Hurdle return paid to LPs before promote kicks in.

Hurdle return paid to LPs before promote kicks in.
Typical Class A core JV: 8% pref.

Preferred return

Investment · Global

Short definition

Hurdle return paid to LPs before promote kicks in.

Full definition

Typical Class A core JV: 8% pref. Value-add: 9–10% pref. Until pref is fully paid, the GP takes only management fees, no promote.

Why this matters for Class A leasing

Preferred return is part of the investment 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.

Hurdle return paid to LPs before promote kicks in.

Hurdle return paid to LPs before promote kicks in.
Typical Class A core JV: 8% pref.

Preferred return

Investment · Global

Short definition

Hurdle return paid to LPs before promote kicks in.

Full definition

Typical Class A core JV: 8% pref. Value-add: 9–10% pref. Until pref is fully paid, the GP takes only management fees, no promote.

Why this matters for Class A leasing

Preferred return is part of the investment 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.