel Aviv?**** : San Francisco typical term is 7 years with 22 months rent-free; Tel Aviv typical term is 5 years with 6 months rent-free. ****How does transit and commuter access compare?**** : 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. ## 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/san-francisco-vs-tel-aviv), updated 2026-04-15T00:00:00.000Z.