---
title: "Cap rate — Class A Atlas glossary"
description: "The yield at which an asset is valued — net operating income divided by capital value."
canonical: https://classa.info/glossary/cap-rate
pageType: glossary
lastUpdated: 2026-04-01T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> The yield at which an asset is valued — net operating income divided by capital value.

## TL;DR

- The yield at which an asset is valued — net operating income divided by capital value.
- Prime cap rates for Class A office in 2026 range from approximately 3.0% (Tokyo) to 7.5% (Dubai, Mumbai).

# Cap rate

*Capital markets · Global*

## Short definition

The yield at which an asset is valued — net operating income divided by capital value.

## Full definition

Prime cap rates for [Class A](/glossary/class-a) office in 2026 range from approximately 3.0% (Tokyo) to 7.5% (Dubai, Mumbai). Cap rate movement is the single largest driver of capital values. Tenants rarely model cap rates directly but should understand that landlord behaviour (concessions, capex, retention) is shaped by them.

## Why this matters for Class A leasing

Cap rate is part of the capital markets 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](/topics/cross-border-expansion) occupiers can translate quickly.

## See also

- [Prime yield](/glossary/yield)

---

Citation: Source: Class A Atlas (https://classa.info/glossary/cap-rate), updated 2026-04-01T00:00:00.000Z.