Equity tranche paid before common equity, after debt.

  • Equity tranche paid before common equity, after debt.
  • Common in value-add Class A capital stacks.

Preferred equity

Finance · Global

Short definition

Equity tranche paid before common equity, after debt.

Full definition

Common in value-add Class A capital stacks. Typical 10–14% pref; sized to fill the gap between senior debt and common equity.

Why this matters for Class A leasing

Preferred equity is part of the finance vocabulary that institutional Class A occupiers, landlords, and advisers use across Global markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks regional variation alongside the global standard so cross-border occupiers can translate quickly.