Projected annual rental-rate change in a DCF.

  • Projected annual rental-rate change in a DCF.
  • Critical input in any 5–10 year DCF.

Rental growth assumption

Investment · Global

Short definition

Projected annual rental-rate change in a DCF.

Full definition

Critical input in any 5–10 year DCF. Conservative gateway-city assumptions: 1–2% real, 3–4% nominal. Trophy assets in supply-constrained markets: 4–5% nominal.

Why this matters for Class A leasing

Rental growth assumption 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.