Annual NOI divided by total acquisition + capex cost.

  • Annual NOI divided by total acquisition + capex cost.
  • Used to assess development and reposition projects.

Yield on cost

Investment · Global

Short definition

Annual NOI divided by total acquisition + capex cost.

Full definition

Used to assess development and reposition projects. Class A trophy targets typically 5.5–7.0% YoC at year-3 stabilisation in the US; 4.5–6.0% in EMEA gateway cities.

Why this matters for Class A leasing

Yield on cost 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.